Saturday, November 15, 2008

Con Over

Wall Street just ran the biggest con in history on the largest population in history: mortgage backed securities and derivatives. This multi-trillion dollar pile of paper is now approaching worthlessness and is bleeding red ink into the books of every financial entity in the land: individuals, businesses, pensions, and governments of all types. No one knows how to value either their own books or more importantly, how to evaluate a company they want to work with or invest in. No one knows how much of this toxic financial waste any institution is keeping on the books. Transparency is on the decline and opacity is on the rise. Credit is drying up and business is slowly grinding down all over the globe. Trust in the financial system and its instruments is being destroyed and could go to zero.

Yet so many keep to their investment routines as if nothing is amiss, that somehow this will blow over. I keep hearing the dreck on TV: buy the dips, we're at the bottom, market turnaround any day now. They keep saying it and many must still believe it. At work I hear how people are going to jump back in and buy the bargains, that stocks are so under priced now and how they are going to make a killing. They don't realize that they will be killed, that actually, they have already been killed. The game is over but no one can see it yet because the drone of the Wall Street con plays on, calming all like the inhabitants of an opium den.

The con by Wall Street is so smooth and has gone on for so long that no investor believes it can ever stop. No matter the extremes of the con, another con will be built on top of it and the game will go on and every one will continue to make money. This is the financial equivalent of the perpetual motion machine, a fallacy in science and equally fallacious in finance. Well, guess what? The ultimate con, derivatives by the trillions, has been played, the money is draining out of the world markets and IT IS NOT COMING BACK. The game is over. The playas know it even as they bilk the American taxpayers for billions more in executive bonuses and bailouts. Oh sure, some of them will play too long and get caught and hanged when the sheeple wake up, but they are being conned too, believing that their donations and lobbying efforts with government officials will buy them protection. It will, until it won't. When America wakes up, everything will be ripped to shreds in an orgy of destruction. No one will be able to stop it. Not guns, not martial law, not even the military.

So goes the death of the consumer economy, an absurd model that should never have been born. An economy is based on production and the trade of goods and services. How can eternal consumption ever be the basis of a nations wealth? It will work until the credit system can bear no more. Enter, stage right, the current era and the collapse of credit.

No replacement economy for this absurd consumerist economy is on deck. No plan is being made for the next economy. Our government flails in great incompetence, always in reaction, never in action. The con game goes on, everyone, even those conned, hoping it will never stop. But the inexorable law of credit and Ponzi financing are in play now. The consumer is broke and has no way to generate wealth. Credit is drying up. America has nothing to trade and stays afloat temporarily because the world believes the dollar must have value as their own currencies implode. Demand for the dollar is unprecedented but the emperor has no clothes. There is no longer any underlying value to FRN's. There is only the memory, the memory of the grand and golden days when the dollar ruled the world. When the world realizes that the historical dollar no longer exists and they are trading their worthless paper for our now worthless paper, the dollar will collapse.

At that point the American economy will collapse. In theory, commerce may come to a complete standstill since the currency has no value. It only represents an absurd amount of debt. With no value left in the country and most of our manufacturing capacity sent overseas, no one will loan us anything to help us return to the production economy. America will be a hissing to the world: the dollar collapse will also rob world economies of great wealth, impoverishing millions if not billions. Any misery or suffering we endure will be met with 'Serves you right.'

We, who for the most part only know how to consume goods and credit, must now bootstrap ourselves into a completely new way of life. A way of life undefined by any but a few apocalyptic authors. A way of life foreign to all of our institutions and most of our citizenry.

The entire population of the United States of America is about to become shell shocked by the severity of this bootstrapping process. The whole nation will be subjected to the same forces faced by soldiers on the front line. It's not going to be pretty. Many will go insane. Many more will turn violent. Most will try to adapt, to feel their way forward. Key utilities, such as power and water, may fail during this interim period, increasing suffering and death even more. Hunger will be a new companion for many.

Our enemies may take advantage of our discomfiture and attack or even invade us. The wrath of the world will fall upon our heads and no amount of pleading, begging, or cajoling will placate them. Their wrath must run its full course. Millions of Americans will die, directly or indirectly, during this world-wide bash America-a-thon. We will probably suffer nuclear strikes to our major cities. I only hope we can return tit-for-tat. Raiding parties to our shores may capture citizens and sell or keep them as slaves. No inhumanity will be spared Americans. The darkest days of history will be dredged for ways to humiliate, kill, and torture Americans.

The con of Wall Street is leading us to our soon destruction. It will not end until we have battled back to the America of our forefathers. The blood that will flow and the suffering endured will be of an epic scale. The Americans that survive will be the hardiest in the world. We will be like a nation of Navy Seals or Army Rangers or Marines. Anyone with a constitution weaker than these will perish.

We will rebuild but to a new blueprint. Wall Street will be banished forever. Usury will be a swear word. Banking will not exist. Government will be all about service and not about power. Anyone who shows anything less than the greatest humility as a public official will be shot, and shot again. Our eyes will be like flinty steel and our jaws firmly set. We will be all about personal responsibility. Righteousness, honesty, and integrity will be valued once more. We will be men and women of our word as we once were.

I only hope when the new blueprint is implemented, that clauses be added, as many as it takes, to make sure this never happens again. Great tomes will be written on the evil of usury and the glory of the paths of truth will be sung in every house. Everyone will be a guardian of the new blueprint and so it must be, ever watchful, that the insidious evil of 'something for nothing' does not arise for eternity in the blasted and cratered landscape of the reborn America.


Vicki551 said...

Sounds like the Apocalypse to me. I could see this coming since 1998. Only the strong or the righteous will survive. I'm old. I doubt I will be one of the survivors. I'll pray for the rest of you that you will be able to endure and make it to the foretold "thousand years of peace". God bless and may the Lord have mercy on your souls.

dibldabl said...

Whoa, vicki551, I didn't get it until about 2005. I always was a late bloomer. :) The most essential preparation required for the coming days is mental and spiritual. It sounds like you have those in spades, so I wouldn't be surprised to count you among the survivors for years to come. The Lord will stand by His own and maybe we can welcome the 1000-year reign together.