From Zero Hedge – By now everyone has heard the parable explaining how the entire European bailout, courtesy of near-infinite fractional reserve banking, can be taken care of using one €100 bill. Or so the yet again flawed economist thinking went. Unfortunately, this was just a parable, and a massively flawed one at that. As the below interaction between a ZH reader and his broker elucidates, here is what this idealized story would look like in the real world, that as we explained before, is drowning in about $21.2 trillion in excess debt.

BROKER’S EMAIL:

It is a slow day in a little Greek village. The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and runs next door to pay his debt to the butcher.  The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer. The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel. The guy at the Farmers’ Co-op takes the €100 note and runs to pay his drinks bill at the taverna. The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him “services” on credit. The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note. The hotel proprietor then places the €100 note back on the counter so the rich traveler will not suspect anything. At that moment the traveler comes down the stairs, picks up the €100 note, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything. However, the whole village is now out of debt and looking to the future with a lot more optimism. And that, Ladies and Gentlemen, is how the bailout package works.

MY REPLY:

XXXX I edited your bailout email a little to help make it more effective to clients, please see below.

It is a slow day in a little Greek village, planet earth.  The rain is beating down and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich German tourist is driving through the village, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner thinks about maybe beating the tourist to death, but decides to give him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the €100 note and shoves it in his pocket.  He owes Piraeus Bank down the street €100,000 but has little intention of repaying it as his business has been contracting for several years.  That bank also has claims of €10,000 on a butcher’s business, €50,000 on a pig farmer, €75,000 to a supplier of feed and fuel, but in turn owes €100,000 to EFG Bank which itself has fractionally reserved claims on a pub owner and a prostitute who bought two homes on 105% LTV among many others.

At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, and asks for his €100 note back.  The Greek innkeeper asks “what €100 note?”  The German threatens to call the police.  The innkeeper says “go ahead, ask for my brother who’s a Lieutenant down at the precinct, he’ll help you out.”  The German storms out back into the night, €100 poorer.  No one produced anything.  No one earned anything.  However, the whole village is still buried in debt and looking to the future with a lot more optimism at the thought that maybe the Germans really are that gullible.

And that, Ladies and Gentlemen, is how the bailout package works.

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State

Community

Subsidy

Nearest hubs

Alabama Muscle Shoals $1,782,928 Nashville (122 miles)
Alaska Tenakee $135,576 No hub within 1,000 miles
Alaska Elfin Cove $75,391 No hub within 1,000 miles
Alaska Pelican $185,721 No hub within 1,000 miles
Alaska Hydaburg $151,773 No hub within 1,000 miles
Alaska Akutan $710,157 No hub within 1,000 miles
Alaska Cordova $2,154,200 No hub within 1,000 miles
Alaska Gustavus $538,550 No hub within 1,000 miles
Alaska Petersburg $1,707,994 No hub within 1,000 miles
Alaska Wrangell $1,707,994 No hub within 1,000 miles
Alaska Yakutat $2,154,200 No hub within 1,000 miles
Alaska Alitak $13,179 No hub within 1,000 miles
Alaska Amook Bay $13,179 No hub within 1,000 miles
Alaska Kitoi Bay $13,179 No hub within 1,000 miles
Alaska Moser Bay $13,179 No hub within 1,000 miles
Alaska Olga Bay $13,179 No hub within 1,000 miles
Alaska Port Bailey $13,179 No hub within 1,000 miles
Alaska Port Williams $13,179 No hub within 1,000 miles
Alaska Seal Bay $13,179 No hub within 1,000 miles
Alaska Uganik $13,179 No hub within 1,000 miles
Alaska West Point $13,179 No hub within 1,000 miles
Alaska Zachar Bay $13,179 No hub within 1,000 miles
Alaska Central $137,799 No hub within 1,000 miles
Alaska Circle $137,799 No hub within 1,000 miles
Alaska Angoon $145,734 No hub within 1,000 miles
Alaska Port Alexander $60,083 No hub within 1,000 miles
Alaska Karluk $44,349 No hub within 1,000 miles
Alaska Chisana $74,345 No hub within 1,000 miles
Alaska Healy Lake $98,915 No hub within 1,000 miles
Alaska Adak $1,675,703 No hub within 1,000 miles
Alaska Atka $290,780 No hub within 1,000 miles
Alaska Nikolski $639,008 No hub within 1,000 miles
Alaska Excursion Inlet $33,919 No hub within 1,000 miles
Alaska Kake $229,939 No hub within 1,000 miles
Alaska Manley $47,741 No hub within 1,000 miles
Alaska Minto $47,741 No hub within 1,000 miles
Alaska Chatham $6,311 No hub within 1,000 miles
Alaska Funter Bay $13,273 No hub within 1,000 miles
Alaska Lake Minchumina $93,080 No hub within 1,000 miles
Alaska Rampart $97,679 No hub within 1,000 miles
Alaska Cape Yakataga $39,000 No hub within 1,000 miles
Alaska Icy Bay $39,000 No hub within 1,000 miles
Alaska Gulkana $262,220 Anchorage (201 miles)
Alaska May Creek $88,346 No hub within 1,000 miles
Alaska McCarthy $88,346 No hub within 1,000 miles
Arizona Kingman $1,168,390 Las Vegas (121 miles)
Arizona Page $1,559,206 Las Vegas (282 miles)
Arizona Prescott $1,832,233 Phoenix (102 miles)
Arizona Show Low $1,719,058 Phoenix (154 miles)
Arkansas Jonesboro $799,992 Memphis (82 miles)
Arkansas El Dorado/Camden $2,436,074 Memphis (237 miles)
Arkansas Harrison $2,080,318 Memphis (244 miles)
Arkansas Hot Springs $1,474,388 Memphis (198 miles)
California Crescent City $1,781,888 Sacramento (314 miles)
California Merced $1,961,174 San Jose (107 miles)
California Visalia $1,746,507 Burbank (178 miles)
California El Centro $1,852,091 San Diego (114 miles)
Colorado Pueblo $1,299,821 Denver (121 miles)
Colorado Alamosa $1,987,155 Albuquerque (199 miles)
Colorado Cortez $1,847,657 Albuquerque (255 miles)
Georgia Athens $1,051,386 Atlanta (72 miles)
Hawaii Kalaupapa $932,772 No hub within 1,000 miles
Illinois Decatur $3,082,403 St. Louis (126 miles)
Illinois Marion/Herrin $2,053,783 St. Louis (123 miles)
Illinois Quincy $1,946,270 St. Louis (111 miles)
Iowa Fort Dodge $1,910,995 Omaha (156 miles)
Iowa Mason City $1,017,545 Minneapolis/St. Paul (133 miles)
Iowa Burlington $2,171,241 St. Louis (188 miles)
Iowa Sioux City $1,512,799 Minneapolis/St. Paul (270
miles), Omaha (97 miles)
Iowa Waterloo $1,541,824 Minneapolis/St. Paul (218 miles)
Kansas Salina $1,493,381 Kansas City (186 miles)
Kansas Dodge City $1,842,749 Oklahoma City (249 miles)
Kansas Garden City $1,884,303 Denver (300 miles)
Kansas Great Bend $1,257,617 Kansas City (265 miles)
Kansas Hays $1,954,327 Kansas City (284 miles)
Kansas Liberal/Guymon $1,958,570 Oklahoma City (259 miles)
Kentucky Owensboro $1,068,773 Nashville (105 miles)
Kentucky Paducah $569,923 Nashville (146 miles)
Maine Bar Harbor $2,298,533 Boston (256 miles)
Maine Augusta/Waterville $1,362,616 Boston (168 miles)
Maine Rockland $1,420,545 Boston (177 miles)
Maine Presque Isle/Houlton $2,812,853 Boston (358 miles)
Maryland Hagerstown $1,203,167 Washington-Dulles (78 miles)
Michigan Hancock/Houghton $1,404,714 Minneapolis/St. Paul (336
miles), Milwaukee (334 miles)
Michigan Muskegon $660,720 Detroit (165 miles)
Michigan Alpena $1,532,660 Detroit (236 miles)
Michigan Sault Ste. Marie $237,825 Detroit (347 miles)
Michigan Escanaba $2,090,534 Milwaukee (227 miles)
Michigan Iron Mountain/Kingsford $2,090,534 Chicago-O’Hare (290 miles)
Michigan Ironwood/Ashland $1,387,589 Minneapolis/St. Paul (213 miles)
Michigan Manistee $1,694,794 Detroit (233 miles)
Michigan Pellston Detroit (285 miles)
Minnesota Chisholm/Hibbing $2,938,878 Minneapolis/St. Paul (199 miles)
Minnesota Thief River Falls $1,230,322 Minneapolis/St. Paul (305 miles)
Minnesota International Falls $1,309,886 Minneapolis/St. Paul (298 miles)
Minnesota Bemidji Minneapolis/St. Paul (236 miles)
Minnesota Brainerd Minneapolis/St. Paul (143 miles)
Mississippi Greenville $1,606,662 Memphis (154 miles)
Mississippi Tupelo $921,878 Atlanta (279 miles), Memphis (94
miles)
Mississippi Hattiesburg/Laurel $1,398,798 New Orleans (135 miles)
Mississippi Meridian $678,936 New Orleans (185 miles)
Missouri Cape Girardeau $1,469,715 St. Louis (127 miles)
Missouri Kirksville $1,422,110 Kansas City (154 miles)
Missouri Fort Leonard Wood $2,437,766 St. Louis (136 miles)
Missouri Joplin $2,778,756 Kansas City (167 miles)
Montana West Yellowstone $427,757 Salt Lake City (332 miles)
Montana Glasgow $1,166,049 Denver (709 miles)
Montana Glendive $1,193,391 Denver (607 miles)
Montana Havre $1,162,329 Salt Lake City (668 miles)
Montana Lewistown $1,325,733 Salt Lake City (566 miles)
Montana Miles City $1,621,821 Denver (519 miles)
Montana Sidney $2,932,152 Minneapolis/St. Paul (658 miles)
Montana Wolf Point $1,502,378 Denver (686 miles)
Montana Butte Salt Lake City (420 miles)
Nebraska Scottsbluff $1,507,185 Denver (192 miles)
Nebraska Alliance $1,108,701 Denver (233 miles)
Nebraska Chadron $1,108,701 Denver (290 miles)
Nebraska Grand Island $2,215,582 Omaha (138 miles)
Nebraska McCook $1,796,795 Denver (256 miles)
Nebraska Kearney $1,965,740 Omaha (181 miles)
Nebraska North Platte $1,871,765 Denver (255 miles)
Nevada Ely $1,752,067 Salt Lake City (234 miles)
New
Hampshire
Lebanon/White River Jct. $2,347,744 Boston (124 miles)
New Mexico Alamogordo/Holloman AFB $1,169,337 Albuquerque (211 miles)
New Mexico Carlsbad $1,350,253 Albuquerque (280 miles)
New Mexico Clovis $1,592,157 Albuquerque (233 miles)
New Mexico Silver City/Hurley/Deming $1,594,092 Tuscon (217 miles)
New York Plattsburgh $1,379,257 Boston (285 miles), Windsor
Locks (243 miles)
New York Jamestown $1,639,254 Buffalo (76 miles)
New York Massena $1,708,911 Buffalo (256 miles)
New York Watertown $3,047,972 Buffalo (172 miles)
New York Saranac Lake/Lake Placid $1,366,538 Boston (254 miles), Windsor
Locks (233 miles)
New York Ogdensburg $1,702,697 Buffalo (223 miles)
North
Dakota
Devils Lake $1,459,493 Minneapolis/St. Paul (402 miles)
North
Dakota
Jamestown $1,963,220 Minneapolis/St. Paul (333 miles)
North
Dakota
Dickinson $2,019,177 Minneapolis/St. Paul (528 miles)
Oregon Pendleton $1,463,681 Portland (203 miles)
Pennsylvania Bradford $1,087,306 Buffalo (77 miles)
Pennsylvania DuBois $2,228,996 Pittsburgh (112 miles)
Pennsylvania Franklin/Oil City $915,101 Pittsburgh (85 miles)
Pennsylvania Lancaster $1,372,474 Philadelphia (86 miles)
Pennsylvania Altoona $1,674,147 Pittsburgh (112 miles)
Pennsylvania Johnstown $1,674,147 Pittsburgh (84 miles)
Puerto
Rico
Mayaguez $1,198,824 San Juan (105 miles)
South
Dakota
Watertown $1,769,019 Minneapolis/St. Paul (207 miles)
South
Dakota
Huron $1,742,886 Minneapolis/St. Paul (281 miles)
South
Dakota
Aberdeen Minneapolis/St. Paul (289 miles)
Tennessee Jackson $1,225,628 Memphis (86 miles)
Texas Victoria $1,856,692 San Antonio (124 miles)
Utah Moab $1,798,370 Salt Lake City (256 miles)
Utah Vernal $1,421,478 Salt Lake City (150 miles)
Utah Cedar City $2,273,395 Las Vegas (179 miles)
Vermont Rutland $797,141 Boston (149 miles), Windsor
Locks (134 miles)
Virginia Staunton $2,180,461 Washington-Dulles (134 miles)
West
Virginia
Beckley $2,313,457 Charlotte/Douglas (211 miles)
West
Virginia
Clarksburg $1,488,219 Pittsburgh (96 miles)
West
Virginia
Morgantown $1,488,219 Pittsburgh (75 miles)
West
Virginia
Parkersburg/Marietta $2,642,237 Columbus (110 miles)
Wisconsin Eau Claire $1,732,372 Minneapolis/St. Paul (92 miles)
Wisconsin Rhinelander No hub within 1,000 miles
$194,370,465

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From the Economic Collapse Blog:

#1 A staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty.
 
#2 Approximately 57 percent of all children in the United States are living in homes that are either considered to be “low income” or impoverished.
 
#3 If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to 11 percent.
 
#4 The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.
 
#5 One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.
 
#6 There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.
 
#7 Since December 2007, median household income in the United States has declined by a total of 6.8% once you account for inflation.
 
#8 According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006.  Today, that number has shrunk to 14.5 million.
 
#9 A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.
 
#10 According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
 
#11 Back in 1980, less than 30% of all jobs in the United States were low income jobs.  Today, more than 40% of all jobs in the United States are low income jobs.
 
#12 Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job.  In July, only 81.2 percent of men in that age group had a job.
 
#13 One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
 
#14 The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.
 
#15 According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.
 
#16 As the economy has slowed down, so has the number of marriages.  According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married.  Back in 1960, 72 percent of all U.S. adults were married.
 
#17 The U.S. Postal Service has lost more than 5 billion dollars over the past year.
 
#18 In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.
 
#19 Nevada has had the highest foreclosure rate in the nation for 59 months in a row.
 
#20 If you can believe it, the median price of a home in Detroit is now just $6000.
 
#21 According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant.  That figure is 63 percent larger than it was just ten years ago.
 
#22 New home construction in the United States is on pace to set a brand new all-time record low in 2011.
 
#23 As I have written about previously, 19 percent of all American men between the ages of 25 and 34 are now living with their parents.
 
#24 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
 
#25 According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980.  Today they account for approximately 16.3%.
 
#26 One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
 
#27 If you can believe it, one out of every seven Americans has at least 10 credit cards.
 
#28 The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
 
#29 It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.
 
#30 The retirement crisis in the United States just continues to get worse.  According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
 
#31 Today, one out of every six elderly Americans lives below the federal poverty line.
 
#32 According to a study that was just released, CEO pay at America’s biggest companies rose by 36.5% in just one recent 12 month period.
 
#33 Today, the “too big to fail” banks are larger than ever.  The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.
 
#34 The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
 
#35 According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.
 
#36 If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.
 
#37 A higher percentage of Americans is living in extreme poverty (6.7%) than has ever been measured before.
 
#38 Child homelessness in the United States is now 33 percent higher than it was back in 2007.
 
#39 Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
 
#40 Sadly, child poverty is absolutely exploding all over America.  According to the National Center for Children in Poverty, 36.4% of all children that live in Philadelphia are living in poverty, 40.1% of all children that live in Atlanta are living in poverty, 52.6% of all children that live in Cleveland are living in poverty and 53.6% of all children that live in Detroit are living in poverty.
 
#41 Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
 
#42 In 1980, government transfer payments accounted for just 11.7% of all income.  Today, government transfer payments account for more than 18 percent of all income.
 
#43 A staggering 48.5% of all Americans live in a household that receives some form of government benefits.  Back in 1983, that number was below 30 percent.
 
#44 Right now, spending by the federal government accounts for about 24 percent of GDP.  Back in 2001, it accounted for just 18 percent.
 
#45 For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars.  That was the third year in a row that our budget deficit has topped one trillion dollars.
 
#46 If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
 
#47 Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars.  When Barack Obama first took office the national debt was just 10.6 trillion dollars.
 
#48 If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
 
#49 The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.
 
#50 During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

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I have always had an Apple Macintosh in my collection of computers and have always used them for many things over the years. My first was a 6100 “pizza box” that was a desktop publishing workhorse for my freelance business. I also have a G3 candy iMac that still works that also was a workhorse for my business. Both paid for themselves over and over again. I now have a G4 desktop and a Cinema Display, also used for years in design work. And a brand new MacBook Pro 17″. The laptop runs Windows 7 and OS X Lion. I have also had PCs starting with a 386SX-16 running Windows 2.11 and have been neck deep in all the other versions of Windows since. I use both Mac and PC all the time.

With the advent of OS X Lion and Windows 7, it has become obvious to me that Apple is not half as good as Microsoft at just making things work. Here are just a few comparisons I have made in the past couple months that are simply unbelievable.

1. I tried to upgrade my OS X Tiger G4 to a newer OS. Why? Because the latest upgrade to my iPod and iPad would not allow me to use iTunes on the G4 without upgrading. So I went to Apple’s website to get the upgrade ($50 I think), and was told I needed to call Apple. So I did and they told me there is no upgrade to 10.7. Only to an older version of OSX and it was $125! Compare that to Windows where I can plug my iPad and iPod into my oldest PCs – that have all upgraded to Windows 7 flawlessly. Apple Fail.

2. I have Office 2004 for Mac and when I got my new MacBook Pro, and tried to install them. Only they don’t work with Lion, 10.7. Lion no longer has Rosetta, which allows Intel chip Macs to run PowerPC software. So I had to upgrade my Office to 2011. So new problem – Office 2011 Mac Outlook does not work with older versions of Exchange – we use Outlook Exchange 2003 at work. Again, we have old and new PCs running Office 2003 – 2010 that all work just fine with our Exchange server. WE NEVER EVEN SEE ANY OF THESE PROBLEMS I HAVE ON THE MAC! Apple Fail.

3. Ditto for ALL PowerPC software running on 10.7. No Rosetta so I am out of luck. OmniGraffle is now useless. Windows 7 by the way still runs Office 97 (as in Nineteen Ninety Seven) just fine and super fast. That would never happen with Apple. 2 Years and you’re shit out of luck. Apple Fail.

4. Linux-based Network Attached Storage. This one is technical and typically Linuxical – a bunch of pasty faced geeks posting pages of text explaining why things that do not work make perfect sense and if you only knew more about command lines… BUT the bottom line is this – My MacBook Pro running Windows 7 still connects the same wonderful way to all my Buffalo Terastations and Linkstations as did Windows Vista, XP, 2000, NT, 98, 95, etc, etc, etc. Like I said, WE NEVER EVEN SEE ANY OF THESE PROBLEMS I HAVE ON THE MAC! But enter Apple 10.7 OS X – no connecting to our thousands of dollars in investments in RAID storage and the vendors (Apple, Buffalo, etc) all say the same thing: “Tough shit, we don’t care”. Huge Apple Fail.

Note: I have been able to connect on the OS X side of my laptop to the Terastations using FTP but Time Machine and Finder do not work. Still Huge Apple Fail.

It is very interesting that Apple fails so miserably at exactly what they profess to excel at. And ironic that Windows 7 actually works so well. I never thought I would actually prefer Windows over Apple but Apple just has failed too many times to be forgiven. So I boot to Windows and use my Macs when I have to. Still love my iPhone and iPad.

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Netflix. Here is the email I got:

Dear Richard,

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $11.99 a month membership for unlimited streaming and unlimited DVDs (including Blu-ray access) will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs (including Blu-ray), 1 out at-a-time (no streaming)
for $9.99 a month

Your price for getting both of these plans will be $17.98 a month ($7.99 + $9.99). You don’t need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.

We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.

–The Netflix Team

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By William Edelen
October 7, 2001

The question for today is at the heart of the problem we face as a nation. It is exactly the same question that was requested for my lectures at the University of Alabama Conference Center several years ago. I was asked to explore Carl Jung’s question: “Why are so many millions willing and eager to turn their lives over to outside authorities?”

Why are so many today, without thinking, willing to turn their mind/brain, soul/spirit, over to outside individuals, institutions, authorities and ideologies? Whether it be to Osama bin Laden or whether it be to Christian, Muslim and Jewish authorities of dogma, or whether it be to Republican or Democratic dogma, or whatever the outside authority or institution might be that is telling you what to think, what to believe and how to live your life.

Carl Jung put it this way in his essays: “It is a delusion when the priests try to rope the individual into some social organization and reduce him or her to a condition of diminished responsibility, instead of raising him or her out of the torpid, mindless mass and making it clear that he, or she, is the one important factor. Resistance to the organized mass can be effected only by the man, or woman, who is as well organized in his/her individuality as the mass itself. … Once more we see people cutting each other’s throats in support of childish theories of how to create paradise on earth.”

I devoted my lecture at the University of Alabama to four steps:

1. Begin by taking a hard, critical look at all so-called religious authorities.

2. Learn to trust your very own personal experiences and intuition. Thomas Jefferson said it well to his young nephew: “Your own reason is the only oracle given to you by God.” Jefferson always used “God” as a Deist, not as a biblical Christian.

3. Accept the risks that go with taking control of your own life and its direction.

4. Enjoy the joys and freedom that are a part of such a new orientation.

The more we depend on outside authorities for direction, the more is our own growth and creative unimplemented arrested. And yet, how many still yearn for an outside religious authority to pat us on the head and tell us we have been good, or to slap our little hands and tell us we have been bad, ensuring that we stay forever emotionally stunted and dwarfed spiritually.

One of Buckminster Fuller’s most brilliant observations says it all: “All organized religions of the past were developed as beliefs in secondhand information. It will be an entirely new era when man finds himself confronted with direct experience.”

There is a fad, or movement, today among some elements of Christianity. It serves as a perfect example. It is called WWJD? They have it on T-shirts. It is to approach every issue and every question by asking “What Would Jesus Do?” I ask, Jesus is an outside authority on what?  Jesus is certainly not my authority on any question regarding science. Any seventh-grade child today knows more about the world than did Jesus. Jesus knew nothing about DNA molecules, Vitamin E or splitting atoms. Jesus would certainly not be an authority on music, anthropology, archaeology, history, medicine, law, horticulture, agronomy or philosophy. [You could say the same thing about Muhammad or the Buddha.]

When Normin Cousins was writing his wonderful biography of Albert Schweitzer, he asked Schweitzer this question, “Do you think anyone has ever lived who was as good a person as Jesus?” And Schweitzer replied, “millions.”

Our obsession with outside authority, whether in individuals or institutions, ensures that we remain as emotionally and spiritually dwarfed as children. I had a friend who was a devoted Episcopalian. She never missed a church service. I asked her one day: “Mary, you recite the Nicene Creed every Sunday, well, I graduated from one of the best theological schools in America and I do not have a clue what the Nicene creed is all about or what all that gobble-de-gook means – ‘very god of very god, very man of very man …’ and all of that psycho babble – so please explain it to me.” Mary then said this to me, “I don’t know what it all means. I just recite it because my minister told me I should and that it was good for me.” I said to her: “Mary, you recite it back like a parrot – just words that have no meaning to you – because your minister told you it was important for you to do it.” She said, “Yes.”

Human beings, in the mass, sink unconsciously to an inferior moral and intellectual level. Human beings, in the mass, like sheep, obeying and following outside authority end up as zeros as individuals who never listen to their inner voice, their inner intuition, their own reason. And the tragedy of this for society is that a million zeros joined together add up to zero and not even to one.

We live today following secondhand information rather than listening to our own inner voice. When Buckminster Fuller, who is called the Leonardo da Vinci of our time, was at the point of ending his young life due to frustration, he heard a voice within that said to him, “never again – never let anyone push you, in any direction, not in harmony with your own nature.” And he left that “torpid, mindless mass” of human sheep on that date and went on to become one of the creative giants of history.

The question for you again: Why are so many millions willing and eager to turn their mind/brain, soul/spirit – their very lives – over to outside authorities?

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From Daily Capitalist. President Obama is planning to deliver a big speech on jobs and the economy. His wish list for Congress will likely include more government infrastructure spending. (Infrastructure spending is also on Rachel Maddow’s wish list).

So that citizens know what the president is talking about, they should review the success of the government’s past infrastructure projects. Here’s one to consider:

It’s the Yuma Desalting Plant in Arizona, built by the federal Bureau of Reclamation at a taxpayer cost of $245 million. After completing the plant in 1993, Uncle Sam said: “Whoops, we don’t need it after all.” The plant has sat idle for almost two decades, and taxpayers are getting hit for $6 million a year to maintain it.

It gets worse. The purpose of the Yuma plant is to reverse some of the environmental damage done by government-subsidized irrigation farming. As irrigation waters reflow back into Western rivers, they boost saline levels and can make the water useless for downstream users. The Yuma plant was supposed to desalinate some of the irrigation flow into the Colorado River, but the government spent more money to build a separate 73-mile canal to drain water straight to the ocean.

I imagine that irrigation farming makes economic sense in many places. The problem is that the federal government has vastly subsidized dams and irrigation infrastructure in the West without regard to economics or sound environmental practices. Check out the costly environmental mess created by federal irrigation subsidies in the San Joaquin Valley of California. Or consider the environmental problems in the Florida Everglades caused by federal sugar subsidies and Corps of Engineers infrastructure, which, once again, taxpayers are helping to pay to clean up.

Billions of dollars of infrastructure spending by the Bureau of Reclamation has gone into white elephant projects. Imagining that more federal infrastructure will be a panacea for the economy is a liberal fairy tale, detached from the actual experience of most federal agencies over the last century.

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What makes me libertarian is what makes me an atheist — I don’t know. If I don’t know, I don’t believe. I don’t know exactly how we got here, and I don’t think anyone else does, either. We have some of the pieces of the puzzle and we’ll get more, but I’m not going to use faith to fill in the gaps. I’m not going to believe things that TV hosts state without proof. I’ll wait for real evidence and then I’ll believe.

And I don’t think anyone really knows how to help everyone. I don’t even know what’s best for me. Take my uncertainty about what’s best for me and multiply that by every combination of the over 300 million people in the United States and I have no idea what the government should do.

President Obama sure looks and acts way smarter than me, but no one is 2 to the 300 millionth power times smarter than me. No one is even 2 to the 300 millionth times smarter than a squirrel. I sure don’t know what to do about an AA+ rating and if we should live beyond our means and about compromise and sacrifice. I have no idea. I’m scared to death of being in debt. I was a street juggler and carny trash — I couldn’t get my debt limit raised, I couldn’t even get a debt limit — my only choice was to live within my means. That’s all I understand from my experience, and that’s not much.

It’s amazing to me how many people think that voting to have the government give poor people money is compassion. Helping poor and suffering people is compassion. Voting for our government to use guns to give money to help poor and suffering people is immoral self-righteous bullying laziness.

People need to be fed, medicated, educated, clothed, and sheltered, and if we’re compassionate we’ll help them, but you get no moral credit for forcing other people to do what you think is right. There is great joy in helping people, but no joy in doing it at gunpoint.

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“On the eve of a national election, it is well for us to stop for a moment and analyze calmly and without prejudice the effect on our Nation of a victory by either of the major political parties.

The problem of the electorate is far deeper, far more vital than the continuance in the Presidency of any individual. For the greater issue goes beyond units of humanity—it goes to humanity itself.

In 1932 the issue was the restoration of American democracy; and the American people were in a mood to win. They did win. In 1936 the issue is the preservation of their victory. Again they are in a mood to win. Again they will win.

More than four years ago in accepting the Democratic nomination in Chicago, I said: “Give me your help not to win votes alone, but to win in this crusade to restore America to its own people.”

The banners of that crusade still fly in the van of a Nation that is on the march.

It is needless to repeat the details of the program which this Administration has been hammering out on the anvils of experience. No amount of misrepresentation or statistical contortion can conceal or blur or smear that record. Neither the attacks of unscrupulous enemies nor the exaggerations of over-zealous friends will serve to mislead the American people.

What was our hope in 1932? Above all other things the American people wanted peace. They wanted peace of mind instead of gnawing fear.

First, they sought escape from the personal terror which had stalked them for three years. They wanted the peace that comes from security in their homes: safety for their savings, permanence in their jobs, a fair profit from their enterprise.

Next, they wanted peace in the community, the peace that springs from the ability to meet the needs of community life: schools, playgrounds, parks, sanitation, highways—those things which are expected of solvent local government. They sought escape from disintegration and bankruptcy in local and state affairs.

They also sought peace within the Nation: protection of their currency, fairer wages, the ending of long hours of toil, the abolition of child labor, the elimination of wild-cat speculation, the safety of their children from kidnappers.

And, finally, they sought peace with other Nations—peace in a world of unrest. The Nation knows that I hate war, and I know that the Nation hates war.

I submit to you a record of peace; and on that record a well-founded expectation for future peace—peace for the individual, peace for the community, peace for the Nation, and peace with the world.

Tonight I call the roll—the roll of honor of those who stood with us in 1932 and still stand with us today.

Written on it are the names of millions who never had a chance—men at starvation wages, women in sweatshops, children at looms.

Written on it are the names of those who despaired, young men and young women for whom opportunity had become a will-o’-the-wisp.

Written on it are the names of farmers whose acres yielded only bitterness, business men whose books were portents of disaster, home owners who were faced with eviction, frugal citizens whose savings were insecure.

Written there in large letters are the names of countless other Americans of all parties and all faiths, Americans who had eyes to see and hearts to understand, whose consciences were burdened because too many of their fellows were burdened, who looked on these things four years ago and said, “This can be changed. We will change it.”

We still lead that army in 1936. They stood with us then because in 1932 they believed. They stand with us today because in 1936 they know. And with them stand millions of new recruits who have come to know.

Their hopes have become our record.

We have not come this far without a struggle and I assure you we cannot go further without a struggle.

For twelve years this Nation was afflicted with hear-nothing, see-nothing, do-nothing Government. The Nation looked to Government but the Government looked away. Nine mocking years with the golden calf and three long years of the scourge! Nine crazy years at the ticker and three long years in the breadlines! Nine mad years of mirage and three long years of despair! Powerful influences strive today to restore that kind of government with its doctrine that that Government is best which is most indifferent.

For nearly four years you have had an Administration which instead of twirling its thumbs has rolled up its sleeves. We will keep our sleeves rolled up.

We had to struggle with the old enemies of peace—business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.

They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob.

Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me—and I welcome their hatred.

I should like to have it said of my first Administration that in it the forces of selfishness and of lust for power met their match. I should like to have it said of my second Administration that in it these forces met their master.

The American people know from a four-year record that today there is only one entrance to the White House—by the front door. Since March 4, 1933, there has been only one pass-key to the White House. I have carried that key in my pocket. It is there tonight. So long as I am President, it will remain in my pocket.

Those who used to have pass-keys are not happy. Some of them are desperate. Only desperate men with their backs to the wall would descend so far below the level of decent citizenship as to foster the current pay-envelope campaign against America’s working people. Only reckless men, heedless of consequences, would risk the disruption of the hope for a new peace between worker and employer by returning to the tactics of the labor spy.

Here is an amazing paradox! The very employers and politicians and publishers who talk most loudly of class antagonism and the destruction of the American system now undermine that system by this attempt to coerce the votes of the wage earners of this country. It is the 1936 version of the old threat to close down the factory or the office if a particular candidate does not win. It is an old strategy of tyrants to delude their victims into fighting their battles for them.

Every message in a pay envelope, even if it is the truth, is a command to vote according to the will of the employer. But this propaganda is worse—it is deceit.

They tell the worker his wage will be reduced by a contribution to some vague form of old-age insurance. They carefully conceal from him the fact that for every dollar of premium he pays for that insurance, the employer pays another dollar. That omission is deceit.

They carefully conceal from him the fact that under the federal law, he receives another insurance policy to help him if he loses his job, and that the premium of that policy is paid 100 percent by the employer and not one cent by the worker. They do not tell him that the insurance policy that is bought for him is far more favorable to him than any policy that any private insurance company could afford to issue. That omission is deceit.

They imply to him that he pays all the cost of both forms of insurance. They carefully conceal from him the fact that for every dollar put up by him his employer puts up three dollars three for one. And that omission is deceit.

But they are guilty of more than deceit. When they imply that the reserves thus created against both these policies will be stolen by some future Congress, diverted to some wholly foreign purpose, they attack the integrity and honor of American Government itself. Those who suggest that, are already aliens to the spirit of American democracy. Let them emigrate and try their lot under some foreign flag in which they have more confidence.

The fraudulent nature of this attempt is well shown by the record of votes on the passage of the Social Security Act. In addition to an overwhelming majority of Democrats in both Houses, seventy-seven Republican Representatives voted for it and only eighteen against it and fifteen Republican Senators voted for it and only five against it. Where does this last-minute drive of the Republican leadership leave these Republican Representatives and Senators who helped enact this law?

I am sure the vast majority of law-abiding businessmen who are not parties to this propaganda fully appreciate the extent of the threat to honest business contained in this coercion.

I have expressed indignation at this form of campaigning and I am confident that the overwhelming majority of employers, workers and the general public share that indignation and will show it at the polls on Tuesday next.

Aside from this phase of it, I prefer to remember this campaign not as bitter but only as hard-fought. There should be no bitterness or hate where the sole thought is the welfare of the United States of America. No man can occupy the office of President without realizing that he is President of all the people.

It is because I have sought to think in terms of the whole Nation that I am confident that today, just as four years ago, the people want more than promises.

Our vision for the future contains more than promises.

This is our answer to those who, silent about their own plans, ask us to state our objectives.

Of course we will continue to seek to improve working conditions for the workers of America—to reduce hours over-long, to increase wages that spell starvation, to end the labor of children, to wipe out sweatshops. Of course we will continue every effort to end monopoly in business, to support collective bargaining, to stop unfair competition, to abolish dishonorable trade practices. For all these we have only just begun to fight.

Of course we will continue to work for cheaper electricity in the homes and on the farms of America, for better and cheaper transportation, for low interest rates, for sounder home financing, for better banking, for the regulation of security issues, for reciprocal trade among nations, for the wiping out of slums. For all these we have only just begun to fight.

Of course we will continue our efforts in behalf of the farmers of America. With their continued cooperation we will do all in our power to end the piling up of huge surpluses which spelled ruinous prices for their crops. We will persist in successful action for better land use, for reforestation, for the conservation of water all the way from its source to the sea, for drought and flood control, for better marketing facilities for farm commodities, for a definite reduction of farm tenancy, for encouragement of farmer cooperatives, for crop insurance and a stable food supply. For all these we have only just begun to fight.

Of course we will provide useful work for the needy unemployed; we prefer useful work to the pauperism of a dole.

Here and now I want to make myself clear about those who disparage their fellow citizens on the relief rolls. They say that those on relief are not merely jobless—that they are worthless. Their solution for the relief problem is to end relief—to purge the rolls by starvation. To use the language of the stock broker, our needy unemployed would be cared for when, as, and if some fairy godmother should happen on the scene.

You and I will continue to refuse to accept that estimate of our unemployed fellow Americans. Your Government is still on the same side of the street with the Good Samaritan and not with those who pass by on the other side.

Again—what of our objectives?

Of course we will continue our efforts for young men and women so that they may obtain an education and an opportunity to put it to use. Of course we will continue our help for the crippled, for the blind, for the mothers, our insurance for the unemployed, our security for the aged. Of course we will continue to protect the consumer against unnecessary price spreads, against the costs that are added by monopoly and speculation. We will continue our successful efforts to increase his purchasing power and to keep it constant.

For these things, too, and for a multitude of others like them, we have only just begun to fight.

All this—all these objectives—spell peace at home. All our actions, all our ideals, spell also peace with other nations.

Today there is war and rumor of war. We want none of it. But while we guard our shores against threats of war, we will continue to remove the causes of unrest and antagonism at home which might make our people easier victims to those for whom foreign war is profitable. You know well that those who stand to profit by war are not on our side in this campaign.

“Peace on earth, good will toward men”—democracy must cling to that message. For it is my deep conviction that democracy cannot live without that true religion which gives a nation a sense of justice and of moral purpose. Above our political forums, above our market places stand the altars of our faith—altars on which burn the fires of devotion that maintain all that is best in us and all that is best in our Nation.

We have need of that devotion today. It is that which makes it possible for government to persuade those who are mentally prepared to fight each other to go on instead, to work for and to sacrifice for each other. That is why we need to say with the Prophet: “What doth the Lord require of thee—but to do justly, to love mercy and to walk humbly with thy God.” That is why the recovery we seek, the recovery we are winning, is more than economic. In it are included justice and love and humility, not for ourselves as individuals alone, but for our Nation.

That is the road to peace.”

Franklin D. Roosevelt
Madison Square Garden, October 31, 1936

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Got my Social Security “report” today, the one we all get with the green bars. Here is what it says:

Now, however, the Social Security system is facing serious financial problems, and action is needed soon to make sure the system will be sound when today’s younger workers are ready for retirement. In 2015 we will be begin paying more in benefits than we collect in taxes. Without changes, in 2037 the Social Security Trust Fund will be able to pay only about 78 cents for each dollar of scheduled benefits.* We need to resolve these issues soon… (goes on) My take: I think the 2015 date is dead wrong. My sources all say that year is now. SS will pay out 29 billion more in 2010 than it takes in. Source here.

Total US Federal Public Debt

Total US Federal Public Debt

Things are much worse than they are letting on in the annual pamphlet they send out. There is over 2.5 trillion dollars (that’s $2,500,000,000,000) of money that Americans have paid into the system over the years that is supposed to be held in trust for Social Security. Social Security employees have been served KoolAid and will tell you that all of that money is “invested”. In reality, the Treasury department exchanged special Bonds for the money. Over the past few decades, all of those trillions of dollars have been spent. The bonds sit in a file cabinet in West Virginia. Source here.

Problem is, we already spent all the money that those bonds represent. SS does get interest on them. I am looking into whether that is accruing or if the money gets paid to SS to be used to pay SS checks. So my question is, could the Treasury pay back those “IOUs”? That is as much money as they collect in tax revenue in a whole year. I guess they could issue even more Treasury bonds and sell them to China or US or UK investors. But the pattern I keep seeing over and over again is that the Treasury is now stuck paying for it’s liabilities with more loans. It’s like they are just continuing to get new consolidation loans to keep everything running. Throw more debt at debt. Kicking the can down the road. At some point, this will become unsustainable, just like it does for the American consumer. The bank and credit card companies eventually say “no more loans for you”. So when will that happen to the U.S.? No one knows and Treasury auctions (debt sales) are doing OK so far. Which means people around the world are still in the buying mode for Treasury bonds. The sign that we are reaching our limits will come when the rating agencies downgrade our bond ratings and the interest rates on bonds go up. You can see these things happening in Ireland and Portugal now.

A couple more facts: Over the 12 months ending January 31, 2011 the Treasury borrowed a total of $1.8 trillion, or approximately $5 billion per day. The national debt now amounts to about $42,000 per person in the U.S. The U.S. took in tax revenue of $2.162 trillion in 2010. Which means that we are borrowing almost as much as we are spending.

So what are we, ordinary Americans, to do? I think the only thing we can do is plan our future in a world where Social Security does not exist or pays us substantially less for both the monthly cash as well as the healthcare portion. This means saving much more money than we thought we had to. And in my experience, no one know even wants to talk or think about it. I doubt more than 1% of the population even plans at all for their future in any real way. They contribute to a 401k or pension plan and put it out of their mind. But I am seeing some friends and family now, living on Social Security, and it is not very much money. And I am seeing friends who absolutely refuse to think  about any of this. It is like a national ant and grasshopper parable.

As to the future, I suspect there will be a reduced cash benefit, a raising of the retirement age when we can collect, and a voucher system for the healthcare, based on the average amount someone uses in healthcare. These things could bring Social Security under control, and would be the most unpopular decisions our goverment has ever made. If you think what happened in Wisconsin was bad, when they stripped away union power, I can’t even imagiine what happens when they take away the pension and healthcare for tens of millions of people.

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