The Real World News and Commentary – September 13, 2012

Connecting the Dots in the Real World

Created by Roy Perlmutter   September 13 2012


For You-Keith Urban (Official Music Video)


“…the total influence, economic, political even spiritual is felt in every city, every state house, every office in the federal government. … we must not fail to comprehend its grave implications. “


Pete Seeger: Where Have All the Flowers Gone?


Jim Rogers: It’s Going To Get Really “Bad After The Next Election”


Little Big Town – Little White Church


Diverging Like It’s 1929       by Doug Noland


Little Big Town – Pontoon


Central bankers and politicians are running out of ideas   by Alasdair Macleod


Spencer Dale: QE ‘could harm the economy’

The Bank of England should not automatically resort to printing money if growth remains weak because it “might do more harm than good”, the central bank’s chief economist warned.


The euro crisis is not over and is about to get interesting

Supposedly the euro crisis is all over. The mighty ECB has spoken. I have received triumphalist suggestions from bastions of euro-fanaticism that I should now capitulate.



“Jim Grant made the astute observation that the world we live in is akin to a movie called the Truman Show.  In the movie, the main character is unaware that he is living an artificial life as entertainment for an audience.  It was a charade.

As we await the two big events of the week, the German high court decision on the ratification of the ESM and the announcement from the Fed on Thursday about further monetary stimulus, it does indeed feel like a variant of the movie.  The main difference is that the audience is also part of the charade.

It is most likely that we will get more of the same.  There really is no other choice, and it has been so for quite some time.  As economic activity declines in the major economies of the world, one would have to try really hard not to see what is unfolding….


The Truman Show Trailer



We are going to see inflation, if they continue down this path, like we have never seen before.  Remember this, we have never had a central bank, under Ben Bernanke, that actually dared to threaten to conduct open-ended, never-ending quantitative easing.

Let me explain what that means.  That means that the Federal Reserve will print X billion dollars per month, until some economic goal is reached.  Specifically, what Bernanke has in mind is he’s going to continue to attack the currency and the middle class, until the unemployment rate drops from 8.1%, to somewhere in the 6% range.

The only problem is the only way we are going to get there, and we may very well get to a 6% unemployment rate, but the only way we are going to get there with these clowns, is if the majority of people looking for work drop out of the workforce.

Now Eric, if everyone stopped looking for work that was in the numerator, and left the workforce, guess what?  The unemployment rate would be zero.  That is the only way we are going to get the unemployment rate down in this country is if we continue the philosophy of deficit spending that is monetized by a central bank.”

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Of course central planning doesn’t work, but for whatever reason society allows the Fed to make believe that they have a superior central planning knowledge not possessed by mere mortals, even though the Fed’s track record pretty much throughout its history has been horrible.

I mean, just think back to the peak of the housing bubble and read some of the comments by the last two Fed chairmen.  They didn’t see it coming, nor did they say that the collapse would be as bad as it actually turned out to be.  Yet we are supposed to believe that the Fed can control inflation and keep the economy humming with high employment.

Anyway, here’s the point I want to make.  There is no discipline on US government spending.  If there were, there would not be a string of trillion dollar deficits nor forecasts for trillion dollar deficits as far as the eye can see.  These deficits mean the US government has to borrow money to fund its operation.

It is actually borrowing about 40% of the dollars that it is spending.

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There is no greater threat to the security and prosperity of the United States today than the out-of-control, secretive Federal Reserve.


Economist Richard Duncan: Civilization May Not Survive ‘Death Spiral’


China’s Revolution Risk


It’s A Small World After All ride


SA Mine unrest spreads as Lonmin strikers march

Roughly 10,000 striking platinum miners marched from one Lonmin shaft to another on Monday, threatening to kill strike breakers


The good doctor and I had a 25-minute chat on Sunday afternoon on all-talk radio WHAM 1600 out of Ann Arbor, Michigan.


History Uncut: Terry Anderson Released 1991


Is Microsoft making a gaming holodeck for your home?


Star Trek holodeck