Jim Q
Washington’s Blog
November 28, 2011

Hello?
Is there anybody in there?
Just nod if you can hear me.

Is there anyone at home?
Come on, now,
I hear you’re feeling down.
Well I can ease your pain
And get you on your feet again.
Relax.
I need some information first.
Just the basic facts
Can you show me where it hurts?

Pink Floyd – Comfortably Numb

As I observe the zombie like reactions of Americans to our catastrophic economic highway to collapse, the continued plundering and pillaging of the national treasury by criminal Wall Street bankers, non-enforcement of existing laws against those who committed the largest crime in history, and reaction to young people across the country getting beaten, bludgeoned, shot with tear gas and pepper sprayed by police, I can’t help but wonder whether there is anyone home. Why are most Americans so passively accepting of these calamitous conditions? How did we become so comfortably numb? I’ve concluded Americans have chosen willful ignorance over thoughtful critical thinking due to their own intellectual laziness and overpowering mind manipulation by the elite through their propaganda emitting media machines. Some people are awaking from their trance, but the vast majority is still slumbering or fuming at erroneous perpetrators.

Both the Tea Party movement and the Occupy Wall Street movement are a reflection of the mood change in the country, which is a result of government overreach, political corruption, dysfunctional economic policies, and a financial system designed to enrich the few while defrauding the many. The common theme is anger, frustration and disillusionment with a system so badly broken it appears unfixable through the existing supposedly democratic methods. The system has been captured by an oligarchy of moneyed interests from the financial industry, mega-corporations, and military industrial complex, protected by their captured puppets in Washington DC and sustained by the propaganda peddling corporate media. The differences in political parties are meaningless as they each advocate big government solutions to all social, economic, foreign relations, and monetary issues.

There is confusion and misunderstanding regarding the culprits in this drama. It was plain to me last week when I read about a small group of concerned citizens in the next town over who decided to support the Occupy movement by holding a nightly peaceful march to protest the criminal syndicate that is Wall Street and a political system designed to protect them. My local paper asked for people’s reaction to this Constitutional exercising of freedom of speech and freedom of assembly. Here is a sampling of the comments:

“What are those Occupy people thinking?! The whole concept is foreign to me. There are always going to be the haves and the have nots. Get over it. Blame yourself for not paying more attention in school or not working hard enough. Just wish people would take responsibility.”

“If they worked half as hard actually working as they do being a pain in everyone else’s ass, they’d be rich! Being born does not guarantee success or wealth. Only hard work does. Maybe we should let them all occupy a jail cell or two.”

“Let’s hope they don’t pitch tents and trash Lansdale. They need to look for a job, not occupy the streets.”

“I work, and even if I wasn’t working I wouldn’t (march); I would be out looking for a JOB!”

I was dumbfounded at the rage directed towards mostly young people who haven’t even begun their working careers and have played no part in the destruction of our economic system underway for the last 30 years. The people making these statements are middle aged, middle class suburbanites. They seem to be just as livid as the OWS protestors, but their ire is being directed towards the only people who have taken a stand against Wall Street greed and Washington D.C. malfeasance. I’m left scratching my head trying to understand their animosity towards people drawing attention to the enormous debt based ponzi scheme that is our country, versus their silent acquiescence to the transfer of trillions in taxpayer dollars to the criminal bankers that have destroyed the worldwide financial system. I can only come to the conclusion the average American has become so apathetic, willfully ignorant of facts and reality, distracted by the techno-gadgets that run their lives, uninterested in anything beyond next week’s episode of Dancing with the Stars or Jersey Shore, and willing to let the corporate media moguls form their opinions for them through relentless propaganda, the only thing that will get their attention is an absolute collapse of our economic scheme. Uninformed, unconcerned, intellectually vacant Americans will get exactly that in the not too distant future.

Greater Depression Hidden from View

“Look at the orators in our republics; as long as they are poor, both state and people can only praise their uprightness; but once they are fattened on the public funds, they conceive a hatred for justice, plan intrigues against the people and attack the democracy.” – Aristophanes, Plutus

The anger and vitriol directed at OWS protestors by middle class Americans is a misdirected reaction to a quandary they can’t quite comprehend. They know their lives are getting more difficult but aren’t sure why. They are paying more for energy, food, tuition, and real estate taxes, while the price of their houses decline and their wages stagnate. More than a quarter of all homeowners are underwater on their mortgage and many are drowning in credit card and student loan debt. At the same time, government drones tell them the economy is in its second year of recovery and corporate profits are at all-time highs. Government statistics, false storylines, and entitlement programs are designed to confuse the public and obscure the fact we are in the midst of another Depression. Everyone has seen the pictures of the Great Depression breadlines, farmers forced off their land during the dustbowl, and downtrodden Americans in soup kitchens. The economic conditions today are as bad as or worse than the Great Depression. This Depression is hidden from plain view because there are no unemployment lines, bread lines, or soup lines. We are experiencing an electronic Great Depression, as food stamps, unemployment compensation, Social security payments and welfare benefits are electronically delivered to millions of recipients.

There have been over 12 million foreclosure actions since 2007, with millions of Americans losing their homes. Another 16 million homeowners are underwater on their mortgages as home prices continue to fall and the economy sinks further by the day. The value of household real estate has fallen from $22.7 trillion in 2006 to $16.2 trillion today, a loss of $6.5 trillion concentrated among the middle class. In contrast, mortgage debt has only decreased by $600 billion mostly due to write-offs by the banks that created fraudulent mortgage products to lure Americans into debt.

The unemployment rate in the United States reached 25% during the Great Depression. The government manipulated fictional unemployment rate reported to the public by drones at the BLS is currently 9.0%. They conveniently ignore the millions of people who have given up looking for work and those who have taken jobs as part-time pickle ploppers at McDonalds, when they previously assembled automobiles at GM. The true number of unemployed/underemployed is 23%.

Since 2007, unemployment has officially gone up by 7 million. In reality, the same percentage of the working age population should be employed today as in 2007 (63%). Since only 58.4% of the working age population is employed today (lowest since 1983), another 4 million needs to be added to the official unemployment tally. The fact is there are 240 million working age Americans and only 140 million are employed. This means there are 100 million working age Americans not working, but our government only classifies 14 million of them as unemployed. There is certainly millions of stay at home moms, students, and legitimately disabled among the 86 million people classified as not in the labor force, but you can’t tell me that another 20 to 30 million of these people couldn’t or wouldn’t work if given the opportunity.

The deception in government reported figures is borne out by the most successful government program of the Obama administration, which has been adding participants at an astounding rate. The Food Stamp program has been a smashing success as we’ve added 13.8 million Americans to this fine program since Obama’s inauguration, a mere 43% increase in less than three years. There are now 45.8 million Americans dependent upon food stamps for survival, 14.7% of the U.S. population. This program began in 1969 and enrollment always surges during recessions and declines during recoveries. But a funny thing happened during our current “recovery”. The government reported our recession over in December 2009. It was certainly over for the Wall Street psychopaths as they rewarded themselves with $43 billion of bonuses in 2009/2010. The number of Americans on food stamps has risen by 6.8 million during this government sponsored “recovery”. You’ll be happy to know that Obama’s good buddy – Jamie Dimon – and his well run machine at JP Morgan earns hundreds of millions administering the SNAP program.

Since 2007, Federal government transfer payments have increased from $1.7 trillion annually to $2.3 trillion, a 35% increase in four years. This is surely a sign of a recovering economy. Bernanke’s zero interest rate policy has stolen $400 billion per year from senior citizens and savers and handed it to the very bankers who caused the pain and suffering of millions. Personal interest income has declined from $1.4 trillion to $1.0 trillion, while Wall Street faux profits have soared. The game plan of the oligarchy has been to transfer hundreds of billions from taxpayers to bankers, report profits through accounting entries reducing loan loss reserves, pump up their stock prices and convince clueless lemming investors to buy newly issued shares at inflated valuations. The plan has failed. The zero interest rate policy’s unintended consequences have caused revolutions throughout the Middle East and massive food inflation across the developing world.

The single biggest reason the middle class feel frustrated, angry and like they are falling behind is due to the Federal Reserve and the relentless never ending inflation they produce in order to support their masters on Wall Street and provide cover for the trillions in debt spending by politicians in Washington DC. It is no surprise that beginning in 1980 when government spending began to accelerate much more rapidly than government revenues, the government decided to “tweak” how it measured inflation. The government reports inflation at 3.5% today. The truth is inflation is running in excess of 10% if measured exactly as it was in 1980. That’s right, we have a recession and we have inflation in double digits. No wonder the masses are restless.

The reason middle class Americans are being methodically exterminated and driven into poverty is the monetary policies of the Federal Reserve. Since 1971, when Nixon extinguished the last vestiges of the gold standard and unleashed politicians to spend borrowed money without immediate consequence, the U.S. dollar has lost 82% of its purchasing power using the government manipulated CPI. In reality, it has lost over 90% of its purchasing power. The average American, after decades of being dumbed down by government sanctioned education, is incapable of understanding the impact of inflation on their lives. As their wages rise 2% to 3% per year and inflation rises 5% to 10% per year, they get poorer day by day. The Wall Street banks, who own the Federal Reserve, step in and convince the average American to substitute debt for real wealth in order to keep living the modern techno-lifestyle sold to them by mainstream corporate media.

The oligarchy of moneyed interests have done a spectacular job convincing the working middle class they should be angry at 20 year old OWS protestors, illegal immigrants and the inner city welfare class, rather than the true culprits – the Federal Reserve, Wall Street banks and mega-corporations. This is a testament to the power of propaganda and the intellectual slothfulness of the average American. U.S. based mega-corporations fired 864,000 higher wage American workers between 2000 and 2010, while hiring almost 3 million workers in low wage foreign countries, using their billions in cash to buy back their own stocks, and paying corporate executives shamefully excessive compensation. The corporate mainstream media treats corporate CEO’s like rock stars as if they deserve to be compensated at a level 243 times the average worker. The S&P 500 consists of the 500 biggest companies in America and while the executives of these companies have reaped millions in compensation, the stock index for these companies is at the exact level it was on July 9, 1998. Over the last thirteen years workers were fired by the thousands, shareholders earned 0% (negative 39% on an inflation adjusted basis), and executives got fabulously rich.

Man made inflation has stealthily devastated millions of lives over the last four decades. When the weekly wages of the average worker are adjusted for inflation, they are making 12% less than they did in 1971. Using a real non-manipulated measure of inflation, the average worker is making 30% less than they did in 1971. Sadly, our math challenged populace only comprehend their wages have doubled in the last forty years, without understanding the true impact of inflation. Thankfully, the Wall Street debt dealers with a helping hand from Madison Avenue propaganda peddlers stepped up to the plate and imprisoned the middle class with the shackles of $2.5 trillion in consumer debt. So, while real wages have fallen 30% since 1971, consumer debt has increased by 1,700%.

Americans have been snookered into renouncing their citizenship and converting to being mindless consumers. Citizenship requires a person to be actively engaged in the community with obligations to fellow citizens and future generations. Consumerism requires people to love things, embrace debt, worry about what others have, and become driven by the accumulation of possessions and the appearance of wealth. The disgusting exhibition that Madison Avenue maggots have coined Black Friday is the ultimate display of consumerism. In a nauseating display of senseless spending driven by retail conglomerates, Americans act like Pavlov’s salivating dogs by lining up for hours to stampede over and pepper spray other consumers to get the ultimate deal on that Chinese made toaster oven, Vietnamese made laptop, Korean made HDTV, or Mexican made tortilla maker. They don’t seem to grasp the irony of going deeper into debt buying cheap crap made in foreign countries by the workers who took their jobs. The mainstream media proclaims a hugely successful Black Friday as millions bought crap they didn’t need with money they don’t have, while millions more ate their Thanksgiving meals in food shelters – unreported by the media.This repulsive manifestation of consumerism is applauded and encouraged by our government, as described by George Monbiot:

“Governments are deemed to succeed or fail by how well they make money go round, regardless of whether it serves any useful purpose. They regard it as a sacred duty to encourage the country’s most revolting spectacle: the annual feeding frenzy in which shoppers queue all night, then stampede into the shops, elbow, trample and sometimes fight to be the first to carry off some designer junk which will go into landfill before the sales next year. The madder the orgy, the greater the triumph of economic management.”

The masses have been brainwashed by those in power into thinking consumer spending utilizing debt is essential for a strong economy, when the exact opposite is the truth. Saving and investment are the essential ingredients to a strong economy. Debt based spending only benefits bankers, mega-corporations, and politicians.

Mass Manipulation through Propaganda

“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind.” – Edward Bernays, Propaganda, 1928

Edward Bernays, the father of propaganda to control the masses, would be so proud of his disciples running our country today. He clearly believed only an elite few were intellectually capable of running the show. Essentially, he hit upon the concept of the 1% telling the 99% what they should think and believe over eighty years ago. The mechanisms for controlling the thoughts, beliefs, and actions of the population are so much more efficient today. The conditioning begins when we are children, as every child will be bombarded with at least 30,000 hours of propaganda broadcast by media corporations by the time they reach adulthood. Their minds are molded and they are instructed what to believe and what to value. Those in control of society want to keep the masses entertained at an infantile level, with instant gratification and satisfying desires as their only considerations. The elite have achieved their Alpha status through intellectual superiority, control of the money system, and control of the political process. Their power emanates from eliminating choices, while giving the illusion of choice to the masses. People think they are free, when in reality they are slaves to a two party political system, a few Wall Street banks, and whatever our TVs tell us to buy.

Our entire system is designed to control the thoughts and actions of the masses. In many ways it is done subtly, while recently it has become more bold and blatant. It is essential for the ruling elite to keep control of our minds through media messages and the educational system. It is not a surprise that our public education system has methodically deteriorated over the last four decades. The government gained control over education and purposely teaches our children selected historical myths, social engineering gibberish and only the bare essentials of math and science. The government creates the standardized tests and approves the textbooks. We are left with millions of functionally illiterate children that grow into non-critical thinking adults. This is the exact result desired by the 1%. If too many of the 99% were able to ignore the media propaganda and think for themselves, revolution would result. This is why the moneyed interests have circled the wagons, invoked police state thug tactics, and used all the powers of their media machine to squash the OWS movement. It threatens their power and control.

“Experience has shown that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.” – Thomas Jefferson

A highly educated engaged citizenry would be a danger to the existing social order. The 1%, educated at our finest universities, does not want average Americans to obtain a great education for a reasonable price. They want them to get a worthless diploma at an excessively high price tag and become debt slaves to the Wall Street 1%. They want uneducated, indebted consumers, not educated productive citizens. Our republic has been slowly perverted since the time of its inception. The insidious process had been slow and methodical until 1913. The establishment of the Federal Reserve by an elite group of bankers and their politician friends and the establishment of a personal income tax created the conditions that have allowed a small cabal of powerful men to dictate the course of our economic, political, social, and military policies for the last 98 years. Anyone that chooses to open their eyes and awake from the propaganda induced stupor can see the result of allowing a small group of corrupt authoritarian men using their power to pervert our government into tyranny. The majority remains oppressed, buried under trillions of debt, while the shysters reap obscene profits, poison the worldwide economic system, and walk away unscathed in the aftermath of their crimes.

The ruling oligarchy has become so brazen in the last few years that it has attracted the attention of the critical thinking minority. The advent of the internet has allowed these critical thinking few to analyze the un-sanitized facts, discuss the issues, and provide truth amidst a blizzard of lies. The proliferation of truth telling websites (Zero Hedge, Mish, Financial Sense, Naked Capitalism) has allowed truth seekers to bypass the government sanctioned corporate media. The pillaging of society by the politically powerful, corrupt 1% is plain to see in the graphs below.

The divergence in household income was not the result of hard work, superior intellectual firepower, or the media touted entrepreneurial spirit of the rich. It was the result of the 1% capturing the economic and political system of the United States and using it to ransack the wealth of the formerly working middle class. The fatal flaw which will ultimately result in a fitting end for the powerful elitists is their egos. They are psychopaths, unable to feel empathy for their fellow man. Enough is never enough. They always want more. Life is a game to them. They truly believe they can pull the right strings and continue to accumulate more riches. But they are wrong. They are blinded by their hubris. There are limits to growth based solely on debt and we’ve reached that limit. The world is crumbling under the weight of crippling debt created by these Wall Street psychopaths, while the corrupted bought off politicians try to shift the losses from the bankers who incurred them to the citizens who have already been fleeced. Nomi Prins captures the essence of our current situation:

“Today, the stock prices of the largest US banks are about as low as they were in the early part of 2009, not because of euro-contagion or Super-committee super-incompetence (a useless distraction anyway) but because of the ongoing transparency void surrounding the biggest banks amidst their central-bank-covered risks, and the political hot potato of how many emergency loans are required to keep them afloat at any given moment. Because investors don’t know their true exposures, any more than in early 2009. Because US banks catalyzed the global crisis that is currently manifesting itself in Europe. Because there never was a separate US housing crisis and European debt crisis. Instead, there is a worldwide, systemic, unregulated, uncontained, rapacious need for the most powerful banks and financial institutions to leverage whatever could be leveraged in whatever forms it could be leveraged in. So, now we’re just barely in the second quarter of the game of thrones, where the big banks are the kings, the ECB, IMF and the Fed are the money supply, and the populations are the powerless serfs. Yeah, let’s play the ECB inflation game, while the world crumbles.”

Those in power are beginning to lose control. You can sense their desperation. Their propaganda is losing its impact as the pain for millions of Americans has become acute. The outrage and anger flaring across the country on a daily basis, reflected in the OWS movement, is just the beginning of a revolutionary period descending upon this nation. The existing social order will be swept away, but they will not go without a fight. They will use their control of the police, military and media to try and crush the coming rebellion.

The Dream is Gone

“The more corrupt the state, the more numerous the laws.” – Tacitus, The Annals of Imperial Rome

In addition to controlling the monetary system and brainwashing the inhabitants with relentless propaganda, the ruling class has used their control of the political process to impose thousands of laws, statutes, rules, and regulations upon the citizens. Again, an apathetic, distracted, trusting populace has been easily convinced that more laws will make them safe and secure. They have willingly sacrificed liberty, freedom and self reliance for the façade of safety, security and protection. The overwhelming number of government rules and regulations are designed to control you and insure your compliance and obedience to those in power. In a non-corrupt society inhabited by citizens willing to honor their obligations, government’s function is to insure property rights and defend the country from foreign invaders. Citizens don’t need to be herded like sheep with threats of imprisonment to do what is right. We don’t need 90,000 pages of regulations telling us the difference between right and wrong.

There were 400 pages of Federal Tax rules when the 1% personal income tax was implemented in 1913. Did the 18,000% increase in tax rules since 1913 benefit the average American or did they benefit the 1% who hires the lobbyists to write the rules which are passed into law by the politicians who receive their campaign contributions from the 1%? Do you ever wonder why you pay more taxes than a billionaire Wall Street hedge fund manager? Do you think our tax system is designed to benefit billionaires and mega-corporations when corporations with billions of income pay little or no taxes? Complexity and confusion benefits those who can create and take advantage of the complexity and confusion. Corporations and special interests have used their wealth to bribe politicians to design loopholes, credits, and exemptions that benefit their interests. The corruption of the system is terminal.

“The mistake you make, don’t you see, is in thinking one can live in a corrupt society without being corrupt oneself. After all, what do you achieve by refusing to make money? You’re trying to behave as though one could stand right outside our economic system. But one can’t. One’s got to change the system, or one changes nothing. One can’t put things right in a hole-and-corner way, if you take my meaning.” – George Orwell

The American people are paying the price for allowing a few evil men to gain control of our government. The American people cowered in fear as the 342 page Patriot Act was somehow written in a few weeks after 9/11, introduced in Congress on October 23, passed the House on October 24 with no debate, passed the Senate on October 25 with no debate, and signed into law on October 26 by George Bush. A law passed by the ruling elite that stripped Americans of their freedoms and liberties was passed using fear mongering false patriotism propaganda to squelch dissent and the American people had no say in the matter. The government has used fear to keep the American people under control. We now unquestioningly accept being molested in airports. We shrug as our intelligence agencies eavesdrop on our telephone conversations and emails without the need for a court order. It is now taken for granted that we imprison people without charging them with a crime and assassinate suspected terrorists in foreign countries with predator drones. Invading countries and going to war no longer requires a declaration of war by Congress as required by the Constitution. The State grows ever more powerful.

Therefore, it is no surprise that Americans sit idly by, watching their 52 inch HDTVs, as young people across the country are beaten, pepper sprayed, shot with rubber bullets and tear gas, and scorned and ridiculed by corporate media pundits for exercising their free speech rights to peacefully protest our corrupt system. The American tradition of civil disobedience is considered domestic terrorism by those in authority. Our beloved protectors in the Orwellian named Department of Homeland Security write reports classifying Ron Paul supporters and returning Iraq veterans as potential terrorists. If the powers that be get their way, the internet will be locked down and controlled, as it poses a huge threat to their thought control endeavors. Freedom to think, learn, question and organize resistance is unacceptable in the eyes of the elite. The country has reached a tipping point. Will enough right thinking Americans stand up and fight to bring down this corrupt system, or will we be herded silently to slaughter. The truth is there is something terribly wrong in this country. We are facing a myriad of problems that will require courage and common sense to overcome. We need only look in the mirror to find the guilty party. It is time to stop letting fear dictate our actions. Conflict is coming to this country due to the evil sanctioned by our corrupt leaders and the upright men and women who will bear the burden of destroying that evil.

Our civilization has adopted the worst aspects of the two most famous dystopian novels in history – Orwell’s 1984 and Huxley’s Brave New World. The question is whether the population of this country is too far gone to recover. The answer to that question will determine whether the country chooses authoritarian dictatorship or a renewal of our founding principles. Aldous Huxley understood the three pillars of Western civilization fifty years ago and that their destruction would result in a collapse of our economic system:

“Armaments, universal debt, and planned obsolescence – those are the three pillars of Western prosperity. If war, waste, and moneylenders were abolished, you’d collapse. And while you people are over-consuming the rest of the world sinks more and more deeply into chronic disaster.”

The three pillars sustaining the American empire edifice of never ending war, ever accumulating debt and excessive consumerism are crumbling. The growing corruption and weight of un-payable debt have weakened the very foundation of our grand experiment. The existing structure will surely collapse. My entire adult life has tracked the decline of the American empire. I had become comfortably numb. I came to my senses and began to question all the Federal government/Wall Street/Corporate Media sponsored truths about eight years ago. Many others have also awoken and begun to challenge the false storylines dictated by those in power.

The young people leading the protests across this land are showing tremendous courage and a tenacity of spirit that has been dormant for decades among the lethargic, distracted, over-medicated public. Despite being subjected to government education conditioning, these young people have zeroed in on the enemy. They may not have all the solutions, but they have correctly identified the corrupt banking system as the central nervous system of this vampire squid sucking the life out of our nation. I will support any effort to shine a light on our crooked system. My three young sons deserve a chance at a better life than they will get under the thumb of this oligarchic criminal enterprise. As a child I caught a fleeting glimpse of the American Dream. I turned to look, but it was gone. I choose not to become comfortably numb. I choose to do whatever it will take to renew the opportunity for my sons to achieve the American Dream.

When I was a child
I caught a fleeting glimpse
Out of the corner of my eye

I turned to look but it was gone
I cannot put my finger on it now
The child is grown,
The dream is gone.
I have become comfortably numb.

Pink Floyd – Comfortably Numb