Chuck Spinney had it right.

Yesterday the Congressional/Senatorial Military Industrial Complex announced the plans to add ten more ships to the Navy's fleet over the next four years to help keep fighting the good fight on behalf of the "global force for good ". The DOD will commission someone to build these ships and is currently "vetting" the potential shipbuilders. The odds on favorite to "win the bid" is Bath Iron Works out of Maine, a subsidiary of General Dynamics. But I thought it was Mittens Romney that was going to be the new savior for the Navy and the Military Industrial Congressional Complex?

General Dynamics, is one of the largest defense contractors in the world. This is the same General Dynamics that was in the news about a month ago for an "accounting glitch" involving 900 million dollars worth of Stryker replacement parts. This doesnt include the no-bid $1.5 billion Stryker maintenance contract the Army has with General Dynamics that has the Army over-spending by some 300+ million dollars.

But, hey, welcome to the Iron Triangle.

Read more here: http://www.mcclatchydc.com/2013/03/31/187297/dod-inspector-general-finds-900.html#.UYgBZ8prjfa#storylink=cpy

This 2:27 minute local Bath, Maine news report, back from February of this year, gives a great example of how the Iron Triangle works and it pertains to this topic. Here you have both Senators, a Republican (Susan Collins) and Independent (Angus King) from the state of Maine, "working hand in glove" to get congress to pass a new defense budget. Here you also have union leadership talking about preserving jobs, hoping for a new defense budget. You have the president of BIW, proclaiming: "if nothing changes, it could lead to more job layoffs in the years ahead".

What you have here is organized labor and industry in unison with elected bureaucrats, all with one voice. That voice is clearly aimed at congress. Could it be because of the 5000+ jobs at stake in their districts/town? Or could it be all of them having their pockets lined with the billions at stake with the Department of Defense? General Dyanmics will surly profit from building ten new destroyers. Organized labor gets to keep their scalps. Last but not least, Susan Collins gets to keep her whore-master, General Dynamic, fat and happy, for ther investment into her campaign.

Here is a little something about Susan Collins we should know first:

Voted NO on investigating contract awards in Iraq & Afghanistan. (Nov 2005)



Interesting? You would assume someone who is on both Senate committees of Appropriations and Armed Forces, would want some type of transparency into contract/rewards, wouldn't you? Now, here are some of her earmarks...

$20,000,000

High-Mobility Multipurpose Wheeled Vehicle Repair

$6,000,000

General Dynamics/Saco Defense: MK47 Mod 0 Advanced Lightweight Grenade Launcher

   $3,200,000    General Dynamics/Saco Defense (Collins) General Dynamics Armaments and Technical Products (Leahy, Snowe): Lightweight Caliber .50 Machine Gun 

Care to guess her top fundraiser over the last six years? 

Contributor	Total	Indivs	PACs
General Dynamics	$89,750	$48,250	$41,500
Raytheon Co	$65,801	$16,801	$49,000
Blue Cross/Blue Shield	$52,000	$3,000	$49,000
Marriott International	$51,500	$36,500	$15,000
National Assn of Postmasters	$49,000	$0	$49,000

Maybe its just all a coincidence? Maybe a unicorn will ride in and butter my ass and feed my lollipops in a sea of poppies? One thing that stood out to me in that video was a statement by Angus King:

"Its embarrassing..... ah... that or government has put people in this position because of the inability of people to work together."

Its embarrassing we have put a defense contractor in this position because the Iron Triangle's red tape isn't moving fast enough? Insert hilarious laughter here. I'm not pointing out anything that isn't obvious. Sure, we have corruption. We all know that but this isn't corruption as much as it is everyday business in the US of A. Where common sense and the statesmen has been assassinated and replaced by pimps with out of touch - bloated budgets (read Defense) who are running nothing more than a jobs program for the public while sanctioning nothing short of mercenary work to its soldiers. All the while the "elected" officials play the part of Mary Magdalan... nothing but a whore hiding behind an illusion.

Deafening silence

I seen the movie '42' last night. Very well done. Just a damn good movie, all across the board. Before bed, I started the tedious task of organizing the accumulated bookmarks on my Firefox browser. I like to to do this at least a few times a month just to keep things from getting out of hand and overwhelming. Being it was from the comfort of my bed, I knew I could muster every last ounce of energy out of myself before it was vanquished by the sandman. When I woke up and as I sat down at the table, I immediately came across this article.

Being it was early, without my bearings yet or maybe it was the coffee that wasn't even 1/3 of the way into the brewing process, I was really caught off guard. It was from March 22nd. This article was about the murder of a 13-month old baby-boy form Georgia inside his stroller.  


De'Marquise Elkins, a 17-year old black male along with another minor accomplice attempted what was said to be a random robbery. Getting nothing from the woman, they shot her and then turned the .22 caliber pistol on and shot her baby in the face, as he lay sleeping in his stroller just a few blocks from their home. This was AFTER telling the woman beforehand that they were going to kill her son.

Mr Elkins, with his "Thug Life" tattoo across his chest and a tear-drop tattooed in the corner of his eye (usually a gang symbol for a completed murder) awaits his fate in a jail cell in Georgia. The 13 month old, who never got to spoke his first words has no luxury of awaiting a trial. His parents, meanwhile, will live in some sort of a prison for the rest of their lives. His mother, second guessing what she could have done differently. Maybe if she only had some money? His father, what if he was there? What if he didn't go to work that day? 

So, as little Antonio Santiago rest in peace, where's the outcry been? Where is the Rainbow Push Coalition? Where is Jesse Jackson? A minority, a 13- month old boy gunned down in his stroller while he slept at point blank range by a couple of self-described "thugs" or at least those are the words one chose to brand his body with. Its been 42 days since the 21st of March. Not a peep.

Could it be because he has a white mother? Or because he has a Spanish last name and a Latino for a father? If it was a black baby, it would be a crime that these guns are on the street. It would be the gun makers fault. Or the states fault for not having tougher gun laws, I see you Chicago!! Because I'm 100% sure a background check could keep a gun out of these kids hands. Oh wait, they didn't buy the gun? Well, pull me up a chair!

Had this been reversed? And the thugs where white and the baby black? Well hell, you would have seen Jesse and Co do everything in their power to bring attention to the, his situation. The collective re-parting of the Red sea wouldn't be enough

Forty-two days and crickets from the race hustling pimps that call themselves the "black leadership". I know I have had plenty to say about this racist pig, Jesse Jackson. Am I beating a dead horse with this issue of hypocrisy? You bet your ass I am. Until this liar is called out for what he is and dismissed from the public lexicon by the black community, he claims to represent; I'm going to keep on pointing out their double standard - PC- hogwash every chance I get.

Jackie Robinson is a hero for all people but for black folks in particular and rightfully so. What he did was groundbreaking and uplifting. What Jesse Jackson does now is stale, contrived, racist and divisive. If we are to be asphyxiated by political correctness then its high time this man is stripped of his sub-prime fifteen- minutes and breathe the pillow himself.

Unfettered socialism meets its maker @ 2:45 EST tommorow...

As Bayern Munich plays the second leg of the semifinals of Champions League tommorow (2:45 EST) at Barcelona, the match is much more than just two storied franchises battling it our for European supremacy, at least to me anyway. Because this game paints an ironic tale of two nations of complete opposite fates. So much so, that the only commonality is found on the pitch.

Europe, as a whole is much more socialist than we are here in the states, contrary to what the folks like Bill O’Reilly or Sean Ins'anity might suggest otherwise. With that being said, the degree of socialism in Europe is about as narrow as the O-Man’s 2,000 word healthcare bill that still to this remains unread. Germany and Spain mark the extremes of this as both are from opposite ends of the socialism spectrum.

Sure, Germany has its socialist state calling card with its "free" health care, its "free" schooling and higher taxes. There are the laws in place where boards of directors have to contain labor representation. There are also restrictions on what jobs can and can’t be outsourced. Nobody is going to confuse Germany with being Anarcho-Capitalists, that is for certain.

Interestingly enough however, Germany is more US than it is European in terms of production. According to the CIA World Factbook, Germany is the second highest exporter in the world behind only China. This includes world renowned brand names such as: BMW, Porsche, adidis, Volkswagen, Merck, Siemens, BASF, Allianz, Deutsche, Bayer, Daimler and SAP just to name a few.

Outside of banking, what does Spain actually build? Sure BBVA is a gigantic bank but if the world is being funded, floated and sunk in fiat currency its no surprise those nations that rely on bubbles will feel the pain. The nations that produce the most tangible goods are the least affected.

This week, Spain’s unemployment reached 27%. To say that is staggering would be an understatement. Germany meanwhile, has unemployment of around five percent. As far as Germany is concerned, there is no recovery. How can you recover from something if there is no illness? 

So when Bayern-Munich invades Barcelona tommorow afternoon, with its bigger/stronger/faster athletes, the tale of two socialism's will not be lost on me. The German team, actually named for a German company, is an emerging  super-power. This team represents a nation of innovation, fiscal restraint and a strong work ethic. The Spanish side is team that was the standard of futbol for years on the decline. It also represents a nation where people would rather sip cappuccinos in a café or bistro than work. Much like the expected outcome today on the pitch, Germany and their form of socialism wins out. Hard work and innovation always do.

Liberal economic policy, the catalysis for our destruction

Back in February, NSA Director General Keith Alexander called cyber-espionage “the greatest transfer of wealth in history.” Symantec (SYMC), a Fortune-500 security software company has said the cost of intellectual property theft for U.S. economy is around $250 billion a year.

No question, that’s a chunk of change and maybe that’s why (sic) SOPA is so important?

Now, while I’m not in the NSA and I don’t have the stripes of a General, much less anyone in the intelligence community, I do however possess something that is awfully lacking in DC these days… common sense. This caught my eye last night. Its a post on the blog for Pew Research posted on 4-23:

A Rise in Wealth for the Wealthy; Declines for the Lower 93%

Common sense would tell you that the greatest transfer in wealth in our history doesn’t lie in some computer laden sweat shop in Nepal or China. And no, its doesn't lie in these last three years among the rich nor is this an attempt to wage "class warfare". No, the greatest transfer of wealth has been a slow drip in the form of decades. It also lies at the doorstep of every American. Because the greatest transfer of wealth has been the systematic liquidation of the middle class.  

If you read this blog on a somewhat regular basis you know this seems to be a repeated topic. Earlier this year, we had the laugher that was the "fiscal" "cliff". More recently, back on April 3^rd, it was in large part centered on the influx of women working and the struggle even with two incomes to stay afloat in the middle class. As I pointed out then, as I do now, even with two incomes, the middle class has shrunk for four consecutive decades.

Today I want to center on a broader topic and that is the American public’s transition from a conservative saver- to a liberal spender. 

All across the US, the transition has taken place and its starts out with even the youngest of Americans. The piggy bank has been replaced by a cell phone and a data plan. The savings bond has now become an X-Box. College savings account has been earmarked as a vacation or a mortgage payment. Most people don’t want to live on top of each other so they move out to the suburbs to escape the crime and crumbling schools. Since both parents are working and commuting most need two cars. And the beat goes on.

I left off one segment of the population when it comes to consumption for a reason and that is the retired, older generation. Those that grew up in and around the time of the great depression have an appreciation for conservative economic principals if not on merit it was simply out of necessity. They fought in the wars and were the foundation for not only the middle class but were the trailblazers of the greatest economic expansion in world history. 

Why the disconnection between generations? Does the American public deserve the blame for this? How many times have you heard people use American’s obsession with consumption and “keeping up with the Joneses” as a defense for the economic plight of the country? I’m not going to write this in defense of American consumption. There is no question our habits are, in large part, a component of this destruction, but how much?  

How much weight in this destruction of the middle class needs to be laid at the feet of complicity and conditioning via the FED & its bankers, its congress, lobbyists and otherwise big business interests?

There have always been rich and poor. There have always been success and failure. This is the reality of what makes our system so successful. This is what has made as the beacon of light to the world. Hard work will always pay off. Save your money, be frugal and you too can walk the path that leads you to the American dream. Somewhere along the way this path was hijacked. 

The timing says it all. Ever since the early 70’s, America has changed. We know that is when women started entering the workforce in droves. This was also the same time of the “Nixon Shock” which ended Bretton Woods. This, severing the dollar from gold, as we entered the fiat currency phase full force. It was also the start of Americans shifting discretionary income from savings to consumption. All of this coincided with the beginning of the decline for the middle class.

What’s the common denominator in this decline and destruction?

Here’s an exchange back from 1941 that says its all. Marriner Eccles was the Governor of the Federal Reserve System. He was giving testimony before the House Committee on Banking and Currency, which was headed by Congressman Wright Patman. Mr Patman was asking how the FED got the money to buy bonds:

"Eccles: We created it.
Patman: Out of what?
Eccles: Out of the right to issue credit money.
Patman: And there is nothing behind it, is there, except our government's credit?
Eccles: That is what our money system is. If there were no debts in our money system, there wouldn't be any money."

When someone or a government (under this system) goes into debt, three elements are automatically triggered. The principal you borrowed of course must be paid back. The interest rate you have to pay back for borrowing the money and the inflation that comes with the newly created money (that is debt) that eats away at the existing money supply.  

I have pointed out before what would happen if we ever returned to the interest rates of the early late 70’s to early 80’s. We would see our annual national debt interest payment be in the trillions. Now, that would be a real fiscal cliff. But that’s not going to happen, and because the interest rates stay low, the money supply (debt) will continue to pile up. And since we know the FED’s stance on inflation (helicopter and all) its only natural to assume inflation will always eat away at our wallets. As time goes on it nips at the heels, dragging those on the edge of the class into the class of the dreaded “working poor”. Thus the decline in wealth for almost everyone despite having two incomes is to be expected.

It doesn’t take an economist to figure this out.

Now this is the part where the writer gives his opinion of how to fix the problem he or she presents. That would be the perfect way to end an article where you point out problems to close it with a solution... except I don’t have a solution.

Yesterday, I went to bankrate.com to check out the current rates and here is what I found:

Money Market Accounts and Savings Accounts rates are below one percent with most being under .70%. A six-month CD will fetch you anywhere from .50-.88%. These are less than one-percent. You can’t even get a five-year CD over 1.75% and that’s even including Jumbo CD’s (100k or more).

I said before the average American has to carry some blame but how much blame can you lay on someone that is conditioned to spend while being discouraged to save? How can the average American save for his children’s college when the price of tuition has increased over 500% since 1985? 

But buy a car? Zero percent interest. 

Need new furniture made of cardboard and plastic? Zero percent interest and no payments for four years. 

Buy a house? 3% interest and you only need 3% down. 

I wonder what the average person is going to do.

What is the alternative, save anyway, right? Buy gold & silver and I would agree (as I do the very same thing) but if everyone did this deflation would come calling. It doesn’t matter if you or I like it, the truth of the matter is - debt is money and money is debt, just like the FED chairman said. Remember, a deflationary death spiral is much swifter than an inflationary death spiral. That is not going to be allowed to happen. Gold suppression anyone? Hint: its happening right now.

As you can see and surly already know, it doesn’t pay to save conventional routes that don’t take a financial adviser like our grandparents did. This is why, people today will not live as well as their parents... its all catching up to us. 

The only alternative is to funnel your money into Wall Street and spend, spend and spend some more. Any instruments that can yield you a decent return in a savings or investment all lead to Wall Street. Where did those gains made over the last two years occur? This isn’t about class warfare or the 99% or in this case the ninety-three percent; this is about the choice to be frugal and fiscally conservative like those before us that built this country and how that choice simply doesn’t exist. That choice has been robbed by banksters and it would be hysterically ironic if it wasn't so sad. So spend and slave on, the world economy is counting on you.