Judge rules against CALPERS and for San Bernardino BK

It is a long standing thesis of mine that the entire world is one big debt Ponzi.  People are told they will be paid something later if they just work for free today.  In other words, people are paid at all levels in debt.  When those wanting to purchase goods and services are allowed to do so using massive debt, of course they will request far more goods and services than they can ever actually pay for.  As long as people are stupid enough to take IOUs for their work, some scam artist in government is going to take advantage of them.

In fact, that is what the entire system of fiat currency and fractional reserve banking is all about: setting up credit to be used in all aspects of the economy instead of real money (which is gold and silver coins).  Why would they do this?  Because it is a basic human desire to get something for nothing.  Everyone wants in on it and the government is run by con men who are taking advantage of the human nature that they so well understand.

Recently, San Bernardino, CA followed suit of Stockton, CA in declaring bankruptcy.  CALPERS (a huge pension fund) promised those who have money tied up in their corrupt retirement fund a far greater return (something for nothing) than was mathematically possible.  In order to try to meet these commitments, CALPERS bought into the bonds of San Berdo (as the locals call it) because the interest rates were higher than some other municipal bonds.  Why were the rates higher??  Because the market sensed risk of repayment.  Of course CALPERS knew this too but they foolishly thought they would get paid regardless. They thought that their position made them senior to everyone else in BK court.  But a judge recently ruled that aren't senior and even more recently ruled that the city had the right to BK.  And so CALPERS is going to take a big, big haircut on its San Berdo munis.

Of course, this is just the start of the flood gates opening.  If Stockton and San Berdo can flush all those obligations, why should anyone else pay up?  Why indeed!  In fact, only a sucker will pay up at this point.  Someone else already took the pain of being #1 and #2 in the Big City BK Marathon that is now taking place and so the stigma about stiffing bond holders is greatly reduced.  As the economy continues to decline (and it will) there is only going to be less and less of a taxable base to steal from to pay other people's pensions.  If cities try to raise taxes, the sheeple will flee and once they are gone, they are gone.  Cities are looking at Detroit.  The only way to avoid becoming Detroit is to NOT scare away all the workers with threats of making them pay for someone else's retirement.

The writing is on the wall, just as I have been penning for years: the first to escape the Ponzi will do JUST FINE.  Anyone slow on the escape uptake will get F---ed big time.  This is not an Elliott wave prediction, it's a mathematical certainty.  It's a done deal.  Why?  Because it's a debt Ponzi, man!!  There is not all this value in the system that everyone thinks there is.  What cannot be repaid will not be repaid.  The system is filled with un-keepable promises for the most part and that's all.  Just ignore the con men when they try to say soothing words to the public about this because a collapse of all retirement funds is already baked into the debt Ponzi cake.

Unfortunately, I'm not just talking about pension funds like CALPERS.  I'm also talking about insurance annuities that promise ridiculous 8% returns in a 2% return environment that is not going to get any better for a long long time.  I'm also talking about the stock market.  And it get's worse.  A lot worse.  Because the money supply itself is entirely debt based (unless you count the US Nickel coin which is in fact the only remaining real commodity US coin since it contains metals that are in fact worth more than 5 Cents per coin).  The debt behind this "money" supply (it's really just fiat currency not money; the con men have gotten everyone to forget what real money is over time but everyone in the world will re-learn this over the next 10 years) can never be repaid.  Thus, the funny money is just endless Wimpy promises.  The government will gladly give you fraudulent green paper today if you will only work for them to keep them in power.

To be honest,  a small part of me is now looking forward to the coming collapse.  Not because it will be any fun but rather because the people who get the most hurt from it will basically have deserved it for laughing at a real hero, Ron Paul (the only politician and in fact the only man I have ever referred to as a hero).  Ron Paul told us all of this was going to happen for 20+ years and most people STILL have no clue what is going on.

I would say that while many people are starting to get concerned, only 10-15% have any clue what is really behind everything bad that is happening all of a sudden in the world these days.  Why don't they know??  Because they were so damned full of themselves laughing at Honest Ron that they failed to hear his words or to heed his advice.  The Global debt Ponzi is collapsing and it will continue to collapse far worse than most people can imagine.  Back in 2007, VERY few were saying this besides myself.  Now, many people who know the score are being very vocal. Each well known person that wakes up from the Grand Illusion is telling a few hundred or a few thousand more people.  Example: Bill O'Rielly.  The word is spreading and within a couple years (probably sooner) I expect a full-on panic.

The government also knows the score and they are "prepping" for it:
http://www.forbes.com/sites/ralphbenko/2013/03/11/1-6-billion-rounds-of-ammo-for-homeland-security-its-time-for-a-national-conversation/

Fake live fire military martial law drill Houston.

http://educate-yourself.org/cn/foreigntroopsinamerica07mar13.shtml

Oh, sure, the government probably has a good reason for all of this.  It's probably all on the up and up.  Government would never abuse power or do anything wrong or lie to the American people about reasons for going to war or about how much spying they are doing on everyone, everyday.  It's about time to figure out the truth: the US government is completely corrupt.  It is controlled by the military industrial complex that Ike famously warned us about.  It is powered by fiat currency and fractional reserve banking. 

If we get rid of that funny money, the military, corrupt corporations and government all collapse because they can't afford themselves unless they are paid in DEBT.  So they will do whatever it takes, even breaking the constitution into tiny pieces, even killing US citizens in the street if that is what is needed in order to retain power and control.  Everything they complain about being done in Syria will be done in the US, and more.  They will tell us they have to take our freedoms in order to keep us free.  Some sheeple will even believe it because they are unprepared and will be caught up in the shock and awe meant "to keep us all safe" (the government line is such BULLSHIT!!).   It's coming folks.   I'm rapidly losing sympathy for those who still cannot see it or are too afraid to even talk about it.  I'm starting to understand that they will get what they deserve.  It's political Darwinism in action.