Thank you!


Pulling us out of the mainstream

I must respond to the letter as published in the WSJ on Septeber 20: (Excerpts in italics. Source:
Dear Chairman Bernanke, It is our understanding that the Board Members of the Federal Reserve

THE LIE THAT IS OUR ECONOMY Opinion and commentary by Karl Denninger @ Market­

October 6, 2011 || Volume 1, Number 13 || Free


will meet later this week to consider additional monetary stimulus proposals. We write to express our reservations about any such measures. Respectfully, we submit that the board should resist further extraordinary intervention in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people.


Oh there's been plenty of evidence. Specifically, Bernanke's actions allowed you, Congress, to deficit spend to the level of 12% of GDP over the last three years. QE 1 and 2 made that possible without a reaction in the bond market, and therefore enabled your profligacy as shown by this chart:

Reverting that to the mean will bring massive asset price decreases, but this is not deflation. It is the removal of an asset price bubble that pervades the entire economy, and the recognition of bad loans made to people who cannot pay them back. The common word for the sort of economic system that punishes people organically for being stupid, incidentally, is capitalism. This bubble does not have primary 'blame' on either Republican or Democrat—one cannot point fingers except, of course, at yourself. Both parties and the American people share the blame equally for these policies. The American people deserve blame for being gullible and allowing themselves to go through government 'schools' that do not teach the fundamentals of exponents in their math class (despite claiming they do) and both major political parties deserve equal blame for intentionally lying to the people about the ability to provide services the people are not and will not finance with current tax receipts.
Reserve could exacerbate current problems or further harm the U.S. economy. Such steps may erode the already weakened U.S. dollar or promote more borrowing by overleveraged consumers. To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery. We have serious concerns that further intervention by the Federal

It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve has facilitated economic growth or reduced the unemployment rate. To the contrary, there has been significant concern expressed by Federal Reserve Board Members, academics, business leaders, Members of Congress and the public. Although the goal of quantitative easing was, in part, to stabilize the price level against deflationary fears, the Federal Reserve’s actions have likely led to more fluctuations and uncertainty in our already weak economy. It did not 'facilitate' economic growth nor did it reduce unemployment. As I noted, it did one and only one thing—it allowed Congress to spend at an unsustainable level by making federal credit cheaper than it should have been, exactly as the 2003 'easing' produced the housing bubble. The goal was not to stabilize price levels against "deflationary fears." You cannot have deflation when you've had massive inflation in asset prices over the last 30 years, which we have. We have had it due to too much 'easy money,' exactly as a drunk has little reason to stop drinking so long as there's a full case of whiskey at his feet. The result was the chart on the next page:

The goal was never to do any such thing. It was intended to allow you to deficit spend at an unsustainable rate. That is, it was intended to give you, 535 drug addicts, more heroin. You should all be in Federal prison or even better, we should re­enact the original Coinage Act that mandated the death penalty for conspiracies to debase the currency—which you have all been complicit in over the last three years.
consumers and investors and the innovations of its workers. The American role in the economy if measurable outcomes cannot be demonstrated. Ultimately, the American economy is driven by the confidence of people have reason to be skeptical of the Federal Reserve vastly increasing its

The only measurable outcome was the enabling of further descent into economic Hell committed by The House under both Democrats and Republicans. I will remind you that all revenue (and thus spending) bills must originate in The House. Without the consent of the House, no federal spending takes place.
Member of the Board. Cantor We respectfully request that a copy of this letter be shared with each Sincerely, Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric ...Continued

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Dear Friends and Neighbors: EE Farms makes seasonal sales of grass­finished beef shares and eggs.We're guided by the philosophy of good animal husbandry, sound agricultural practices and community food sufficiency. Our animals are antibiotic and hormone free and treated humanely in a clean, uncrowded environment. University studies show grass­fed beef is lower in total fat, higher in beta­carotene, Vitamin E, B Vitamins, minerals, and Omega 3s. Similar studies show that homegrown fresh eggs, where the birds are cage free and have space to roam in a clean environment, have more Vitamins A, D, and E, more Omega 3s, and less cholesterol and saturated fat than commercially produced eggs. Give us a shout. When the time comes, you’ll get a mailing so you can place your order. We do our best to accommodate everyone, but we’re a small operation and it's first come, first served. Ask for Elena: 726­9807, or drop a line to: Thank you, and take care.

Here is the reality we face: We must have an open and public conversation in this nation on exactly what services we all wish our government to provide. For each of those services, we must fund them with current taxes—not borrowing. For any such service the American people collectively refuse to fund with current taxes, the government must withdraw the desired service. Since both political parties assert we must also honor our actual debts, we must first dedicate the interest and a modest amount of principal paydown from the Federal Budget that "comes first." I suggest all interest plus $200 billion in principal per year. Given current tax receipts, this leaves us with approximately $1.7 trillion to spend on all functions of government, or about half of what the federal government does now. This is a difficult set of choices, but it must be undertaken and it must happen now. Not in three years, not in five, not in ten. Right here, right now, today. You blew it with the debt ceiling 'debate' and your proposals thus far, given these facts, are a joke; but this is no laughing matter. Quit messing around, ladies and gentlemen, lest we wind up like Greece. ­ KD

Twenty six letters. Arrange them correctly, and you can make even the most dire news palatable. In an October 4th news release, the Colorado Department of Education (CDE) massages a disasterous assessment with the following headline: Colorado schools reach Adequate Yearly Progress despite increased targets (Source: For most people, that headline is just about as much of a CDE release as they'd care to read. Unfortunately, I read the first sentence of the release. Forty­six percent of schools in Colorado made Adequate Yearly Progress (AYP) targets in 2011, down from 62 percent in 2010, a decrease resulting from the significant increase in federal performance expectations for schools and districts in 2011. Colorado has 2043 schools. That means we went from 1266 schools performing adequately last year to just 939 this year. Ouch. But the headline said Colorado schools reached adequate progress despite increased targets. Technically, that's true. Seventeen schools that weren't adequate last year are now considered adequate. Seventeen. That's eight tenths of one percent, or .008 of our schools that got off the list. The article spends about a paragraph pointing this metric out, but failed to mention the rather more ominous fact that 327 more schools are no longer considered adequate. Sixteen percent of Colorado's schools fell off the wagon last year, but we'll focus on the fraction of a percent doing better! The reason for the above results has to do with the exponential functions built into the No Child Left Behind Act (NCLB) and its requirement for increased progress targets every three years. There's no real way to get all kids to meet minimum requirements in all districts in the state or the country—it's just not going to happen. But that hasn't prevented the school districts from climbing all over themselves trying to achieve the annual yearly progress targets (AYP) in order to receive the federal dollars that flow in. We have nearly 180 school districts in the state, and only 45 of them are meeting their AYP targets. East and West Grand school districts are not among the chosen few in this regard, and this is unlikely to change now that we have increased requirements over last year. The Obama administration is granting waivers to the requirements of NCLB so schools will still be able to receive federal dollars without meeting the strict requirements of the act. In volume 1 issue 12 of Grand County Uncensored, I point out the Colorado Department of Education is recommending the State Board of Education seek a waiver to the provisions of NCLB because, "Significant NCLB provisions have now become outdated and the constraints of the law prevent many from moving innovative strategies or improvement onward." Do you really think these problems just cropped up? Aren't you just a little miffed that our two school districts have bent over backwards to chase after federal dollars that make up a fraction of their total budgets? Isn't it just a little aggravating we're now finding out that NCLB has been an educational disaster and the education community has been aware of this fact for years? Maybe it's just me. If you send a donation with an e­maill address, I'll send you a PDF of the paper at the time I send it off to the printer. There's no set number of issues I'll send this way, but I'll try to be fair. If you'd like an actual subscription, you may do that as well. Just visit:

Opinion and commentary by Reggie Paulk

Last week, I drove to North Texas to attend the U.S. National Aerobatic Championships in Denison. The drive took me through what can only be described as the beautiful desolation of Middle America. If you're not aware, that region of the country has been experiencing a rather severe drought, and it was evident in the moonlike landscape of the Oklahoma panhandle. It wasn't just dry down there; it was dirt—literally. Not even the short grasses could survive the relentless dryness this summer. I thought I would spend the week looking for stories and meeting up with friends, but that was not to be. On Wednesday evening, I began to experience a sore throat. Over the next two days, it would grow into a raging inferno at the back of my mouth. Not wanting to expose anyone to whatever it was I may have had, I stayed in. I finally visited a doctor on Friday, and was diagnosed with a particularly nasty case of strep throat. All of this was really just a long way of saying there was no way a newspaper was going to be delivered last week, and I apologize—only one member of my family escaped the nastiness of last week's disease.

Last week, I didn't go to print. I thought no one would notice. I secretly hoped I might be able to stop printing this rag and go about my business. Then I went to Safeway. I was telling the nice lady at checkout how I'd been in Texas last week, and she asked if that's why there was no paper. Darnit! I then made the mistake of going to the post office. As I was sifting through my mail, I found two envelopes addressed to Uncensored Media, LLC. There were two personal checks with very nice notes attached thanking me for my efforts. Crap! Believe me, I don't want to sit in on those Tuesday meetings with the commissioners any more than I'm sure they look forward to seeing my happy face. You don't know how much I want to go out there and yank those blue boxes off the various sidewalks around the county, but those darned notes with five dollars here and 50 dollars there keep showing up. As long as that happens I can't, in good conscience, stop writing. For those of you who support my efforts through your gracious donations and heartfelt words of encouragement, I would like to extend an appreciative word of thanks.

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