In my last post, I noted that greed makes greedy people stupid. The quaint old-fashioned notion that great riches equal great intelligence is a stupid notion, sold to us by greedmeisters who don’t want anyone questioning their hoarding of booty. It’s an evolution from the Puritan notion that the rich were favored by God, and it’s every bit as specious a notion as the “Godly” notion was.

Thankfully, rich does not always equal stupid, however. There are quite a few American rich people who understand what greed is doing to us, and they’re screaming about it. Unfortunately, the MSM can’t seem to hear them.

Just like the MSM doesn’t seem to know anything about the “Occupy” movement, which has gone viral and is spreading across the nation. The MSM thinks that by not reporting on it, it will wither and die. Quite the opposite is going to happen; one day, the slumbering Americans who get all their “news” from the mainstream media are quite likely to wake up to a vastly different landscape than the one they knew the day before. Because Revolutions are usually events that mushroom suddenly from some isolated incident somewhere.

The “Occupy” movement is creating precisely that kind of a scenario.


Memo to the Super Rich, your high-paid lobbyists and your no-compromise political puppets whose sole mission is destroying the presidency: Yes, you are succeeding. You’re also killing the economy.

Thanks to your self-destructive ideology, America is now in the second of back-to-back Lost Decades. A new one on the heels of the 2000-2010 Lost Decade where Wall Street lost more than 20% inflation-adjusted. Get it? You guys launched America’s second Lost Decade of 21st century.

Yes, two consecutive job-killing Lost Decades. The first created by Wall Street’s obsessive greed. The new one triggered by the widening wealth gap that’s feeding endless partisan political wars powered by Super Rich conservatives hell-bent on re-establishing the same free-market, trickle-down Reaganomics policies that have been sabotaging America for the last generation.

Unfortunately, the new one gets worse: Why? The coming Lost Decade is a backdrop for a wave of class warfare destined to trigger a historic revolution in American politics, bigger than the ‘29 Crash and Great Depression.

Initially inspired by the Arab Spring, Occupy Wall Street is a virus spreading rapidly as Occupy Everything, a reform movement that will overshadow the GOP/Tea Party as the voice of the people, leading to an Occupy America.

Investors, listen closely: First, we’ll summarize five major signs of America’s new Lost Decade 2011-2021. Then, we summarize seven diverse examples of rebellions across the world adding fuel to America’s accelerating Occupy Wall Street revolution.

Why is this crucial for investors? Because these class wars are guaranteed to deepen America’s market and economic problems during the coming Lost Decade. So listen closely investors:

1. Decade of debt stagnation till 2021

Barron’s Gene Epstein warns that Obama’s latest is “Too Little, Too Late.” Even if the president “gets everything he asked for in his new proposals, it won’t reduce our growing public debt. And he won’t get it all.”

So America’s debt will remain around 80% of GDP for a decade, levels not seen since the 1940s. That’s right, debt will remain dangerously high at least through 2021. And it won’t matter who is president. Class warfare will accelerate this job-killing debt cycle.

2. Investors lose faith, bailing out

Over at the Wall Street Journal Tom Lauricella warns “Investors lose faith in stocks … in a historic retreat, investors world-wide during the three months through August pulled some $92 billion out of stock funds in the developed markets,” more than reversing the total “put into those funds since stocks bottomed in 2009.”

Worse, there’s a “widening belief that the mess left behind by the housing bubble and financial crisis will be a morass to contend with for years.” Yes, many years.

3. Fed surrenders, cannot fix economy

In a Cleveland speech last week Fed Chairman Ben Bernanke warned that with 45% of the unemployed out more than six months, long-term unemployment is now a “national crisis” the Fed cannot fix. “Unheard of … this has never happened in the post-war period.” They’re “losing the skills they had, they are losing their connections, their attachment to the labor force.” But a job-killing Congress won’t act.

4. Wall Street still doesn’t get it

In a recent Foreign Policy article, William Cohan, a former J. P. Morgan Chase managing director and author of “Money and Power: How Goldman Sachs Came to Rule the World,” warns Wall Street not only learned nothing after the 2008 meltdown, they’re aggressively lobbying to kill all reforms that might “break this dangerous cycle in which bankers and traders get very rich while the rest of us suffer from their mistakes.”

Wall Street is deaf, blind and myopic, wants no limits on “all manner of bets on the market,” even at the “risk of a U.S. recession.” Only a catastrophe will wake Wall Street.

5. Yes, America’s second Lost Decade just began

In a Money interview, “Are We the Next Japan?” Nomura Research economist Richard Koo sees “striking similarities between our current malaise” and Japan’s Lost Decade. Their stimulus did work, but then “the Japanese made a horrendous mistake in 1997.”

The IMF told Japan “you’re running a huge fiscal deficit with an aging population … reduce your deficit.” So Japan “cut spending and raised taxes” and “the whole economy came crashing down.” Sure sounds familiar.

Warning: to Wall Street CEOs, the Super Rich, the top 1% who think they own our government … the party’s over. No matter who gets elected in 2012 and 2016, the new Lost Decade 2011-2021 will make life miserable for the president and Congress, as with Japan earlier.

Worse, this Lost Decade will make life miserable for everybody: corporations, investors, consumers, workers, small businesses and all our families, with the kind of economic suffering experienced in the painfully long Great Depression era.

Yes, big shock dead ahead. The class wars like Arab Spring are accelerating across America. “Occupy Wall Street” is going viral, spreading through “Occupy Together,” expanding in dozens of cities across America and the world, growing bigger — in commitment, in mission, in boldness — a resistance movement waging war against our democracy-killing Super Rich.

Next, expect many more class wars, regional rebellions, uprisings against the wealthy — yes, this is the second American Revolution.


This Revolution will, I believe, lead to a schism. I see no fewer than 5 separate countries coming out of what was once the United States. And when the United States inevitably collapses, it is going to take a great deal of the rest of the world with it. China, I believe, is also destined to explode, since the Rushpubliscum-driven destruction of our economic base will be complete, depriving the Chinese of the biggest market for their mercantile economy. Europe is already on the cliff’s edge, and our collapse is quite likely to drive them right on over it. Here, in what was once this country, there will be new countries that will stabilize and perhaps even prosper, and there will be countries that devolve into third-world cesspools that will make sneaking over the border into Mexico an attractive proposition.

I wish I saw a way out. I wish I saw some sign that the political leadership understands what it is they’ve done. I see no such signs. National collapse is going to happen. My advice for those living in Dixieland remains the same as it has been for about the last 5 years: get out, while you can. Because someday relatively soon, it’ll be too late.


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