Friday, January 30, 2009



By Dave Hodges

In the United States, credit swap derivatives created national debt totals of over one quadrillion dollars. That is one thousand trillion dollars! The entire GDP of the planet is estimated at $66 trillion dollars. And somehow, in the infinite wisdom of Congress, we falsely and naively believed that a $750 billion transfer of wealth (i.e., bailout) was magically going to save the economy and the collective futures of the American middle class. In short, the debt created by futures speculation is approximately 16 times greater than the sum total of the entire wealth on the planet! And we think we are going to climb out of this?

The bailout is enough, just enough, to float the economy through the 2009 presidential inauguration. The placebo effect of the anticipated widespread public hope, which will be fueled by the Obama inauguration, may push the inevitable economic crash out another 30 days, but not much further. America is living on both borrowed money and borrowed time.

The present bail out (i.e., the public theft of our collective private assets) will not save your job, your mortgage or your pension. If the bailout was going to preserve anything but the bottom line of the international banksters, then ask yourself why NORTHCOM is constantly conducting riot suppression activities. What does NORTHCOM and the Government know that most Americans do not know with regard to what lies ahead?

The bailout is nothing but a power play which provided the means for the Treasury Secretary (i.e., the treasury czar), the former head of Goldman Sachs, Henry Paulson, to gain absolute power over the economy. Does any well-informed person think that Obama is going to bring about real change? Where is Obama's new Treasury Secretary coming from?

Meet the new boss, the same as the old boss. The new Treasury Secretary elect, Timothy Geithner, is the President the New York Fed. And what about Clinton's chief financial advisor, Larry Summers who has now resurfaced in the Obama administration? Summers and Robert Rubin, another Goldman Sachs colleague, in conjunction with Paulson, undermined the Glass-Steagall Act during the Clinton administration. The Glass-Steagall Act resulted from Depression era policies which wisely prohibited banks from becoming insurance brokers and engaging in other unsavory practices such as participating in the credit swap derivatives ponzi schemes. If Rubin and company had not convinced Clinton to scrap Glass-Steagall, we might not be on the precipice of economic disaster. In short, we have the same crew applying the same screws.

"Yes we can (bring about change)" shouted the Obama supporters on the evening of November 4th. The only change that Americans are going to see with an Obama presidency is the measly change left in their pockets after this puppet's de jour and his merry band of gangster banksters are done fleecing the American public. Do you remember when Congress asked Henry Paulson where $2 trillion missing dollars disappeared to and he arrogantly replied "it is none of your business." The international bankers now have complete control over our economy without any oversight from congress

The Fed, the engineer of the current economic collapse, is engaging in what could be called the "Bernanke Two Step." The only two solutions that "Helicopter Ben" keeps coming up with is to, first, downwardly adjust interest rates which have effectively slipped to zero percent. Please ask yourself, what is the dollar really worth when you can borrow on it interest free? The second half of the Bernanke Two Step" is to recklessly increase the money supply. The Fed is currently doubling the money supply every six weeks! These are not solutions; they are only delaying the inevitable. Two weeks ago the dollar was worth $1.24 against the Euro. Two weeks later, the dollar is worth only $1.47 against the same Euro.

Additionally, American consumers have $15 trillion dollars of credit card debt and we don't even know for sure how much the government is in debt given the recent theft of trillions of dollars courtesy of our self-anointed economic czar (i.e., Henry Paulson and his secret handshake friends). The best estimates of our national debt range from $12 trillion to $15 trillion dollars. We are quickly approaching a Weimar Republic type of hyperinflation in which it will take a wheel barrow full of money to purchase a mere loaf of bread. The dollar is indeed tanking!

America, your country has been conquered in a masterful coup de tat and most Americans are not even aware of it.

We are in the midst of the The Greatest Depression in world history.

How bad will it get?


America just experienced the most dismal Christmas retail season on record. We are already seeing massive retail failures which are tearing at the guts of economy (e.g., KB Toys, Linens and Things, Comp USA, Sharper Images, Circuit City). And this is just the tip of the iceberg.

Based on the notion that current events form our future, let's look at what is coming. Starbucks and Office Depot are already closing stores. Wall Street is emptying out entire floors of buildings and in some cases, they are emptying out entire buildings. Who is going to rent all of these empty buildings? The simple answer is nobody. America is going to have a commercial real estate collapse which is going make the home real estate collapse look like a walk in the park. The commercial real estate market is grossly overleveraged. We are not going to have to wait much longer as this total commercial real estate collapse will be recognizable by March of 2009. When Obama is inaugurated, the United States will see about 30 days of hope. However, as the office parks and shopping malls are emptied, the realization that we are in the greatest of all depressions will come into American conscious awareness.

Not even the corporate controlled mainstream media will be able to deny that we have slipped into the mother of all depressions. The media will label this event The Greatest Depression as it will be far worse than the Depression of the 1930's. Back then, most Americans did not have a home mortgage. Back then, Americans did not have credit cards. Back then, America had a trade surplus. Back then, Americans had a sense of self-reliance and possessed real skills. Back then, America was an ascending society whose people valued education. Back then, America had an enormous and emerging manufacturing base. Today, Americans are awash in $15 trillion dollars of credit card debt. Today, America has the greatest trade deficit in the history of the planet. Today, Americans are spoiled and possess a personal belief in their own entitlements. Today, our manufacturing base has left the country in search of a cheaper labor force. Today, we are a descending society in which we are witnessing the emergence of a permanent underclass created in large part by the 50% drop out rate present in many of our major metropolitan areas. Today, we do not have the capacity to push out of the current calamity.

Real unemployment numbers are about 13%. By the end of 2009, we will approach 25% unemployment and the end may not be in sight even by the end of next year. Where are these unemployed persons going to get a job? Where are the college graduates going to work? Most will not even be able to get a job at Kmart, assuming Kmart is still in business. Ask yourself why we are bailing out the auto industry. Who can afford to buy cars? Are we even aware that the only job gains in the present economy are in the government?

After the commercial real estate collapse, we are going to see civil unrest eventually explode into a revolution. What is going on in Greece is not about the murder of a 15 year old child. The riots in Greece are about pent up anger, particularly among the young people who are staring directly into a futureless future. These young Greek adults are looking at the corruption in their government, the repeated string of scandals and the fact that many have no job to go to. When people lose everything, they have nothing left to lose and they will subsequently lose it. In your American bred ignorance, if you really believe that social unrest only happens in foreign lands, you are not going to have wait very long to find out just how wrong you really are. When you have the homeless, the hapless and the hungry on the streets of America, you are going to see civil unrest to such a degree that the 1992 LA Riots will seem like a benign protest by comparison. We are going to see a revolution in this country and these are the beginning phases. Whether it is in Athens, Greece, or in Athens, Georgia, this scenario will soon play out over the entire planet.

Federal, state and local governments are in the midst of squeezing every last ounce of financial life blood out the average American. New York is enacting the 18% obesity tax on soda. The inept, immoral and corrupt photo radar, complete with its proven unreliability, is hell bent on separating as many Americans as possible from their money. At a time when property values are plummeting by as much as 40-50%, property taxes should be going down. But at a time when Americans can least afford it, our property taxes are skyrocketing along with the rest of our taxes as failing governments, at all levels, are attempting to bail themselves out at our expense. History is replete with this type of governmental fleecing in which governments push the average citizen over the revolutionary cliff with abusive and unsustainable levels of personal taxation.

Who will fire the first shot of the coming revolution? Will it start with the displaced workers? Will it emanate from our college campuses? I cannot say for certain, but it is coming and it is coming very soon.

What is your place in all of this? When the Titanic went down, who did they save? They saved 70% of the wealthy as they were the ones that got into the life boats while the coach passengers were locked into steerage in which only 10% of those poor persons survived. This is exactly what is going on now. The government is not bailing out small business owners, pensions and the average investor. They, we, are only bailing out the rich friends of the international bankers. The rest of us are locked into middle class steerage.

Don't you just love the language of the Treasury Department as they tell us we are going to have a car czar, just like the drug czar, or the education czar? Is this the language of a democracy? Just look at the people who are the players in all of this (e.g., Henry Reid, Nancy Pelosi, George Bush, etc.). What have any of these people ever accomplished? Can any of these buffoons say "Look at the greatness which I have created?" Everything that these gangster bankster minions have done is of Katrina rescue quality. They are not going to bail us out; they are not going to save the economy. They are simply forestalling the inevitable. The epitaph of the American economy has already been written by what John F. Kennedy called the Gnomes of Zurich.

We may have elected a new president for the country, but the country club remains the same. Whether it is Robert Rubin of Goldman Sachs or Henry Paulson of Goldman Sachs, or Timothy Geithner of the Federal Reserve, running our economy into the ground behind the scenes, does it really matter who we elect? Most Americans mistakenly believe that the answer lies in participating in the endless pendulum shift between electing a different set of democrats and republicans every four years. When democrat Bill Clinton was elected, the present economic train wreck began with NAFTA. Republican George Bush pushed through CAFTA and the North American Union. Both political parties are bought and paid for by the global corporations who are ultimately controlled by the international bankers. I am afraid that we are not going to be able to get through this ordeal without a lot of dead American citizens.

How bad will it get?


The Economic Collapse of 2009 (Part 3):

The Establishment of the American

Police State

Dave Hodges


Dave Hodges

How bad will it get?

The first two parts of this series were largely received with skepticism and doubt because it is inherent in our human nature to patently deny sudden cataclysmic events. I am fully cognizant that nobody, including myself, wants to believe that our existing order, our daily routines, will soon be history and will be replaced by events so tumultuous that it may be a fool's errand to try and predict what this country will look like by the end of 2009.

The United States government, as well as several reputable international sources are predicting widespread civil unrest (i.e., revolution) with an accompanying breakdown of America's economic, political, social and legal order. The evidence comes from multiple sources and is largely irrefutable.

Retired Lt. Col, Mr. Nathan P. Freier, states in his article, Known Unknowns: Unconventional "Strategic Shocks" in Defense Strategy Development, which was written for the Army War College (11/04/2008), that the United States military establishment must be prepared for "an unforeseen economic collapse" or "loss of functioning political and legal order." The War College's report also goes on to warn of a possible "rapid dissolution of public order in all or significant parts of the United States," and, "The DoD might be forced by circumstances to put its broad resources at the disposal of civil authorities to contain and reverse violent threats to domestic tranquility. Under the most extreme circumstances, this might include use of military force against hostile groups inside the United States."

Newsmax's Jim Meyers reported in his article U.S. Military Preparing for Domestic Disturbances (retrieved on 12/23/08 from 2008/12/23/164765.html) the Defense Department has made plans to deploy 20,000 troops nationwide. Meyers further reported that "Sen. James Inhofe of Oklahoma and Rep. Brad Sherman of California disclosed that Treasury Secretary Henry Paulson discussed a worst-case scenario as he pushed the Wall Street bailout in September, and said that scenario might even require a declaration of martial law."

Mike Sunnucks of the Phoenix Business Journal in his article entitled, Ariz. police say they are prepared as War College warns military must prep for unrest; IMF warns of economic riots (retrieved on 12/17/08 from, reports that International Monetary Fund Managing Director Dominique Strauss-Kahn warned Wednesday of "economy-related riots and unrest in various global markets if the financial crisis is not addressed and lower-income households are hurt by credit constraints and rising unemployment."

Bob Burnett of the Huffington Post writes that Obama needs to enlist a broad coalition of spies in order to ensure domestic tranquility. In his article, Obama's Crisis Presidency (retrieved on 12/12/08 from , Burnett compares such an effort to the creation of American Coast Watchers from the WWII era. One would wish that Obama's plan would be so patriotic, so benign. The Washington Times Bill Gertz (Obama, McCain Eye Better Use of Spies, 10/23/08 retrieved from states that "Obama will use spies to keep tabs on his domestic opposition. ..". "Obama will develop new military and civilian capabilities to target terrorists".

In Obama's Blueprint for Change (, the President-elect announced that he will establish a Shared Security Partnership Program to "build international military, intelligence, and law enforcement cooperation." In the fight against crime and terrorism, Obama, in his own words, calls for a million U.S. civilians to engage in "domestic intelligence" through the use of a civilian security force with one that is just as well funded and strong as our military (

Do we understand what Obama is calling for here? We are looking into the jaws of the darkest days of Nazi Germany with an American flavor of the brown shirted SA of Hitler's henchmen aka THE AMERICAN POLICE STATE.

In my years of living in this country, I have lived through several recessions, some which were very severe. However, in the midst of the worst recessions, or even the Great Depression of the 1930's, I cannot remember hearing about or reading about calls for military intrusions into domestic affairs. I cannot recall hearing or reading about the American military engaged in civil unrest training activities to be employed against its own citizens because of an economic calamity. I cannot recall an American president calling for the creation of domestic spies to be utilized against fellow Americans. However, history is replete with examples of the KGB and the Nazi SS spying and ultimately persecuting its own citizens in the name of preserving domestic tranquility. Our leaders are speaking to us in clear and unambiguous language:

There is going to be an economic disaster, to such a severe degree, that the American military will be needed put down the resulting insurrections. Americans will soon come to know the police state tactics that have given the world some of its darkest days. Hitler and Stalin could only marvel at the level of sophistication of the technology that is at the intelligence agencies disposal. And if one does not think America capable of emulating the darkest days of Nazi Germany, perhaps everyone should google Stanley Milgram and review his experiment on compliance which he was a professor of psychology at Yale University back in the 1960's.

Lest you think that these are the inane and insane ramblings of a "Chicken Little" with too much time on his hands, I would challenge you to follow the URL links and come up with another interpretation.

How bad will it get? Part four of this series will connect the random dots that will form an understandable blueprint for America's immediate future.

Dave Hodges is a psychology and statistics instructor as well as a college basketball coach. He is also the host of the radio talk show, The Common Sense Show, which airs on over 50 stations, on satellite and world wide on the internet. Dave's show airs on Sunday evenings from 9-11PM Central time. The Common Sense Show can be accessed live at The shows are archived at

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