By Karl Denninger
So how far have we gone down the rabbit hole?
Dateline January 8th, 2008 – one of my early video format warnings…
And the video that started it all, of which hundreds (in DVD format) were handed out in Washington DC in the summer of 2008.
Dateline July 23rd, 2008:
Wikipedia attributes The Tea Party in part to FedUpUSA, dated January19th. Between FedUp and myself, who posted a Ticker on the 20th of January in 2009 (“commemorating” President Obama’s inauguration), the concept was born.
Oh sure, CNBS spent air time last week “commemorating” Rick Santelli’s famous rant. of the 19th of February – one month later. There were tea bags all over the computer terminals in the background of the shot:
The problem with CNBS’ characterization is that as is typical of the self-aggrandizing media: they stole the ideas of others and portrayed them as their own, without credit.
They also refuse to mention that Rick Santelli was muzzled by CNBS’ corporate fascists and those of the CME, who it is rumored, both essentially threatened him with loss of his job if he continued to be involved in this movement.
This, of course has been conveniently forgotten and excised from the public record by the very same media. After all, if you stick someone up at gunpoint and get a bunch of money, you usually don’t mention the gun later on when it works out your way, right?
There are a handful of us in the alternative media who have been behind the truth since the beginning of this mess in 2007. The Ticker and FedUpUSA stand as two such organizations and media outlets, but we are not alone.
Since this mess began my message has been consistent and unwavering: Those who committed the frauds and excesses that led us to this precipice cannot be successfully propped up, we cannot exit this mess with more credit or “money printing” in any sort of form, and that only restoring credit balance will work – and whether that’s painful isn’t material to whether we must do it.
Now, suddenly, after three years the Wall Street Journal publishes an OpEd today stating what I’ve said since this began: Keynesian BS games will not work:
For going on three years, the developed world’s economic policy has been dominated by the revival of the old idea that vast amounts of public spending could prevent deflation, cure a recession, and ignite a new era of government-led prosperity. It hasn’t turned out that way.
Of course it hasn’t turned out that way: It was mathematically impossible for it work in the first instance.
The difference this time is that the Keynesian political consensus is cracking up. In Europe, the bond vigilantes have pulled the credit cards of Greece, Portugal and Spain, with Britain and Italy in their sights. Policy makers are now making a 180-degree turn from their own stimulus blowouts to cut spending and raise taxes. The austerity budget offered this month by the new British government is typical of Europe’s new consensus.
That day is coming here in the United States too. Count on it. The problem is that unlike Germany, who kept things somewhat more modest, we have blown nearly $4 trillion in borrowed funds and got nothing for it except a higher balance on our national credit card.
What the world has now reached instead is a Keynesian dead end. We are told to let Congress continue to spend and borrow until the precise moment when Mr. Summers and Mark Zandi and the other architects of our current policy say it is time to raise taxes to reduce the huge deficits and debt that their spending has produced. Meanwhile, individuals and businesses are supposed to be unaffected by the prospect of future tax increases, higher interest rates, and more government control over nearly every area of the economy. Even the CEOs of the Business Roundtable now see the damage this is doing.
Keynesian games never work. They are simply deferring the damage of today to tomorrow – a time-worn excuse of politicians of all stripes in an insane attempt to buy votes – irrespective of the economic damage done in the process.
The facts are found right here, in these two graphs.
We have this:
We must return to this:
We choose only how much damage we take in the process. The longer we wait, the more we try to evade and conceal the truth, the more money we borrow and blow in an insane attempt to prevent the inevitable, the worse the damage.
The Market Ticker and Tickerforum have spent three years in education of the public on these points. I will spend however many more I need to, up to either when the government cuts this crap out and we accept the inevitable or the Ponzi Scheme collapses of its own weight and buries both the economic and political stability of this nation.
Those are the choices folks.
They were the only two choices in 2007, and they still are.
Those who have been responsible for the path taken thus far, which has turned a 15-20% contraction in GDP that had to be taken in 2007 into a likely 40% one, must be held to account for their outrageous acts of wanton and intentional destruction.
As with our political and economic stability, once again, those people have a choice.
They may stand now, admit their offenses against the economic stability of this nation and indeed the world, repudiating their claimed “solutions” and accepting the just desserts for same, or they may roll the dice on whether sufficient law and order will continue to exist once the inevitable collapse – if we do not change course – occurs.
Were I one of them, I would not like the odds on the latter wager, but that decision is theirs to make – not mine.
There are 11,475 active accounts on Tickerforum as I write this three year “anniversary” post. On average 250,000+ unique readers view The Ticker and some 80,000 unique visitors look upon Tickerforum in any given month.
If you’re one of the seven out of eight viewers of Tickerforum that is not signed on with a login ID, change that today. Send the link to this Ticker around. Tell you friends.
This weekend if you sign up for Tickerforum you get full (Gold Level) access without cost or obligation. You might find that the “Gold Level” access is worth keeping after Sunday, but whether you decide to donate or not I will continue in my efforts to reach a critical mass of Americans with the intent of creating an environment that fosters peaceful contraction of the credit monster to something sustainable – something akin to the 1950s to early 1970s – before we reach the tipping point and put our republic’s very existence at risk.
It is my sincere hope you will join us.