Revolution coming with next meltdown

The title of this blog is not mine, it belongs to Paul Ferrell of CBS Marketwatch who used it in a piece penned and posted yesterday to one of the largest financial websites in the business.

I am reposting a portion of it here because I find it interesting as an indicator of social mood.  Let's face it, a growing swath of people are not comforted by the V-shaped return of the stock market but instead see a continuation of the policies and power structures that got us into this mess in the first place.

More and more people are simply fed up with the financial and economic looting that has already taken place and downright angry to see that it is continuing unabated. 

To the list of looted items tossed onto an already well-lit bonfire we can now add "the future" and "time" because the various stimulus programs and bailouts have done nothing to get us onto a sustainable path of repair. 

But seeing such things openly in print in the mainstream media reveals a profound shift in attitudes.

New bull, new bubble, new meltdown by 2012

Americans are not going to put up with the "Wall Street Conspiracy" ripping off investors and taxpayers much longer. Wall Street got rich sticking us with mountains of debt for generations to come.

Expect a major house-cleaning, a second American Revolution. We predicted the "Great Depression 2" around 2012. Well, we doubt taxpayers will passively sit one more time, like in the 1930s, in 2000, and the past few years. Next time voters will take a page from the history books about past revolutions in the American Colonies, France and Russia. A perfect storm will erupt in a massive global credit meltdown, bringing down Wall Street and the clandestine $670 trillion shadow central banking system. And the collateral damage will be massive and widespread, in areas such as these:

  • Lobbyists' power is lethal to our values. Special interests are running and destroying American democracy, will self-destruct.
  • Derivatives: Cap 'n trade will crash worse than subprime. The Goldman Conspiracy's spending millions lobbying for trillion-dollar derivatives.
  • "Too-greedy-to-fail" big banks will trigger harsh backlash. Banks pay huge bonuses yet modify only 9% of 4 million stressed home loans.
  • America's wealth gap will trigger grass-roots rebellion. Wall Street's greed is so pervasive, gluttonous and obvious the rest will rebel.
  • The "Goldman Conspiracy" will be a target for retribution. Goldman's hubris is most egregious and flagrant. Their arrogance will backfire.
  • Wave of creative destruction will revive commercial banking. Investment bankers are killing commercial banking, Glass-Steagall will return.
  • Secrecy protecting Wall Street's unethical behavior to end. Wall Street's control over Washington's lawmaking will come to an end.
  • The Fed's shadow banking will collapse under excess debt. Central bank balance sheets overdrawn, feeding new bubble with cheap money.
  • A "Black Swan" of huge unintended consequences. Next bubble, highly unpredictable, huge collateral damage on Wall Street.

Make the most of this new bull. Then get out -- before you're the collateral damage.

Part of the anger stems from the fact that it is patently obvious that the entire rescue is aimed at banks, by banks and for banks with any ancillary benefits accruing to citizens a matter of accident.

With interest rates held at zero percent several classes of citizens are harmed. Savers now receive next to nothing on bank deposits and those dependent on cash flow from safe, fixed-income bonds for their living expenses can attest that it is tough going out there.

But banks? Banks love being able to borrow at near zero percent and then loan it out at much higher rates. That is, in fact, the precise recipe for returning banks to financial health.

You might think that banks would carefully tend their public images by sharing some of the bounty offered by the zero percent financing provided central banks, but you'd be wrong.

Banks are making the highest profits on mortgages since records began

11 Aug 2009

The difference between the interest rate that banks charge and the rate at which they borrow is the biggest since the Bank of England started collecting data 15 years ago.

The figures demonstrate that, two years after the credit crunch began, consumers are being hit harder than ever, despite the Bank cutting interest rates to an all-time low of 0.5 per cent.

Last night senior politicians and campaigners called on banks, many of which have been propped up with billions of pounds of taxpayers’ money, to “play their part” by lowering borrowing costs.

Today Mervyn King, the Governor of the Bank, is to unveil his latest quarterly predictions for the economy. He is widely expected to say that lenders are failing to pass on billions of pounds of government support to consumers and small businesses.

According to analysis by Michael Saunders, the chief UK economist at Citigroup, the difference between these rates and the rate banks charge each other is at a record margin. Banks are making a full 2 percentage points of profit on fixed rate mortgages – the first time this has happened, the Bank’s data indicated. Two years ago, lenders made 0.1 percentage points profit on a five-year deal.

At every turn we have banks acting rapaciously and with an extraordinary sense of entitlement and unlimited greed.  It is almost as if banks have lost the ability to understand that it is they who live off the efforts of others, not the other way around.  Politicians (such as Mr. King above) have remarked and complained about this mind-set and related actions, but so far have proven unwilling to apply any real force to the situation.

Even as public money has saved their profession and individual companies, banks and credit card companies have jacked up fees, yanked lines of credit, and feasted on the widest spreads in decades on their way to posting record profits in some cases. 

And so people are becoming angrier and angrier and an increasingly lost Wall Street and Washington DC crowd, hopelessly tone-deaf to everything but the voices in their own echo chambers, seems unable to comprehend why this should be.

Which is why I sincerely hope that the trillions spent have not been utterly wasted and will provide some lasting benefit.  Because if it turns out that the trillions have all been thieved or diverted as seems to be the case, and the economy crashes back again, I can easily see the social mood turning just a little bit darker.

Let's hope not.


This is a companion discussion topic for the original entry at

Yes …let’s hope not.
However, extremely flammable fumes are swirling and collecting…all it takes is one spark.



I find it fascinating how the only real public displays of discontent have been the anti-tax parties a few months back  and now the anti-health-care reform meetings. It seems to me the anger is somewhat displaced. Our taxes are high but we ain’t seen nothing yet. And our current health system is not cost effective or equitable.  But I do think the population senses something is terribly wrong and these are the outlets for that anger that have been publicized. Why aren’t we demonstrating in front of Congress or Wall Street? It’s not taxes or health care, it’s our democratic system that has been co-opted. Why aren’t these town hall meetings about bail-outs and public debt? At some point I worry that the public anger will be properly directed and it won’t be pretty.

I believe that the government and the banksters "hope not" as well; and as long as there IS NOT some uppity behavior on the part of p’d-off Americans, they will continue with their frauds and swindles as long as they can possibly get away with doing so.

During the last "great depression" Americans had the opportunity to take our country back.  The last great depression was unescicary - it could have been stopped by FDR.  I hope that this time, we have the courage and the fortitude to excercise our soveirgn power in issuing and controlling our own monetary system.
Like the last great dpression, this one is intentional.  And like the last great depression this one can be quickly stopped.  We all know that our privately operated "debt based" money system is terminally flawed - it cannot be sustained.  No matter what rules the bankers may make or break; the rules of mathematics will always prevail.  There will always be more debt than money.

Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta, identified the problem and solution during the early 1930’s: 

"We are rapidly approaching a situation where the government MUST issue additional currency. It will very soon be the only move remaining. It should have been the first step in the recovery program. Immediately upon a revival of the demand that the government increase the supply of currency, we shall again be subjected to a barrage of skillfully designed and cunningly circulated propaganda by means of which a small group of international bankers have been able, for two centuries to frighten the peoples of the civilized would against issuing their own good money in sufficient quantities to carry on their necessary commerce." "We shall never recover on credit. Even if it were obtainable, it is uncertain, unreliable, does not expand in accordance with demand, and contracts unexpectedly and for causes unrelated to the needs of commerce and industry...In our present situation the issue of additional currency is the only way out."
The solution is almost too easy to be fully understood...simply issue our own money free from banker debt.  This would not only end the depression, it would provide a truly sustainable monetary system free from government debt and free from federal taxes.

I am proud to say that I protest against the private federal reserve and the coming facism at every opportunity.  I hope you’re right in saying that people are "fed up with the financial and economic looting that has already taken place and downright angry to see that it is continuing unabated."  Maybe this means that hundreds of thousands, or millions of citizens will show up at the next "End the Fed" protest, or at the G-20 summit, Sept. 24-25 in Pittsburgh

The revolution, if it comes, will really be an awakening.  People, in mass, will begin to understand that our monetary system is a scam run by the international banking cartel.  And more importantly, I hope they realize that the true key to prosperity and freedom is a sustainable monetary system - a system based on wealth instead of debt.


DrKrbyLuv Quote: Like the last great depression, this one is intentional.  And like the last great depression this one can be quickly stopped. 
So true but we all know history always repeats itself. Recessions, Depressions, Rebellions & big bad ugly wars are pretty much assured by humans flawed nature. The tools of destruction & control just become larger & more ugly overtime.

I feel the best we can do is recognize it for what it is & prepare for what IMHO is probably overdue.

DrKrbyLuv says:

Right, simple, all of us ordinary folks band together to create a new national currency from scratch. (We know how to do that, don’t we?).  Simple, yes, but hardly easy.

There is a potential partial solution along those lines, however; check out the recent L.A. Times story about local currencies for a hint.  There is a solid history of local currencies arising from grass roots origins.  Typically, they die out when the national economy recovers, but some, like Michael Linton’s LETS systems, manage to keep going on a small scale.  Also, there’s a ton of information on the Internet about how they work, problems/traps/pitfalls, etc.  Given a national mood of distrust and disgust of Washington/New York dysfunction and corruption, there’s a good chance of a real bloom of local currencies over the next few years.

{Blue sky warning} If enough of us ordinary folks got angry enough, we could possibly grow a nationwide network of local, then regional alternative currencies, and maybe even a national currency based on the bottom-up structure.

On a slightly different tack, another way to express our displeasure more immediately and individually, is to stop dealing with the national banks in favor of our regional and local banks and credit unions.  A shift of, say, 15% of personal banking and savings accounts away from the big boys would attract far more serious attention than investments in PM or foreign currencies.  Similarly, get out of the stock, commodity, etc. markets and invest locally in projects of value to your community.

    Blow it up!

I read on a Drudge linked article how militia’s were growing. The author attributed it to a race thing. I’d disagree, I watch these town hall videos and even though the folks can’t articulate with any economic clarity any facts and figures - they aren’t dumb - they know we are broke.
I think people are fed up with the fiscal irresponsibility, with the overreaching, with the governments inability to manage it’s collective way out of a paper bag. When this thing crashes - again - I’m not sure we are going to see the 1930 era social Kun ba Yah fabric.

Good read! Thanks Chris

 there is no way on god’s green earth will we wait another 3 years to finally work things out. things will be worked out in an " unpleasant " manner this fall. we will rise up and literally snatch our country away from the looting banking oligarchs. done deal my brother.


" But banks? Banks love being able to borrow at near zero percent and then loan it out at much higher rates. That is, in fact, the precise recipe for returning banks to financial health."  what is your problem? it’s the friggen banks that got us in this mess. shake yourself dude. great video series, but i don’t understand this point. i want the banks to fail. they need to fail… they are they cancer. they should burn in hell as far as i’m concerned.

 Keep asking your question, I’m not listening, I’m on the phone.
300:1 was, if I recall the calls for the bailout against/for.

I’m assuming health care will be 30,000 to 1 and will go through - if a phone call is more important than a constituants question…


Good read and good response.  The sad thing is that American no longer really knows what to do and how to be involved and respond in an intelligent manor.  It’s not really our fault.  Generations have all been bribed with "things" for so long to just look the other way and swallow hard.  A form letter to our Congress is about all we have time for.

People are finally responding in every way they know how now but are being dismissed as dumb and mocked in the media.  Eventually, when you corner an animal it usually reacts strongly and usually with little thought beyond the next few moments.

I remember not to long ago the media frenzy associated with the executive bonuses.  People were outraged at the $100 million plus bonuses being paid out to executives of too big to fail institutions while the cartel was funneling countless billions of tax payer dollars to the same institutions.  The public was so caught up in the bonus frenzy they didn’t see the forest for the trees.  I worked at a bank and listened to clients constantly complain about the relative small bonuses, but none of them ever mentioned the much larger fleecing taking place under their noses.
Now I see the same frenzy regarding health care, and I’m beginning to wonder if it’s not just another distraction carefully implemented by the powers that be.  They’re keeping the attention somewhere anywhere other than the cookie jar.  The Fed has used hundreds of billions of free dollars to stage a market rally not seen since the depression.  At the same time, they’ve enabled the financial institutions to raise billions in fresh capital and adjusted the yield curve for profit perfection,  all at the expense of the tax payer and ultimately our future.  Whether true or not, you have to admit, the talk of the town is a ridiculous health care bill that will most likely never pass.  I hope.

Thanks for the article Chris and your website.       

A revolution is exactly what this country needs.  Seriously.  The financial plutocracy isn’t going to give up their power willingly.

I closed my bank account last March.  Been cashing my payroll check at the exact bank branch where issued and paying all bills with cash except one which gets paid with a money order.  Recently I received a small ($385.00) class action settlement written on a US Bank check.  Went down to US Bank to cash the check.  They charged me $5 for the "privilege".  I started to argue but stopped.  I told the teller, fine, take the $5 and my thumb print, just give me the balance.  Then she politely asked me if I would like to OPEN A FREE CHECKING ACCOUNT!
I guess you know what I told her.  Manager had to ask me to leave.  Free checking my a$$. 

Remember, the revolution will NOT be televised.

Dream on Martenson gang. There will be no revolution in the US of A.  Life is too comfortable here, and the people are chock full of the basic narcotics (bread & circuses):  corn syrup laden food, faux news, and American I Dull.  We’ve had our revolution, become an empire and are heading towards collapse.  This time the "barbarians" are coming from the East.
Dig it?

And the tools are available in legislation right now to prevent this debt melt down.  I wish there was a way to get Mr. Martenson to review and support legislation to put money into circulation free from debt and free from interest.

Mr. Martenson would you be willing to support legislation to introduce wealth money into circulation so that the principle plus the interest can be paid on this debt money system?


DrKrbyLuv Quote: Like the last great depression, this one is intentional.  And like the last great depression this one can be quickly stopped. 
Idoctor wrote:

So true but we all know history always repeats itself. Recessions, Depressions, Rebellions & big bad ugly wars are pretty much assured by humans flawed nature. The tools of destruction & control just become larger & more ugly overtime.

I feel the best we can do is recognize it for what it is & prepare for what IMHO is probably overdue.
DrKrbyLuv is correct.  It can be quickly stopped and the tools in legislative form are available right now in state legislture.  The question is do the american people have the guts to even make a phone call and demand that one simple in the law about how all money is put on the books(as an interest bearing debt) is changed.



How about we identify the cause of recession/depression, and what gives the powers at be the ability to control a nation into going into wars that the public doesn’t want…then destroy and revoke those abilities from them forever, and give the next generation the tools available to make sure the usurists don’t get control of a nations money supply again?

Forget preparing for it, lets do something about it and change what the hell these bastards are doing to our country through the control and issuance of the nations money supply, and the power that comes with that!

"Revolution coming with the next downturn."
As Davos would say: "+1"

A revolution–a violent one–is, to my mind, simply inevitable, and that is exactly why Government Sachs has futiley ramped the stock market–to avoid that nasty condition where breathing ceases. They have two insurmountable local problems and one international problem though:

L-1. Any baby boomer (and numerous others) with any sense is going to use such ramp jobs as an escape vehicle, thus applying relentless downward pressure on the market ; pressure which will require government "intervention" to the extent that said "governement" will become the majority holder of all market paper, and;

L-2. although Government Sachs can go in and buy everything with the printing press (and thus levitate the DOW to some even more absurd multiple of  the absurd non-dividend paying multiple of where it’s at now–and dividends are about to become everything in a baby-boomer retirement scenario), such a levitation is not only NOT going to appease the budding vigilante mobs, it will actually be the most potent and instantaneous of catalysts that could have ever been applied, as so few of the new Vigilante Class will still be in the market (having already exited out of fear, need, or both) that they will only see "insult added to injury."

I-1. Dollars now grow on trees, and every country has trees.

There is NO WAY OUT for Government Sachs–at least no way out that is not going to involve the citizen-induced  end of numerous Government Sachs self-appointed Oligarchs–at this point.

That’s my opinion, and while I’ve been forecasting this Endgame for long enough to have been considered an extremist  nutjob (a year or so now), I’m actually starting to look mainstream–if you’re paying any attention to something other than the MSM, though even they are starting to brush up against reality now and then.

It doesn’t take being a "nutjob," an "extremist," or a "doomer" to understand the reality of what’s about to happen, it merely takes not "living on" Wall Street, which I don’t. What’s about to happen is actually pretty god damn obvious to a large number of unemployed, gun-loving Americans. Of course they’re not saying the words, but Timothy Mcvay didn’t exactly advertise either…

There are millions of indignant–and righteously so, pissed off, 2nd amendment supporting, Constiution respecting, abused and neglected citizens out there right now; citizens who have "Nothing left to lose."

Someone above mentioned "cornering an animal"; well, it’s about like that, and that animal is about to react according to its instincts, emotions, and in direct proportion to the amount of abuse heaped upon it by its ruthless "master," but this "dog" is "bearing" more than teeth, it’s holding a Wall-Street size grenade in its mouth (by the pin) (precarious), and when it lurchs out of that corner toward those who have trapped it, there will be little left but shreds of banker flesh.

These Wall Street criminals have challenged probability; they’re about to realize the mathematical methods exist because they are inviolable–at least when it comes to a normal distribution of human psychological profiles. The collective sample is now large enough to insure encounters with all imaginable events.

Were I on the jury that was evaluating the guilt of any such "dogs" that survived their natural fight or flight response, I’d have to be sitting there thinking about he old maxim…