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January 15, 2012

   This excellent essay was sent to me by Captain Kelly, Air Acad Grad and  my old comrade from the Airfreight Dawg days.  It was posted on Larry Levin’s Trading Advantage financial advisory  website, and I’ll let Larry introduce this fine piece and its author.

“The market is indeed a ZOMBIE; however, the title of today’s missive refers to a piece written by Bill Bonner here Please enjoy this while the Zombie ES keeps stumbling across your screen looking for brains to munch on.”

01/09/12 Baltimore,  Maryland – Not much action at the end of last week… Gold closed the  week over $1,600. Oil remained over $100.   The show goes on!   We  are watching the destruction of an empire. All empires must go away  sometime. They are natural things. And nature puts a time bomb in  everything she creates.   The  US empire is doomed. Just like all the others that went before it. It  is doomed by nature herself — condemned by the gods to blow up and die.   None  of this should be surprising to you, dear reader. We’ve seen this movie  before. Hundreds of empires have come and gone. We know how this movie  ends. More or less.   What  we know for sure is that the US is going broke. There is hardly any  other plausible outcome. We’ve gone over the numbers so often we don’t  need to repeat them.   Yes,  it is true that the feds could still save themselves….if they had the  will. They could cut taxes to a flat 10%…and spend only what they raised  in tax revenue… That would do the trick from an economic point of view.   But  it’s too late for that — politically. Empires have lives of their own.  They go forward…expanding…spending…stretching…until, boom, they go too  far. Empires do not back up. Some merely go bankrupt. Others are defeated in war. All end disastrously.

Only  one candidate favors rescuing the nation’s finances and pulling the  empire back from disaster. Ron Paul. He is considered such an  unelectable kook that the newspapers barely mention him. And the papers  are right. He is unelectable. Because he is opposed by the zombies.   We  have explained how government really works.

It is barbarism in action.  Powerful insiders use force — police and military force — to transfer  wealth and status to themselves. In the process, they turn their  clients…and themselves…into parasitic zombies. The zombies support the  insiders. The insiders throw the zombies a bone or two. Together they  corrupt and destroy the empire.   Here is just one example from last week’s news. Bloomberg: Despite  the sluggish economy, the nation’s major health insurers have prospered  in large part by expanding their role in government programs such as  Medicare and Medicaid, according toa study released Thursday.   The  share of large insurers’ revenues contributed by their Medicare and  Medicaid business has jumped from 36 to 42 percent over the past three  years. And the report by Bloomberg Government, a research division of  Bloomberg LP, suggests that insurers will further increase their  reliance on federal dollars with full implementation of the health-care  law in 2014— when Medicaid will expand to cover an eventual 16 million  additional low-income Americans and the federal government will begin  subsidizing private-insurance policies for an estimated 19 million more.

The  insurers have become zombified. They no longer do honest work for  honest reward. Instead, they lobby for more federal spending on health.  They tweak the nation’s laws and its public health programs to make sure  they get the grease. They are insiders now…   But  no sector has more zombies in it than the ‘national security’ industry.  Dwight Eisenhower warned the nation in 1961 to watch out for the  ‘military, industrial complex.’ He might have saved his breath. The  zombies had already taken over. The US was already spending more on ‘defense’ than the net income of all American corporations put together.   “In  the years since,” writes Todd Purdum in Vanity Fair, “the trend has  warped virtually every aspect of national life, with consequences that  are quite radical in their cumulative effect on the economy, on the vast  machinery of official secrecy, on the country’s sense of itself, and on  the very nature of national government in Washington. And yet the  degree to which America has changed is noticed by almost no one — not in  any visceral way. The transformation has ten hold too gradually and  over too long a period.

Almost no one alive today has a mature, firsthand memory of a country that used to be very different…”   Benito  Mussolini was a socialist poet. But when he got into power he, like  Barack Obama years later, discovered that it was not a good idea to  oppose the military. Instead, he put on a silly uniform himself…and  attacked Abyssinia!   Dear Readers may have noticed too. Between Obama’s military policies and  those of George W. Bush, there is not a dime’s worth of real difference.  Why? Because a zombie military is almost impossible to cut down to  size. It has already corrupted the political process. Now, the zombies  cannot be stopped…or controlled.   A  bankrupt government can cut almost anything else. But not its military.  National security industry insiders glide easily into the seats left by  politicians who try to stop them. Ex-generals counsel wimpy  Congressmen. Flies and flakes buzz around the trillion-dollar ‘defense’  honey pot.   Military  spending rose about 70% during the George W. Bush years. Today, the US  spends 43 cents of every dollar of military spending anywhere in the  world.

And now, with the hysteria of “terrorism” and a “nuclear Iran,”  who will oppose it?   Many  of the nation’s biggest manufacturers are weapons producers — Lockheed  Martin, Raytheon, Northup-Grumman, L3 and KBR. The jump in employment  numbers were largely the result of government hiring. We have seen a  figure over 40% for the portion of domestic manufacturing devoted to the  zombie defense industry. Among the most profitable businesses in the  country are surely the 2,000 corporations getting money for  counter-terrorism, homeland security, military intelligence and other  boondoggles.

In  Washington itself, 33 new building complexes have been put up since  2001 whose occupants are somehow involved in top-secret activities.   Yes,  dear reader, the armed zombies pretend to protect the ‘land of the  free.’ But they are its biggest enemies. In 2011, they put through a new  defense spending bill…which removed Americans’ ancient habeas corpus  rights. The Commander-in-Chief also asserted, and exercised, the right  to kill anyone, anywhere…on his own say-so. And both the president and  Congress continued to spend money they didn’t have on cockamamie  boondoggles even though it is obvious that the nation is going broke. It is only a matter of time now. The empire will be stabbed in the back by its own protectors.

Trade well and follow the trend, not the so-called “experts.”

Behold  the age of infinite moral hazard! On April 2nd, 2009 CONgress forced  FASB to suspend rule 157 in favor of deceitful accounting for the TBTF  banksters.

Enjoy,  JU


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