LIARS ALL

The US government is broke. For that matter, so are the big banks. Why doesn’t the general public know this? It’s simple—they have been lied to about the real situation.

What they’ve not been told is this: 1) that the Fed is buying virtually all of the US bond auction offering through a scam known as “Indirect Participation.” IP is designed to cover the fact that off shore purchases of US Treasury debt are being done with US dollars sent abroad for that specific purpose. This covers the hard fact that there are no takers for US debt and that the US is now forced to finance its own doomed spending spree. 2) The acknowledged national debt is somewhere near $14 trillion; the “off the books” national debt is several times that amount. Our rulers say that the national deficits for 2010 and 2011 will be between $1.6 and $1.8 trillion. That would be bad enough if it were true. But it, too, is a lie. The real budget deficits will be at least twice that large. Where is the money coming from to pay these deficits? Washington and Wall Street have three options, the first two of which are a) Continued borrowing (mainly from ourselves, however much sense that makes). Needless to say, this policy of creating money through the issuance of debt is highly inflationary. When this “money” finally hits Main Street we are likely to see hyperinflation; b) Much higher taxes and reduced services. Option c) is simply to default on the debt, partially (e.g. China) or completely.

Those options all will be painful, especially when the real unemployment and under-employment figures are nearer to 25% than to the officially acknowledged 10%. Moreover, nearly all the States are facing severe budget crises, and the States can’t print their own money like the Feds can.

The banks (and other big corporations) are in bad shape, too. But because they have been allowed by Federal regulators and ratings agencies to “cook their books,” this is not yet apparent to their customers, clients, investors, and the general public. One example will suffice to prove just how bad off the big banks are: the rationalization for the bailouts was to allow the banks to improve liquidity in order to get the Main Street economy moving again. But the big banks have hoarded these taxpayer funds rather than loan them out to intermediate and small businesses. Why is this? Simply put, it is because the banks needed every bit of that money in 2008-2009 to keep their balance sheets solvent. They were (and are), by any rational accounting standards, broke.

As long as the US government and the big banks can continue to lie their way through this crisis, things will hold together to some degree. There may be lots of angry rhetoric from spokesmen for the public and an occasional violent act of desperation. But things will hold together. As Mr. Jefferson told us, people are prone to bear up under abuses until they become unbearable. But when the truth comes out and things hold no longer, the breaking will be hard.

I have been told by some reliable sources that the Feds and their minions at the State and local levels are taking this “breaking hard” scenario pretty seriously. In other words, they are planning for the contingency that their illegitimate power will be challenged when things indeed become unbearable to the general populace. Because they are making plans to keep themselves in power and not take responsibility for their criminal lies and actions, I would suggest that you do the same in the name of preserving your lives, liberty, and property from the hand of this organized criminal enterprise. Oh, and help your friends and neighbors see through all the lies and obfuscation before it’s too late for them to prepare.

Audemus jura nostra Defendere! Live well . . .