Robinson Cano is the New York Yankees second-baseman and his contract is up. Cano has decided to become a free agent which means that he can sign with any team that is willing to meet what he feels is fair pay for his services. Fair pay for professional athlete's is partly what I'm upset about as well as CEO compensation and of course, the Federal Reserve which is destroying our standard of living which is in itself the root cause in the debasement of the purchasing power of the dollar.
This story demonstrates many things, but three come to mind as I'm sure that you, dear reader can think of many, many more.
Why is it that CEOs in the US average more than 300x the wages of their employees, and fail to increase products, jobs or value to the company that hired them?
Why is it that for the average working citizen working full time and their yearly wages cannot meet the cost of a new car? Now, that may sound off the mark when there are vehicles for less than $20K, but I'm talking about disposable income after the necessary expenses like food, shelter and medical.
When you look at it in that light, it is a wonder that anyone can afford a car period. Ah, the miracle of financing which means more debt and less disposable income after all obligations have been met. Of course, new behavior of non-responsibility means that you don't make house payments and blame the problem of your money mismanagement on to someone else, but I will not entertain that problem which there are books dedicated.
Why is it that government conspires to find new ways to show that the Consumer Price Index(CPI) reveals no inflation? Maybe because this reduces the government's COLAs(cost-of-living) for social security and lowers interest rates for bonds like TIPS. While at the same time government leaders decry all social benefits as the cause of all our debt, past, present and future?
The Answer? Because the government uses the Federal Reserve as a rubber stamp to continue spending more than revenues. The wealth of the nation allowed the banking industry to evolve, but the nation no longer creates wealth but masks itself under pretend by we are rising with borrowed spending, while at the same time, lowering the value of the dollar which is stealing from its citizens who cannot increase their wages at the same rate as the devaluing in purchasing power of the dollar.
M3
is no longer published by the Fed. It stopped in 2006 and prior to that, this volatility of money was growing in double digits which means a lower dollar down the road and inflation. The inflation has been held in check due to the fact that the Fed pays the banks to hold money in reserve and the same banks can borrow at zero interest which is easy money as long as it is held in its vaults which is a risk in itself.
The rest of the "printed" money which is not printed at all, but all electronic is used by the Fed to purchase bonds and securities under its QE program. The real question is this, now that the Fed balance sheet is over $3T, what security do we have that there is real value in this balance sheet and is it worth the estimated value? Who backs the Fed?
At the moment the Fed purchases 61% of all Treasuries, because no one else would with their low interest and high risk. If rates rise, then the value of the Fed's purchases decline which begets the question, who backs the Fed?
Where does this all lead and how does it relate to Mr. Cano?
The Yankees offered him $14m per year which he laughed at. Can you believe that? How much does a ticket to the game cost, if the stars are making money out of this universe? He wants $30m per year for ten years.
When I was a kid, I collected soda bottles. When I had .50cents, I could sit in the bleacher section at the old stadium. My dream was to make enough to get into the actual ballpark with a grandstand seat, but things change as well as laws.
Long Story Short:
Bottles were out along with thrift and debt was in along with waste. As a teenager, I was no longer interested in going to the ballpark. The Yankees should become aware of demographics which are working against them. Now, when I hear about these crazy contracts, I'm turned off on sports. In the same way I'm angry about CEO pay and most of all, I realize this is all because of the Federal Reserve which has debased the value of the dollar 95% since it took power in 1913. 100 years of poor results! End the Fed!
Special
This past Saturday there was a rival college football game played between number one Alabama and number four, Auburn. It was a good game with lead changes and ties that extended to the last second when Alabama would attempt a 57 yard field goal to win. This was a long shot, but if the kicker missed, the team would still have the overtime period to win and 'Bama had the better team. Well, the Auburn coach made a great precocious move by placing his kick return player, Davis in the end zone in case of a miss to which his team could return as the play would not end until his player was tackled. Surprise! The kicker misses as expected, but Davis returns the kick 108 yards to win the game for Auburn in one of the great moments that sports gives us. This is the beauty of sport and it is a shame that money is sullying everything, including the Olympics. I see that someone is offering $100K for the ball. Please, Auburn keep it in your trophy case and priceless like the TD pass that Flutie threw against Miami against the wind for 60 yards in the last second to knock the Canes out of the national championship and to win the game for Boston College. Go Irish!
Wednesday, December 4, 2013
Wednesday, November 27, 2013
Told You So...L&C
Sebastian, Johnny L, and JFL have all told you in countless pieces that you can no longer trust our government agencies, the Federal Reserve and our government leaders when it comes to telling the truth about our economy and their policies. Truth comes slowly, but it can't be stopped.
Last week Julius Buckmon, a Census Bureau appointee, confirmed that his supervisors had asked him to fudge his interviews, concerning labor employment. In addition, he revealed that he is not the only one because higher pay came with "positive" numbers. Like we have stated, the fake positive news pushes the stock market higher and all the info is being built on wet sand and the walls are as thick as playing cards.
Keep in mind that our banks were already caught rigging the Libor Loan Rate and Wall Street paid up for selling securities while at the same time were doubling down against the same toxic packages that their agents sold to customers. Don't forget the triple AAA ratings of the rating agencies that helped Wall Street deceive its clients.
Here is another example that reveals manipulation. The Department of Energy(DOE) stated gasoline usage have returned to the pre-crisis level of 2007, however the Bureau of Economic Analysis which follows the same category, but uses sales at the pump to obtain their results which shows no gain, but sees gasoline usage declines for six years in a row. By the way gasoline inventories have had 10 weekly straight builds which counters more usage.
Finally, do you recall the Working Group? Goes back to the first president Bush who gathered together the Fed and Wall Street biggies, to work to stabilize the market when a severe downturn was present. Later, Secretary of Treasury, Paulson did the same thing with a new moniker, Plunge Protection Team(PPT). Well, I can't prove it, but I think the present Fed is buying future index opinions to keep the stock market up. We need a real hero to find out if this serious violation of our free markets is indeed happening. This brings to mind how lucky our nation is to have in the past, true leaders like Andrew Jackson and with Thanksgiving approaching, I thought that you, my dear readers would like to read what a true leader thought of money, the Fed(called the National Bank in his day)and professional people to which we know call, lobbyists.
- "Men when under the influence of interest or passion often delude themselves thoughtlessly, and do not always acknowledge even to themselves the motives upon which they really act...
It was one of the dangers arising from this mammoth power, that its very duties as collecting and disbursing agent brought and other public functionaries and made it acquainted with their wants and enabled it to place them under obligation and create a feeling of dependence or even gratitude without the direct and offensive offer of a bribe."
Liars and Crooks: goes to president Obama who used Air Force One last week to go to Miami for a fund raiser and play golf. This may not actually be either of my categories(L&C)but it displays poor judgment. The cost to taxpayers runs over $200,000 per hour and all the president achieved was personal riches and pleasure.
Last week Julius Buckmon, a Census Bureau appointee, confirmed that his supervisors had asked him to fudge his interviews, concerning labor employment. In addition, he revealed that he is not the only one because higher pay came with "positive" numbers. Like we have stated, the fake positive news pushes the stock market higher and all the info is being built on wet sand and the walls are as thick as playing cards.
Keep in mind that our banks were already caught rigging the Libor Loan Rate and Wall Street paid up for selling securities while at the same time were doubling down against the same toxic packages that their agents sold to customers. Don't forget the triple AAA ratings of the rating agencies that helped Wall Street deceive its clients.
Here is another example that reveals manipulation. The Department of Energy(DOE) stated gasoline usage have returned to the pre-crisis level of 2007, however the Bureau of Economic Analysis which follows the same category, but uses sales at the pump to obtain their results which shows no gain, but sees gasoline usage declines for six years in a row. By the way gasoline inventories have had 10 weekly straight builds which counters more usage.
Finally, do you recall the Working Group? Goes back to the first president Bush who gathered together the Fed and Wall Street biggies, to work to stabilize the market when a severe downturn was present. Later, Secretary of Treasury, Paulson did the same thing with a new moniker, Plunge Protection Team(PPT). Well, I can't prove it, but I think the present Fed is buying future index opinions to keep the stock market up. We need a real hero to find out if this serious violation of our free markets is indeed happening. This brings to mind how lucky our nation is to have in the past, true leaders like Andrew Jackson and with Thanksgiving approaching, I thought that you, my dear readers would like to read what a true leader thought of money, the Fed(called the National Bank in his day)and professional people to which we know call, lobbyists.
- "Men when under the influence of interest or passion often delude themselves thoughtlessly, and do not always acknowledge even to themselves the motives upon which they really act...
It was one of the dangers arising from this mammoth power, that its very duties as collecting and disbursing agent brought and other public functionaries and made it acquainted with their wants and enabled it to place them under obligation and create a feeling of dependence or even gratitude without the direct and offensive offer of a bribe."
Liars and Crooks: goes to president Obama who used Air Force One last week to go to Miami for a fund raiser and play golf. This may not actually be either of my categories(L&C)but it displays poor judgment. The cost to taxpayers runs over $200,000 per hour and all the president achieved was personal riches and pleasure.
Monday, November 18, 2013
US Security: Results = Incompetence...L&C
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!
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!
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.
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