Wall Street Rallies...on the lie of economic gains

Earnings indicate that the rally in the stock market will continue according to the shills and pundits, however many of those gains came on the backs of laid of workers(they call it job productivity and cost cutting), continuing the out-sourcing of jobs(increased by 30% in 2010)and QE2(the devaluing of our dollar for the profits for the banking industry, lobbyists for US companies that export and the hope that the housing industry will stabilize.
Time for a Haircut
If the truth in reporting by the media were complete, our corporate gains due to sales growth did not happen. You cut workers hours and you make them do more with less is the facts behind those profits. Foreign affiliates of US companies increased employment 30% to 10 million on foreign shores while at home the US version of these same companies lost a total of 5.5 million workers since 2001. It continues when Dell announced it is closing its last large US facility in North Carolina. Our economic job haircut comes from the lie of free trade. Isn't it a shame that we invented items like the cell phone and 1.2 billion of them were manufactured elsewhere? Rawlings is the official supplier of Major League Baseball, but not made here. It is the same for many brands like Converse, Hanes and almost any US company. Keep in mind that sovereign wealth funds and foreign companies have gobbled up the likes of Bud, Gerber and many more.  
Finally, when the Fed devalues our dollar we all suffer daily due to the rising cost for food and energy while the few exporting companies(we only export 14% of GDP)made gains due to this decline in the value of the dollar. So, did any of the Feds actions help every day Americans? No! Terminate the Fed. Place protective tariffs on all imports and swing the pendulum back to job security and social mobility at home. Of course, if this policy were to be adopted, Wall St. would tank - let it, afterall the Yankees lost.

Mid-Term Elections:10 Things I Run On...but won't see

   The media airwaves are full of political campaign ads. They mostly inform you of how bad the opposing candidate, party or resolution and or, how in these tough economic times they would create jobs, cut spending, promote clean energy and will work for you, the constituency.
   First of all, no one can create jobs. Candidates or resolutions can enact legislation or policy that would enhance opportunities in certain fields. To cut taxes for companies or individuals does not translate into hiring. If someone talks clean energy, but does not back made in America, all they are doing is exporting our stimulus to foreign shores like China. Finally, just two years ago, these same media ads stated the same issues and what have we got - the same status quo. President Obama is a failure. I voted for him because he campaigned on ending the two wars, endorsed the concept of first payer, would make the financial industry accountable, endorse transparency, especially with derivatives among other promises. The only thing that he did that I agreed with is the Ledbetter Act for fair wages between men and women. He is a Democrat in a Republican coat. He has made things worse with exploding debt, a status quo health plan, continuing the war policy and the present crisis with mortgage foreclosure reveal how poor his legislation deals with the broken financial industry who disregard rules and regulations at taxpayer's expense for their profit. This is NO CHANGE. It is in this light that I present 10 concepts if I were running for office.
 * I would endorse a resolution to repeal the Taft-Hartley Act of 1947. This mockery destroyed the labor movement and don't BS me about greedy unions when CEO pay in relationship to labor was 44 to 1 in 1980 and in 2010 it is 344 to 1. People cannot afford cars, homes because labor does not make a living wage. The pendulum is so far to the right that producers are finally afraid as their brand name originally built with union labor, was outsourced to foreign soil, is now under threat.
*  I would call for the end of the two Wars, close almost all foreign bases, re-institute the draft and disband TSA, border guards and similar agencies. In their place I would put the returning military people to protect our airports, borders and ports of call. This one act would eliminate one-half trillion dollars from the budget. In fact, it would lead to a balance budget even without other cuts.
*  In a related field I would extend the budget of the FDA. This agency can only inspect 1% of all incoming containers. This is ridiculous and dangerous. Under this expansion I would also place troops to inspect cargo. I would demand RFID tags for accountability. Follow this small list and understand the impact with fake, dangerous illegal items of contraband. In 2009 there was seized over $11 million in illegal drugs, over $4.3 million in electrical items, over $3.2 million in tech components, over $3.7 million in phony perfume and  over $2.9 million in fake sunglasses. Keep in mind that we only inspect 1%. Imagine if we did real inspections. These numbers would explode and the by-product would be the protection of jobs.
*  Endorse a resolution to reevaluate all passed pork barrel legislation and thus end bridges to nowhere, studies for idiots, etc.
*  In a related act I would endorse a resolution that stated that any originator of any legislation has the power to veto any riders, amendments or additions to his act. Did you know that under the health plan is section 9006 of the Patient Protection and Affordable Care Act. It tracks gold purchases and sales which opens the door to tax or confiscate your gold in any form. Enough B.S. and deceit!
*  A bill to terminate the Federal Reserve. Did you know that they are creating debt by printing dollars to buy Treasury debt because no one will purchase our long term debt because of fear that we will default. And while we are waiting for that dreaded day, we suffer with the loss of purchasing power in the dollar or inflation. 
*  Educate the public about the lie of the Chinese economy. For example, when Ford built its third auto plant in China worth $500 million and Honda opened a motorcycle plant valued the same, the Chinese say their economy grew at $1 billion dollars and this is not true. Say, you have a store and you lease space to a jewelery stand who pays you rent. Maybe more people will enter your store, however if they don't buy from you did your economy grow? You cannot include the jewelery stands income as yours, only the rent, but the Chinese include everything and this is fraud.
*  I would endorse a resolution to exit the WTO. The Founding Fathers said make no entanglements and this along with NAFTA and CAFTA are why we suffer from SHAFTA!
*  I would endorse a resolution to form a national committee that would take the place of the Fed. They would answer to Congress to establish the national interest rate which would be set once a year and this group would have equal amount of workers to producers and only one banker.
*  In a related resolution I would draft a call to return to the gold standard. If we had a gold standard we could place tariffs on all imported fiat items for the difference between gold and their fiat currency. We should have done this in the past and we would never be in the position that we find ourselves today. A by-product of this act would be the natural protection of our jobs and economy. Keep in mind that in anything that is passed must contain the clause to buy made in America whenever possible and don't let me get started on the Supreme Court, but then again, it is covered in my book, " The Evolution of Democracy."

He who controls the money...makes the rules

   Thursday ended the month of September and the third quarter in the economic calendar. The stock market had its best fall month since 1939. The stats all indicated that the recession was over and although admittedly slow, the economy is back on the positive track. Gee, they admitted that the economy grew less then expected. Why? Because these same gurus said that the economy would grow at a 3.6% clip by this period last year and it grew at only a 1.6% snail pace. You see, at 1.6% growth rate, the economy is actually getting worse in terms of unemployment due to school grads entering the market place, immigration, both legal and illegal and the continuing practice of out-sourcing of jobs.
Their Facts versus Mine
   Last week the National Bureau of Economic Research said that the recession was over and it ended in 2009. However, the census bureau reported that 43.9 million Americans are now living in poverty. This is more than the combined populations of Canada and Austria. Another government report stated that personal income grew in August at 0.5 percent. Do you know anyone who got a pay increase? Talk about the 6-degrees of separation. Well, according to this report part of the increase is due to the emergency extention of unemployment benefits. I guess if your unemployment ran out and you have no money, but miraculously you get an extention and now, you have money - well then, that is a pay increase. Again, those who create the money control the rules. Nevertheless, by my stats two more banks failed Friday which brings the total to 129 for the year. Failing banks will soon pass the 140 that was recorded last year which was the worse year since 1992. Yeah, we are on the positive track according to the rule makers. I wonder if they considered the survey by the National Inflation Association(NIA)which concluded that 77% of Americans are living paycheck-to-paycheck or the fact that August broke the record for foreclosures which it set earlier in the year. By the way home prices have fallen year-over-year and for eight straight quarters according to the FHA(Federal Housing Agency). Another government stat states that consumer spending increased in August because again, personal income grew in August. Isn't it amazing that consumer spending on gasoline and food is included in stats for consumer spending and yet, according to the CPI(Consumer Price Index)food and energy are NOT included which is why inflation is subdued, nada, zipo! He who controls the money makes the rules...except this game is corrupt.   

EXCLUSIVE: The China Economic Miracle...is nothing but Fraud

   There are ponzi schemes, manipulation and then, there is China. Picture this scenario. Everyone you meet and know lends you money to start a small business. The business would be yours, however you owe the investors for whatever percentage of their piece of your pie. Now, place this business in China. In fact, to be more factual let us imagine a new mall called the "Global Mall." In this mall would be companies from the global community. For instance, we will have a Mercedes show-room, a Sony electronics store, an Apple IPad outlet, a French wine outlet and a Dell computer retail store. Do you get the picture? Now, according to the Chinese Premier Wen Jiabao last Monday at an economic forum in Tianjin, China, these are all Chinese companies. These are his words and law of the land, "Any company registered in China according to Chinese law is considered a Chinese company. The products they produce are all Chinese-made. The innovative products they develop are all Chinese innovations. Foreign companies registered within China's borders all enjoy national treatment." This treatment steals patents and expertise like the Chairman Jurgen Hambrecht of BASF of Germany says,"They forced disclosure of know-how," or the foreign minister of Japan, Katsuya Okada who said,"Foreign companies have faced problems in China that are unthinkable in a normal business environment." Today, Ford signed a contract to open their third auto plant in China estimated at $500 million. Tomorrow, China will say that they added another $500 million to their economic growth. Now, do you get the picture? 

Lip service for your vote or new hope...

Recently our Secretary of Treasury and our President have been pointing the finger at China for currency manipulation as to why our economic recovery is not generating the desired results. Maybe they have been tapping into my blog, maybe they knew all along, maybe a think tank passed along to them the thinking of real citizens because anyone making $250,000 per year is not middle class, but wealthy. In four years that salary achieves millionaire status and in ten, multi-millionaire levels. Maybe they are trying to influence independents to get their vote in November. Maybe this, maybe that, whatever it is it comes down to this: actions speak louder than words. When I see tariffs on China and other currency manipulators, that will be the day when our deficits shrinks, jobs will be on the horizon and the dormant state of social mobility will awaken.

The Lie of the Fed...is the same for all Central Bankers

   All these G-7, G-8, G-20 etc. meetings show the effects of central bankers in the international market. Their corruption forms a limited conspiracy. This is the latest from European Central Bankers. A member of the Euro community. Ireland is also in financial dire condition. One of their largest banks, the Anglo-Irish Bank is basically insolvent. The central bankers of Europe have loaned the bank $29 billion Euros to stay solvent. Ireland, itself is already under austerity mode from the larest financial crisis. Now, this is the fraud and they openly spin it like it is a legit business practice. The IMF, the international banking group and the ECM have stated that it is okay to consider this bank with two divisions. The one side that is backed by the government is insolvent and the public side is solvent. This prevents runs on the bank, but check this out. All involved agencies will allow Ireland not to count this loan to this insolvent bank against their new austerity program. They make the rules as they go which it in itself is phony and the corruption is beyond repair.

Exposing the Thief...the Lie of the Federal Reserve

   Economist describe inflation as the silent thief. It is not seen only felt. In my life I had a Kodak moment

within the darkroom of my mind. It gave me the picture. For you, today, it will help you ascertain the truth

about gold and fiat money in correlation to the Federal Reserve.

   Back in 1971, I worked the graveyard shift at a Hess Station in New Rochelle, New York while attending

college during the day. The price for regular gas was .31 cents per gallon and high-test which were 101

octanes went for .34 cents per gallon.

   The price never changed until October of 1973 when the Organization of the Petroleum Exporting

Countries put an embargo on oil exports. The purpose was dual. One, to punish the US and other Western

nations for their support of Israel during the Yom Kipper War. This was the fourth Arab-Israeli War. The

other reason was not widely known. It was to capture the lost revenues due to inflation caused by the excess

printing of dollars by the Fed. This printing by the Fed eroded the value of the dollar.

   The impact was immediate. The price for a barrel of oil on the exchange quadrupled. At the pump the price

for regular gas rose to .61 cents per gallon and high-test went for .68 cents per gallon. There were many

days when service stations had no gasoline. Commerce was disrupted and conflicts surfaced everywhere.

The Macroeconomic Effect 

   There were a number of tactics employed by government to limit the oil embargo. Odd-Even was

introduced at service stations. This meant that if your license plate ended with an odd number you could only

purchase gasoline on odd numbered days. It worked the same way foe even numbered plates. Keep in mind,

that today, if you have a vanity plate, you may want to rethink its usefulness. There will be another shortage

or other disruptive oil event during our lifetime.

   My light bulb registered on the price of gasoline. How could it double in one day? I began to study the

market with a cause and effect mentality. One aspect kept returning - gold.

Viet Nam and the Great Society

   President Nixon ended the convertibility of the US dollar to gold in 1971. By this act the Bretton Woods

system of currency agreements was terminated. He did this to stop the outflow of gold to foreign nations who

wanted gold for US paper dollars. Switzerland redeemed $50 million. France took over $190 million. Global

nations were feeling the thief and they knew gold held its value. It took seven years of deficit spending and

the excess printing of dollars by the Fed from 1964 to reflect the affects of the silent thief in 1971.

   Prior to the military conflict in Southeast Asia, candy bars were a nickel-a-piece. You could purchase a

new Mustang for $1999. A Volkswagen Bug cost only $1600. I could go on-and-on with price examples,

but the bottom line is the purchasing power of the dollar. Correlate this to a labor report from the

Occupational Employment Statistics in 2009 shows that the US medium salary was $32,390 and it buys

what the medium salary of $7,500 bought in 1971. Wages have been stagnant for 40 years! It is basic

economics. More supply lowers the price and less supply raises the price. The excess printing of dollars

lowers its value along with deficit spending and nothing other than faith in the currency is soon tested.

   I began to study the price of gold. In 1971, it increased from $35 dollars per ounce to $38. In 1973, it

doubled to $97 dollars per ounce and the ratio of gold-to-silver began to widen from 20 in 1970 to 38 in

1973.

Unrecognized Genius

   There was one voice who opposed our fiat currency and deficit spending policy. As early as 1950, Walter

Spahr sounded the alarm. He was shouted down by the screened pundits of his day. His work, "Our

Irredeemable Currency System" stated that a fiat currency and deficit spending would end in ruin. He

reminded the powers-to-be that the convertibility of dollars for gold by our citizens established the right of

our citizens to express their disapproval of the fiat system. Redeem ability was our vote. This is the heart of

the gold issue. Gold is more than an investment. Gold is money. The Federal Reserve, Wall Street and the

banking industry have gotten us off the gold standard which is in violation of the constitution and they plan to

keep it that way. Consider what they learn in basic banking from one of their pioneers, Mayer Rothschild

who in 1836 said, "Give me control of a nations' money, and I care not who makes the law."

    The pundits of today are screened for their viewpoint between the gold standard and our fiat currency.

This is why you only hear that gold is volatile and it is not a good investment. Wall Street reminds you that

gold does not pay dividends and cost you to store it. This is true because they(three amigos)fight the concept

of gold and through their lobbying, pass laws against gold. Banks will not tender or exchange it and they will

charge you to store it. However, gold is written into our constitution because the Founding Fathers knew it

would provide a strong currency and that in turn would promote the general welfare. Keep in mind what a

one dollar gold coin can purchase today and compare that to a one dollar piece of paper. Debate over!

   Gold is the fighting meme for our citizens against the tyranny of the three amigos. The Federal Reserve,

Wall Street and the banking industry. The internet is our town crier. It informs, educates and motivates all of

us. It is through this form of communication that our government leaders may get the courage to end this fiat

currency and wasteful deficit spending, and terminate the Fed. If not, we can find real leaders amongst us

who will carry the ball for real change. A change back to the principles of the Founding Fathers and written

into the constitution. JFL.