This is a topic that OWS has bought to light and being an idea person, I have thought about at length. Frankly, I'm ambivalent about it. I know many students borrowed an excessive amount of money to which they bought cars, gadgets and the like while I did not. I worked almost full-time and although I really wanted to play football at this level, financially I could not. So, when I hear and read that it is not their fault and they cannot repay their debt, well, it was your decision. Live with it. That is my inner thinking, however there is more to the story. College bean counters realized what real estate agents already knew. If interest rates rise, homes values decrease in order to qualify more buyers. Conversely, if rates decline, prices rise. Well, interest rates have declined and tuition's have been raised. Kids, paid the higher costs, but the financial crisis caught them off guard and this is another dark side story to Wall Street's greed and sins.
Education
is it something that we really care about or just mouth service? If we agree like the Adams, Jefferson, Franklin, and Madison who had hopes for an educated citizen. In their minds it was the only way for a Democratic system to work. Well, then, I have a suggestion. If it is just lip service which the status quo desires, we will continue to decline as a nation and society. We will not full fill the hopes and dreams of the enlightened founders, but the desire for greater riches of the elite founders who by the way control both political parties today.
FDIC For Student Loans
What? More government?! More debt! Get out of town! Give me a moment to explain. If we really want educated citizens, improve our economy and standard of living for all Americans, let me take a page out of our agricultural book, an application from the banking industry to produce a better system for student loans.
Do you realize that farmers have a system of insurance which covers crop failures? The government will pay a farmer the expected results of his crop if it fails for reasons like drought, the environment, etc. This protection serves not only the farmer, but the banker who lends to him. He knows he will be repaid for the loan. Now, stay with me. FDIC charges member banks a fee which protects the deposits which makes our banking system so strong. Check out the latest events in Greece, Spain and Italy and you can understand the importance of FDIC. What I'm suggesting is this: Eliminate all usury on student loans. These loans will be made at costs, however a fee on every loan will go into a fund that will repay the loan if the student defaults. The government will be on the tab to cover any shortfall. On the students end, if they claim bankruptcy, the government places a 1% lien on the students wages for life until the loan has been repaid. This idea offers fairness, responsibility and help in a field that means so much to our nation's future.
LIARS and CROOKS: This week we go north of the border. Quebec just passed a law that defines tyranny. Instead of addressing the complaints of OWS / Canada, they instituted a law that says any demonstration that has over 50 people, a permit must be granted or every demonstrator faces a fine of, get this, $5,000. It gets worse. If the demonstrator is found to be a union member, forget about it, because they lock you up and throw the key away. This is a classic example of small minded, bureaucratic people who wield unrestrained exercise of power, produces undue-severity of harshness. Over-turn this act or the violence it breeds is on your conscious if you have one.
Sunday, May 20, 2012
Sunday, May 13, 2012
The Mouse Roared, Are the States Next?...L&C
Say what? Title sounds confusing, but it refers to a classic comedy movie from the novel by Leonard Wibberley. Do you know, The Mouse That Roared? It is the story of a tiny duchy somewhere in the Alps in Europe that faces an economic disaster because a company in the US made a cheaper version of their signature wine which was their total income for their economy.
Solution
They declare war on the US with the plan to surrender immediately. They figured that the US would then provide a goodwill package of relief. With this aid they could payoff their debts and maybe some protection for their one product, the Duchy Wine.
Are the States Next?
Jump to today! The total non funded pension plans of the 50 US states is $369 billion and mostly all these states today are suffering deficits because of the financial crisis of 2008. Where are they going to get the necessary funds to pay their state workers as many are reaching the retirement age? To put this figure in perspective consider a correlation to Greece. The Greek deficit totals $35 billion. The cumulative totals of our states is 10times that amount. Now, do you get an idea of our next serious problem that few if any, are talking about.
A Closer Look
On top of the totem pole for the states is the recession cut the value of their individual pension plan portfolios. For example, the three biggest in our biggest state, California. The three, Calper, Calstks, and UCRS lost $109 billion with a "B." Who are they gonna call, Ghost Busters?
Illinois is another typical example. They have to take 15% of this years revenues to cover the shortfall for their state workers. Each year that percentage will rise to a point where they can't pay. As it is today for other state bills in Illinois which has a payout date as long as six months.
New Hampshire wants to form a study at a cost of $1 billion which is correctly opposed by their state unions because that new debt will only compound the present debt of the unfunded obligations.
War On The US
By 2017 Louisiana will be the first to declare war because they won't have enough revenue to pay any of their bills with the state pension on top of the list. Connecticut will be due about the same time. I can see the alliance now...I also see the Fed adding these bills to our national debt. End the Fed!
Connecticut Yankee On Bourbon Street
By the way Moody's recently downgraded Connecticut's debt rating.
LIARS and CROOKS: This week the fickle award is just getting polished to be delivered at a later date. One must give credit where credit is due. Jamie Dimon deserves respect for admitting the serious shortfall suffered by his company, JPMorgan Chase. He says they lost $2 billion due to a defective bet on a risk derivative. To me without knowing all the facts, but some knowledge to what is a derivative purpose. It is insurance and that means a policy and that means this loss is not a one time event. It will compound until the derivative ends, to which I repeat, End the Fed!
Solution
They declare war on the US with the plan to surrender immediately. They figured that the US would then provide a goodwill package of relief. With this aid they could payoff their debts and maybe some protection for their one product, the Duchy Wine.
Are the States Next?
Jump to today! The total non funded pension plans of the 50 US states is $369 billion and mostly all these states today are suffering deficits because of the financial crisis of 2008. Where are they going to get the necessary funds to pay their state workers as many are reaching the retirement age? To put this figure in perspective consider a correlation to Greece. The Greek deficit totals $35 billion. The cumulative totals of our states is 10times that amount. Now, do you get an idea of our next serious problem that few if any, are talking about.
A Closer Look
On top of the totem pole for the states is the recession cut the value of their individual pension plan portfolios. For example, the three biggest in our biggest state, California. The three, Calper, Calstks, and UCRS lost $109 billion with a "B." Who are they gonna call, Ghost Busters?
Illinois is another typical example. They have to take 15% of this years revenues to cover the shortfall for their state workers. Each year that percentage will rise to a point where they can't pay. As it is today for other state bills in Illinois which has a payout date as long as six months.
New Hampshire wants to form a study at a cost of $1 billion which is correctly opposed by their state unions because that new debt will only compound the present debt of the unfunded obligations.
War On The US
By 2017 Louisiana will be the first to declare war because they won't have enough revenue to pay any of their bills with the state pension on top of the list. Connecticut will be due about the same time. I can see the alliance now...I also see the Fed adding these bills to our national debt. End the Fed!
Connecticut Yankee On Bourbon Street
By the way Moody's recently downgraded Connecticut's debt rating.
LIARS and CROOKS: This week the fickle award is just getting polished to be delivered at a later date. One must give credit where credit is due. Jamie Dimon deserves respect for admitting the serious shortfall suffered by his company, JPMorgan Chase. He says they lost $2 billion due to a defective bet on a risk derivative. To me without knowing all the facts, but some knowledge to what is a derivative purpose. It is insurance and that means a policy and that means this loss is not a one time event. It will compound until the derivative ends, to which I repeat, End the Fed!
Sunday, May 6, 2012
My First Occupy Wall Street Meeting...L&C
I went to my first OWS meeting on Saturday and I hate to say this, but it was very depressing. My goal was to make an impact. I didn't.
I had my expectations. I looked at the movement as if it were a house. The originators got this great movement going like the cornerstone to a house. The public joined to make the first floor. The critics attacked. Why? Because they are controlled by the status quo, however that would not be the complete answer. Yes, there are problems with our society, economy and mobility, what is your solution? At present the silence of OWS is deafening.
What Happened
The meeting took place in the basement of the Judson Church. It was set in a circle with two young men acting as moderators. Being young and inexperienced, the meeting took no order until it was agreed that maybe everyone introduce themselves, what their experience was so far and what they hoped for the movement.
When it came time for me to add my piece, I noticed the moderators rolling their hands to move it along, so whatever I said fell on deaf ears. Before I go any further, let me help the cause by placing a couple of sites where information can be obtained:mayday@nyc.org and mayday-subscribe@lists.occupy.net. If that is all I do, well, I did it.
Warning!
your email will be bombarded with notices once you are placed in their system. It becomes work to clear all these repeated messages as if each member wants you to know their name and contribution. In fact while I was at the above meeting, there were other meetings in various places like Bryant Park on how to remain cool when confronted or an arts and culture of OWS at 511 west 25th street. This is one of the many problems with the movement. Endless meeting that conflict with each other causing splinter groups which deflate the overall strength. At my meeting the most repeated thought was the media, who got coverage and who didn't. This lack of serious ideas means that the movement will have a tough time to expand to the second floor of the building and movement.
Black Swan
I offered the analogy from the titled book: Black Swan, however I don't think anyone even knew the book or meaning. I gave a quick transition that the unexpected to the status quo is the OWS which makes it a black swan and I had written a book four years earlier on the same wavelength as OWS and I had the concept to answer the critics, a solution. I guess it will wait. There were some good people at the meeting as well as some that I'm opposed such as those who celebrate Karl Marx and his birthday. John Lennon had that answer, "if you are carrying signs of chairman Mao, you ain't gonna make it with anyone anyhow." The girl was attractive, but I'll give her hell if I see her again.
The only thing that Marx said that was true was this,"capitalist will move their money anywhere even to an apparent enemy if the profits at home at not sufficient." You don't have to look far to see the outsourced jobs and factories to Mexico, S.Korea and now, China. We need to protect the American worker, first and foremost and End the Fed!
LIARS and CROOKS: This whole China dissident episode. It looks to be a smoke and mirror for something else. How could a blind guy escape and go to the embassy which is over 300 miles away and like is he the only activist in a country of one billion? How come the secretary of state is going to a meeting and the treasurer is with her along with Helicopter Ben. This trio is a first. Something else is in the wind and then we'll know what these L&Cs are really doing.
I had my expectations. I looked at the movement as if it were a house. The originators got this great movement going like the cornerstone to a house. The public joined to make the first floor. The critics attacked. Why? Because they are controlled by the status quo, however that would not be the complete answer. Yes, there are problems with our society, economy and mobility, what is your solution? At present the silence of OWS is deafening.
What Happened
The meeting took place in the basement of the Judson Church. It was set in a circle with two young men acting as moderators. Being young and inexperienced, the meeting took no order until it was agreed that maybe everyone introduce themselves, what their experience was so far and what they hoped for the movement.
When it came time for me to add my piece, I noticed the moderators rolling their hands to move it along, so whatever I said fell on deaf ears. Before I go any further, let me help the cause by placing a couple of sites where information can be obtained:mayday@nyc.org and mayday-subscribe@lists.occupy.net. If that is all I do, well, I did it.
Warning!
your email will be bombarded with notices once you are placed in their system. It becomes work to clear all these repeated messages as if each member wants you to know their name and contribution. In fact while I was at the above meeting, there were other meetings in various places like Bryant Park on how to remain cool when confronted or an arts and culture of OWS at 511 west 25th street. This is one of the many problems with the movement. Endless meeting that conflict with each other causing splinter groups which deflate the overall strength. At my meeting the most repeated thought was the media, who got coverage and who didn't. This lack of serious ideas means that the movement will have a tough time to expand to the second floor of the building and movement.
Black Swan
I offered the analogy from the titled book: Black Swan, however I don't think anyone even knew the book or meaning. I gave a quick transition that the unexpected to the status quo is the OWS which makes it a black swan and I had written a book four years earlier on the same wavelength as OWS and I had the concept to answer the critics, a solution. I guess it will wait. There were some good people at the meeting as well as some that I'm opposed such as those who celebrate Karl Marx and his birthday. John Lennon had that answer, "if you are carrying signs of chairman Mao, you ain't gonna make it with anyone anyhow." The girl was attractive, but I'll give her hell if I see her again.
The only thing that Marx said that was true was this,"capitalist will move their money anywhere even to an apparent enemy if the profits at home at not sufficient." You don't have to look far to see the outsourced jobs and factories to Mexico, S.Korea and now, China. We need to protect the American worker, first and foremost and End the Fed!
LIARS and CROOKS: This whole China dissident episode. It looks to be a smoke and mirror for something else. How could a blind guy escape and go to the embassy which is over 300 miles away and like is he the only activist in a country of one billion? How come the secretary of state is going to a meeting and the treasurer is with her along with Helicopter Ben. This trio is a first. Something else is in the wind and then we'll know what these L&Cs are really doing.
Tuesday, April 24, 2012
A "King Solomon" Solution for the EU...L&C
As I stated in past articles that my real contribution is not writing, especially considering yesterday was the birthday anniversary of Shakespeare, but in ideas. I have one for the EU. Keep in mind that I'm for the gold standard and helping Europe will only cost American jobs, but this is for my pisans who I hear are suffering even more than us due to the global crisis.
Cut It In Half!
As Solomon decided on the fate of the baby, the real mother gave up her interest for love. Today, Europe is suffering the confusion of 17 different governments with all their individual needs with one currency. If we look closer to the economies of Europe, we see two distinct results. The northern sections led by Germany and include Scandinavia and Holland. They have benefited from the euro because it is priced lower than their old currencies. However, the southern nations and I resent the term PIIGS, have lost out on the euro because it cost more than their old currencies. In fact, one of their best economic producers was tourism due to climate and the low value of the old currency. The northern nations wanted the 3% deficit rule to GDP, but today, leaders in the Netherlands are beginning to question that dogma of a rule. Germany's new banking leader, Weidmann stands by it, however elections in Europe could cause the whole thing to collapse since austerity is producing growth only in unemployment. In addition, EU figures show that overall debt has increased throughout Europe since the euro commenced from 83% of GDP to today's 87% of GDP.
Two New Currencies
My idea is simple. The northern nations which are strong exporters start a new currency among themselves, as well as the southern sovereigns. The southern governments can devalue from the euro with a new currency that will be shared among their group. The biggest question is who will join each spear. I feel that the southern half would benefit by having Russia join their currency. The Russian ruble is also a low value currency, but the kicker is Russia is a commodity nation and that would make a great fit to the energy deficient southern half. France would be a good fit too except their ego will get in the way. They should definitely not invite England as they have shown to be untrustworthy and their economic model is collapsing which worries me because we copy everything that Great Britain does. They only have finance and the military just like us.
LIARS and CROOKS: this week goes to the GSA. This government agency was caught robbing the cookie jar. They have held questionable conferences in the past. They go to Napa Valley, Hawaii and other tourist destinations, however their recent trip to Las Vegas tops them all. They managed to spend over $800,000 in a "conference." It is just like last week with the Secret Sevice. These government agencies are all overpaid, underworked and show no responsibility to the public. When their leader, Martha Johnson testified before Congress she stated,"I will mourn the rest of my life the loss of my appointment." She spoke the truth. Where else could you receive the salary that she got, with perks as high as a totem pole and no oversight. Another executive of the GSA, Jeffery knows how to spend and entertain. It is said that the "workers" put on a play with the theme being how to waste money without being caught afterwards. Gotta love it! This is another reason we need a new political party in the US and as always, End the Fed!
Cut It In Half!
As Solomon decided on the fate of the baby, the real mother gave up her interest for love. Today, Europe is suffering the confusion of 17 different governments with all their individual needs with one currency. If we look closer to the economies of Europe, we see two distinct results. The northern sections led by Germany and include Scandinavia and Holland. They have benefited from the euro because it is priced lower than their old currencies. However, the southern nations and I resent the term PIIGS, have lost out on the euro because it cost more than their old currencies. In fact, one of their best economic producers was tourism due to climate and the low value of the old currency. The northern nations wanted the 3% deficit rule to GDP, but today, leaders in the Netherlands are beginning to question that dogma of a rule. Germany's new banking leader, Weidmann stands by it, however elections in Europe could cause the whole thing to collapse since austerity is producing growth only in unemployment. In addition, EU figures show that overall debt has increased throughout Europe since the euro commenced from 83% of GDP to today's 87% of GDP.
Two New Currencies
My idea is simple. The northern nations which are strong exporters start a new currency among themselves, as well as the southern sovereigns. The southern governments can devalue from the euro with a new currency that will be shared among their group. The biggest question is who will join each spear. I feel that the southern half would benefit by having Russia join their currency. The Russian ruble is also a low value currency, but the kicker is Russia is a commodity nation and that would make a great fit to the energy deficient southern half. France would be a good fit too except their ego will get in the way. They should definitely not invite England as they have shown to be untrustworthy and their economic model is collapsing which worries me because we copy everything that Great Britain does. They only have finance and the military just like us.
LIARS and CROOKS: this week goes to the GSA. This government agency was caught robbing the cookie jar. They have held questionable conferences in the past. They go to Napa Valley, Hawaii and other tourist destinations, however their recent trip to Las Vegas tops them all. They managed to spend over $800,000 in a "conference." It is just like last week with the Secret Sevice. These government agencies are all overpaid, underworked and show no responsibility to the public. When their leader, Martha Johnson testified before Congress she stated,"I will mourn the rest of my life the loss of my appointment." She spoke the truth. Where else could you receive the salary that she got, with perks as high as a totem pole and no oversight. Another executive of the GSA, Jeffery knows how to spend and entertain. It is said that the "workers" put on a play with the theme being how to waste money without being caught afterwards. Gotta love it! This is another reason we need a new political party in the US and as always, End the Fed!
Sunday, April 15, 2012
F**king CIA and L&C
Secret agents? Ha! They couldn't hold James Bond drink, but then again, the new Bond drinks beer with the label up, so advertising fees get collected. Yep, too much money, little work and inflated egos cost 11 agents to be recalled from Columbia as per an investigation into wild parties with local prostitutes, which implies underworld figures which indicates the drug cartel, especially in that South American nation.
Serving America
and all that other PR crap about government service for the nation's benefit. It's all about money and power. The history of the CIA is littered with doubts, regrets and lies.
History
The agency began with a mandate to counter the communist aggression in the world immediately after WW ll. It was to collect info only and any dangers to the US internally was to be handed over to the FBI. As time moved along the budget got bigger and the role expanded. They had an assassination wing and a human development section.
Chuck Barris and LSD
I never believed the Gong Show host was a hit man for the CIA, however those type of allegations only add to the myth. Sadly, and yet bravely, many former employees have come out to denounce the motives and actions of the agency like Dr. Sidney Gottlieb among others who worked under a program called,"MKULTRA." This is where a human is programmed to perform a certain function like assassination. They used LSD long before Dr. Tim Leary. It is the Manchurian Candidate. These are only surface problems. The Kennedy tragedy provides more info and details every year about this agency which is out of control. In the best case scenario the CIA knew about the terrorist plot, but did nothing to stop it because President Kennedy by this time was against their judgement and ability. He went against their council. He was going to open up negotiations with Castro Cuba and the USSR. Kennedy realized the annihilation of the world
through the Cuban Crisis and the foolish, thoughtless reasoning of the CIA. He was smarter than they wanted in a president. He brokered the Salt Treaty with Russia which limits nuclear weapons. This began a new hope for the world and real peace. In this vision there is no place for the CIA and the military complex.
Two Poisons
In the best light in relation to the Kennedy assassination, the CIA knew about the motives of the anti-Castro group who felt betrayed by the new direction of the administration along with right-wing groups and others. It did nothing to stop them.
This leads to the worst case picture where the CIA actively sought the death of President Kennedy. This agency needs to be terminated and a new one formed that follows the original mandate.
P/S: Forgot to mention the CIA had a "mole" who gave away all our secrets. Once to Russia and again today with China. Secret? Ha! Ding-dong Agency is more like it.
LIARS and CROOKS: Back to Ben and the Fed. The media constantly reminds us that the Fed has a dual mandate, Currency and full employment. As for the first, they do their job poorly. As for the latter, it is pure BS!
During the Depression the Fed actually tightened interest rates and made things worst like more unemployment. In more recent times like 1973 when oil doubled in price and unemployment increased, again they raised interest rates, in fact throughout the 70s, they kept hiking rates all the way to 15%. They could care less about the hardships of the unemployed. They were fighting for fiat currency and against the rise in gold, just like today. End the Fed!
Serving America
and all that other PR crap about government service for the nation's benefit. It's all about money and power. The history of the CIA is littered with doubts, regrets and lies.
History
The agency began with a mandate to counter the communist aggression in the world immediately after WW ll. It was to collect info only and any dangers to the US internally was to be handed over to the FBI. As time moved along the budget got bigger and the role expanded. They had an assassination wing and a human development section.
Chuck Barris and LSD
I never believed the Gong Show host was a hit man for the CIA, however those type of allegations only add to the myth. Sadly, and yet bravely, many former employees have come out to denounce the motives and actions of the agency like Dr. Sidney Gottlieb among others who worked under a program called,"MKULTRA." This is where a human is programmed to perform a certain function like assassination. They used LSD long before Dr. Tim Leary. It is the Manchurian Candidate. These are only surface problems. The Kennedy tragedy provides more info and details every year about this agency which is out of control. In the best case scenario the CIA knew about the terrorist plot, but did nothing to stop it because President Kennedy by this time was against their judgement and ability. He went against their council. He was going to open up negotiations with Castro Cuba and the USSR. Kennedy realized the annihilation of the world
through the Cuban Crisis and the foolish, thoughtless reasoning of the CIA. He was smarter than they wanted in a president. He brokered the Salt Treaty with Russia which limits nuclear weapons. This began a new hope for the world and real peace. In this vision there is no place for the CIA and the military complex.
Two Poisons
In the best light in relation to the Kennedy assassination, the CIA knew about the motives of the anti-Castro group who felt betrayed by the new direction of the administration along with right-wing groups and others. It did nothing to stop them.
This leads to the worst case picture where the CIA actively sought the death of President Kennedy. This agency needs to be terminated and a new one formed that follows the original mandate.
P/S: Forgot to mention the CIA had a "mole" who gave away all our secrets. Once to Russia and again today with China. Secret? Ha! Ding-dong Agency is more like it.
LIARS and CROOKS: Back to Ben and the Fed. The media constantly reminds us that the Fed has a dual mandate, Currency and full employment. As for the first, they do their job poorly. As for the latter, it is pure BS!
During the Depression the Fed actually tightened interest rates and made things worst like more unemployment. In more recent times like 1973 when oil doubled in price and unemployment increased, again they raised interest rates, in fact throughout the 70s, they kept hiking rates all the way to 15%. They could care less about the hardships of the unemployed. They were fighting for fiat currency and against the rise in gold, just like today. End the Fed!
Tuesday, April 3, 2012
Real Reason Why Fed Keeps Low Rates...L&C
When Bernanke speaks of interest rates, he says the Fed keeps rates low to spur jobs and keep liquidity in our economy. This is only a half truth. Interest rates have very little to do with creating jobs. It does foster liquidity by making money cheap, but this really only helps the banking industry. They can buy even cheaper at the discount window, invest risk free in treasuries and beef up their ledgers. To be fair cheap money also helps near-term credit industries or cycle situations, such as the harvest season for farmers or spring fashion for the clothing industry, however those jobs are long gone to foreign ports. Cheap rates also cause the dollar to lose value, especially when the printing press works overtime. This will help with exports, but exports only account for 14% of our economy. Where is the help for the 86% or the rest of us?
By the way the original charter for the Fed only declared that they maintain coin in our economy and that this currency be strong. They added a vague line about related matters. Does related matters include buying Euro bonds to keep the ECM strong so that they can export to us, putting our companies out of business and costing us jobs? Well, that is exactly what the present day Fed does in its daily affairs.
But the Lies First!
The real reason the Fed keeps rates low is so the public and our foreign creditors won't begin to panic about the money that they have lent to our treasury and nation. Gotta give the Fed credit for the way that they have manipulated both our market and the international market to accept a bond that pays only 2% for ten years. C'mon! Ten years ago, gasoline was just approaching $2.00 per gallon. Today, it cost twice as much. What I can't believe is that during this span, the Fed says inflation is less than 2% and they get away with it.
Facts!
The fed has managed to keep rates low so the federal government can pay their bills. This is the bottom line. At 2%, the interest expense for our national debt only grows at $454 billion a year. When you look at the historical interest rate averages, they range from five percent to six percent. Now, each one percent rise adds $88 billion to our debt. It would hit $930 billion a year if rates rose to six percent. When you compare rates today(2%), this is affordable at three percent of GDP, however at six percent, this debt margin jumps to 33% of GDP. Could you pay 33% interest on your wages and still make ends meet? This would be in addition to your living expenses, food, gas, etc. No, of course not! And yet, this is what our nation faces if we don't start to cut expenses, stop wasteful wars and redo our tax code that makes industry worthwhile to do here in the US and at the same time, close the loopholes and collect what corporations owe the government, which in reality is you and me. End the Fed!
LIARS and CROOKS
Another black mark on President Obama's alternative energy record. Another solar company went bankrupt this week. Solar Trust, not only lost with that moniker, but it turns out is a subsidiary of a German company and get this. The company received a $1.5 billion dollar loan from our Department of Energy. So, the jobs act was a lie because this failure was not even an American company.
By the way the original charter for the Fed only declared that they maintain coin in our economy and that this currency be strong. They added a vague line about related matters. Does related matters include buying Euro bonds to keep the ECM strong so that they can export to us, putting our companies out of business and costing us jobs? Well, that is exactly what the present day Fed does in its daily affairs.
But the Lies First!
The real reason the Fed keeps rates low is so the public and our foreign creditors won't begin to panic about the money that they have lent to our treasury and nation. Gotta give the Fed credit for the way that they have manipulated both our market and the international market to accept a bond that pays only 2% for ten years. C'mon! Ten years ago, gasoline was just approaching $2.00 per gallon. Today, it cost twice as much. What I can't believe is that during this span, the Fed says inflation is less than 2% and they get away with it.
Facts!
The fed has managed to keep rates low so the federal government can pay their bills. This is the bottom line. At 2%, the interest expense for our national debt only grows at $454 billion a year. When you look at the historical interest rate averages, they range from five percent to six percent. Now, each one percent rise adds $88 billion to our debt. It would hit $930 billion a year if rates rose to six percent. When you compare rates today(2%), this is affordable at three percent of GDP, however at six percent, this debt margin jumps to 33% of GDP. Could you pay 33% interest on your wages and still make ends meet? This would be in addition to your living expenses, food, gas, etc. No, of course not! And yet, this is what our nation faces if we don't start to cut expenses, stop wasteful wars and redo our tax code that makes industry worthwhile to do here in the US and at the same time, close the loopholes and collect what corporations owe the government, which in reality is you and me. End the Fed!
LIARS and CROOKS
Another black mark on President Obama's alternative energy record. Another solar company went bankrupt this week. Solar Trust, not only lost with that moniker, but it turns out is a subsidiary of a German company and get this. The company received a $1.5 billion dollar loan from our Department of Energy. So, the jobs act was a lie because this failure was not even an American company.
Monday, March 26, 2012
Prediction: Next Crisis from Risk with SPEs&Ds...L&C
Do you know what SPEs are? Companies use them in many creative ways, but mostly to hide debt to allow them to borrow money at low rates. The concept should be banned or at least modified so that the effects to the financial health are known and understood. Even then, because of our human nature we are still prone to take on more risk than we should. Let me digress.
Enron
does that name ring a bell? They specialized in Special Purpose Entities(SPE). They would start a new company under one of their directors and place some assets with it. They would then borrow, say $100 million and immediately move the money to Enron's coffers. Hey, our Federal Government does the same thing. LBJ put the Viet Nam War off the books, as well as recently with G.Bush. This is corruption! ...but don't let me go off the handle because Social Security, Medicare and federal pensions are also unfunded and off the books to the tune of $54 trillion. Man, we are doomed...
In More Ways Than One
Why? Gerald Wilde, a Canadian psychologist tackled the same question in his book, Target Risk. He found that humans have a tendency for lower risks in one area by taking greater risks in another. This is the same problem NASA had with the O-rings on Challenger. Sure they showed wear & tear, but they held. Blast off! This is why I predict that a crisis will arise from SPEs, probably attached to some form of derivative, which by the way has global risk to the sum of over $500 trillion or ten times the value of the entire world. We are so doomed! If there was one place to begin anew and try to a step-by-step approach back to normalcy, I'd say,"END the FED!"
LIARS and CROOKS: See above with debts that are not under liabilities on our book keeping.
Enron
does that name ring a bell? They specialized in Special Purpose Entities(SPE). They would start a new company under one of their directors and place some assets with it. They would then borrow, say $100 million and immediately move the money to Enron's coffers. Hey, our Federal Government does the same thing. LBJ put the Viet Nam War off the books, as well as recently with G.Bush. This is corruption! ...but don't let me go off the handle because Social Security, Medicare and federal pensions are also unfunded and off the books to the tune of $54 trillion. Man, we are doomed...
In More Ways Than One
Why? Gerald Wilde, a Canadian psychologist tackled the same question in his book, Target Risk. He found that humans have a tendency for lower risks in one area by taking greater risks in another. This is the same problem NASA had with the O-rings on Challenger. Sure they showed wear & tear, but they held. Blast off! This is why I predict that a crisis will arise from SPEs, probably attached to some form of derivative, which by the way has global risk to the sum of over $500 trillion or ten times the value of the entire world. We are so doomed! If there was one place to begin anew and try to a step-by-step approach back to normalcy, I'd say,"END the FED!"
LIARS and CROOKS: See above with debts that are not under liabilities on our book keeping.
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