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Imagine if the congress approved a measure to form a public-private partnership between the US Treasury and the Federal Reserve. Can you imagine that?

Now imagine if a panicky and ill-informed Congress gave the Fed a blank check to bail out all of its crooked crony corporate and Wall Street friends, allowing the Fed to provide more than $4.5 trillion to underwater corporations that ripped off Mom and Pop investors by selling them bonds that were used to goose their stock prices so fatcat CEOs could make off like bandits. Imagine if all that red ink from private actors was piled onto the national debt pushing long-term interest rates into the stratosphere while crushing small businesses, households and ordinary working people.

Now try to imagine the impact this would have on the nation’s future. Imagine if the Central Bank was given the green-light to devour the Treasury, control the country’s “purse strings”, and use nation’s taxing authority to shore up its trillions in ultra-risky leveraged bets, its opaque financially-engineered ponzi-instruments, and its massive speculative debts that have gone pear-shaped leaving a gaping black hole on its balance sheet?

Well, you won’t have to imagine this scenario for much longer, because the reality is nearly at hand. You see, the traitorous, dumbshit nincompoops in Congress are just a hairs-breadth away from abdicating congress’s crucial power of the purse, which is not only their greatest strength, but also allows the congress to reign in abuses of executive power by controlling the flow of funding. The power of the purse is the supreme power of government which is why the founders entrusted it to the people’s elected representatives in congress. Now these imbeciles are deciding whether to hand over that authority to a privately-owned banking cartel that has greatly expanded the chasm between rich and poor, incentivized destructive speculation on an industrial scale, and repeatedly inflated behemoth asset-price bubbles that have inevitably blown up sending stocks and the real economy into freefall. The idea of merging the Fed and the Treasury first appeared in its raw form in an article by former Fed chairman Ben Bernanke and Janet Yellen in the Financial Times. Here’s a short excerpt from the piece:

“The Fed could ask Congress for the authority to buy limited amounts of investment-grade corporate debt… The Fed’s intervention could help restart that part of the corporate debt market, which is under significant stress. Such a programme would have to be carefully calibrated to minimize the credit risk taken by the Fed while still providing needed liquidity to an essential market.” (Financial Times)

The Fed is not allowed to buy corporate debt, because it is not within its mandate of “price stability and full employment”. It’s also not allowed to arbitrarily intervene in the markets to pick winners and losers, nor is it allowed to bailout poorly-managed crybaby corporations who were gaming the system to their own advantage when the whole deal blew up in their faces. That’s their problem, not the Fed’s and not the American taxpayer’s.

But notice how Bernanke emphasizes how “Such a programme would have to be carefully calibrated to minimize the credit risk taken by the Fed”. Why do you think he said that?

He said it because he anticipates an arrangement where the new Treasury-Fed combo could buy up to “$4.5 trillion of corporate debt” (according to Marketwatch and BofA). And the way this will work, is the Fed will select the bonds that will be purchased and the credit risk will be heaped onto the US Treasury. Apparently Bernanke and Yellen think this is a “fair” arrangement, but others might differ on that point.

Keep in mind, that in the last week alone, investors pulled a record $107 billion out of corporate bonds which is a market which has been in a deep-freeze for nearly a month. The only activity is the steady surge of redemptions by frantic investors who want to get their money back before the listing ship heads for Davey Jones locker. This is the market that Bernanke wants the American people to bail out mainly because he doesn’t want to submerge the Fed’s balance sheet in red ink. He wants to find a sucker who will take the loss instead. That’s where Uncle Sam comes in, he’s the target of this subterfuge. This same theme pops up in a piece in the Wall Street Journal. Check it out:

“At least Treasury has come around to realizing it needs a facility to provide liquidity for companies. But as we write this, Mr. Mnuchin was still insisting that Treasury have control of most of the money to be able to ladle out directly to companies it wants to help. This is a recipe for picking winners and losers, and thus for bitter political fights and months of ugly headlines charging favoritism. The far better answer is for Treasury to use money from Congress to replenish the Exchange Stabilization Fund to back the Fed in creating a facility or special-purpose vehicles under Section 13(3) to lend the money to all comers. “(“Leaderless on the Econom”, Wall Street Journal)

I can hardly believe the author is bold enough to say this right to our faces. Read it carefully: They are saying “We want your money, but not your advice. The Fed will choose who gets the cash and who doesn’t. Just put your trillions on the counter and get the hell out.”

Isn’t that what they’re saying? Of course it is. And the rest of the article is even more arrogant:

“The Fed can charge a non-concessionary rate, but the vehicles should be open to those who think they need the money, not merely to those Treasury decides are worthy.” (Huh? So the Treasury should have no say so in who gets taxpayer money??) The looming liquidity crisis is simply too great for that kind of bureaucratic, politicized decision-making. (Wall Street Journal)

Get it? In other words, the folks at Treasury are just too stupid or too prejudiced to understand the subtleties of a bigass bailout like this. Is that arrogance or what?

This is the contempt these people have for you and me and everyone else who isn’t a part of their elitist gaggle of reprobates. Here’s a clip from another article at the WSJ that helps to show how the financial media is pushing this gigantic handout to corporate America:.

“The Federal Reserve, Treasury Department and banking regulators deserve congratulations for their bold, necessary actions to provide liquidity to the U.S. financial system amid the coronavirus crisis. But more remains to be done. We thus recommend: (1) immediate congressional action …. to authorize the Treasury to use the Exchange Stabilization Fund to guarantee prime money-market funds, (2) regulatory action to effect temporary reductions in bank capital and liquidity requirements… (NOTE–So now the banks don’t need to hold capital against their loans?) .. additional Fed lending to banks and nonbanks….(Note -by “nonbanks”, does the author mean underwater hedge funds?)…

We recommend that the Fed take further actions as lender of last resort. First, it should re-establish the Term Auction Facility, used in the 2008 crisis, allowing depository institutions to borrow against a broad range of collateral at an auction price (Note–They want to drop the requirement for good Triple A collateral.) … Second, it should consider further exercising its Section 13(3) authority to provide additional liquidity to nonbanks, potentially including purchases of corporate debt through a special-purpose vehicle” (“Do More to Avert a Liquidity Crisis”, Wall Street Journal )

This isn’t a bailout, it’s a joke, and there’s no way Congress should approve these measures, particularly the merging of the US Treasury with the cutthroat Fed. That’s a prescription for disaster! The Fed needs to be abolished not embraced as a state institution. It’s madness!

And look how the author wants to set up an special-purpose vehicle (SPV) so the accounting chicanery can be kept off the books which means the public won’t know how much money is being flushed down the toilet trying to resuscitate these insolvent corporations whose executives are still living high on the hog on the money they stole from credulous investors. This whole scam stinks to high heaven!

Meanwhile America’s working people will get a whopping $1,000 bucks to tide them over until the debts pile up to the rafters and they’re forced to rob the neighborhood 7-11 to feed the kids. How fair is that?

And don’t kid yourself: This isn’t a bailout, it’s the elitist’s political agenda aimed at creating a permanent underclass who’ll work for peanuts just to eek out a living.

Welcome to Sweatshop Amerika!

 
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  1. EdNguyen says:

    Hunger Games society. We’ve arrived at last.

  2. Kim says:

    They’re going to have to bail out/nationalize the shale oil industry. Shale oil has provided very close to the only increase in global oil production for the last ten years. Until this current crisis, it was projected to produce 9% of global productionm for 2020.

    It has achieved these outcomes – despite steep decline rates and a constant need for huge numbers of new wells – through massive levels of junk debt forced into existence by almost zero interest rates and by having little to no profits since 2008.

    The break-even for shale oils wells varies, but $70 a barrel is a good average figure. Now WTI is at $22. It could drop to $5. Some, incredibly, even talk of negative oil prices as this current crisis causes a 20% drop in global demand. (No, I have no idea how negative prices would work, but there are a lot of things nowadays that I shake my head at.) Anyway, this would explode the shale oil industry and there is nothing to take its place and price in global demand. So what happens then? The Fed has supported shale oil for ten years. Does the government now just let it shut down? They can’t.

    It is isn’t a problem. It’s a predicament.

  3. It’s hard to understand how holiday cruise shipping can be regarded as an essential business.

    It is almost as hard to understand why a “Globalist Enterprise” should be spared its fate through the generosity of of one country. Even harder to understand, why would that one country should bail out a business, which had employed both tax-avoidance schemes as well as strategy of import substitution and foreign investment to improve its profits at the expense of that country.

    Nationalism is better that globalism. The current crisis was not caused by globalism; but globalism has drained from our country the means to respond to the crisis with the medicines and equipment that would reduce its severity.

    Not a single cent of government aid should go toward a person or an entity outside the United States and it territories. Conditions should be placed upon such aid, so that the companies receiving it, must domesticate their supply chains, and must produce and develop their products within the United States.

    • Replies: @Mr McKenna
  4. In 2008-2009, the Federal Reserve bailed out the global banking system to the tune of $16 Trillion. But American citizens were left to pay usurious rates of interest on $1 Trillion of credit card debt. And American students had lost years of economic opportunity but their $1 Trillion dollars of debt could not be discharged through bankruptcy.

    This time the banks should stand behind the debtors at the government troth.

  5. It’s hard to understand how holiday cruise shipping can be regarded as an essential business.

    It is almost as hard to understand why a “Globalist Enterprise” should be spared its fate through the generosity of of one country. Even harder to understand, why would that one country should bail out a business, which had employed both tax-avoidance schemes as well as strategy import substitution and foreign investment to improve its profits at the expense of that country.

    Nationalism is better that globalism. The current crisis was not caused by globalism; but globalism has drained from our country the means to respond to the crisis with the medicines and equipment that would reduce its severity.

    Not a single cent of government aid should go toward a person or an entity outside the United States and it territories. Conditions should be placed upon such aid, so that the companies receiving it, must domesticate their supply chains, and must produce and develop their products within the United States.

  6. Kim says:
    @anachronism

    Make the universities discharge the student debt. It was their scam all along. They can begin by retrenching their schools of the humanities and at least halving their administrative staff. And end building and sports programs. The fat hangs heavy on that particular pig.

  7. @Kim

    They’re going to have to bail out/nationalize the shale oil industry.

    Or “They” could just ignore it.

    It has achieved these outcomes – despite steep decline rates and a constant need for huge numbers of new wells – through massive levels of junk debt forced into existence by almost zero interest rates and by having little to no profits since 2008.

    Sounds like a really rotten business model. “steep decline rates and a constant need for huge numbers of new wells” describes an industry in eclipse, to put it kindly.

    The break-even for shale oils wells varies, but $70 a barrel is a good average figure.

    Even worse. This ‘business’ is essentially fake and should be shuttered. Every dollar thrown at it will be wasted. If everything in the world somehow reverses itself one day and shale oil is once again needed, we can restart it. Won’t happen, though. Obsolete.

    • Agree: Spanky
    • Replies: @follyofwar
  8. Oh lookey lookey at these Lolbertarian Scumbags they want to use the bailout money to buy back stocks – I kid you not, the repugs are trying to get it through with an exception that the treasury will have to give the greenlight before they indulge in this sordid shit.

    • Replies: @RadicalCenter
  9. @anachronism

    Nationalism is better [than] globalism.

    Simple and concise. Nationalism means caring about your people: your friends, neighbors, and family. Globalism means caring about rich people’s wallets.

  10. @Kim

    Good ideas! Especially the sports.

  11. the “Fed” is a fiction. It is and has been since 1913

    the Third (((Rothschild))) National Bank:

    http://www.globalresearch.ca/the-federal-reserve-cartel-the-eight-families-/25080

    of course Whitney is correct in substance: our shabbatz goy political class is about to

    hand control of the entire Ponzi’conomy to Jew-(((Wall Street))) while

    (white) Main Street is bloodsucked and crushed. One might think

    that Whites would at this point cotton to what’s happening and

    launch a violent uprising. Unfortunately,

    the Whites of today are not the pre-1914 Whites who

    built the great cathedrals and wrote the great symphonies. The

    dysgenic events of 1914-1945 et seq., also arranged by the (((banksters)))

    have seen to that.

  12. @Kim

    I agree with you up to a point.

    The student and the university should share responsibility equally. In the future, the institution should be made a co-signor on any student loan; and the obligation to repay the loan should be joint and several for both the institution and the student.

    Bankruptcy provides the ex-student with the chance to start over and to escape the burden; but not without consequences. This will discourage the ex-student, who is doing well financially and has the means to service the debt, from just walking away.

  13. @anachronism

    In the 2007 (it really started then) Depression I lost everything, stayed off-grid for years, and have never climbed back where I was – in fact I can’t conceive of living like that now, with a car, apartment, etc.

  14. @Kim

    One part of the New Deal, that seemed to work very well for all parties concerned, was the Department of Agriculture’s willingness to buy up excess grain/dairy production in order to encourage an ample supply of grain/dairy and a sustainable price, so that farmers could get out of the boom/bust cycle. These excess stores were intended to provide supplies when weather or disasters disrupted the harvests. The AG Dept. also established guidelines for farmers on how much acreage should be allocated to which type of food product, based upon its own estimates of aggregate demand and needs for strategic reserves. It even paid farmers to keep acreage fallow at times.

    The Department of Energy could do something similar (provided the Congress should legislate it). For this to work, the government must limit foreign sources from supplying the US markets to serve only as augmentation to US energy production whenever/wherever the US energy producers can’t meet the demand at the price level that the Energy Department sets. If the price is determined on an average COST+ ROI basis, our energy producers would effectively become utilities.

  15. Miro23 says:
    @Kim

    They’re going to have to bail out/nationalize the shale oil industry.

    Why? These were private failed investment decisions, so let the industry go bankrupt along with their shareholders and junk bond investors.

    The world doesn’t need oil supplied at $70 – And what has this got to do with the US public? They didn’t make these shale oil investment decisions.

    TBTF (Too Big To Fail) is another fake argument. If the investment banks had been allowed to fail in 2008, we would now have a smaller and more prudent banking sector. There are always some serious banks out there to pick up the pieces.

    • Agree: Thomasina
    • Replies: @Kim
    , @RadicalCenter
  16. Franz says:

    Welcome to Sweatshop Amerika!

    When it all hit the Rust Belt they tried to warn everyone: You’re on the hitlist too. But things were fine elsewhere so…

    Have we reached the moment when we can’t get anything running again? Bad enough they want us all to run and hide from the flu. But we’re about to find out what happens when it really gets down to “every man for himself and God against all.” This will not end well.

  17. Miro23 says:

    And look how the author wants to set up an special-purpose vehicle (SPV) so the accounting chicanery can be kept off the books which means the public won’t know how much money is being flushed down the toilet trying to resuscitate these insolvent corporations whose executives are still living high on the hog on the money they stole from credulous investors. This whole scam stinks to high heaven!

    This is true, and the repeating cycle reminds me of Kurosawa’s film “The Seven Samurai”.

    Every year, after the harvest, a group a bandit horsemen arrive at the village to loot the place. Eventually the poor scared villagers find the courage, and pay some people to help defend themselves.

    Result that a lot of people end up dead, but the village is free.

    https://www.amazon.com/Samurai-English-Subtitled-Toshiro-Mifune/dp/B004D1AIZ4

  18. gotmituns says:

    There’s going to be a giant change in the way work is done. Many thousands of people are going to work from home now. I think this will be the end of schools as we know them which is a good thing I believe. Bur I don’t like the depersonalizing of people that will follow. Mass transit is going to take a big shot from this. Ridership will never return to what it was.

    • Replies: @Cowtown Rebel
  19. @Kim

    A lot of donors want their names on buildings, not just a big plaque of “Our biggest supporters”.

  20. I suppose that Congress could explicitly exclude certain companies, e.g. Dow Jones, all major banks, and all hedge funds. It was time to go back to community banking a long time ago.

    BTW, talking about companies using bailout money to buy back shares is a canard: Companies that have previously bought back shares should be required to issue a similar dollar volume of shares as sold in the past seven years before they are deemed eligible to receive any bailout funds.

  21. Stargazer says:

    Mike: As always you’re spot on in your comments? What, indeed, should a private corporation have control of a nation’s purse strings. So, if all three branches of government are equally corrupt and incapable, as well as unwilling to change their focus from aiding and abetting the elite to supporting “we the people,” what should we do?

    As citizens , at least temporarily, protected by what’s left of the Constitution, what is to prevent us from developing our own election platform and recruiting bonfire, competent people to run in any campaign, city, state or federal? Obviously, this is both the last thing the elite expect but also what they fear the most. Yet, the consequences for not doing this are simply unacceptable for all citizens and, especially the younger generation who have largely been disenfranchised and impoverished by those in power, such as the venal and obviously corrupt Fed.

  22. Beckow says:
    @Kim

    An alternative is to close the North American markets to imports with import duties. That would keep the domestic prices high enough, plus the strategic reserve can buy oil to prop up the price.

    This would shift the issue abroad; consumers in EU, China, Japan would benefit and energy producers would suffer. It is a blunt weapon and others would retaliate, but all alternatives at this point are bad.

    • Replies: @Kim
  23. @gotmituns

    If working from home is the new norm, many millions more won’t be working at all. This is not the Jetsons, and, the day that it is, will be the day when ninety nine point nine percent of the people on this planet will be obsolete and useless. Until then, I guess the rulers can starve; work to death; drive to drug addiction, depression and suicide; and otherwise execute WE, the surplus, until a manageable level is left to do the most trivial of tasks that a robot can’t accomplish.

  24. Kim says:
    @Miro23

    I sympathize with the idea of letting bad guys die in their own filth. Very much so.

    But oil isn’t just any industry. It is life itself. For example, no oil means no agriculture. And no agriculture means….

    The big problem of course is that the cheap, affordable oil is gone and that, as has happened in Venezuela, we are now looking at some extreme belt-tightening. One way or another, our oil use is going to be ratcheted down severely. So how can we manage that?

    I don’t think an overnight worldwide drop of 20% is survivable. We could be forced to try it, of course, along with rationing and riots. But in that case it might be a good idea to leave the cities and get plenty of ammo. As this flu has shown, things can go bad very quickly.

  25. Jake says:

    Making the white working and middle classes a new form of serfs is a, if not THE, primary purpose of Globalism.

    The non-white-race-obsessed bleeding heart liberals have played an indispensable role in the precess by acting to harm the white working and middle classes in the name of uplifting non-whites.

    That is what Anglo-Zionist Empire is and does. As long as we have Anglo-Zionist Empire, this is what it will pursue – it is hardwired into the deep culture.

  26. Kim says:
    @Beckow

    Yes, maybe something like that. Canadian tar sands are needed for blending with shale condensates. But tar sands are economically even worse than shale. Still something will have to be done. God knows what.

  27. Surtr says:

    Even the sweatshops are in line with mobs, corrupt ex-cops, and Mormons! Our society is broken.

    The McDonald’s Monopoly Game Was Rigged for Years. One Employee Helped Bust a Crime Ring to Save the Company.
    https://www.elle.com/culture/movies-tv/a31134134/mcmillions-mcdonalds-monopoly-amy-murray-interview/

    ~Surtr

  28. Emslander says:
    @anachronism

    Government always saves the people it favors. By the time those programs came along, most farmers who were going to lose their farms had. The market should make all such decisions. If farm programs didn’t exist, land prices would be low enough to allow for easy entry by farmers who know how to live without debt.

    • Replies: @ConnectingTheDots
  29. Realist says:
    @anachronism

    Government involvement is always a problem.

  30. From the article;

    The idea of merging the Fed and the Treasury first appeared in its raw form in an article by former Fed chairman Ben Bernanke and Janet Yellen in the Financial Times

    Hmm, my spidey senses are tingling when I hear these two names, lets check out their backgrounds to see if my senses are not giving off a false positive…

    Ben Shalom Bernanke

    Bernanke was born in Augusta, Georgia, and was raised on East Jefferson Street in Dillon, South Carolina. His father Philip was a pharmacist and part-time theater manager. His mother Edna was an elementary school teacher. Bernanke has two younger siblings. His brother, Seth, is a lawyer in Charlotte, North Carolina. His sister, Sharon, is a longtime administrator at Berklee College of Music in Boston.

    The Bernankes were one of the few Jewish families in Dillon and attended Ohav Shalom, a local synagogue; Bernanke learned Hebrew as a child from his maternal grandfather, Harold Friedman, a professional hazzan (service leader), shochet, and Hebrew teacher. Bernanke’s father and uncle owned and managed a drugstore they purchased from Bernanke’s paternal grandfather, Jonas Bernanke.

    Janet Louise Yellen

    Yellen was born to a Polish Jewish family in New York City’s Brooklyn borough, as the daughter of Anna Ruth (née Blumenthal; 1907–1986), an elementary school teacher, and Julius Yellen (1906–1975), a family physician, who worked from the ground floor of their home.

    Good to see by Jewdar is still working well. But surely Steven Mnuchin will fight the corner of the American public, I am sure he will put up a good fight and let the representitives of the people retain control of the nations finances.

    Steven Terner Mnuchin

    Steven Mnuchin was born on December 21, 1962, in New York City, the second-youngest son in his family. Mnuchin’s family is Jewish. He is the son of Robert E. Mnuchin of Washington, Connecticut, and Elaine Terner Cooper of New York. Robert Mnuchin was a partner at Goldman Sachs in charge of equity trading and a member of the management committee. He is also the founder of an art gallery in New York City, the Mnuchin Gallery. Mnuchin’s great-grandfather, Aaron Mnuchin, a Russian-born diamond dealer who later resided in Belgium, emigrated to the U.S. in 1916.

    I am sure those nice people all have America’s best interests in mind…

  31. What are the half billion guns in the hands of American citizens for? Just to hang as Christmas ornaments?

    Arbitrarily, the earth is worth 1000 trillion (quadrillion), the turnover is 100 trillion (GDPs) and net profits are at 10 trillion per annum (national budgets) to look after everyone which should be enough but the problem is that 1% and their henchmen (10%) want the 89% of assets and value while leaving the 89% (the real humanity) with paltry 11% it and that’s a recipe for real disaster. Hopefully, B Shalom B and his ilk understand that much!

    • Replies: @Just Passing Through
  32. The Giant Vampire-Squid awakens! Feeding time is nigh.

    Long live the Fedsters! 😛

  33. Carlos217 says:

    Reports indicate a Likely gdp drop of approx 25% not single figures.

  34. Svevlad says:

    Won’t work. Death scream, they’re already doomed

    not having the central bank accountable to the government is possibly the most idiotic thing ever thought of

    • Replies: @Spanky
    , @Twodees Partain
  35. Spanky says:

    The Wall Street Prayer

    Our father mammon, who liveth in the Fed

    We thank thee for our daily market fix

    Praised be thy liquidity

    Your printing presses anoint me

    Hallowed be thy balance sheet

    May we dwell in the house of Wall Street

    Forever and ever

    Amen

    • LOL: Kolya Krassotkin
  36. Anonymous[270] • Disclaimer says:

    Sweatshop Amerika nails it as a theme, but then doesn’t come back to the equally big story that the proposed trillions must end up in circulation this time around, and with zero increased production or savings to back it, the big story for everyday Americans is the coming reduction in their standard of living, with the Treasury blowing smoke in their faces with a few hundred billion in helicopter money.

    Am I right that the proposed massive inflation will no longer be “exported” by China’s absorbing the counterfeited cash, and therefore must result in a massive stealth cut in wages, expropriation of savings, and reduction in the standard of living? The other big thing I see coming out of this overblown crisis, as opposed to the msm’s diversionary eyewash about xenophobia, is the extinction of our sovereignty by stealth treaties empowering international compliance regimes modeled on Brussels to regulate every aspect of our lives.

    Wendell Berry immediately predicted this scenario in the aftermath of 9/11, that there will be no effective opposition, but only because there will be no anything left to oppose the totalitarian police state enforcing the scientific dictatorship being assembled by international banking to do its bidding. The police in Baltimore, NY, Paris etc are there to help. That’s why they’re photographed by the msm dressed everywhere now in paramilitary uniforms with magazines loaded and their index finger conspicuously held across the trigger guard. How about that gal in Paris who apparently didn’t freeze when ordered—maybe she’d had a few cocktails because she’d been scared half to death—and had jackboots slamming her face into the pavement? God help us.

  37. @Kim

    Don’t forget the useless eaters over at the Diversity, Inclusion and Equity Departments, entire Law Schools, and in view of Covid 19, all semester abroad programs. Freshman orientation should also be revised to include a section on proper perianal hygiene using newspaper and Maya Angelou books.

  38. @Kim

    As long as (And who knows how long that’s going to be?) round niggraball and oval niggraball produce net income to higher ed, they will be hard to abolish. In the mean time, student Whitey will be denied opportunities for developing their aquatic and hand to hand self-defense skills.

  39. @Really No Shit

    What are the half billion guns in the hands of American citizens for? Just to hang as Christmas ornaments?

    They are just another aspect of American consumerism, with people getting very excited about the latest attachment for their AR-15 or the newest Smith & Wesson revolver. Nobody actually plans to use them and most people are not part of organised militias, the ones that are, are involved in organisations already infiltrated by the federal agencies (especially after Waco and Oklahoma City).

    Occasionally some weirdo shoots up a school or a church full of Negroes, but other than that, nothing much.

    • Troll: Dannyboy
    • Replies: @Really No Shit
    , @Dannyboy
  40. Agent76 says:

    Mar 21, 2020 Medical Martial Law 2020

    As the lockdowns go into place and the military takes to the streets in country after country, the decades of preparation for medical martial law are finally paying off for the pandemic planners.

    March 20, 2020 More Than 70 Million Americans Have Been Locked Down So Far, And This Is Just The Beginning…

    All dine-in restaurants, bars and clubs, gyms and fitness studios will be closed, according to the order. Public events and gatherings are also not allowed. Essential services will stay open, however, such as pharmacies, grocery stores, takeout and delivery restaurants, and banks.

    http://endoftheamericandream.com/archives/more-than-70-million-americans-have-been-locked-down-so-far-and-this-is-just-the-beginning

  41. It really would be nice if the author would name the bill(s) that “our” government will e voting on to give away their power to the elites.

  42. @Emslander

    Or for those the Fed has favored to swoop in and buy the land at fire sale prices, leaving those who used to work the lands to be forced to move to the big cities where the elites would like to ultimately corral all of the masses.

  43. Cking says:

    The American people and the ‘patriot’ community can look at this national security crisis a different way; an opportunity exists, let’s move out of helplessness and into action: The President and the US Congress must first step in, assert its’ power, and state that the Federal Reserve Bank is the bank of the US government and that the charters of its’ corporate members must be reviewed with the possibility that cause exists for their charters to be revoked and the profits of said members be appropriated by the United States immediately. I have not confronted the UN induced ‘Crisis Occupation’ of the US government and the American people.

    Just distributing dollars to the degenerate, criminal, Private Sector and what’s left of the middle class, with no policy and action to develop the American Main St. economy will eventually ‘blow out the $Dollar’. All wealth derives from Brain powered Labor, and its technological derivatives that benefit the population’s standard of living out into the future, not monetarism, that has no future, that is fiddling with the interest rates that only create imbalance between markets, serving arbitrage transactions and eventually unlimited bailouts.

    We must be instructed by the Depression era FDR Administration’s policy that developed the then underdeveloped United States ‘when we had no money’. Today, the national security demands the President direct the US Congress to fund and implement the strategically necessary, nuclear powered, economy platform, the Redevelopment of North America. People must be put to work in actual economic activity and paid high wages so that they can purchase a decent standard of living, run their businesses, and pay their debts and taxes. The accepted practice of Usury in credit cards, mortgages, and student loans must be terminated. The income tax must be restricted in its application to only that which is excisable, not Labor, not on the worker, the family, the small business, not on the means of production, etc. Banks and Corporations must pay taxes for their privileges and excisable profits. The lawlessness in corporate America has led many investors to view America’s debt instruments, private and public, as less-than-pristine condition, hence the Fed’s support in the Repo market.

    Since 1913 the Federal Reserve Bank, always managed America’s wealth, money and credit to wage war, because, according to Wall St. and the City of London, ‘war is profitable’. The United States never recovered from the 9/11 mass murder event, two Iraqi Wars, and the 2008 Financial Meltdown. The damage done to the American economy, the worker population, the soldiers, sailors, airmen, and veterans has never been assessed. all during that time to the present, America has been Raped. Congress must work to retrieve the lost, unaccounted for, and Stolen $Trillions. I don’t say the Fed should be destroyed, however its great credit making facility must be redirected. The Federal Reserve Bank can be Nationalized, and a Public Bank system can be introduced throughout the United States, including the operation of a US Postal Service savings and checking account system.

    The United States is fortunate to have a Continental economy, a Hemispheric economy actually. The Redevelopment of North America that reconstitutes the population’s physical economy, cannot be delayed any longer and it goes through the reorganization of the US Congress, the US Treasury, the Federal Reserve Bank, and the Wall St. system of Finance Capital. Contact your political representation. Contact the President.

    • Replies: @Mefobills
  44. Alex says:

    You have to visit the Morgan library in Manhattan. You can see the desk where Pierpont Morgan used to work.
    Back in the late 1870’s, there was a huge financial crash and the US government (before the Federal Reserve was created) came to Morgan’s office, begging for a solution. Morgan gathered a bunch of bankers and essentially took control of the entire financial system from that very desk.

    Apparently, there is always a need for large bank trusts to steer the economy, even before the Fed existed….

    • Disagree: Spanky, Crazy Horse
  45. The privately zionist owned FED is a communist/zionist part of the communist manifesto and is the control point that the zionist kabal has over the ZUS, it is unconstitutional and is destroying America!

    Nationalize the FED and end the zionist debt creator and end zionist control over the currency and America.

    Read the book The Controversy of Zion by Douglas Reed , can be had on amazon.com.

  46. And you thought this was the Second Black Death? You thought that ‘we’re all in this together’? Suckers!

    #CoronaHoax

    And you were still hoping you’ll get that measly $1000 from Uncle Scam to keep that gnawing sensation in your belly away?

    And now, here come the Fedsters with the mother of all bailouts for Corporate America …

    BOHICA bitchez!!!

    😀 😀 😀

    • Replies: @MarkU
  47. Spanky says:
    @Svevlad

    But, but, but…

    Wall Street bankers and their lawyers said letting government control the issuance of money according to the Constitution was entirely too political. They assured us that by allowing the privately owned Federal Reserve to issue currency it would remove all political considerations from the monetary equation. We in Congress were just following their best advice then, and ever since, in the interests of promoting the General Welfare for all. Because what’s good for Wall Street is good for us all and anything else you might think about it is just some damned off-the-wall conspiracy theory…

  48. @Kim

    You are making rational arguments. The Fed and the American banks have left rationality behind a long time ago. The only reason they will not rescue the Shale drillers now is that it will be blatant exposure of the fed’s Ponzi scheme.

  49. And don’t kid yourself: This isn’t a bailout, it’s the elitist’s political agenda aimed at creating a permanent underclass who’ll work for peanuts just to eek out a living.

    Welcome to Sweatshop Amerika!

    There is no other way for an overcrowded world to function. Either Leviathan rules or the anarchy culls the population. Eventually, if we avoid a violent cull, Leviathan will realize that the unproductive are a drag on the system and the cull will arrive anyway.

    Liars tell you that it can be otherwise, usually because they just want to replace the current oligarchs. Like the song says, “Meet the new boss. Same as the old boss”.

    Best to just tend to your own business and let the demagogues find some other sucker.

    • Agree: Old and Grumpy
  50. @Kim

    You are talking rot. Oil, like any other commodity is for sale and on the market. Your argument is ingeniously misleading.

  51. Sen. Bernie Sanders is raising the alarm over the Senate economic stimulus bill being drawn up to combat the domestic effects of the global coronavirus pandemic, warning that the legislation is being unduly influenced by lobbyists and business interests—not the American people.

    “Now is not the time to allow large corporations to take advantage of this horrific crisis by ripping off U.S. taxpayers and profiteering off of the pandemic,” the Vermont senator said in a statement Sunday.

    According to Sanders:

    Just in the last few days, we’ve seen numerous examples of lobbyists and their agents fighting for special favors: the airline industry is asking for $50 billion, the private space industry is asking for $5 billion, the hotel industry wants $150 billion, the National Association of Manufacturers wants $1.4 trillion, the International Council of Shopping Centers wants a guarantee of up to $1 trillion, Adidas wants to sneak in a long-sought provision allowing people to use pretax money to pay for gym memberships and fitness equipment—even when many gyms and retail stores are closed nationwide, and corporate pork producers are using the coronavirus to push Congress to expedite guest worker visas, even at a time when international travel and immigration is largely shut down.

    Whether you like him or hate him, Sanders makes a good point

  52. @Kim

    “I don’t think an overnight worldwide drop of 20% is survivable.”

    Sure it is. Prices will rise to make sure people aren’t wasting precious oil on frivolous things. High prices will attract back marginal production that will lower prices, 20% shock to supply would, like 2008, drive prices so high that a lot of marginal use would get destroyed.

    And we would adapt. It would not be as pleasant or easy, and all the car companies that bet big on SUVs are going to go bankrupt.

    • Replies: @Kim
  53. The PRIVATE Federal Reserve owned by 12 commercial Central Banks which reputedly are owned by the 8-12 families that own most of the World’s assets and wealth . Rand Paul at one time was pushing for a proper audit of the Fed , was he almost beaten to death because of this campaign? Weren’t both Lincoln and JFK assassinated because they dared to buck the wishes of the bankers?
    I remember reading a story about the bankers during the Civil War who were concerned that slavery would harm their interests , I believe a British banker wrote a letter to them advising that there was no need to be concerned because they were going to turn everyone, white or black , into “debt slaves”.

    • Agree: Desert Fox
    • Replies: @Crazy Horse
  54. @Mr McKenna

    James Howard Kunstler has made the argument, since shale oil’s introduction, that it is a Ponzi scheme. Now is not the time to prop up a failed industry, but to drive a stake in its heart. How many people, I wonder, have been poisoned by drinking contaminated water from wells not following safety standards, in search of elusive and never materialized profit?

    With demand for oil at an all-time low, now is the time to search for other sources, stop all new highway building, and fix our crumbling railroads. I don’t believe in the Green New Deal, but at least they got this one right.

    • Agree: Digital Samizdat
    • Replies: @Kim
  55. @Mike Whitney

    Can you tell us what this bill is called and where we can read the actual document? I am not American but don’t you guys have some sort of website where you can see how a bill is progressing?

    • Replies: @Digital Samizdat
  56. Mefobills says:
    @Cking

    The Redevelopment of North America that reconstitutes the population’s physical economy, cannot be delayed any longer

    Cking, you will probably enjoy the below:

    https://www.paulcraigroberts.org/2020/03/23/china-uses-the-michael-hudson-paul-craig-roberts-solution-for-the-economic-crisis/

  57. Great article Mike. I used to think that predictions that we are heading towards #HungerGames is exaggeration. Not anymore.

  58. Mefobills says:
    @Mike Whitney

    alarm over the Senate economic stimulus bill being drawn up to combat the domestic effects of the global coronavirus pandemic, warning that the legislation is being unduly influenced by lobbyists and business interests—not the American people.

    17’th amendment is working!

    17’th converted Senators into populists who work for their constituents – their donors.

    Senators should be forced to wear patches on their jackets, like NASCAR drivers. Each patch relates to who their donors are. I nominate the star of david patch for AIPAC to be shown front and center.

    Prior to 17’th, Senators were not elected, and hence were non-populists, as they were above the political fray. Instead Senators were beholden not to their donors, but instead to the state legislature who sent them.

    People here who keep pointing fingers at the FED need to realize that the entire “Wilsonian progressive era acts” were all part of the same thing. A usurpation.

    That same “thing” was machinery put into place to collapse U.S. Federalism and install a finance control system (finance capitalism).

    16’th, 17’th, Federal Reserve Act, and IRS all work together like a machine, where the gears mesh.

    This plot by the (((usual suspects))) was hatched in the years prior to the election of 1912.. their fait- acompli.

    16’th is direct taxation and can ultimately be used to bail out banks. Remember Tarp?
    17’th is direct election of Senators, and is against the will of the founders.
    Federal Reserve Act creates a privateer money trust, where private bank credit aka FRN’s become the money of the realm.
    IRS is an enforcement arm of the takeover

    • Thanks: Thomasina
  59. Spanky says:
    @Mike Whitney

    …the legislation is being unduly influenced by lobbyists and business interests—not the American people.

    “Now is not the time to allow large corporations to take advantage of this horrific crisis by ripping off U.S. taxpayers and profiteering off of the pandemic,” the Vermont senator said…

    Other than the crisis, how is this different from business as usual in DC?

  60. @Just Passing Through

    You’re right. This is odd. I just read an entire article on this in the Washington Post, and they never once named the bill or furnished a link to it.

    Even stranger, I don’t see anything using the US Congress’ own web-search facility that looks like a Senate bill related to the Corona situation:

    https://www.congress.gov/search?searchResultViewType=expanded&q=%7B%22congress%22%3A%22116%22%2C%22source%22%3A%22legislation%22%2C%22search%22%3A%22stimulus%22%2C%22chamber%22%3A%22Senate%22%2C%22type%22%3A%22bills%22%7D

    There does seem to be one coming from the House:

    https://www.congress.gov/search?searchResultViewType=expanded&q=%7B%22congress%22%3A%22116%22%2C%22source%22%3A%22legislation%22%2C%22search%22%3A%22stimulus%22%2C%22type%22%3A%22bills%22%2C%22chamber%22%3A%22House%22%7D

    But why is there nothing like it in the Senate?

    Weird. It’s almost as though they really don’t want us to read this bill!

    • Replies: @Spanky
  61. Blip Blop says:
    @Mr McKenna

    This is absolutely true. Globalism is the corporate line.

  62. My biggest “fear”–since everyone’s gonna lose their jobs, homes, whatever, but will still have a few thousand to spend on alternative lifestyles…and mostly I’m talking whites here, but also some Hispanics…this is far west Texas, doncha know…is that these whites and Hispanics that have the income without a job but can work from home (telecommute from anywhere) will flood my rural remote POA and there will be nosey neighbors everywhere! There goes the neighborhood! Trailors, trailors, trailors…and a few with skills will build their cabins or buy mini-500-square-foot-easy-to- build mini-houses. And to those who plan to do this–watch out for mountain lions…and bears!

    And (being facetious, okay) if you are black…can you handle the fact that there is no rap and hip-hop station out here? Bwahahahahahahahahahahahahahahahahah! And, BTW, there are some blacks out here as well…mostly preachers or health workers…one guy who looks like an NFL linebacker also does work for the wireless internet outfit…real nice guy.

  63. @anachronism

    They even subsidized tobacco farmers.

  64. MarkU says:
    @Digital Samizdat

    I agree that the corona virus crisis is being used as a pretext for bailing out the wealthy (again) On the other hand your suggestion that the corona virus is just a hoax makes no sense. Are you seriously suggesting that the Chinese, Iranians, Italians, Israelis, Spanish, S Koreans and all the others affected by the virus are in cahoots? That to me is just crazy talk. A far more likely explanation is…

    You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.

    Rahm Emanuel

    • Replies: @Thomasina
  65. Meena says:
    @Kim

    Government can let it go bankrupt and print the owed money for itself .
    In future Government should ask for collateral like the oil field itself .

  66. @Svevlad

    “not having the central bank accountable to the government is possibly the most idiotic thing ever thought of”

    it’s more like the second worst idea. The most idiotic idea is to allow a central bank to be formed.

  67. Wally says:
    @Mike Whitney

    “Blame others for your own sins.”

    – Joseph Stalin

    – Bolshevik Bernie said:

    ““Now is not the time to allow large corporations to take advantage of this horrific crisis by ripping off U.S. taxpayers and profiteering off of the pandemic,” the Vermont senator said in a statement Sunday.

    – Yet the Communists always finds it a good time to rob US taxpayers for food stamps for illegals, housing for illegals, government run healthcare only, healthcare for illegals, attempts to seize the energy sector, funding for racist anti Euro-white Marxist oriented ‘education’, government monopolies on countless services, preferential treatment to all non-whites, massive taxes on everything, etc. etc.

    – Comrade Whitney said:
    “Whether you like him or hate him, Sanders makes a good point”

    Indeed, Communists do stick together.

    • Replies: @Meena
  68. Thomasina says:
    @MarkU

    I don’t think Digital means it’s a hoax (people are getting sick), but more that it is being played up to be more serious than it is, and all for the purpose of bailing out Wall Street/corporations who were already wobbling and about to fall over.

    Do you think that people would be so accepting of these corporate bailouts, QE5, zero interest rates and all the rest of the shenanigans if they didn’t think their lives were in immediate danger from this virus?

    The lockdowns, businesses shuttered, the media scaring the public, politicians with worried looks – all of this serves to make the public think that they are actually looking out for them and that all of this financial wizardry is necessary.

    Once all the bailouts are in place and the stock market is rocking again, watch how quickly this virus mysteriously disappears – or – they miraculously find a cure for it. Watch.

    This has been a manufactured crisis. Many will die, as they do every year from the flu, but the real “life support” is being used to bail out those who should have gone bankrupt.

    Mike Whitney – great article!!! I always love your writing. Keep it up.

    • Replies: @Digital Samizdat
  69. bluedog says:
    @Kim

    Be a good thing in a way agriculture is a drain on the wealth of the nation with all its subsidizes,the surplus milk plant not far from here dumped 1.3 millions pounds of milk last year, and on the lay-off list another place dumped 1.5 million gallons of milk that the taxpayer subsidized, and the farmers still keeps adding on more and more cows,the one who just bought out the farm next door says he wants to be milking 10,000 cows by the end of the year.You do the math if they are dumping millions of pounds of milk now much more will this cost us.!!!

    • Replies: @Kim
  70. Spanky says:
    @Digital Samizdat

    Weird. It’s almost as though they really don’t want us to read this bill! — Digital Samizdat

    Not weird… The new normal.

    Wasn’t it Pelosi who once told House members that if they wanted to read the bill they were voting on that they had to pass it first? Hmmm, what was that bill, errr law?

    • Agree: Digital Samizdat
  71. Crazy Horse says: • Website

    The Fed shouldn’t just be abolished. It should be taken out with a tactical nuke. The overweening arrogance of these assholes is beyond belief.

  72. utu says:

    Mike Whitney assumes that people understand how does the money flows. Where does it originate? Perhaps Mike Whitney could explain using the example of Bush 2008 and Obama 2009 bailouts. Where did the money come from and where did it go? How did it impact inflation?

    • Replies: @Mefobills
  73. Anon[153] • Disclaimer says:

    I’m confused. Is Mike Whitney advocating that the Fed should be allowed to pick winners and losers, or is he advocating no bailouts at all?

    My preference would be no bailouts. Shore up unemployment for citizens(deport unemployed non-citizens), but let the over leveraged companies go under, like the entire airline, hotel, casino and cruise ship industries. Not only are they the biggest globalist industries that brought us this pandemic, but they are also the biggest employers of cheap foreign labor, great instigators of illegal immigration.

    Now is the time to separate the well run companies from the poorly run. If it results in a deep recession, so be it. This might be the death America needed, to kill off the Jew run economy once and for all.

    But of course seeing is how Jews run this country, including the WH, it’ll never happen. We’ll live to pay off our debt for the next 100 years so every greedy effing Jew on Wall Street and their greedy CEO cronies in corporate America will be bailed out.

    As in 2008, in every crisis, the rich gets richer, everyone else gets poorer.

  74. Crazy Horse says: • Website
    @9/11 Inside job

    They succeeded with the 13th Amendment.

  75. Mefobills says:
    @utu

    Whitney can add to my comments.

    It is convenient to simplify a private banking debt based economy into something like a figure 8. A loop at the top, and bottom, with a dot in the middle. Treasury is exogenous, meaning outside of the figure 8. Treasury can harness the private corporate debt money system by hypothecating new TBills to create new dollars to spend.

    The dot in the middle are banks, which create money for both upper and lower loops. Lower loop is the real economy of producers, and upper loop is wall street type finance paper euphemistically called assets.

    Upper loop tends to untax itself by bribing or using compromat on congress critters.

    Bush 2008: Tax rebate.

    Money is not drawn from the lower loop real economy and re-spent by government. Taxes are not collected and re-spent, but instead are left in the hands of producers. This would be more purchasing power in the hands of the real economy, especially if government spends at the same rate.

    Some people were paid more from Treasury than they paid in taxes. This would be a direct injection of new purchasing power into the real economy from Treasury. Treasury gets its money from tax collection and/or hypothecating new TBills.

    If there is a dearth of tax money needed to run government affairs, government does one of two things:

    1) Tax the productive side of economy more – something like what Bill Clinton did – which is bad. (lower loop)
    2) Raise debt ceiling to hypothecate new bank credit with deficit spending mechanism e.g. increase public debt.
    Note: Government is NOT a household, and can create new money by new TBill public debt issuance.
    Note 2: Government when it issues new TBills, said TBills are monetized in the upper loop secondary market. Older TBills can then make their way to the dot in the middle, the banks, to be monetized.

    Obama 2009:
    1) Tarp. Obama used 16’th amendment to directly tax the population, and then use that tax money to backstop private banks. This then drained the lower loop real economy of purchasing power, and directed it at banksters.

    2) QE. QE is an endogenous swap, meaning it happens inside of debt system figure 8, and without treasury tax and re-spend, or treasury creating new public debt. Treasury is not involved with QE.

    FED uses its keyboard to create digital Federal Reserve Notes. These notes then swap/buy existing Tbills. FED has access to reserve accounts of its member banks, and hence QE is a swap of unlike kinds. Reserve accounts of member banks have TBills on hand that FED can access.

    Ledger action: Bank looses TBill as Asset, and Gains Dollars as asset. NO NET CHANGE IN ASSET POSITION FOR BANK. Fed: Creates new dollars as its liability, and gains TBill as an asset.

    FED ledger expands with offsetting liabilities and assets, while private bank has a swap of unlike kinds.

    The swap of unlike kinds was normalized when FED paid interest on dollars held in bank reserves starting in 2007. Banks lost a interest bearing TBill and gained dollars, which now pay interest.

    Quantitative easing, since it is an endogenous swap, changes the composition ratio of bank reserves, making it appear to secondary market as if TBills were desirable, because there was a suitor always ready to buy (the FED).

    QE transfer mechanism to the real economy is nebulous, and does not really inject purchasing power, and hence there was low inflation.

    QE actually drained the upper loop of TBills, as private banks can always acquire them and sweep them into their reserves. The upper loops then gets more dollars and less TBills, a composition and ratio change, but no real net change.

    Obama is and was a retard, who did the bidding of his Chicago (((masters))).

    Obama Bernake QE is a slight of hand, to lower interest rates, to then induce the producers in the real economy to refinance, or take on new debts.

    The lower loop becomes more indebted by taking out new loans, which creates more bank credit, and hence more purchasing power. New debts pay old debts by kicking the can down the road to the future.

    Money channeling has multiple paths, so it is hard to describe using words… without diagrams or models.

    • Thanks: utu
    • Replies: @utu
  76. @Just Passing Through

    I am not talking about a bunch of weirdos or those who have gone bonkers but genuine 150 million of America that need to stand up and make stand if tyranny is imposed top down as it seems to be on its way, like it or not.

  77. @Kim

    Universities should cosign all loans at the very least. They assume no risk but get paid up front to dole out among otherwise unemployable bureaucrats and redundant VPs and Chancellors.

  78. Meena says:
    @Wally

    Add 6 , 60, 600… 6 millions. How did you forget? Its an achievement by it self.

  79. Kim says:
    @bluedog

    in a way agriculture is a drain on the wealth of the nation

    Either this is the driest internet comment of the year or you need to be rounded up by the guys with the butterfly nets.

    • Replies: @Lidia
  80. FB says: • Website

    Well…it didn’t take very long for the ‘world’s greatest economy’ to turn into a hair on fire emergency, now did it…?

    I must have dozed off for a nanosecond there because I completely missed this transformation…LOL

    Seems like just yesterday everyone was talking about the economic ‘miracle’…why Trump himself was saying how there are so many mcjobs that we need more ‘legal’ immigration to fill them all…

    Two seconds later, the wall street gangsters are holding a gun to our heads and demanding a five trillion dollar bailout…and make it quick…?

  81. Kim says:
    @follyofwar

    With demand for oil at an all-time low, now is the time to search for other sources

    Hard to guess what you mean by this. Do you mean look for other sources of oil? When demand is low is the worst time to look for other sources. But in any case oil companies have given up on trying to find new oil. They have been cutting capex for years now. They know the situation perfectly well. The world has been thoroughly mapped and surveyed. There are no new large funds to be made.

    Or maybe you mean we should find new sources of energy that can do what oil has done and do it as cheaply. Well, that has been a popular theme for quite a few decades. Still haven’t found it.

    • Replies: @follyofwar
  82. Taryta says:

    Now these imbeciles are deciding whether to hand over that authority to a privately-owned banking cartel that has greatly expanded the chasm between rich and poor, incentivized destructive speculation on an industrial scale, and repeatedly inflated behemoth asset-price bubbles that have inevitably blown up sending stocks and the real economy into freefall.

    TIMBER!!

    Hey help us in Québec!

  83. Lidia says:
    @Kim

    When it takes ten fossil fuel calories to produce one calorie of food, then—yes—industrial agriculture is a net drain on wealth.

    • Replies: @Kim
    , @NobodyKnowsImaDog
  84. Kim says:
    @TomSchmidt

    Sure it is. Prices will rise to make sure people aren’t wasting precious oil on frivolous things. High prices will attract back marginal production that will lower prices, 20% shock to supply would, like 2008, drive prices so high that a lot of marginal use would get destroyed.

    This is the classical price-will-solve-everything argument. There are lot of problems with it.

    1. What you might call “waste” or “frivolous” is what someone else calls “how I make my living”.

    2. Despite the theories of economists, and apart from what happens on the classroom whiteboad, the market cannot remove physical resource limits by simply adjusting the supply and demand curves, no matter how much money might be thrown at it.

    If oil costs an average of $70 a barrel to pull out of the ground, but consumers – even using their credit cards – can afford to pay only $40, then that is an unsolvable problem. In such a case, the oil will simply remain in the ground until, say, some technology is developed to pull it out at a much lower cost. And unlike with other goods, there is no easy and satisfactory substitute for oil.

    3. You say that a 20% shock to supply would, like 2008, drive prices so high that a lot of marginal use would get destroyed

    The technical economics term “marginal” is being used here in a way that conflates with a pejorative use of the word, as if to say that some economic activities are not necessary or less necessary (and maybe they are), but this just repeats argument 1. What is “marginal” to one person may not be marginal to another.

    4. It is not just a classroom matter of price, but is also a matter of day to day practicality. Let’s say that prices shoot up beyond affordability for most or availability suffers such that 20% of supply disappears and cannot be obtained at any non-subsidized price. This will result in many objectively essential tasks not being carried out.

    For example, if I am a south east asian rice farmer, I typically get one growing season a year of natural monsoon rain and one or two more seasons from pumping up ground water using a small, petrol-driven water pump. If petrol is not available or is priced too high, I will not plant. If you have ever visited south east asia, you will have seen small bamboo huts in paddy fields everywhere. Many of those huts house water pumps. Millions of them.

    Imagine if that “marginal” production goes off line for one year. Or even six months.

    5. I used the term “subsidize” above. I want to make it clear that I do not believe that this is a long or even medium term solution. In fact, I do not believe that oil produiction can be “subsidized” for any length of time because oil is the master resource that everything else in fact relies on. I like to point out that The horse pulls the cart.The cart does not, as some people seem to believe, push the horse.

    To subsidize oil production means cannibalizing other parts of the economy. This is how shale has been supported these last ten years, by Fed coin-clipping/currency debasement. That process may now be hitting the wall.

    • Replies: @TomSchmidt
  85. Athena says:

    The 2 metres distancing rule which is stressed AD NAUSEAM:

    They are testing the 5g grid to determine if they can have a resolution sufficient to clearly see every individual and watch you 24/24, 7/7.

  86. utu says:
    @Mefobills

    How Emergency Economic Stabilization Act of 2008 under Bush different from TARP of 2009 under Obama?

  87. Kim says:
    @Lidia

    When it takes ten fossil fuel calories to produce one calorie of food, then—yes—industrial agriculture is a net drain on wealth.

    Whose wealth? And what, in your mind, is “wealth”?

    It is – or should be – well known that we cannot have modern agriculture without fossil fuels. But we also cannot have 7.5 billion people without fossil fuels.

    It is such a big problem that here is what we will do. I will appoint you as dictator of all the world and leave it to you to decide which you want,

    a) fossil fuel agriculture or

    b) agriculture without fossil fuels.

    The second option will of course certainly take us down to a world population below 100 million. (Remember, fossil feuls have been basic to the world economy for a very long time. Britain in the year 1630 got half of its annual energy from coal – and then we should also remember that charcoal too, is a fossil fuel, and has been used in steel making for a millennia.)

    So, now please tell us your plan for going from 7.5 billion people to fewer than 100 million.

    • Replies: @anarchyst
  88. @Kim

    You’re a reasoned commenter, Kim. We’ve been burning capital to pump shale. We’re now blowing out 2$trln to deal with a government-created economic crisis. We will have a lot less capital to waste on shale. That going to cause a price spike.

    I don’t think price will solve everything. I do think it’s an excellent method of allocating amongst different uses. At a high enough price, people will bike to work instead of drive, or find another arrangement. Maybe drive a more fuel-efficient car; right now fuel comes nowhere near close in the overall costs of operation against depreciation, insurance, and taxes. Maybe replace a water pump dependent on a long supply chain with a horse supplying one horsepower.

    Nobody makes these marginal decisions while oil is cheap and plentiful.

    I think oil is much more important as a petrochemical feedstock than as a fuel, but right now we don’t have to make the call between plastic and SUVs.

    You’re right, though, about the swings in price. The drop to $25 a barrel is going to destroy a lot of production and cause a spike. Then we may not be able to pump oil at $80 or $100 because no one will want to take the risk for fear of another crash. It’s a huge problem.

  89. @Thomasina

    Yes, that’s exactly what is meant by ‘Corona Hoax’ in this context. The virus is real, it’s just nowhere near as deadly as the hype surrounding it would lead you to believe. And most of these ‘solutions’ being pushed by the media and rolled out by the government have little if anything to do with the public health. That’s the hoax.

  90. ken19 says:

    These cons have gotten away with so much crap that truthful writes like this don’t even bother them any more. Call me cynical all you want but these people are taking the joint down. They’re gonna buy everything up with their fiat, confiscate gold, maybe silver, platinum, etc while the rest of us fight each other for something to eat.

  91. Dannyboy says:
    @Just Passing Through

    Another Hasbara troll engaged in gaslighting.

    Truly Amazing.

    You folks will have to learn the hard way…again.

  92. Only a mystery to those not Jew-wise (Notice all the Jews calling the shots?! 1.73% of the pop.) and have read the Jews’ Protocols. They aim to plunder further America while launching their US Tyranny in to a war with Iran utilizing America’s children again as cannon fodder.

    Not hate. Just unacceptable.

  93. anarchyst says:
    @Kim

    Far from being “fossil fuel”, hydrocarbons are not only plentiful but are being renewed by yet-unknown processes deep within the earth.
    The term “fossil fuel” was coined in the 1950s when little was known about the processes by which oil is produced. Oil is “abiotic” in nature, as even depleted oil wells are “filling back up” from deep below the earth’s surface.
    Oil interests are drilling wells at 5,000 feet, 10,000 feet, and 15,000 feet and deeper, and coming up with oil deposits way below the layers and levels where “fossils” were known to exist.
    As Russia gained much expertise in deep-well drilling and coming up with oil deposits far deeper than that of the level of “fossils”, abiotic oil at extreme depths was actually a Russian ‘state secret” for a long time.
    Not only that, but there are planetary bodies in which hydrocarbons are naturally occurring (without fossils).
    “Peak oil” and “fossil fuels” are discredited concepts that environmentalists and others are latching on to, in order to display their hatred of oil being a renewable resource as well as to push prices up.
    Follow the money.

    • Replies: @Dannyboy
    , @Kim
  94. Dannyboy says:
    @anarchyst

    Exactly.

    Excellent post, sir.

    The Satanic Jews wish to control the entire world and all of humanity. What better way to do it than to control it’s resources?

    Idiot white Leftists are easily frightened into submission by dire threats of “climate change” and the like, in addition to being taught to hate their ancestors. These douchebags are even afraid to reproduce because doing so may “harm the planet”…lol

  95. Kim says:
    @anarchyst

    Can you name any abandoned oilfields that have been worked out and subsequently refilled by abiotic oil? The United States must be absolutely chock full of them.

    When you finish your first hamburger, do you look into the bag expecting it to have filled up with another one?

    • Replies: @NobodyKnowsImaDog
  96. @Kim

    There’s apparently a bunch of them.
    https://oilprice.com/Energy/Energy-General/Are-Oil-Wells-Recharging-Themselves.html

    When you finish your first hamburger, do you look into the bag expecting it to have filled up with another one?

    Terrible analogy. Burgers aren’t liquid. How about when your sump pump finishes draining on a rainy day, are you surprised if it turns on again a few hours later?

  97. @Lidia

    If that statistic is even true, it’s a pointless one. If it costs less to acquire 10 calories of fossil fuel than 1 of food, net gain. It’s not like we’re tapping vast deposits of olive oil that we can pump out of the ground, or mining giant seams of roast beef. Planting, fertilizing, harvesting, processing, shipping, and storing food all takes work/energy, and are done for important reasons. For example, remove the energy for refrigeration and food spoils. You don’t need to refrigerate coal, but neither should you eat it.

    Ironically, the food with the lowest energy cost is the type most favored by industrial ag, and is the worst kind for you: cheap commodity cereal grains processed into shelf stable junk food.

  98. Olde Reb says:

    Mike wants to image.

    Imagine that a bunch of bankers might connive a scheme whereby they could acquire a means to receive great wealth with the assistance of a ruler without the proletariat knowing about it. The ruler, and his court, would have to receive considerable wealth to compensate for their assistance, but, if the scheme could conceal the much greater wealth that would be received by the bankers, it could be made worthwhile. Now, who was it that made a furtive train trip to Jekyll Island 100 years ago ?

    Oh, and while you are formulating a profitable scheme that might be concocted by the bankers, you might want to pause at https://ppjg.me/2019/11/18/the-federal-reserve-a-different-view/.

    ZeroHedge has related the Fed has stated they will be providing the Primary Dealer Credit Facility with unlimited funds to save bankers and select corporations. Who are the owners of the six mega-corporations ? Right, the bankers. Ref. https://www.zerohedge.com/markets/fed-reopens-its-landfill-distressed-assets

    The public is told to ignore the possibility the FRBOG might be operating as a privately held corporate structure with ownership shares held by select Primary Dealers. We did say the major bankers will be getting all of the fiat money, didn’t we? Woo, hoo. Imagine that.

    Perhaps using the FOIA to explore the possibility of the BOG’s ownership should be considered. Ref.  https://thedailycoin.org/2020/02/19/federal-reserve-transparency/

  99. @Grahamsno(G64)

    I am certainly not a libertarian. On the contrary, I’m a recovering former libertarian.

    But words have meanings. Libertarians do not favor government forcing taxpayers to bail out corporations, banks, or anyone else, period.

  100. @Miro23

    Our God-given natural resources should be publicly owned, without regard to whether shale oil in North America is a viable business or not.

    All net proceeds from the sale of American oil, gas, metals, minerals, and spring waters should be paid to every U.S. Citizen equally as a universal basic income. No more sending the profits from OUR resources to the energy corporations’ executives or their wealthy major shareholders.

    Non-elite US Citizens who own some reasonable amount of shares in energy companies can be compensated when we place under proper public ownership the resources now claimed by the companies. This would include the tens of millions of non-plutocrat Americans who each own a tiny stake in the energy corporations through the stock mutual funds in their retirement investment accounts (IRAs and 401(k)s).

    Likewise, we can compensate non-elite US citizens who own small plots of land and have been relying on extraction royalties.

    Prohibit the export of any natural resources, first and foremost WATER, so that only US Citizens in the USA may buy and consume them.

  101. Kim says:

    There’s apparently a bunch of them.
    https://oilprice.com/Energy/Energy-General/Are-Oil-Wells-Recharging-Themselves.html

    I read the article you linked to and as is so often the case the headline is clickbait and provides no such examples of anywhere where oil wells have refilled. To be really clear on this, I will quote for you what it says:

    There have been numerous reports in recent times, of oil and gas fields not running out at the expected time, but instead showing a higher content of hydrocarbons after they had already produced more than the initially estimated amount. This has been seen in the Middle East, in the deep gas wells of Oklahoma, on the Gulf of Mexico coast, and in other places.

    What they are plainly saying is that some wells have been found to contain more oil than originally estimated. In other words, they are saying that the original estimate was incorrect. And you think that means that oil is abiotic?

    Please stop showing me things that are just stupid and waste my time.

    • Replies: @Beefcake the Mighty
  102. @Kim

    Sorry that you did not understand me, though I’m sure most who read my comment did. To spell it out, I meant other sources of energy. Hard to believe that you chose to nitpick such an obvious point.

  103. @Kim

    Something else you may have encountered on this site, since there’s a band of Team Russia meatheads: the abiotic theory is not accepted by Russian (and Ukrainian, more accurately) scientists as such, but rather only a minority of those scientists. (Even more amusingly I’ve seen claims that it was actually the Nazis who came up with the theory!)

  104. How is it that articles about formula to calculate SAR-CoV-2 infections received more hits than this one? The medical impact of the virus is totally insignificant compared to the (((Fed))) takeover which this virus has precipitated. Who cares if an extra ten thousand people catch a bad case of the flu this year? At least the 0.3% (or whatever it is) who die aren’t going to live through the dystopian serfdom which the rest of us are likely to endure over the coming years.

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