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Paul B. Farrell
Oct. 5, 2010, 12:01 a.m. EDT · Recommend (11) · Post:
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America on the brink of a Second Revolution
First Take "º
Oil prices find a lofty perch
By Paul B. Farrell, MarketWatch
ARROYO GRANDE, Calif. (MarketWatch) "” OK, so Nassim Nicholas Taleb, the "Black Swan" author, actually said: "The Fed won't exist in 25 years." Warning: It'll happen much sooner, fallout of the coming Second American Revolution.
It's inevitable: Wall Street banks control the Federal Reserve system , it's their personal piggy bank. They've already done so much damage, yet have more control than ever.
Tea-party activists talk to Russ Britt on what their movement represents.
Warning: That's a set-up. They will eventually destroy capitalism, democracy, and the dollar's global reserve-currency status. They will self-destruct before 2035 "¦ maybe as early as 2012 "¦ most likely by 2020.
Last week we cheered the Tea Party for starting the countdown to the Second American Revolution. Our timeline is crucial to understanding the historic implications of Taleb's prediction that the Fed is dying, that it's only a matter of time before a revolution triggers class warfare forcing America to dump capitalism, eliminate our corrupt system of lobbying, come up with a new workable form of government, and create a new economy without a banking system ruled by Wall Street.
Read 'America on the brink of a Second Revolution.'
Let's reexamine the timeline closely:
Stage 1: The Democrats just put the nail in their coffin confirming they're wimps when they refused to force the GOP to filibuster Bush tax cuts for billionaires.
Stage 2: In the elections the GOP takes over the House, expanding its strategic war to destroy Obama with its policy of "complete gridlock" and "shutting down government."
Stage 3: Post-election Obama goes lame-duck, buried in subpoenas and vetoes.
Stage 4: In 2012, the GOP wins back the White House and Senate. Health care returns to insurers. Free-market financial deregulation returns. Lobbyists intensify their anarchy.
Stage 5: Before the end of the second term of the new GOP president, Washington is totally corrupted by unlimited, anonymous donations from billionaires and lobbyists. Wall Street's Happy Conspiracy triggers the third catastrophic meltdown of the 21st century that Robert Shiller of "Irrational Exuberance" fame predicts, resulting in defaults of dollar-denominated debt and the dollar's demise as the world's reserve currency.
Stage 6: The Second American Revolution explodes into a brutal full-scale class war with the middle class leading a widespread rebellion against the out-of-touch, out-of-control Happy Conspiracy sabotaging America from within.
Stage 7: The domestic class warfare is exaggerated as the Pentagon's global warnings play out: That by 2020 "an ancient pattern of desperate, all-out wars over food, water, and energy supplies would emerge" worldwide and "warfare is defining human life."
In this rapidly unfolding scenario, the Fed cannot survive. Why? Not because the Fed is at the center of America's economic problems, beyond repair, a dying institution. But because the Fed is a pawn of Wall Street's Happy Conspiracy, which is incapable of seeing the train wreck that it set up.
This out-of-control, conspiracy of greedy Wall Street bankers, corporate CEOs, corrupt politicians and Forbes 400 billionaires will, in the near future, trigger the third catastrophic meltdown of the 21st century, a collapse that paradoxically can transform America into a new, stronger post-capitalist economy "¦ but only after a revolution and brutal class warfare. But few will talk about what's coming.
So who can you trust to tell us the truth? Taleb says it's very simple. His "simple metric" was made clear at a recent "Washington Ideas Forum" in a piece by Atlantic editor Nicole Allan: Unfortunately most fail Taleb's test. Most get it wrong. Many lie, exaggerate, speak half-truths or, worse, say nothing.
Here's Taleb's "simple metric for judging whose economic opinions are worth his time: "?Did someone predict the crisis before it happened" in the past? "If the answer is no, I don't want to hear what the person says. If the person saw the crisis coming then I want to hear what they have to say" about future crises.
Taleb target No. 1: Treasury Secretary Tim Geithner, who spoke just before Taleb at the forum. Of course, experience tells us you really can't trust anyone in government. All politicians fudge the numbers, cherry-pick data to suit their personal goals, biases and political rhetoric.
Remember Hank Paulson, Wall Street's Trojan Horse inside Washington? Earlier he had made over half a billion as Goldman's CEO. Back in July 2007 before the meltdown he bragged to Fortune that this is "the strongest global economy I've seen in my business lifetime." Never trust anything "leaders" like him say. Never.
Paul Farrell writes the column on behavioral economics. He's the author of nine books on personal finance, economics and psychology, including "The Millionaire Code," "The Winning Portfolio," "The Lazy Person's Guide to Investing." Farrell was an investment banker with Morgan Stanley; executive vice president of the Financial News Network; executive vice president of Mercury Entertainment Corp; and associate editor of the Los Angeles Herald Examiner. He has a Juris Doctor and a Doctorate in Psychology.
Crude-oil futures shrug off the usual sell signals.
6:44 p.m. Oct. 4, 2010 | Comments: 3
- AceCreditVampire | 11:26 p.m. Oct. 4, 2010
"The Fed is dead, maybe by 2012 http://on.mktw.net/aFiX67" 11:54 p.m. EDT, Oct. 4, 2010 from MKTWFarrell
"America on the brink of a Second Revolution http://on.mktw.net/9CQrNF" 11:16 p.m. EDT, Sept. 27, 2010 from MKTWFarrell
"Hatred is killing your profits, retirement http://on.mktw.net/dkQKi9" 11:27 p.m. EDT, Sept. 20, 2010 from MKTWFarrell
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The Fed is dead, maybe by 2012
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