Cautionary Tale for Robert 'Full Menu' Gates and
by Karen Kwiatkowski: The
There is an
amazing disconnect between the two enablers of the Washington D.C.
oligarchy. One of these enablers is the
Federal Reserve Bank of the United States, which just published
their latest Beige
Book. The "Summary of Commentary on Current Economic Conditions
by Federal Reserve District" is published eight times a year,
and one assumes that the past 20 or so Beige Book reports would
have been reporting a slow deep decline, with anxious notes regarding
where the "bottom" might be. But of course, that was not
the case. Fed Chairman Bernanke has remained hopeful, appearing
increasingly to be a wide-eyed idiot of a man, serving his role
as government banker and chief
printing officer with a dedication to false assumptions reminiscent
of the Titanicís Captain Edward Smith.
The June 8th
report was received with alarm. Itís not getting better faster,
and it not getting better at all. My, how private economic activity
has desiccated in the hot sun of government taking, borrowing, outright
lies and Ponzi schemes! Phase I of the economic shakeout is not
even complete, and yet we are faced with a whole new Phase II of
economic reckoning. After the known known bubbles and the subsequent
government buybacks, buy-ins, and bailouts, we will soon face the
next generation of the ready-to-burst. These include bubbles and
major downward adjustments in the reported value of municipal
real estate, the
public and federally aided university systems, the War
on Drugs and the overbuilt
prison system, even technology
care. And the
one mentioned here, the Department of Offense.
Reserve regional governors understand something of the nature of
these coming collapses, but no one substantially seems to get whatís
coming. Unless they are all liars, fraudsters, and pranksters extraordinaire,
which could indeed be the case. Itís really too bad we canít all
live in their world.
In the real
world, these bubbles will impact and touch each other, government
will try and fail to resolve the valuation concerns, as it tries
and fails to maintain its own credit worthiness and credibility.
As municipal debt becomes unbearable and unserviceable, local government
will increase taxes on remaining property and services, and eventually
be replaced by a few angry men and women who will renegotiate and
repudiate much of that debt. The commercial real estate collapse
will remind many that their communities are lacking in community,
and the shifting landscape of the marketplace will depress many,
even as many will talk of what they could do with that place if
only they could save money or borrow it. They will rage at the Fed
policy of artificially low interest rates (a nod to the needs of
Washingtonís insatiable past and present appetite for borrowing)
for making both avenues for people to access capital impossible.
and university education system collapse will be particularly painful
to many. Empty buildings, too many professors, too much debt and
a lack of demand for what passes for an American undergraduate degree
will break the back of these mastodons. Prisons built for government
projections of pie-in-the-sky inmate growth (this in a country where
we are already at the
top of the heap) would have employed lots of unskilled and poorly
educated people, except there arenít enough prisoners, and no money
to run these facilities. Of course, having places to lock up people
may serve a future government interest, but as of now, this is a
bubble created by the bureaucratic desires of counties, states and
the federal government for a bigger piece of the take and the power
to effectively own people. The Drug War likewise will be ended,
victim of its own addiction to the dole and corruption at levels
high and low, and shocking counter-productivity for over 40 years.
All of these
imminent un- and under-employed people, many who worked for the
state in some menial capacity, with few marketable abilities or
useful knowledge, will wonder why life is so hard, but most will
not become exceptionally angry. Sheep usually do not, and most Americans
have been cultured, educated and managed to be sheep. As I heard
on Freetalklive.com recently,
we have become the "livestock" of the political class,
who "farm" us. Itís very true.
newly freed will begin to learn new skills, develop new interests,
and new networks, and many will become reacquainted with the children
in their lives (even as birth rates will drop). This new interest
in the increasingly valuable child will deprive public elementary
and high schools of their babysitting value, as the under and unemployed
can and will teach their own kids. One of the first lessons will
be that if a person from the government moves his or her lips, they
are lying. This is the harsh lesson the parents have learned, and
it will be passed to the children, with the overall excellent impact
of creating independent critical thinking little hoodlums, who will
always ask why and never take their Ritalin and Adderol, unless
it is to remarket it for fun and profit.
But I digress!
The twin enabler of the Washington, D.C. oligarchy, the Samson who
holds up the pillars of corporate state, is the Pentagon. Indeed,
the defense, offense and intelligence bubbles are near the popping
Texas is called out as a place where unemployment among the
military and defense contractor class will increase, and thatís
one of many across the country. But who really takes this seriously?
I mean, itís a big potential bubble, employing people in every Congressional
district, and comprising one of our biggest export industries Ė
big war and a multitude
of weapons. How could it pop? I mean, even
crime doesnít stop these guys from getting their cost plus contracts,
year after year!
it pop, indeed. At least the Beige Book report admits the trends
of contracting economies. Yet, this question is unasked and unconsidered
by outgoing SecDef Robert Gates, who
recently told NPR that the DoD of the future will have "a
full menu" and that "Ö first of all, you have Iran and
North Korea, both of whom are developing nuclear weapons. North
[Korea] already has them. You have a very aggressive weapons-building
program in China. You have a revolution throughout the Middle East.
There are the U.S. military has never been at a loss in being
told to find things to do."
One finds oneself
temporarily speechless. Gates sees the reality of executive-directed
global war against despotisms and "creating democracies"
at the point of a sword on the other side of the planet, as a "good
thing," apparently not conflicting at all with his sworn oath
to uphold and defend the Constitution of the Republic.
do know that truth and economic reality always prevail, and as Nixonís
economic advisor famously said, things that cannot go on forever,
donít. Gates shares with Bernanke a stultified brand of last century
thinking and a willful blindness to fundamental facts, recorded
history, and ethics. "Full Menu" Gates and "Helicopter"
Bernanke are the faces of the twin enablers of the Washington establishment,
and they are increasingly dysfunctional and out of sync with each
other. Any successor to Bernanke and Gates, as Leon Panetta proves
now at the Pentagon, will be as wholly unimaginative and as faithful
to the empire as their predecessors. These twins casually arrogate
the peopleís present cash and future hope, and they consider these
roles their due. They do not realize their days are numbered.
They will not
find safe harbor on American shores, come their turn to Ďfess up
and apologize. When these final bubbles pop, Republics will rise
up again from sea to shining sea. None of them will have use for
inflationary and imperial services Ė and in their youthful zeal,
may even arrest and imprison those who publicly propose such anti-republican
columnist Karen Kwiatkowski, Ph.D. [send
her mail], a
retired USAF lieutenant colonel, blogs occasionally at Liberty
and Power and The
Beacon. To receive automatic announcements of new articles,
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is currently running for Congress in Virginia's 6th district.
2011 Karen Kwiatkowski
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