I've also predicted long ago that as the underpinning of the con - the great fractional reserve credit scam - collapses, many of those who were complicit with the scam will begin turning on each other. They will do it to save themselves or to benefit personally in some way (once a scum bag, always a scum bag) but it will happen because that's often how criminal organizations fall. In truth, many didn't want to be criminals but the money was just too easy. They were moral-free, weak willed scumbags by nature and they just lacked any self control whatsoever. Thus, when the money stops being easy to come by they will likely reach a point where many will likely become repentant. Will they really be sorry or just sorry that the game is over? In many cases they will simply be sorry they got caught. I'm looking forward to watching them squirm in the sure and certain knowledge that no criminal organization can withstand massive truth-telling by insiders.
While the easy money was flowing, people like you and me around the world didn't care that things didn't seem quite right. After all, we were getting "ours" and so why speak up? In fact, many people actually became unwitting agents of the con. As a consequence, those who tried to bring something into the light of day were immediately cast off by the herd, ignored or laughed at no matter how much homework they might have done or how much evidence they might have access to. But as the con collapses, a sort of mass awakening is occurring. It's as if the credit con had hypnotized the people and now that the corrupting drug of easy credit is being pulled from the economy, people are coming out of their drugged stupors and they are not liking what they are seeing.
It's still a bit too early to tell where we are in this process but recent news suggests that it is later than most people probably realize. For example, we are now being told that the SEC has been shredding documents illegally, that Moody's credit organization has been corrupted to the core, and that Donald Rumsfeld will be tried for authorizing torture for his involvement in the illegal confinement and torture of two people. Think about the gravity of the Rumsfeld deal and how different it is than anything we have seen the past 40 years. It shows what happens when the people finally begin to wake up.
It used to be that if you were up in the lofty position of Secretary of Defense (better named "War Minister"
Of course there is still one massive shoe that still needs to drop and it will likely come (or be the cause of) the fastest portion of the Great Awakening that is coming and that is the real truth behind 911 (must watch video). Even my friends who have finally figured out that I pretty much know what I'm talking about with respect to the economy still have not suspended disbelief on that point. They now mostly understand that there are structural problems with the economy but they still believe there is no way that our government is that corrupt. We are not talking about uneducated fools here but rather some of the smartest and most analytical people you would ever want to meet. My response to them and to you is as simple as it is true: There is no way the credit bubble could have gotten as big as it has without this massive degree of corruption!
A credit bubble has to be perpetuated somehow or it will collapse. In order for this to happen, the people have to continuously agree to more and more debt based spending in their names. The only way to do this is to create the illusion of a threat or to start wars that lead to real ones. In the end analysis, someone at the top did some math to justify it all. The equation seems pretty simple: if they let the credit Ponzi collapse then it could cause major rioting whereby property losses could be in the trillions and loss of life could be in the many hundreds of thousands. Sacrificing 3-4k people in those buildings in order to start the next credit driven war makes sense both in terms of economics and in terms of human pain and suffering. If you don't think that government hacks make this type of analysis, you really don't get it. Of course, they are really just making excuses in order to stay in power. I don't care what their math says, nobody has the right to pick winners and losers, those who will survive or those who will be sacrificed. Numerical analyses cannot justify playing God with the economy or with human lives.
1 comment:
There is a difference between a criminal caught by justice spilling the beans so that his pain may be shared by his accomplices and a criminal caught by his accomplices as an escape goat. In the former case, the criminal gets leniency and a greater good is achieved for the sake of justice; in the latter case, the criminal has a couple of choices, shut up and put up or "heart attack"/"slip in the jail shower". I leave it to the reader to figure out which case is Rumsfeld's.
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