Politicians here in the USA lie so frequently for several reasons, but one rarely mentioned is the ideological straightjacket the media, lobbyists, and "respectable" think tanks impose on them. I once read that all the "commietalk" baloney imposed under Stalin was meant not to say anything, or convince anybody, but to differentiate the initiates who "knew the score" and those who might think for themselves. Our politicians work to a very narrow script, and deviation is punished. Therefore, if we as a nation have a problem, only certain options are allowed on the table, at least for public consumption. Politicians are forced to lie to conform to the narrative talking points alllowed under the official ideology of free markets, free trade, benevolent interventionism, and American exceptionlism. Since reality does not often conform to these concepts, politicians must lie to cover that truth and assert their loyalty to the dogma. For the establishment, being wrong is only a minor issue, but being disloyal to the core ideology that legitimizes American wealth and power is proof you are unfit to govern.

We will be told, as we have been told before, that the only way to make the economy work is to feed the rich and keep them happy or the whole house of cards will collapse. I have come to the conclusion that the Investor Class is in full command here in the USA, and their will shall be done. The Democrats on their best day may wring a few minor concessions out of those who run the show, but the Dems will be roundly denounced for it by the Respectable Media Types and McCain, once he senses that the people again know their place; McCain and his minions will go on the offense, declaring any attempts to make the rich pay for their own mistakes "socialism", and the American people, rather than admit that they are today powerless serfs doling out their tax dollars to bail out millionaires, will seek to identify with their rulers and nod approvingly. These insights sicken and depress me, but it all seems dishearteningly inevitable given the power of money and the desire of the chattering class and the bought-and-paid-for economists to fall in behind the rich and the ideology that keeps them rich.

Let's face it, we the taxpayers are taking worthless paper off these guys hands for a stake in these firms. It's nationalization, but nobody dares speak the truth about it. We all now own an 80% stake in AIG. So, as we buy these guys useless paper, we the people become the Boards of Directors. Therefore, we can fire the morons who got us here and hire their replacements at whatever rate we wish to pay. It's not as if you can't get men and women to take these high-powered jobs. Pay me $500,000, I'll quit my tenure-track Professorship in a heartbeat and work like a dog to clean up this mess. Screw those $50 million dollar men. And how much worse of a job can I do compared to those who ran these massive institutions into the ground? I can't! Especially not with a blank check from Uncle Sam. So forget about Gitmo--just buy those worthless assets, baby!

Heard an economist (Max Wolf) at my University this morning. He hit the nail on the head. America consumes more than it produces, which forces us into both creating debt at home out of thin air and borrowing like crazy from abroad. What most people here haven't grasped is that this is an international problem, and Paulson is desperately trying to keep the flow of overseas funds pouring into the US economy, because we neither produce nor save enough to finance our "way of life."

What goes largely unspoken is the grim fact that our standard of living is going to fall--either a little, or alot. We have lived off of credit for some time now, and created a vast industry to generate, trade, and evaluate it. Wolf pointed out that in 2006 35% of ALL US PROFITS were generated by our financial sector. If it collapses, the single most profitable industry we have as a nation goes down the tubes. If the dollar fails as the medium of international exchange, then we have to pay our way by exporting, like everyone else. The unmentionable fact is: the "American way of life", which old Dick "Pinhead" Cheney declared "nonnegotiable", has just been made an offer it cannot refuse. Our illusion of wealth, fueled by credit and speculation, is about to burst.