Winston Churchill made many great observations, including this about our government, "after they try everything else, they'll get it right."
The following is factual in some and argumentative in others pertaining to the results of all the various US agencies dedicated to our defense, whether internal or external. I don't want to digress to far into history. I don't have to. It would be more than enough starting with WW ll. The case is compelling. Consider that at the time, there was already a war in Europe and Asia. Tensions were high with Japan. In that climate a large aircraft carrier fleet left Japan into the Pacific. No one noticed where it was headed? Get out of town!
How about this? Jets were flying from China, attacking US troops, not to mention thousands of Red Army soldiers fighting NATO troops in defense of North Korea and war was never declared against China?
How about the atomic bomb info getting stolen? Not just that, but at this very minute and into the near-term future, secrets are being stolen from Los Alamos, the Pentagon and elsewhere. Why? Because they are incompetent!
We don't need the military complex that is destroying our financial future because the real strength of the US is its people.
Personally, it is bad enough that I cannot get my book published, but during this period of frustration, I have already penned the follow-up. In it, I devote a large section to the brief files mentioned above. However, I will cut to the point of this piece. It is in memory and honor to JFK on the 50th anniversary of his murder.
Theories
I'm not going to bring up the mystery of the third bullet with the possible discharge by the secret service member or the grassy knoll or any other of the conspiracy arguments. This is my point of concern. You are a member of the President's security. You are to secure a trip to Dallas, Texas. You would check your data files, check with local enforcement, the F.B.I., and so on. You would ask the basic questions about anything or anyone who could be a threat to the president. You would hear the usual suspects: Pro-Castro. Anti-Castro, Communist Party , etc. Lo and behold this tidbit would surface. There is an activist character who one time renounced his citizenship to become a Communist and he defected to Russia. He is ex-military, recently ordered a rifle with scope through the mail and he works in a building along the president's itinerary.
I'll wager this that only one person fit that description: Oswald. You would think that someone would check out Lee, but you would be wrong. Why? Incompetence!!!
And in all the dialogue, you never find fault with the military because like a magician, they use misdirection to avert attention to themselves.
911
The true story of the disaster is the worst of all. NSA overheard the ding-dongs in Yemen about how the US was going to get hurt. They listened to the culprits all the around the world into San Diego where because it is out of the jurisdiction(at that time)they did nothing. Can you believe that? All they had to do was to notify the F.B.I. and 911 never would have happened. Incompetence to Sum ma Cum Laude!!
Sorry, Johnny. You may not have been everything that I thought you were, but you are still special in my eyes. I hope that I can answer your question in doing something for my country.
Liars & Crooks: Ben Bernanke. He heard that a bill in Congress called, The Strong Dollar Act was trying to get our dollar backed by gold, to which he said why, gold is not money. Funny, we allow him to run the most important aspect of our economy and his philosophy is opposed to Jefferson, Madison and Franklin. Do you think that Ben has more talent, understanding and thinking that that trio? In fact Ben is lucky because if Andrew Jackson were around, he would tar and feather Ben. And...if he was pissed, he challenge him to a duel and put one between his eyes. Of course, we are civilized today and all opposition like mine is delegated to the Matrix where my arrows fall, but my aim would be exactly like Jackson's, right between the eyes. End the Fed!
Monday, November 18, 2013
Wednesday, November 13, 2013
Tech v. Nature...L&C
No, this is not the latest supreme court ruling, but a question. Why do we think that we are smarter than nature? Why don't we take the extra caution and expense to form a symbiotic relationship with nature rather than trying to control it?
These questions came to mind last week as I was looking up at the trees in my area. They formed a beautiful banquet for the heavens and earth. I marveled at the sight. Each type of tree with its different evolved foliage, whether maple, oak or elm had its own majestic rainbow from the seed of green. Yet, green was really the background in the picture as red, gold and brown dominated the setting. In between were the various shades and hues of this fall art.
Today, stark, bare wood stands in the same place at dust. It presents a different view and thus, finds itself adjusting ones thinking to conjure up images like those in Sleepy Hollow.
If one remembers, this is just nature's way of resting. We do the same principle every night as we retire to sleep which refreshes the body so we can face the new day with energy. Nature gets its rest, evolves for the next cycle.
Technology
only needs a button or oil to grease the wheels. There is no rest. It is not natural in relationship to our human make-up. However, scientist respond saying with time that they can answer any problem. Government leaders today buy into science as the answer all because it provides easy hope, jobs and reelection. Conflicting opinions are regulated to background opposition with no real power. Which leads to the thought of the week: why do we give so little consideration to those voices?
Super Typhoon
has caused havoc to the Philippine Islands. Every year storms seem to be more powerful and more frequent. Whenever these fearful voices arise, the government responds with their appointed shills, but the facts remain.
Scientist built the nuclear plants that have cause total destruction to two areas of the planet for the next two thousand years!
Engineers built the walls that fell and destroyed New Orleans.
Engineers built the oil tankers that leak and sink everywhere in the world not to mention all the other problems of the oil industry whether it is finding or transporting its products.
Fracking
is the latest question mark for the global community. Here in the US, reports are beginning to surface about the dangers to our drinking water. There are 27 cases in rural Pennsylvania from just one clinic.
The concept of fracking seems true because the shale gas is below the water line and there does not have to have a conflict in operation. This fails to the one fact of water. It can appear in the three different element forms: solid, liquid or gas. Also, water is the strongest form of erosion on earth. It can take years for seepage to appear, however it has appeared in places where it was not previously present. More than one state aquifer has been damaged. In addition to man made failures, we added with the contamination of our seas by dumping sewerage into it. This is a serious danger. To me, that is the real problem that over time these sins are affecting fishing industries throughout the world. I feel it is time to stop the madness and rest these policies while seeking new and different answers. Time is the problem.
Time has come today...
(thank you, Chamber Bros.)
The people behind the concept of global warming constantly repeat these dangers, but with little governmental powers nothing gets done. These accumulated sins against nature are building up over time until forces beyond our knowledge could erupt.
Bottom line:
we need to seek technology that works with nature like solar. We cannot let the money interest push nuclear which is the most dangerous form of energy because it is cheaper. Quality is never cheap. Technology that is symbiotic with nature should be sought or we will find our future generation living underground wondering what are the cycles of nature?
Liars and Crooks: Obama care will cost more than projected. People will lose their favorite health care choice. Together, the nation will add to our vast deficits with leaders that always pass the buck rather than facing a serious issue. In their weak minds they are hoping that the Federal Reserve will pull another "hat trick" out of the hat that will lower the costs of all the accumulated debt. The problem is that the states are beginning to suffer from the debased currency and they cannot pass the debt due to the fact that state constitutions say that budgets must balance. They will lay their problems at the feet of the government like Detroit. This is a by-product of the Fed and QE. End the Fed!
These questions came to mind last week as I was looking up at the trees in my area. They formed a beautiful banquet for the heavens and earth. I marveled at the sight. Each type of tree with its different evolved foliage, whether maple, oak or elm had its own majestic rainbow from the seed of green. Yet, green was really the background in the picture as red, gold and brown dominated the setting. In between were the various shades and hues of this fall art.
Today, stark, bare wood stands in the same place at dust. It presents a different view and thus, finds itself adjusting ones thinking to conjure up images like those in Sleepy Hollow.
If one remembers, this is just nature's way of resting. We do the same principle every night as we retire to sleep which refreshes the body so we can face the new day with energy. Nature gets its rest, evolves for the next cycle.
Technology
only needs a button or oil to grease the wheels. There is no rest. It is not natural in relationship to our human make-up. However, scientist respond saying with time that they can answer any problem. Government leaders today buy into science as the answer all because it provides easy hope, jobs and reelection. Conflicting opinions are regulated to background opposition with no real power. Which leads to the thought of the week: why do we give so little consideration to those voices?
Super Typhoon
has caused havoc to the Philippine Islands. Every year storms seem to be more powerful and more frequent. Whenever these fearful voices arise, the government responds with their appointed shills, but the facts remain.
Scientist built the nuclear plants that have cause total destruction to two areas of the planet for the next two thousand years!
Engineers built the walls that fell and destroyed New Orleans.
Engineers built the oil tankers that leak and sink everywhere in the world not to mention all the other problems of the oil industry whether it is finding or transporting its products.
Fracking
is the latest question mark for the global community. Here in the US, reports are beginning to surface about the dangers to our drinking water. There are 27 cases in rural Pennsylvania from just one clinic.
The concept of fracking seems true because the shale gas is below the water line and there does not have to have a conflict in operation. This fails to the one fact of water. It can appear in the three different element forms: solid, liquid or gas. Also, water is the strongest form of erosion on earth. It can take years for seepage to appear, however it has appeared in places where it was not previously present. More than one state aquifer has been damaged. In addition to man made failures, we added with the contamination of our seas by dumping sewerage into it. This is a serious danger. To me, that is the real problem that over time these sins are affecting fishing industries throughout the world. I feel it is time to stop the madness and rest these policies while seeking new and different answers. Time is the problem.
Time has come today...
(thank you, Chamber Bros.)
The people behind the concept of global warming constantly repeat these dangers, but with little governmental powers nothing gets done. These accumulated sins against nature are building up over time until forces beyond our knowledge could erupt.
Bottom line:
we need to seek technology that works with nature like solar. We cannot let the money interest push nuclear which is the most dangerous form of energy because it is cheaper. Quality is never cheap. Technology that is symbiotic with nature should be sought or we will find our future generation living underground wondering what are the cycles of nature?
Liars and Crooks: Obama care will cost more than projected. People will lose their favorite health care choice. Together, the nation will add to our vast deficits with leaders that always pass the buck rather than facing a serious issue. In their weak minds they are hoping that the Federal Reserve will pull another "hat trick" out of the hat that will lower the costs of all the accumulated debt. The problem is that the states are beginning to suffer from the debased currency and they cannot pass the debt due to the fact that state constitutions say that budgets must balance. They will lay their problems at the feet of the government like Detroit. This is a by-product of the Fed and QE. End the Fed!
Tuesday, November 5, 2013
If You're Keeping Score...L&C
The fiscal year just ended and the Obama administration is hailing the large reduction in the deficit to $680.3billion, as if it was forgotten that this figure is added to the nation's total which is over $17trillion with a Capital T. How amazingly sad it is that our leaders can crow about this. I thought you got to brag when you won something and in this case, it would be a surplus. I could even see a moral victory with breaking even. By the way this is the first time that Obama has had deficits under one trillion.
One other thought about the above info: was it Obama or the Sequester that achieved a lower deficit?
Nevertheless, we have a new fiscal year; let me add up the credits and debits.
PRO
A big plus is in the stock market with new highs in the Dow and S&P 500. NASDAQ continues to rise, although it has a long way to go to get back to the highs, but it is very close to 4K.
Unemployment, a figure to which I disagree, is down to 7.3% and jobs are being created.
Inflation is low, but here again, I disagree with the way it is calculated.
The government allowed social security a 1.5% raise for the cost of living increases. This is also manipulated, but something is better than nothing which is exactly what recipients received in 2010 and 2011.
Housing has stabilized and prices have increased three straight years.
Car sales will exceed 15million this year which is quite an accomplishment.
In the global outlook, China claims it had a 7.8% GDP increase. Spain had its first plus quarter in years. Iceland has recovered and Germany continues to be an export machine with low unemployment. Yes, even Greece says it can see a light in the tunnel.
CON
Although the stock market is at new highs, the trading volume has declined four years in a row and with double digits. If you look at two important indicators, the Baltic Dry Goods and Copper, you will find a different outlook.
The $BDI is down to 494 and in the growth years it was over 4K. It had rallied to 2127, but in the last few weeks, it has come straight down. Not good. Dry good shipping is in essence, all commodities which indicates a broad decline in the global GDP. Doctor Copper is down to $3.29, but this figure represents a two year decline, straight down, from $4.60. This effects housing and almost everything else which is why copper has a PHD in economics.
Unemployment forgets that 12million people have given up looking for work. The government does not count them, but they are out of work. This means unemployment is 19%. The agencies that release this data is the most manipulated and corrupt within the government. Consider this aspect: A report on middle class wages. Middle class pay falls between $14-21 dollars per hour and because of the recession, 60% of these jobs were lost. This report went further to say that only 27% have been recaptured.
Car sales are good, but people have been putting off new car purchases because cars are priced too high. The reason car sales are so good is the fact that the average car on the road is over 11 years in age. They had no choice, but this means a scale back in other areas, especially since gasoline is so high. People in Europe will dismiss Americans complaints over gas prices because there, prices are twice as high. However, they get full medical for their taxes while we get Zip.
Housing prices have reached $168K, but they still are $50K short of peak. Consider all the government and the Fed have done to help the industry which is at the crossroads due to price increase and possible rate increases. Not good. One other indicator is the home builders index($DJUSHB)and it is below its 200 day moving average and within 2 points of its 50 day moving average at 424. Keep in mind if interest rates were to rise, this could drop like cement in a river.
The COLA increase for social security shows how false the government reports on inflation within our economy. They don't include food and energy which always go up, but other things like child care, education and insurance.
The global info looks good, but can you believe China's results? Also, the light in the Greek tunnel is the color of money because they indicated that they will need more money from the EU in 2014 and more money from the IMF in 2015. I wish there was a map to show me the way to this tunnel.
Finally, JPMorgan released a future GDP report on the US economy. It stated that it sees only 1.75% growth rate for the next decade. Keep in mind that this figure represents average growth which means there will be down years or another recession. I see a big correction coming in the stock market, but that is me and you can read the tea leaves any way you desire. However, when you couple this report with the aspect that no matter who is running the show in Washington, our government has failed to balance the budget for 25 years and all we have accomplished is violate the concepts of Jefferson, to which he felt it was a crime to pass on your debt to future generations. As the debt figures continue to grow, the global community will develop fears about our ability to pay our debts and talk of ending the dollar as the world's reserve currency could arise and that would devastate our economy if we lost that status.
Liars & Crooks: the first day of the newly raised debt ceiling saw our government spend a record $328billion, which means that the government took that much money from funds illegally and they were ready to take more if they needed it. This is putting citizens benefits in jeopardy.
One other thought about the above info: was it Obama or the Sequester that achieved a lower deficit?
Nevertheless, we have a new fiscal year; let me add up the credits and debits.
PRO
A big plus is in the stock market with new highs in the Dow and S&P 500. NASDAQ continues to rise, although it has a long way to go to get back to the highs, but it is very close to 4K.
Unemployment, a figure to which I disagree, is down to 7.3% and jobs are being created.
Inflation is low, but here again, I disagree with the way it is calculated.
The government allowed social security a 1.5% raise for the cost of living increases. This is also manipulated, but something is better than nothing which is exactly what recipients received in 2010 and 2011.
Housing has stabilized and prices have increased three straight years.
Car sales will exceed 15million this year which is quite an accomplishment.
In the global outlook, China claims it had a 7.8% GDP increase. Spain had its first plus quarter in years. Iceland has recovered and Germany continues to be an export machine with low unemployment. Yes, even Greece says it can see a light in the tunnel.
CON
Although the stock market is at new highs, the trading volume has declined four years in a row and with double digits. If you look at two important indicators, the Baltic Dry Goods and Copper, you will find a different outlook.
The $BDI is down to 494 and in the growth years it was over 4K. It had rallied to 2127, but in the last few weeks, it has come straight down. Not good. Dry good shipping is in essence, all commodities which indicates a broad decline in the global GDP. Doctor Copper is down to $3.29, but this figure represents a two year decline, straight down, from $4.60. This effects housing and almost everything else which is why copper has a PHD in economics.
Unemployment forgets that 12million people have given up looking for work. The government does not count them, but they are out of work. This means unemployment is 19%. The agencies that release this data is the most manipulated and corrupt within the government. Consider this aspect: A report on middle class wages. Middle class pay falls between $14-21 dollars per hour and because of the recession, 60% of these jobs were lost. This report went further to say that only 27% have been recaptured.
Car sales are good, but people have been putting off new car purchases because cars are priced too high. The reason car sales are so good is the fact that the average car on the road is over 11 years in age. They had no choice, but this means a scale back in other areas, especially since gasoline is so high. People in Europe will dismiss Americans complaints over gas prices because there, prices are twice as high. However, they get full medical for their taxes while we get Zip.
Housing prices have reached $168K, but they still are $50K short of peak. Consider all the government and the Fed have done to help the industry which is at the crossroads due to price increase and possible rate increases. Not good. One other indicator is the home builders index($DJUSHB)and it is below its 200 day moving average and within 2 points of its 50 day moving average at 424. Keep in mind if interest rates were to rise, this could drop like cement in a river.
The COLA increase for social security shows how false the government reports on inflation within our economy. They don't include food and energy which always go up, but other things like child care, education and insurance.
The global info looks good, but can you believe China's results? Also, the light in the Greek tunnel is the color of money because they indicated that they will need more money from the EU in 2014 and more money from the IMF in 2015. I wish there was a map to show me the way to this tunnel.
Finally, JPMorgan released a future GDP report on the US economy. It stated that it sees only 1.75% growth rate for the next decade. Keep in mind that this figure represents average growth which means there will be down years or another recession. I see a big correction coming in the stock market, but that is me and you can read the tea leaves any way you desire. However, when you couple this report with the aspect that no matter who is running the show in Washington, our government has failed to balance the budget for 25 years and all we have accomplished is violate the concepts of Jefferson, to which he felt it was a crime to pass on your debt to future generations. As the debt figures continue to grow, the global community will develop fears about our ability to pay our debts and talk of ending the dollar as the world's reserve currency could arise and that would devastate our economy if we lost that status.
Liars & Crooks: the first day of the newly raised debt ceiling saw our government spend a record $328billion, which means that the government took that much money from funds illegally and they were ready to take more if they needed it. This is putting citizens benefits in jeopardy.
Saturday, October 26, 2013
Party Spirits...Halloween Notes
I ran across this essay and you, dear reader might find it very interesting as it is about political party politics.
- "There cannot a greater judgment befall a country than such a dreadful spirit of division as sends a government into two distinct people, and makes them greater strangers and more averse to one another, than if they were actually two different nations. The effects of such division are pernicious to the last degree..., fatal both to men's morals and their understandings; it sinks the virtue of a nation, and not only so, but destroys even common sense.
A furious party spirit, when it rages in its full violence, exerts itself in civil war and bloodshed; and when it is under its greatest restraints, naturally breaks out is falsehood, detraction, calumny, and a partial administration of justice.
In a word, it fills a nation with spleen and rancor, and extinguishes all the seeds of a good-nature, compassion and humanity."
"The party spirit is blind and headstrong; it never seeks truth; but with a mind made upon every subject, it seeks for facts and opinions that favor his premature judgment."
Yesterday & Today
The above notes were on the political climate of London in 1711 by Joseph Addison. His observations were revived in America in the 1790s as politics began to split the new republic into a two party system that did everything to oppose each other.
Sebastian wrote about the Democrats and Republicans in their present form.
- " Our democracy is just two organizations headed by self-serving economic elitist who actually let lobbyist write legislation, however they seek popular support, but never act for popular sentiment."
Halloween Notes: This non-holiday party day is the second biggest economic affair, however the candy that kids go "trick or treating" for will soon be made in foreign ports because of lower prices in the commodities to package the product and lower labor. This is another sad story in outsourcing and it is reflected in last week's default by American Crystal Sugar of $46million. It should remind the Fed that even though you lowered interest rates, someone still has to purchase your product to create growth. End the Fed!
- "There cannot a greater judgment befall a country than such a dreadful spirit of division as sends a government into two distinct people, and makes them greater strangers and more averse to one another, than if they were actually two different nations. The effects of such division are pernicious to the last degree..., fatal both to men's morals and their understandings; it sinks the virtue of a nation, and not only so, but destroys even common sense.
A furious party spirit, when it rages in its full violence, exerts itself in civil war and bloodshed; and when it is under its greatest restraints, naturally breaks out is falsehood, detraction, calumny, and a partial administration of justice.
In a word, it fills a nation with spleen and rancor, and extinguishes all the seeds of a good-nature, compassion and humanity."
"The party spirit is blind and headstrong; it never seeks truth; but with a mind made upon every subject, it seeks for facts and opinions that favor his premature judgment."
Yesterday & Today
The above notes were on the political climate of London in 1711 by Joseph Addison. His observations were revived in America in the 1790s as politics began to split the new republic into a two party system that did everything to oppose each other.
Sebastian wrote about the Democrats and Republicans in their present form.
- " Our democracy is just two organizations headed by self-serving economic elitist who actually let lobbyist write legislation, however they seek popular support, but never act for popular sentiment."
Halloween Notes: This non-holiday party day is the second biggest economic affair, however the candy that kids go "trick or treating" for will soon be made in foreign ports because of lower prices in the commodities to package the product and lower labor. This is another sad story in outsourcing and it is reflected in last week's default by American Crystal Sugar of $46million. It should remind the Fed that even though you lowered interest rates, someone still has to purchase your product to create growth. End the Fed!
Monday, October 21, 2013
Fiat Outlook: Now and Future...L&C
This is the last piece on our fiat currency. Did I hear someone say, "yea!" Wise-guy.
Now
On Wednesday the last day that would prevent a US default, a deal was reached to extend the debt on our deficits. Two things that I would like to point out. The government had officially ran out of money a month before and as I will show you, these bureaucratic clerks get paid to monkey the books. There is no truth concerning our debt and many other things related to government. Now, the first aspect which I find was all part of an undisclosed plan. Dear reader, October is historically the month that the stock market finds truth which is to say, stocks decline to a figure closer to there true value. Government leaders know this. By distracting our attention to the debt crisis, these leaders not only avoided a stock market decline, but they were able to generate a relief rally that saw the S&P break to a new record high even though the earnings have been tepid. Ben Bernanke is a master in controlling the herd in this aspect. He says, QE is going to end and the market declines on the news. Then, he says not for a couple of years to which, the market says all systems go and the herd buys.
The second point in the debt ceiling fiasco is this. When Congress last extended the US debt, it placed the figure at $16.7trillion. On Wednesday just prior to raising the debt figure, our debt had reached $16.9trillion. Where did the extra $200billion come from? This dear reader, this is an example of the corruption of our federal government. They took money from US funds like Social Security and Civil Service Retirement & Disability Fund to use as they pleased. What if things went wrong? I will speculate with an answer in the future outlook of this article.
Future
Economic Slavery: When slavery was an economic institution, our government was democratic in name only and in reality an economic Aristocracy. Today, we are heading for economic slavery as fiat policies debase our standard of living to the point where there are equal number of citizens in poverty as in the middle class. We are still democratic in name, but economic elitist in nature.
- Sebastian
I have to break this section into two parts, the near-term and long-term.
In the near-term we will continue to see what we have experienced since 2008, which is low growth(2.39% increase average for the period) and higher debt(11% increase average for the period). The reason the herd continues to buy is because the Fed has done our corporations a great favor with low rates, however any and everyone who needed to refinance has done so. We will see very little bottom line improvement going forward. There was also the by-product of these low rates. The housing industry has benefited, but again, there will be very little improvement going forward. One major obstacle will be all the homes belonging to baby boomers entering the market as this generation dies off. Dear reader, this amounts to 73 million people and possibly 40 million more homes that will compete with new housing with an economy that begs for first time buyers.
The last beneficiary of the Fed's policy will be government debt when matured, to be rolled over into a lower rate. After this takes place, the debt clock to disaster will begin.
When you look around and see the big picture, there will be more than Detroit. If the federal government begins to cut back on state aid, you will see states entering foreclosure. When the rumors begin, we will have reached the end of the near-term and entering the long-term. As for the answer to what if the default happened, the government had a plan to which they were going to roll back the dates of maturity by hand and your money would be held until they could print more.
The first real problem will be the efforts of China to end the US dollar as the world currency. Since there is nothing to replace it, they will seek a compromise to form a new reserve with a basket of currencies which will gain support from all the other fiat central bankers. If and when this occurs, get your money out of banks and in cash. Get out of US bonds because the government well limit withdrawals and in fact, all banks will close for a period of time and you will not be able to use credit cards or checking accounts.
Gold
it will rise, then fall, rise again and then crash when the global community reaches a deal to form a new reserve currency.
I only pose one question. If this happens or something very similar, will any of the current leaders ask me, Harry Dent, John Williams, James Grant, et al. how to save the day? I seriously doubt it, but I hope that my book would get published before I die.
Liars and Crooks: the government received more money from Congress, but the real winners were government workers who will get paid for all the days they missed. A new form of a paid vacation. By the way, every time that the government shut down, all the workers were paid to not work each time.
Now
On Wednesday the last day that would prevent a US default, a deal was reached to extend the debt on our deficits. Two things that I would like to point out. The government had officially ran out of money a month before and as I will show you, these bureaucratic clerks get paid to monkey the books. There is no truth concerning our debt and many other things related to government. Now, the first aspect which I find was all part of an undisclosed plan. Dear reader, October is historically the month that the stock market finds truth which is to say, stocks decline to a figure closer to there true value. Government leaders know this. By distracting our attention to the debt crisis, these leaders not only avoided a stock market decline, but they were able to generate a relief rally that saw the S&P break to a new record high even though the earnings have been tepid. Ben Bernanke is a master in controlling the herd in this aspect. He says, QE is going to end and the market declines on the news. Then, he says not for a couple of years to which, the market says all systems go and the herd buys.
The second point in the debt ceiling fiasco is this. When Congress last extended the US debt, it placed the figure at $16.7trillion. On Wednesday just prior to raising the debt figure, our debt had reached $16.9trillion. Where did the extra $200billion come from? This dear reader, this is an example of the corruption of our federal government. They took money from US funds like Social Security and Civil Service Retirement & Disability Fund to use as they pleased. What if things went wrong? I will speculate with an answer in the future outlook of this article.
Future
Economic Slavery: When slavery was an economic institution, our government was democratic in name only and in reality an economic Aristocracy. Today, we are heading for economic slavery as fiat policies debase our standard of living to the point where there are equal number of citizens in poverty as in the middle class. We are still democratic in name, but economic elitist in nature.
- Sebastian
I have to break this section into two parts, the near-term and long-term.
In the near-term we will continue to see what we have experienced since 2008, which is low growth(2.39% increase average for the period) and higher debt(11% increase average for the period). The reason the herd continues to buy is because the Fed has done our corporations a great favor with low rates, however any and everyone who needed to refinance has done so. We will see very little bottom line improvement going forward. There was also the by-product of these low rates. The housing industry has benefited, but again, there will be very little improvement going forward. One major obstacle will be all the homes belonging to baby boomers entering the market as this generation dies off. Dear reader, this amounts to 73 million people and possibly 40 million more homes that will compete with new housing with an economy that begs for first time buyers.
The last beneficiary of the Fed's policy will be government debt when matured, to be rolled over into a lower rate. After this takes place, the debt clock to disaster will begin.
When you look around and see the big picture, there will be more than Detroit. If the federal government begins to cut back on state aid, you will see states entering foreclosure. When the rumors begin, we will have reached the end of the near-term and entering the long-term. As for the answer to what if the default happened, the government had a plan to which they were going to roll back the dates of maturity by hand and your money would be held until they could print more.
The first real problem will be the efforts of China to end the US dollar as the world currency. Since there is nothing to replace it, they will seek a compromise to form a new reserve with a basket of currencies which will gain support from all the other fiat central bankers. If and when this occurs, get your money out of banks and in cash. Get out of US bonds because the government well limit withdrawals and in fact, all banks will close for a period of time and you will not be able to use credit cards or checking accounts.
Gold
it will rise, then fall, rise again and then crash when the global community reaches a deal to form a new reserve currency.
I only pose one question. If this happens or something very similar, will any of the current leaders ask me, Harry Dent, John Williams, James Grant, et al. how to save the day? I seriously doubt it, but I hope that my book would get published before I die.
Liars and Crooks: the government received more money from Congress, but the real winners were government workers who will get paid for all the days they missed. A new form of a paid vacation. By the way, every time that the government shut down, all the workers were paid to not work each time.
Tuesday, October 15, 2013
Why Fiat Kills An Economy...L&C
My recent articles have been directed at the ills of fiat based currencies. In the US the media bows to the government and the Fed concerning issues of debt, currency and standard of living. This week I want you to look at two examples of the fiat based economy. Keep in mind that 40 state governments need and receive 31% of their revenues from the federal government, which in turn pass economic stimulus to their city and county government agencies. These leaders forget that their citizens do not have a rich uncle to pass economic stimulus to them. The first example is local government seeking revenues without the appearance of raiding taxes.
Whitestone Bridge
When I was young I got a job pumping gas at the old Hess station. At the same time regular gas was .30cents per gallon. Also, at the same time the toll on the Whitestone Bridge which connects the Bronx to Queens and Long Island was .25cents each way or .50cents a day. This bridge also connects to the road to the George Washington Bridge and the major interstate highway 95, to which there was another toll, but in this example of local costs to citizens, I will not include the second toll. In addition to the toll, you have to include gas which is also taxed, insurance, ditto the ever present men in blue to add to the dangers of everyday transportation.
As the years passed and citizens sought ways of avoiding inflation, ridership declined on the bridge as people used the bus or subway, especially after the first oil embargo and gas prices doubled. In response the city raised the tolls, again and again. Long story short the cost of the toll on the bridge soon distanced itself from the price of a gallon of gasoline. At present it cost $6.50 one-way or $13.00 per day. By the way it is set to rise again in 2014.
AT&T
I use the cheapest phone plan there is at $29.99 a month. I can talk on the Internet, but a phone is needed for many things beside communication. My phone bill averages $41.00 per month. How can that be when it is suppose to be under $30. per month? Good question and the answer is fiat debasing of money and corruption by the so-called regulators. Let's take a look.
I was charged $2.00 for texts. I never text, but to open a message from unknown sources, cost me.
I pay .61 for Administrative Fee which means I now pay for the phone companies employee wages.
I pay .67 for County Gross Receipts Surcharge - whatever that is?
I pay $1.43 for Federal Universal Service Charge - again paying phone company costs.
I pay .24 for MTA Telecom Surcharge. City fees paid by me.
I pay .45 for Regulatory Cost Recovery Charge. whatever that is
I pay .99 for State Telecommunications Excise Surcharge. helping the state, I guess.
I pay $1.20 for 911. Again paying some body's salary.
I pay .12 for City District sales Tax - telecom. Finally, someone admits a tax.
I pay $1.55 for City sales Tax - Telecom. another tax.
I pay .30 for Local wireless 011 Surcharge. I thought that I already paid for this?
I pay $1.38 for N.Y. state Sales Tax - Telecom. Thought I paid this one too?
Bottom line: taxes are over 25% of phone costs. Way too much!!
People avoid inflation as best as they can, but government spends more than they receive and they burden their citizens beyond reason. P.S>: Con Ed the utility company is asking for $450 million when their costs are down because they use natural gas which was paid for in the past in the transition from oil. Now, Con Ed says it is because of Hurricane Sandy. Con Ed does not put something aside for rainy days. They just take your money. Can't wait for the decision of the regulators who basically rubber stamp all requests.
Liars & Crooks: our government leaders for play acting and not doing what the constitution says, "promote the general welfare."
Cry Wolf
too many times and the effect wears off. In 2011 the market dropped over 1K points on the debt fear. Last year, it did little damage and this year, traders felt that a deal would be reached. They were right, but it only extends until mid-January. One of these days, there will not be a deal and the cry will fall on deaf ears.
Whitestone Bridge
When I was young I got a job pumping gas at the old Hess station. At the same time regular gas was .30cents per gallon. Also, at the same time the toll on the Whitestone Bridge which connects the Bronx to Queens and Long Island was .25cents each way or .50cents a day. This bridge also connects to the road to the George Washington Bridge and the major interstate highway 95, to which there was another toll, but in this example of local costs to citizens, I will not include the second toll. In addition to the toll, you have to include gas which is also taxed, insurance, ditto the ever present men in blue to add to the dangers of everyday transportation.
As the years passed and citizens sought ways of avoiding inflation, ridership declined on the bridge as people used the bus or subway, especially after the first oil embargo and gas prices doubled. In response the city raised the tolls, again and again. Long story short the cost of the toll on the bridge soon distanced itself from the price of a gallon of gasoline. At present it cost $6.50 one-way or $13.00 per day. By the way it is set to rise again in 2014.
AT&T
I use the cheapest phone plan there is at $29.99 a month. I can talk on the Internet, but a phone is needed for many things beside communication. My phone bill averages $41.00 per month. How can that be when it is suppose to be under $30. per month? Good question and the answer is fiat debasing of money and corruption by the so-called regulators. Let's take a look.
I was charged $2.00 for texts. I never text, but to open a message from unknown sources, cost me.
I pay .61 for Administrative Fee which means I now pay for the phone companies employee wages.
I pay .67 for County Gross Receipts Surcharge - whatever that is?
I pay $1.43 for Federal Universal Service Charge - again paying phone company costs.
I pay .24 for MTA Telecom Surcharge. City fees paid by me.
I pay .45 for Regulatory Cost Recovery Charge. whatever that is
I pay .99 for State Telecommunications Excise Surcharge. helping the state, I guess.
I pay $1.20 for 911. Again paying some body's salary.
I pay .12 for City District sales Tax - telecom. Finally, someone admits a tax.
I pay $1.55 for City sales Tax - Telecom. another tax.
I pay .30 for Local wireless 011 Surcharge. I thought that I already paid for this?
I pay $1.38 for N.Y. state Sales Tax - Telecom. Thought I paid this one too?
Bottom line: taxes are over 25% of phone costs. Way too much!!
People avoid inflation as best as they can, but government spends more than they receive and they burden their citizens beyond reason. P.S>: Con Ed the utility company is asking for $450 million when their costs are down because they use natural gas which was paid for in the past in the transition from oil. Now, Con Ed says it is because of Hurricane Sandy. Con Ed does not put something aside for rainy days. They just take your money. Can't wait for the decision of the regulators who basically rubber stamp all requests.
Liars & Crooks: our government leaders for play acting and not doing what the constitution says, "promote the general welfare."
Cry Wolf
too many times and the effect wears off. In 2011 the market dropped over 1K points on the debt fear. Last year, it did little damage and this year, traders felt that a deal would be reached. They were right, but it only extends until mid-January. One of these days, there will not be a deal and the cry will fall on deaf ears.
Monday, October 7, 2013
60% Tax Hike & Other Fiat Gifts...L&C
This is a story that is taking place in Japan and coming to your nation in the near future.
60% Tax Increase
The first question you should ask, could I cope with it if this happens to my nation? The old sales tax was 5% and now, it is 8%. It is only three cents. What's the worry? Dear reader, this is how fiat currencies operate. Since the US allowed the formation of the Federal Reserve, the buying power of the dollar has lost 95% of its purchasing power. By the end of this year, it will be 96%. This is the way government steals from its citizens. It takes your money and gives it to people with influence to help them get reelected or to develop projects that these same officials will benefit. The concept of democracy is in word only. Governments do what they think is best and this is not what is beneficial to the general public. When the public realizes this fallacy of our present system, we will have a chance with a new third party. Until then, these are the type of gifts that both political parties foster, fiat. Here is another gift of fiat thinking.
In the same year as the Fed was formed, the same elected officials also passed the formation of income tax. It originally stated that it would be capped at 2% and it would only effect the rich. Ha! I've got some sad, serious news for you. According to the rules in the formation of the IRS, the government can take 100% of your income, if it needs it. Fiat, debt grows with your present money and if that isn't enough, it will take your future earnings.
Governments spend and what they cannot pay for with your tax dollars, they put on debt. When a nation had a gold standard, there were strict ratios that limited the creation of new debt because you had to have gold backing whatever number of dollars that you printed. This is why the bankers and elite created the Fed. It had two real purposes. One, it would allow the unlimited formation of debt. Secondly, in case this debt formation caused a crisis within the market, the Fed would be the backstop to protect them.
Of course, there were other options to pay for the debt. Growth would add new tax revenues. You could develop new taxes, but not so many to alarm the citizens. This tax will alarm the citizens of Japan. They already are disillusioned over the nuclear incident and the lies from Tepco utility company. Fish, their most favorite staple is threatened. We can only hope that the people will awake and demand no more debt because Japan's debt is already over 220% of GDP. This is the same road where the Fed is sending our nation. Our best hope is the people of Japan cause a protest that receives world attention. Maybe another financial crisis to see the dangers of QE. End the Fed!
Liars and Crooks: Our debt ceiling is so bad and the truth so far from the front page that writing this makes me sick. Consider this: 40 states, count them, need and count upon government assistant to meet their budgets. This amounts to over 31% of income and yet, at the same time they almost all have deficits to state pension funds. By the way three states, Louisiana, Idaho and Arizona get and need over 41% to make ends meet. How can the government not increase the debt when so many are beholding. How are we ever going to get out of this debt mess unless we End the Fed!
60% Tax Increase
The first question you should ask, could I cope with it if this happens to my nation? The old sales tax was 5% and now, it is 8%. It is only three cents. What's the worry? Dear reader, this is how fiat currencies operate. Since the US allowed the formation of the Federal Reserve, the buying power of the dollar has lost 95% of its purchasing power. By the end of this year, it will be 96%. This is the way government steals from its citizens. It takes your money and gives it to people with influence to help them get reelected or to develop projects that these same officials will benefit. The concept of democracy is in word only. Governments do what they think is best and this is not what is beneficial to the general public. When the public realizes this fallacy of our present system, we will have a chance with a new third party. Until then, these are the type of gifts that both political parties foster, fiat. Here is another gift of fiat thinking.
In the same year as the Fed was formed, the same elected officials also passed the formation of income tax. It originally stated that it would be capped at 2% and it would only effect the rich. Ha! I've got some sad, serious news for you. According to the rules in the formation of the IRS, the government can take 100% of your income, if it needs it. Fiat, debt grows with your present money and if that isn't enough, it will take your future earnings.
Governments spend and what they cannot pay for with your tax dollars, they put on debt. When a nation had a gold standard, there were strict ratios that limited the creation of new debt because you had to have gold backing whatever number of dollars that you printed. This is why the bankers and elite created the Fed. It had two real purposes. One, it would allow the unlimited formation of debt. Secondly, in case this debt formation caused a crisis within the market, the Fed would be the backstop to protect them.
Of course, there were other options to pay for the debt. Growth would add new tax revenues. You could develop new taxes, but not so many to alarm the citizens. This tax will alarm the citizens of Japan. They already are disillusioned over the nuclear incident and the lies from Tepco utility company. Fish, their most favorite staple is threatened. We can only hope that the people will awake and demand no more debt because Japan's debt is already over 220% of GDP. This is the same road where the Fed is sending our nation. Our best hope is the people of Japan cause a protest that receives world attention. Maybe another financial crisis to see the dangers of QE. End the Fed!
Liars and Crooks: Our debt ceiling is so bad and the truth so far from the front page that writing this makes me sick. Consider this: 40 states, count them, need and count upon government assistant to meet their budgets. This amounts to over 31% of income and yet, at the same time they almost all have deficits to state pension funds. By the way three states, Louisiana, Idaho and Arizona get and need over 41% to make ends meet. How can the government not increase the debt when so many are beholding. How are we ever going to get out of this debt mess unless we End the Fed!
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