America: A Walking Dead-Zombie Country Max Keiser At His Best

[DisQ]

worth a read

exclusive detailed interview (not from his website) loved his comment about Krugman.

“The key to understanding the current situation is to understand that house prices, jobs, wages, and pensions in the US are all being attacked with original-issue debt dollar junk.

This will continue until the middle class has been completely wiped out.”

the link also contains Max brief intro

It is designed to destroy the American middle-class. We face an original-issue deflation, if you will. It’s as if Michael Milken ran the Fed. If you look at the work of Steve Keen (http://www.debtdeflation.com/blogs/), an economist in Australia and one of a very few economists, who got the crisis of the past three years accurate, you understand that the banking system does not work on a system where deposits are the basis for fractional reserve. The banking system works on the basis of loans used as the collateral for more loans.

That means, that the origination of all the fractional reserve lending that is going on is just more debt. There are no retail deposit reserves or wholesale deposit reserves, just original issue dollar based junk debt. And when you understand, that debt is at the bottom of the pyramid and that there’s no equity at all, or capital as this term is usually understood, then you understand that the banks and the policy makers are continuing a programme at the behest of Wall Street to commit a Financial Holocaust to eliminate the majority in America, which is the middle-class. Wall Street banks; with their CDS's, High Frequency Trading and bogus market making are injecting the equivalent of financial Zyklon B into the American and world economy.

With regard to the U.S. economy, would you agree with Paul Krugman, who wrote not a long time ago that the lights in the U.S. are about to go out?[1]

Paul Krugman is a salon monkey. You can quote me on that.

Okay, no problem (laughs).

He is a tool of the New York Times. If it wasn’t for the New York Times, no one would read Paul Krugman. He has absolutely nothing credible to say. He is merely a mouthpiece for neo-liberal clap-trap. Any minute you spend reading Paul Krugman is a minute of your life that you’ll never get back.

though don't agree about defletion all in all its a fine piece.

[AvidFan]

With regard to the U.S. economy, would you agree with Paul Krugman, who wrote not a long time ago that the lights in the U.S. are about to go out?

I would. Though I'm not a Krugman fan.

It'll be peak oil flow that delivers the killer blow though.

Until 2012, they'll have a strong dollar - real "headfake" stuff as the Americans would say.

Beyond 2012 - well- I wouldn't want to be living in the US, unless I could wear a suit of armour to work and carry an AK-47.

Edited August 20, 2010 by AvidFan

[AvidFan]

Have to add - good article though.

You need people like Keiser because no-one listens these days. He's a bit like Schiff MKII. Maybe he'll still be saying "America's going down" in time for the currency crisis in a few years so he gets lots of Kudos on the business channels for being a prophet.

Edited August 20, 2010 by AvidFan

[tomwatkins]

I would. Though I'm not a Krugman fan.

It'll be peak oil flow that delivers the killer blow though.

Until 2012, they'll have a strong dollar - real "headfake" stuff as the Americans would say.

Beyond 2012 - well- I wouldn't want to be living in the US, unless I could wear a suit of armour to work and carry an AK-47.

Disagree entirely on peak oil. I think that is the biggest head fake of all. I work in the US (my company deals with "energy" waste) so I see first hand what is going on, particularly in gas. New technology to take sulphur out of sour gas will hit the headlines very shortly. When this happens a 300 year supply of nat gas in the US will become 1,000. They can run everything on it, it's everywhere, and cheap as chips. In fact nat gas is so cheap right now that our own heating bills are lower than 10 years ago. New York taxis run on it, it's clean, and will shortly be cheaper than that black sh!te. Oil's days are feckin numbered, in more ways than one.

[rented]

Disagree entirely on peak oil. I think that is the biggest head fake of all. I work in the US (my company deals with "energy" waste) so I see first hand what is going on, particularly in gas. New technology to take sulphur out of sour gas will hit the headlines very shortly. When this happens a 300 year supply of nat gas in the US will become 1,000. They can run everything on it, it's everywhere, and cheap as chips. In fact nat gas is so cheap right now that our own heating bills are lower than 10 years ago. New York taxis run on it, it's clean, and will shortly be cheaper than that black sh!te. Oil's days are feckin numbered, in more ways than one.

Can you make it into plastic? A lack of cheap plastic would surely cause problems in and of itself, albeit not as signficant as no power.

Edited August 20, 2010 by rented

[plummet expert]

Disagree entirely on peak oil. I think that is the biggest head fake of all. I work in the US (my company deals with "energy" waste) so I see first hand what is going on, particularly in gas. New technology to take sulphur out of sour gas will hit the headlines very shortly. When this happens a 300 year supply of nat gas in the US will become 1,000. They can run everything on it, it's everywhere, and cheap as chips. In fact nat gas is so cheap right now that our own heating bills are lower than 10 years ago. New York taxis run on it, it's clean, and will shortly be cheaper than that black sh!te. Oil's days are feckin numbered, in more ways than one.

TRUE AND THERE ARE VAST RESERVES BEING TAPPED INTO FOR THE UK. Gas will be the next energy before any of the even greener stuff is perfected at a low enough cost.

But the article is right in that the USA has such serious problems, it is now hard to see how they will be resolved without a tremendous lurch down in the first place - coming soon enough looking at the current news on their economy. Even the good news is just recyled and repacked bad news in many cases - like the recent walmart profits. Actually they were awful as were Macys - all presentation/smoke and mirrors to please the markets. Analysis shows otherwise. The US property market is tanking and the States owe more than can ever be repaid, let alone the FED.

Edited August 20, 2010 by plummet expert

[DisQ]

TRUE AND THERE ARE VAST RESERVES BEING TAPPED INTO FOR THE UK. Gas will be the next energy before any of the even greener stuff is perfected at a low enough cost.

But the article is right in that the USA has such serious problems, it is now hard to see how they will be resolved without a tremendous lurch down in the first place - coming soon enough looking at the current news on their economy. Even the good news is just recyled and repacked bad news in many cases - like the recent walmart profits. Actually they were awful as were Macys - all presentation/smoke and mirrors to please the markets. Analysis shows otherwise. The US property market is tanking and the States owe more than can ever be repaid, let alone the FED.

US empire is finished thats the bigger picture, no matter how much msm try to cover it, news is every where. unofficial unemployment now reached 22%, a historic high & rising, a total failure is just round the corner.

Shame people sitting there can't see the big picture.

[lowrentyieldmakessense(honest!)]

mind control

if the currency collapses, so what, use something else instead

Edited August 20, 2010 by lowrentyieldmakessense(honest!)

[aa3]

A tremendous problem America has is the vested interests have seized control of the country. From medical doctors limiting the number of doctors, to trial lawyers stopping reforms to their legal system, to obviously the insanity of the bankers and their speculation with fractional reserve conjured money. To government bureaucracies that grow and grow with no limitation.

When someone tries to reform, these and other extremely wealthy special interests use their wealth to control the political process. The only way out I see is to empower one person with absolute power to make the reforms, then transition back to their current system of checks and balances.

Basically America faced similiar issues in the 1930's and Roosevelt came to power and made the new reforms needed, rebalanced the society. Reagan made reforms in the 1980's after America ran into real(but different) problems during the 1970's.

People were hopeful that Obama would make the reforms, and although he did do some its obvious it needs to go way further.

[The Matador]

Can you make it into plastic? A lack of cheap plastic would surely cause problems in and of itself, albeit not as signficant as no power.

Beat me to it.

Can gas replace oil in the petrochemical industry too?

[otters]

Beat me to it.

Can gas replace oil in the petrochemical industry too?

I can't answer your question, but can we survive without all the plastic we produce?....... I think maybe we can.

[aa3]

Beat me to it.

Can gas replace oil in the petrochemical industry too?

I know they already use natural gas for making the world's fertilizer. I'm not sure about plastics.. and that is a huge area that is getting to be a bigger part of the economy by the year. There has been great progress in things like laminate floors.

[DisQ]

Have to add - good article though.

You need people like Keiser because no-one listens these days. He's a bit like Schiff MKII. Maybe he'll still be saying "America's going down" in time for the currency crisis in a few years so he gets lots of Kudos on the business channels for being a prophet.

agreed,

though few years bit may be a bit too far, it seems much nearer.

[tomwatkins]

Can you make it into plastic? A lack of cheap plastic would surely cause problems in and of itself, albeit not as signficant as no power.

Yes you can but remember that nano technology is producing stronger, cheaper materials than plastic. Not trying to be a smart ass know it all (I never studied physics to any large extent) but it's what I see all around me. Biggest technology powerhouse right now in the US? Utah-because of the brilliant universities there. The Mormons know how to make money-they always have.

[tomwatkins]

I know they already use natural gas for making the world's fertilizer. I'm not sure about plastics.. and that is a huge area that is getting to be a bigger part of the economy by the year. There has been great progress in things like laminate floors.

There are just so many knock-ons. More gas wells means more "frac water"-more frac water leads to more "brine". More brine leads to cheap pottasium recovery from what was a waste product. I am off to Colorado/Utah tomorrow and everytime I go up to the desert region of Utah (near Moab) there are new wells and new waste water treatment facilities. Exciting times-b0llocks to the Arab oil.

[enrieb]

There are just so many knock-ons. More gas wells means more "frac water"-more frac water leads to more "brine". More brine leads to cheap pottasium recovery from what was a waste product. I am off to Colorado/Utah tomorrow and everytime I go up to the desert region of Utah (near Moab) there are new wells and new waste water treatment facilities. Exciting times-b0llocks to the Arab oil.

GASLAND Trailer 2010

[@contradevian]

Disagree entirely on peak oil. I think that is the biggest head fake of all. I work in the US (my company deals with "energy" waste) so I see first hand what is going on, particularly in gas. New technology to take sulphur out of sour gas will hit the headlines very shortly. When this happens a 300 year supply of nat gas in the US will become 1,000. They can run everything on it, it's everywhere, and cheap as chips. In fact nat gas is so cheap right now that our own heating bills are lower than 10 years ago. New York taxis run on it, it's clean, and will shortly be cheaper than that black sh!te. Oil's days are feckin numbered, in more ways than one.

They have been taking sulphide out of gas for yonks. Its an established process. There is even a sour gas plant can be found at Point of Ayr, north Wales, while in Europe, the processing of natural gas containing hydrogen sulphide is widespread, especially in Austria, France, the Netherlands and Germany.

http://www.centricaenergy.com/index.asp?pageid=259&area=morecambe⊂=third