Why the Economy Sucks and Will for Years

In the wake of yesterday’s blood bath in the stock market, the so-called financial “experts” are all over TV throwing around their misguided diagnosis. The fashionable opinion of the day is to blame China, tell everyone not to panic and that it’s just a small correction and everything is fine. Very few “experts” are willing to point a finger at the true culprit that has been distorting and artificially propping up a sick economy for decades—the Fed.

For my friends who are unfamiliar with the Fed, here’s a brief summary from Wikipedia with my commentary in parenthesis:

“The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907 (which was manufactured by the financial elite for justification to pass the Federal Reserve Act). Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved. Events such as the Great Depression in the 1930s (which was caused by the Fed and prolonged for over 25 years because of the Fed’s policies) were major factors leading to changes in the system.”

What does Wikipedia fail to mention?

One of the biggest enemies to a free society is a central bank. The founders were vehemently against a national bank because they knew that a handful of individuals put in charge of the money supply would be able to control the interactions of the people and financially swell the government. As Thomas Jefferson acknowledged, “I believe that banking institutions are more dangerous to our liberties than standing armies.”

In 1913 the US, in secret, created the Federal Reserve, the first national bank. It was created with the goal of restoring financial stability in the US economy. Obviously, it has failed miserably.

Since the birth of the Fed the dollar has lost over 95% of its value and it has created countless boom-bust cycles that have been slowly swallowing up the Middle-Class since WW2. The Federal Reserve’s inflationary policies (printing money out of thin air) is a hidden tax–reducing the purchasing power of our money–which is imposed silently on the American people. The more dollars floating around in circulation the less our dollar is worth.

Writer Erik Voorhees points out:

“The Federal Reserve System is fraudulent. Whatever its stated purpose, its effective purpose is to create a mechanism of deficit spending by politicians, through the insidious invisible taxation of monetary debasement (aka inflation). With printed money, the Government can buy services for its voters before the effects of inflation are felt. It is then the voters whose money buys less the following year, as the new money has raised prices, and they are none the wiser.”

Today, in the name of financial recovery, the Fed’s perverted policies force interest rates to the floor as to “stimulate” a spending spree. Sure, it works for the short term, but what it truly does is punish honest savers who get zero return on their savings. So instead of saving people spend and rack up obscene debt. The  zero-interest rate policies also cause a massive misallocation of resources by business owners. This causes false prosperity (boom) across the economy, which in time, is followed by a bust. This is what we’re seeing now. And it’s going to get uglier.

Former Congressman Ron Paul as been trying desperately to shed light on this fact for many years. And he also understands that “though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state.”

The mere fact that Trump, like all US politicians and presidential contenders, are solely blaming China for the market plummet is just another fabulous sign of how much trouble we’re in. What eludes the political establishment is the basic understanding of macroeconomics. As usual, no one’s looking at the true culprit—the central bank and its expansionary monetary policy. And if you aren’t able to comprehend the problem you’re unlikely to present any logical solutions.

What is needed?

The Fed doesn’t need to do anything (except go away forever). Allow the correction. Let the system flush out the bad assets. Quit tinkering with interest rates and let the market determine the price of money. No more QE (money printing).

In short, let the economy work naturally. This approach worked well in the economic downturn of 1921. But of course it’s rarely studied or talked about by the imbeciles of finance.

Jim Grant, in an excellent interview on CNBC yesterday, speaking on the market collapse rightly pointed out that “we have too much of something, which is financed by an excess of credit or debt. That, to me, is the essential backstory to this morning’s difficulties. It’s the mispricing of asset values, led by central banks who think that by inflating or lifting up stocks, bonds, real estate, they will thereby engender prosperity…

“In capitalism there is meant to be failure. It’s like the forest floor. There is life, there is regeneration, there is death. Without that, what you find is a bunch of dead fern.”

Anyone who is serious about living in a free society with real prospertiy must realize that central banking is the enemy. A government that has its own bank in its back pocket to print gazillions of dollars at will to finance whatever war they want to wage, or pay for whatever program they want to start, will continue to swell in size. Wages will remain stagnant as they have been for decades, and our freedoms will continue to diminish along with the purchasing power of our hard earned money.

End the Fed.

The System Will Not Be Fixed Politically

Writes Paul Rosenberg at freemansperspective.com:

Another American election cycle is upon us, and large numbers of people are lining up to pour their time and money into the sewer of politics, to be lost forever.

This system will not be fixed. Period. This is Rome in 460 AD. The rulers, as in Rome, are liars, mad, or drunk (these days, drugged)… or all three.

The “fall of Rome,” of course, was far more complex than we learned in school, but through all the many years of its decline, Rome was full of well-meaning people trying to reform and save it. And by the way, among the people who tried the hardest to keep the Roman game going were the Goths. They tried hard to keep Rome operational… and they failed too.

Let me be clear on this: Once ruling hierarchies get beyond a certain point, they cannot be reformed. And I am sure that the modern West is beyond that point.

  • Do we really believe that central bankers will just lay down their monopolies?
  • Can we seriously expect a hundred trillion dollars of debt to be liquidated without any consequences?
  • Do we actually believe that politicians will walk away from their power and apologize for abusing us?
  • Do we really think that the corporations who own Congress will just give up the game that is enriching them?
  • Does anyone seriously believe that the NSA is going to say, “Gee, that Fourth Amendment really is kind of clear, and everything we do violates it… so, everyone here is fired and the last person out will please turn off the lights”?
  • And does anyone believe that the military-industrial complex will stop encouraging war, or that corporate media will stop worshiping the state, or that your local sheriff will apologize for training his cops to be vicious beasts?
  • Do we really believe that public school systems will ever stop lauding the state that pays all its bills?

I could go on, but I think my point is made: This system will never allow itself to be seriously reformed. Trying to fix this is like trying to revive a long-dead corpse.

The systems that rule the West will fail.

Whether the wider Western civilization fails is up to us: Do we have civilization inside of us? Or was it all just a pattern that we followed?

Read the rest of the article here

jehovah’s witnesses at my door

jehovah witnesses knocked on my front door the other day.

two old ladies, sweet and pleasant,
with beautiful southern hats
were standing on my porch as
I opened the door.

hair disheveled, shirtless,
my tattooed body staring
at them.

they greeted me with nervous eyes
as they talked to me about their god.

they smiled, made small talk and
read their cherished scriptures
written by unknown authors.

soliciting their view of salvation.

it took all I had not to expose some of the
fallacies in their belief system.

it took all I had not to remind them that
being devoutly passionate in their beliefs
is not a measure of their accuracy.

but I was quiet. I let them read
and I politely took their pamphlet.
I gave them a thank you smile,
figuring nice people are better off
left alone in their fantasies.

as long as it gives them hope and meaning
in this circus of life, you know?

as they left, I shut my door,
tossed the paper into the trash
and headed out back to my patio.

I sat beside the dead ferns and the stale leaves
that had fallen from my backyard oak.

I subtly sipped my whiskey
and sucked in my version of salvation
through a cigar
and slowly exhaled it out to the gods.

and as I sat back,
trying to find my place in the book I was reading,
my mind wandered and
I caught myself recklessly
bleeding nonsensical thoughts on
fate, eternity and immortality.

damn those sweet old ladies,

they got me.



it’s rare to find someone real,
someone with intelligence
who can speak unfiltered
on the beauty and enigma
of life. and smile too.
it’s rare.

me and you
stardust messed together
with perfect elements of
chaotic wonder,
sitting on the dock
of eternity
consumed by the
epilepsy of the hour,
gazing up
at our dazzling ancestors
laughing, as the world
one another
with ignorance.

we remained radiant
among the filth
promising each other
to never catch fire
as we walk through this flame
and we accepted
our insatiable
our unquenchable
to turn away
from it all.

And with your
midnight eyes
your red lips
your black nails
your black dress
& heels,
a graceful martyr
of the violent night
baptized in your shadow,
the one you’ve asked me
to surrender to,
many times.

in your dark
i see a glimmer of light,
your light
that lost place
past and future.



there are no paths
that lead to truth.
that’s the splendor
and beauty of it. truth has
no set path. no absolute.
truth is alive, living,
breathing, meandering
through our cells, penetrating
our dreams. it doesn’t rest under
the roofs of mosques,
or temples
or churches.
it doesn’t die
in bitter hearts
or suffocate
in closed minds.
the truth is alive,
chaotically so,
and will continue to
thrive, whether we
want it to or not.
let it fill you with
vigor and passion
let it lead you
to say yes to it all.

Henri de Toulouse-Lautrec


Moonlit nights in Paris,
the artist, tiny, staggering through
streets, dragging along
an easel
he was to set up
in the Parisian brothels
to bring a light of humanity
to these gals of the night
that was rarely seen.

The wind, tainted
with the vices of the gutter,
splashed his face as he made his way.

And the thieves, pimps and
street-walkers lurked at all hours
of the seedy night.

The artist strolled on through.

Saturated with drink, 4 day
binge, no sleep
living out the fate that he’d excepted
long ago.

His paintings captured
the bohemian nights in Paris,
the afterhours
of the most essential era for art
and artists.

The glory of 19th century Paris,
he captured beautifully.

But the whores, alcohol
and madness
finally got the best of
this postimpressionist

As it usually does.

Dying in the arms of his mother
at only 36 years old
under the blazing sun.

The sun,
which he’d spent most
of his
short days
days cursing.

Perspective from Eternity


“Look again at that dot. That’s here. That’s home. That’s us. On it everyone you love, everyone you know, everyone you ever heard of, every human being who ever was, lived out their lives. The aggregate of our joy and suffering, thousands of confident religions, ideologies, and economic doctrines, every hunter and forager, every hero and coward, every creator and destroyer of civilization, every king and peasant, every young couple in love, every mother and father, hopeful child, inventor and explorer, every teacher of morals, every corrupt politician, every “superstar,” every “supreme leader,” every saint and sinner in the history of our species lived there-on a mote of dust suspended in a sunbeam.

The Earth is a very small stage in a vast cosmic arena. Think of the endless cruelties visited by the inhabitants of one corner of this pixel on the scarcely distinguishable inhabitants of some other corner, how frequent their misunderstandings, how eager they are to kill one another, how fervent their hatreds. Think of the rivers of blood spilled by all those generals and emperors so that, in glory and triumph, they could become the momentary masters of a fraction of a dot.

Our posturings, our imagined self-importance, the delusion that we have some privileged position in the Universe, are challenged by this point of pale light. Our planet is a lonely speck in the great enveloping cosmic dark. In our obscurity, in all this vastness, there is no hint that help will come from elsewhere to save us from ourselves.

The Earth is the only world known so far to harbor life. There is nowhere else, at least in the near future, to which our species could migrate. Visit, yes. Settle, not yet. Like it or not, for the moment the Earth is where we make our stand.

It has been said that astronomy is a humbling and character-building experience. There is perhaps no better demonstration of the folly of human conceits than this distant image of our tiny world. To me, it underscores our responsibility to deal more kindly with one another, and to preserve and cherish the pale blue dot, the only home we’ve ever known.”
― Carl Sagan, Pale Blue Dot: A Vision of the Human Future in Space