Friday, December 31, 2010
Effective tax rates
Which government takes the biggest bite out of an income of $100,000?
Effective tax rates: Let's get fiscal The Economist
Effective tax rates: Let's get fiscal The Economist
Tuesday, December 28, 2010
Florida in Chill
Miami is experiencing its coldest December in 115 years. Global warming?
South Florida at Play - Sun, Sand and Chill - NYTimes.com
South Florida at Play - Sun, Sand and Chill - NYTimes.com
Surprises for 2011 from Doug Kass
Interesting thinking on what could happen - it would be a big surprise.
Surprises for 2011 from Doug Kass
Surprises for 2011 from Doug Kass
Baby boomers near 65 with retirements in jeopardy
They were spending, not saving. Bet ya they want you to bail them out!
Baby boomers near 65 with retirements in jeopardy - Yahoo! News
Baby boomers near 65 with retirements in jeopardy - Yahoo! News
Sunday, December 26, 2010
10 Traits That Make You Filthy-Rich
Patience - for both spending money and investing,
Satisfaction -be careful about spending money, don't waste it on nonessentials,
Organization - don't waste money on late fees, interest etc
Discipline - Save you income e.g. pay yourself 10% off the top
Reflectiveness - think about it
Creativity - be prudent - make things last, stay out of debt, don't over spend
Curiosity - learn, study, improve
Risk taking - calculated risks
Goals - set goals its a road map
Work Smart & Hard
10 Traits That Make You Filthy-Rich - TheStreet
Satisfaction -be careful about spending money, don't waste it on nonessentials,
Organization - don't waste money on late fees, interest etc
Discipline - Save you income e.g. pay yourself 10% off the top
Reflectiveness - think about it
Creativity - be prudent - make things last, stay out of debt, don't over spend
Curiosity - learn, study, improve
Risk taking - calculated risks
Goals - set goals its a road map
Work Smart & Hard
10 Traits That Make You Filthy-Rich - TheStreet
Deepwater Horizon’s Final Hours - NYTimes.com
Very good story on the Horizon's final hours and the people who where there.
Deepwater Horizon’s Final Hours - NYTimes.com
Deepwater Horizon’s Final Hours - NYTimes.com
Saturday, December 25, 2010
‘Managed nationalism’ turns nasty for Putin
Most interesting what is going on in Russia. I did not realize. The baseball bat sales are 4 bats for every baseball sold; and the top selling bat is the aluminium bat; it is the weapon of choice.
FT.com / Europe - ‘Managed nationalism’ turns nasty for Putin
FT.com / Europe - ‘Managed nationalism’ turns nasty for Putin
Friday, December 24, 2010
Thursday, December 23, 2010
Favorite Quotes - Casey
Einstein:
“Two things are infinite – the universe and human stupidity. And I’m not sure about the former.”
“After hydrogen, the most common thing in the universe is stupidity.”
My Favorite Quotes - Conversations With Casey
“Two things are infinite – the universe and human stupidity. And I’m not sure about the former.”
“After hydrogen, the most common thing in the universe is stupidity.”
My Favorite Quotes - Conversations With Casey
Wednesday, December 22, 2010
Tuesday, December 21, 2010
Unmasking The Unintended Consequences Of US Central Planning
Government policies - stupid, time and time again. Do we learn? No, since there appears to be no costs. However, there is cost, more debt that someone will have to pay some day, or standard of living reduced. America and Western World does not live by principles, but short term thinking. This by some smart men which are just plain stupid.
Unmasking The Unintended Consequences Of US Central Planning zero hedge
Unmasking The Unintended Consequences Of US Central Planning zero hedge
Monday, December 20, 2010
Sunday, December 19, 2010
Govt Spending Now vs FDR
I am not a fan of FDR, however, his programs were lot smarter than of Bush and of the current govt and Congress and Senate. Yes, it was govt programs, but at least they produced something and kept men employed. Current programs, do not produce any thing and kept men unemployed. It is an ugly shame; and just plain stupid.
Bail outs for the banks and Wall Street. Nothing for the people.
Govt is to be of the people for the people. But money rules and the people are fooled.
From Stock Tiger:
In March 1933 president Franklin D Roosevelt issued an executive order establishing the Civilian Conservation Corps CCC. This was an incredibly smart and useful thing to do at the time and one that would reap rewards over all the years that have followed. The program was planned to employ 250,000 young men from 18 to 20 years old to work in the areas of soil erosion, flood control and other manual labor that could in the long run greatly benefit the country and in the short run help to relieve some of the unemployment problem. They were given housing, food and medical attention and were paid $30 per month with a mandatory $22-$25 of that sent to their family. By July of that year there were already over 1400 working camps with 250,000 workers. Because of favorable public opinion of this program, by 1935 the program was expanded to the age of 28 and over 500,000 enrollees were employed in about 2900 camps with 82% of Americans in favor of this program. Over the years this program was expanded to include a mandatory minimum of 10 hours a week of vocational and academic training to prepare workers for work once they left the program. Generally, workers signed up for a minimum of six months work with the possibility of staying for up to two years. The official program ended in 1942 but this became like a model which is still used today in various conservation programs throughout the country. During the time of this program the workers planted about 3 billion trees to help reforest America and they constructed more than 800 parks nationwide with thousands of miles of public roadways. America now has some incredibly beautiful national and state parks with thousands of miles of well constructed trails produced during this period. Though this program ended over 60 years ago the benefits continue. There are over 30 million RV enthusiasts supporting a myriad of businesses basically made possible by the work done in these programs.
Since the current economic crisis began the Fed has spent over $3 trillion in loans, bailouts and stimulus programs. The Fed is run by the banks so it is logical that they used this money for their own members' benefit instead of doing something that would directly help the country's citizens but congress has allowed this. In 1933 the country had a much smaller population and the economy was such that the $30 per month payment was agreed upon. If the government established a temporary worker program today perhaps they would have to pay $3000 per month but this money instead of going to banks, for them to use investing in the stock market, would go directly to the people and then into the the general economy benefiting everybody, including the banks. Goldman Sachs who received TARP money makes up to $100 million a day in stock trading profits benefiting no average American and certainly not benefiting the millions of unemployed and over 40 million living in poverty. It is difficult to get a reliable figure as to how many people are unemployed at the moment. There will always be a small percentage that are unemployed by choice, maybe temporarily or maybe due to health reasons. If the government were to now establish a work program for temporary relief of course not nearly all people could qualify for various work due to skill set sets and other reasons. For illustration purposes let's use the 14 million figure which is about how many are currently unemployed. To pay each of them $3000 per month would cost $504 billion per year or about $96 billion less than the Fed is proposing to spend only through June in buying government treasuries. If they used this money in a productive way, as seen here, you would have immediate results, at least temporarily. This money instead of being hoarded by banks would go directly into the economy and over time spark many new businesses which would then be in competition with the government for workers. It is a shame and so typical that the government does the opposite of what it should do when faced with a problem.
The US imports oil while natural gas sits unused as they say there is not a good piping distribution system to deliver it where needed. Perfect - a work program to create a nationwide delivery system and say goodbye to imported oil. President Kennedy launched an industry to put a man on the moon in 10 years creating hundreds of companies and thousands of jobs and some of that was really rocket science. Laying some pipes around with the help of some of the 14 million unemployed is not but the administration and congress instead extended payments to unemployed people with no work requirement so the country sees no lasting benefit.
Through all this the stock market though is up......which IMMHO does not make sense....but it will in time and then everyone will be surprised.
Bail outs for the banks and Wall Street. Nothing for the people.
Govt is to be of the people for the people. But money rules and the people are fooled.
From Stock Tiger:
In March 1933 president Franklin D Roosevelt issued an executive order establishing the Civilian Conservation Corps CCC. This was an incredibly smart and useful thing to do at the time and one that would reap rewards over all the years that have followed. The program was planned to employ 250,000 young men from 18 to 20 years old to work in the areas of soil erosion, flood control and other manual labor that could in the long run greatly benefit the country and in the short run help to relieve some of the unemployment problem. They were given housing, food and medical attention and were paid $30 per month with a mandatory $22-$25 of that sent to their family. By July of that year there were already over 1400 working camps with 250,000 workers. Because of favorable public opinion of this program, by 1935 the program was expanded to the age of 28 and over 500,000 enrollees were employed in about 2900 camps with 82% of Americans in favor of this program. Over the years this program was expanded to include a mandatory minimum of 10 hours a week of vocational and academic training to prepare workers for work once they left the program. Generally, workers signed up for a minimum of six months work with the possibility of staying for up to two years. The official program ended in 1942 but this became like a model which is still used today in various conservation programs throughout the country. During the time of this program the workers planted about 3 billion trees to help reforest America and they constructed more than 800 parks nationwide with thousands of miles of public roadways. America now has some incredibly beautiful national and state parks with thousands of miles of well constructed trails produced during this period. Though this program ended over 60 years ago the benefits continue. There are over 30 million RV enthusiasts supporting a myriad of businesses basically made possible by the work done in these programs.
Since the current economic crisis began the Fed has spent over $3 trillion in loans, bailouts and stimulus programs. The Fed is run by the banks so it is logical that they used this money for their own members' benefit instead of doing something that would directly help the country's citizens but congress has allowed this. In 1933 the country had a much smaller population and the economy was such that the $30 per month payment was agreed upon. If the government established a temporary worker program today perhaps they would have to pay $3000 per month but this money instead of going to banks, for them to use investing in the stock market, would go directly to the people and then into the the general economy benefiting everybody, including the banks. Goldman Sachs who received TARP money makes up to $100 million a day in stock trading profits benefiting no average American and certainly not benefiting the millions of unemployed and over 40 million living in poverty. It is difficult to get a reliable figure as to how many people are unemployed at the moment. There will always be a small percentage that are unemployed by choice, maybe temporarily or maybe due to health reasons. If the government were to now establish a work program for temporary relief of course not nearly all people could qualify for various work due to skill set sets and other reasons. For illustration purposes let's use the 14 million figure which is about how many are currently unemployed. To pay each of them $3000 per month would cost $504 billion per year or about $96 billion less than the Fed is proposing to spend only through June in buying government treasuries. If they used this money in a productive way, as seen here, you would have immediate results, at least temporarily. This money instead of being hoarded by banks would go directly into the economy and over time spark many new businesses which would then be in competition with the government for workers. It is a shame and so typical that the government does the opposite of what it should do when faced with a problem.
The US imports oil while natural gas sits unused as they say there is not a good piping distribution system to deliver it where needed. Perfect - a work program to create a nationwide delivery system and say goodbye to imported oil. President Kennedy launched an industry to put a man on the moon in 10 years creating hundreds of companies and thousands of jobs and some of that was really rocket science. Laying some pipes around with the help of some of the 14 million unemployed is not but the administration and congress instead extended payments to unemployed people with no work requirement so the country sees no lasting benefit.
Through all this the stock market though is up......which IMMHO does not make sense....but it will in time and then everyone will be surprised.
Saturday, December 18, 2010
Friday, December 17, 2010
World Collapse Explained in 3 Minutes
British explains the European economies
YouTube - World Collapse Explained in 3 Minutes
YouTube - World Collapse Explained in 3 Minutes
Summary of Latest Federal Individual Income Tax Data
Interesting data....the top 50% pays for 97% of the govt spending
The top 5 % of taxpayers pays 60% of the govt spending; as well, the % being paid is up over the years, even though there has been tax cuts. Hmmmm.....lower tax rates = higher tax revenues. Its the facts.
The Tax Foundation - Summary of Latest Federal Individual Income Tax Data
The top 5 % of taxpayers pays 60% of the govt spending; as well, the % being paid is up over the years, even though there has been tax cuts. Hmmmm.....lower tax rates = higher tax revenues. Its the facts.
The Tax Foundation - Summary of Latest Federal Individual Income Tax Data
Thursday, December 16, 2010
Wednesday, December 15, 2010
Tuesday, December 14, 2010
Monday, December 13, 2010
Sunday, December 12, 2010
Saturday, December 11, 2010
Thursday, December 9, 2010
200 Countries, 200 Years, 4 Minutes
Wow ....very good graphic and history over the last 200 years
200 Countries, 200 Years, 4 Minutes
200 Countries, 200 Years, 4 Minutes
Wednesday, December 8, 2010
Why Do We Have a Central Bank? - WSJ.com
Good question. No good answers. Private bank having control? No audits? Gee makes one wonder.
Gerald P. O'Driscoll Jr.: Why Do We Have a Central Bank? - WSJ.com
Gerald P. O'Driscoll Jr.: Why Do We Have a Central Bank? - WSJ.com
Tuesday, December 7, 2010
Monday, December 6, 2010
Sunday, December 5, 2010
Wave goodbye to Internet freedom - Washington Times
The US FCC plans to regulate the internet to ensure freedom. Right!
EDITORIAL: Wave goodbye to Internet freedom - Washington Times
EDITORIAL: Wave goodbye to Internet freedom - Washington Times
Mounting State Debts Stoke Fears of a Looming Crisis
Does not look good. Where is man's intelligence?
Mounting State Debts Stoke Fears of a Looming Crisis - NYTimes.com
Mounting State Debts Stoke Fears of a Looming Crisis - NYTimes.com
Friday, December 3, 2010
Wednesday, December 1, 2010
Investment Outlook - Allentown
Great article. The developed countries are financially tapped out, thus demand for more stuff (goods and services) is not growing. The developing countries do not have the financial systems, but have people that are working for less than the developed world. Thus jobs are moving from the developed countries to undeveloped. This is equalizing the world, and the standard of the living for the developed world is dropping and will continue to do so at a faster pace. The developed world solution, is not an economic one of getting a handle on it (eg less debt and more productive), but one of printing money and adding debt. This "solution" only makes the depression worst.
PIMCO Investment Outlook - Allentown
PIMCO Investment Outlook - Allentown
Tuesday, November 30, 2010
Monday, November 29, 2010
Ireland is Bankrupt....a comment letter from someone from Ireland
This is a letter from someone from Ireland....I am sure there will letters, thoughts and comments from many others there like this from Ireland and then from the rest of Europe. People are disappointed with the the lack of financial responsiblity and respect that the political and business leaders have had. Yet the people voted for the easy way...but the easy way does not last long.
*********
Herman Van Rompuy, President of the European Council, warned that if Ireland didn't apply for an EU/ECB/IMF bailout for its failed banking system, its soaring budget deficit and its colossal national debt, then the European single currency might collapse [the bond markets have already panicked and cashed in], and if the International markets lost confidence in the Euro, then the dissolution of the Union would quickly follow. He said the future of the Eurozone depended on stemming the tide of market distrust caused by the tanking Irish economy. He feared contagion, that Portugal and Italy and Spain would soon follow.
Ireland is not only insolvent because it has no liquidity, no way of meeting its debts. The government decided to link the economic future of the country to a failed banking system and now the two are inextricably intertwined. No amount of raised taxes can bail out the banks and still pay the day-to-day running expenses of our welfare state. The famed 'Celtic Tiger' boom economy was always a high-risk, dangerous fiction. Someone dubbed Ireland the 'Wild West of Economics'. Our illusory wealth was tied to a property bubble that was as unsustainable as it vacuous, and all the money was borrowed, primarily from German savers. We were hooked on credit like it was crack cocaine. We binged but never purged and we stayed high to postpone the inevitable hangover. Everybody was in cahoots, from corrupt local governments, driving through emergency rezoning laws, to rogue bankers financing the criminal inflation of developments and shoveling billions to builders, to newspapers cashing in on their property advertising to regulators asleep at the wheel. Our mafia don cum Taoiseach, Bertie 'Gombeen-Man' Ahern, invited critics of the system to commit suicide. Nobody left the orgy. Nobody wanted to leave. Planet Hollywood had finally come to Planet Ireland!
But inevitably the whole house of cards would come crashing down, and Bertie [who tendered his timely resignation just before the collapse] soon got his wish as the suicide rate started to climb to the highest in Europe. The government panicked. The Minister for Finance, a barrister by profession, got a crash course in national and global economics. He learned about markets and budgets and bonds and gilts on the job, on a need-to-know basis. He instituted an abstraction called N.A.M.A. http://www.nama.ie/ , The National Assets Management Agency, whose remit basically is to buy up all the debt and properties left unfinished and unpaid for by the construction moguls [developers & builders] and their bankers, to transfer them to a national trust, cue Irish tax-payer, as if we owned them, or even wanted them, or could avail of them in any way, and to pay off the outstanding loans. All over Ireland, in every town and village, are these unfinished ghost estates. These now belong and do not belong to the Irish taxpayer. This offense was compounded by the decision to bail out the very banks [like Anglo Irish and Irish Permanent, really, all of them] that got us into the mess. The banks were hemorrhaging money [and still are] and the government was on hand to provide on-the-spot triage, a botched stitch-up job if there ever was one, a cluster-fuck of cosmic proportions.
The government, Fianna Fáil in coalition with The Greens and a few independents, lied through their teeth and kept telling the Irish taxpayer that exports were up, that the revenue would come in once the austerity budget was passed, once the 4-year plan was unveiled and ratified and that no bail-out would be necessary. Reduce public spending, they told us, tighten our belts; cut the public sector; Trim this, give a haircut to that and all would be hunky dory. Well, the same shower of gangsters who gave the green light to sub-prime lenders and hedge-fund speculators-gamblers went to the ECB/IMF with cap in hand this week and begged for a bailout. Then they came on TeeVee to announce the done-deal. Ireland will borrow over 85 billion from its partners in the EU and the IMF and, depending on the repayment interest, 5 -7%, we could be paying back upwards of 4 billion a year. That's about 1/4 of the Tax intake. The debt is completely beyond our means as Constantin Gurdjiev, http://trueeconomics.blogspot.com/ and David McWilliams http://www.davidmcwilliams.ie/category/articles/ are trying to point out.
Ireland is used to erosions of its sovereignty ever since we joined the European Union. We, we had our first referendum on the Lisbon Treaty in June 2008 and it was defeated. Sarkozy told our Taoiseach that he delivered the wrong result and to go back to the people and get the right result next time, so that's exactly what happened and so in April 2009 the treaty was finally passed in Ireland. So much for Irish sovereignty. Our membership of the single currency in 1998, as part of our EU obligations under the Maastricht Treaty, further compromised that independence. Now ceding control to the IMF -- to save the Eurozone -- is the final nail in the coffin of that putative myth known as Irish sovereignty. We gave away so glibly what we fought so hard to achieve.
Was it for this the wild geese spread
The grey wing upon every tide;
For this that all that blood was shed,
For this Edward Fitzgerald died,
And Robert Emmet and Wolfe Tone,
All that delirium of the brave?
Romantic Ireland’s dead and gone,
It’s with O’Leary in the grave.
I'm afraid the verdict isn't very flattering. Ireland is indeed a banana republic, a land full of cronyism, wink and nod business deals, insider trading, nepotism, feather your own nest and forget about the next guy, take all you can as quickly as you can no matter who gets hurt, ostracize the whistle blowers and critics, advance number one every time and keep the circles closed. There's no sense of civitas here, no notion of self-sacrifice, no pride in history, culture, nation; it's all up for grabs to the highest bidder. It doesn't matter that we struggled for 800 years to achieve independence, that millions died in the process; it doesn't matter that the folk memory of harsher times is still very much alive; none of this mattered to the few generations that have dismantled our country institution by institution and thrown the Irish people to the wolves, the bean counters in the IMF who will now control our destiny. Our political system is in ruins. The people have lost all faith in their elected representatives. They feel that welfare for the wealthy, bailouts for crooked corporations and rewards instead of punishments for embezzlement and thievery is the rule of the land. And what the British and the world said about us, all the stereotypes, seem to be true after all and maybe were always true: we were never equipped to govern ourselves, we're a nation of drunks, peasants, irresponsible wasters and chancers addicted to violence and quick fixes. Our independent republic is less than a century old and already it's in smithereens -- we're in the gutter and being dictated to by the UK, Germany, France and the IMF. Mr. Ajai Chopra is our new vice-chancellor, our new Taoiseach, our new overlord and big boss and we've just been recolonized, first by our own brood of inbred gangsters and now by international bankers. We didn't deserve any better. It's our own damn fault.
By 'we' I mean the select few that got our country into the financial mess. But the blame game serves no useful purpose now: we're all screwed, not equally, mind you [but when are people ever screwed equally?], and the nation has no option now but to drive through a draconian austerity budget and then take the bailout and let our affairs be run by outsiders. Could we say 'Screw You' to the Euro and go back to the punt? Could we say 'Screw You' to Germany and all our debtors? Could we say ' Screw You' to the EU and let the Eurozone fall? Our politicians tell us we have no choice. It would be therapeutic to tell the lot of them to piss off and to return to hunter-gatherer status but how feasible is that? Kids think beef patties are really square and grow on trees. They wouldn't know how to pluck a chicken let alone sow and reap a harvest. Everything's in the grocery store and they're too busy playing play station, twittering and gabbing on Facebook to worry about the right time of year to plant a tuber. The EU is run by neo-liberalist economic policies and if Ireland doesn't play ball the multi-nationals will up and relocate to cheaper labour markets. They're already doing just that. They're encouraged to do it by Merkel and Sarkozy and Cameron.
And then there's always the fear that this crisis will inaugurate excessive nationalism, that the Provos will exploit civil unrest and lack of confidence in the government to push their demented and deranged United Ireland bollocks. Gerry Adams has already announced his candidacy for a seat in Co. Louth which, if elected, will find him in Dáil Éireann. This would be disastrous for Ireland. Ireland doesn't need Sinn Féin's brand of patriotism. People should remember Gerry Adams' devolvement announcement for the Good Friday Agreement: He said he was now ready to pursue through the political process the same agenda he failed to achieve through armed struggle, that is, a United Ireland. If Sinn Féin ever gets a foothold in Irish politics there will be a return to the rule of the gun; if his bunch of murderous, terrorist thugs are ever allowed to exploit the political vacuum in Ireland there will be a bloodbath. Adams has always preached against the EU and partnership with Britain. He's still the same dickweed that did time in Long Kesh and had Jean McConville a widowed mother of 11 children murdered because she administered last rites to a British soldier who died on her footstep. His brand of fascistic nationalism is no good for Ireland. We must reject him and what he stands for.
As a nation we're a joke, a laughing stock, and now it's time to become a colony of the IMF under the direction of the same cowboy outfit that brought peace and prosperity to Argentina and Iceland. O Joy, I just can't wait. We're used to it. It feels good. And this time we walked right into it. Heck, we can always get drunk afterwards, have a rare old session and weep and wail over our Fenian dead.
Custerluck
Mr. Crawford's letter of despair could just as easily be authored by anyone in the UK, US or France. We have all reached the point where no amount of twisting and turning is going to avoid the noose of poverty. We have all taken the easy way out, which in retrospect will become the most difficult way.
Those that survive will indeed learn to "pluck a chicken" or "reap a harvest". They will also have to learn how to grow a garden, how to preserve foodstuffs and how to repair a tire. Unfortunately, they also may have to learn how to handle a gun.
Other than the above, I have no advice except that of Margaret Thatcher's comment that socialism ends when they run out of other people's money.
*********
Herman Van Rompuy, President of the European Council, warned that if Ireland didn't apply for an EU/ECB/IMF bailout for its failed banking system, its soaring budget deficit and its colossal national debt, then the European single currency might collapse [the bond markets have already panicked and cashed in], and if the International markets lost confidence in the Euro, then the dissolution of the Union would quickly follow. He said the future of the Eurozone depended on stemming the tide of market distrust caused by the tanking Irish economy. He feared contagion, that Portugal and Italy and Spain would soon follow.
Ireland is not only insolvent because it has no liquidity, no way of meeting its debts. The government decided to link the economic future of the country to a failed banking system and now the two are inextricably intertwined. No amount of raised taxes can bail out the banks and still pay the day-to-day running expenses of our welfare state. The famed 'Celtic Tiger' boom economy was always a high-risk, dangerous fiction. Someone dubbed Ireland the 'Wild West of Economics'. Our illusory wealth was tied to a property bubble that was as unsustainable as it vacuous, and all the money was borrowed, primarily from German savers. We were hooked on credit like it was crack cocaine. We binged but never purged and we stayed high to postpone the inevitable hangover. Everybody was in cahoots, from corrupt local governments, driving through emergency rezoning laws, to rogue bankers financing the criminal inflation of developments and shoveling billions to builders, to newspapers cashing in on their property advertising to regulators asleep at the wheel. Our mafia don cum Taoiseach, Bertie 'Gombeen-Man' Ahern, invited critics of the system to commit suicide. Nobody left the orgy. Nobody wanted to leave. Planet Hollywood had finally come to Planet Ireland!
But inevitably the whole house of cards would come crashing down, and Bertie [who tendered his timely resignation just before the collapse] soon got his wish as the suicide rate started to climb to the highest in Europe. The government panicked. The Minister for Finance, a barrister by profession, got a crash course in national and global economics. He learned about markets and budgets and bonds and gilts on the job, on a need-to-know basis. He instituted an abstraction called N.A.M.A. http://www.nama.ie/ , The National Assets Management Agency, whose remit basically is to buy up all the debt and properties left unfinished and unpaid for by the construction moguls [developers & builders] and their bankers, to transfer them to a national trust, cue Irish tax-payer, as if we owned them, or even wanted them, or could avail of them in any way, and to pay off the outstanding loans. All over Ireland, in every town and village, are these unfinished ghost estates. These now belong and do not belong to the Irish taxpayer. This offense was compounded by the decision to bail out the very banks [like Anglo Irish and Irish Permanent, really, all of them] that got us into the mess. The banks were hemorrhaging money [and still are] and the government was on hand to provide on-the-spot triage, a botched stitch-up job if there ever was one, a cluster-fuck of cosmic proportions.
The government, Fianna Fáil in coalition with The Greens and a few independents, lied through their teeth and kept telling the Irish taxpayer that exports were up, that the revenue would come in once the austerity budget was passed, once the 4-year plan was unveiled and ratified and that no bail-out would be necessary. Reduce public spending, they told us, tighten our belts; cut the public sector; Trim this, give a haircut to that and all would be hunky dory. Well, the same shower of gangsters who gave the green light to sub-prime lenders and hedge-fund speculators-gamblers went to the ECB/IMF with cap in hand this week and begged for a bailout. Then they came on TeeVee to announce the done-deal. Ireland will borrow over 85 billion from its partners in the EU and the IMF and, depending on the repayment interest, 5 -7%, we could be paying back upwards of 4 billion a year. That's about 1/4 of the Tax intake. The debt is completely beyond our means as Constantin Gurdjiev, http://trueeconomics.blogspot.com/ and David McWilliams http://www.davidmcwilliams.ie/category/articles/ are trying to point out.
Ireland is used to erosions of its sovereignty ever since we joined the European Union. We, we had our first referendum on the Lisbon Treaty in June 2008 and it was defeated. Sarkozy told our Taoiseach that he delivered the wrong result and to go back to the people and get the right result next time, so that's exactly what happened and so in April 2009 the treaty was finally passed in Ireland. So much for Irish sovereignty. Our membership of the single currency in 1998, as part of our EU obligations under the Maastricht Treaty, further compromised that independence. Now ceding control to the IMF -- to save the Eurozone -- is the final nail in the coffin of that putative myth known as Irish sovereignty. We gave away so glibly what we fought so hard to achieve.
Was it for this the wild geese spread
The grey wing upon every tide;
For this that all that blood was shed,
For this Edward Fitzgerald died,
And Robert Emmet and Wolfe Tone,
All that delirium of the brave?
Romantic Ireland’s dead and gone,
It’s with O’Leary in the grave.
I'm afraid the verdict isn't very flattering. Ireland is indeed a banana republic, a land full of cronyism, wink and nod business deals, insider trading, nepotism, feather your own nest and forget about the next guy, take all you can as quickly as you can no matter who gets hurt, ostracize the whistle blowers and critics, advance number one every time and keep the circles closed. There's no sense of civitas here, no notion of self-sacrifice, no pride in history, culture, nation; it's all up for grabs to the highest bidder. It doesn't matter that we struggled for 800 years to achieve independence, that millions died in the process; it doesn't matter that the folk memory of harsher times is still very much alive; none of this mattered to the few generations that have dismantled our country institution by institution and thrown the Irish people to the wolves, the bean counters in the IMF who will now control our destiny. Our political system is in ruins. The people have lost all faith in their elected representatives. They feel that welfare for the wealthy, bailouts for crooked corporations and rewards instead of punishments for embezzlement and thievery is the rule of the land. And what the British and the world said about us, all the stereotypes, seem to be true after all and maybe were always true: we were never equipped to govern ourselves, we're a nation of drunks, peasants, irresponsible wasters and chancers addicted to violence and quick fixes. Our independent republic is less than a century old and already it's in smithereens -- we're in the gutter and being dictated to by the UK, Germany, France and the IMF. Mr. Ajai Chopra is our new vice-chancellor, our new Taoiseach, our new overlord and big boss and we've just been recolonized, first by our own brood of inbred gangsters and now by international bankers. We didn't deserve any better. It's our own damn fault.
By 'we' I mean the select few that got our country into the financial mess. But the blame game serves no useful purpose now: we're all screwed, not equally, mind you [but when are people ever screwed equally?], and the nation has no option now but to drive through a draconian austerity budget and then take the bailout and let our affairs be run by outsiders. Could we say 'Screw You' to the Euro and go back to the punt? Could we say 'Screw You' to Germany and all our debtors? Could we say ' Screw You' to the EU and let the Eurozone fall? Our politicians tell us we have no choice. It would be therapeutic to tell the lot of them to piss off and to return to hunter-gatherer status but how feasible is that? Kids think beef patties are really square and grow on trees. They wouldn't know how to pluck a chicken let alone sow and reap a harvest. Everything's in the grocery store and they're too busy playing play station, twittering and gabbing on Facebook to worry about the right time of year to plant a tuber. The EU is run by neo-liberalist economic policies and if Ireland doesn't play ball the multi-nationals will up and relocate to cheaper labour markets. They're already doing just that. They're encouraged to do it by Merkel and Sarkozy and Cameron.
And then there's always the fear that this crisis will inaugurate excessive nationalism, that the Provos will exploit civil unrest and lack of confidence in the government to push their demented and deranged United Ireland bollocks. Gerry Adams has already announced his candidacy for a seat in Co. Louth which, if elected, will find him in Dáil Éireann. This would be disastrous for Ireland. Ireland doesn't need Sinn Féin's brand of patriotism. People should remember Gerry Adams' devolvement announcement for the Good Friday Agreement: He said he was now ready to pursue through the political process the same agenda he failed to achieve through armed struggle, that is, a United Ireland. If Sinn Féin ever gets a foothold in Irish politics there will be a return to the rule of the gun; if his bunch of murderous, terrorist thugs are ever allowed to exploit the political vacuum in Ireland there will be a bloodbath. Adams has always preached against the EU and partnership with Britain. He's still the same dickweed that did time in Long Kesh and had Jean McConville a widowed mother of 11 children murdered because she administered last rites to a British soldier who died on her footstep. His brand of fascistic nationalism is no good for Ireland. We must reject him and what he stands for.
As a nation we're a joke, a laughing stock, and now it's time to become a colony of the IMF under the direction of the same cowboy outfit that brought peace and prosperity to Argentina and Iceland. O Joy, I just can't wait. We're used to it. It feels good. And this time we walked right into it. Heck, we can always get drunk afterwards, have a rare old session and weep and wail over our Fenian dead.
Custerluck
Mr. Crawford's letter of despair could just as easily be authored by anyone in the UK, US or France. We have all reached the point where no amount of twisting and turning is going to avoid the noose of poverty. We have all taken the easy way out, which in retrospect will become the most difficult way.
Those that survive will indeed learn to "pluck a chicken" or "reap a harvest". They will also have to learn how to grow a garden, how to preserve foodstuffs and how to repair a tire. Unfortunately, they also may have to learn how to handle a gun.
Other than the above, I have no advice except that of Margaret Thatcher's comment that socialism ends when they run out of other people's money.
Saturday, November 27, 2010
Thursday, November 25, 2010
Wednesday, November 24, 2010
Gloom, anger spreads as European economies teeter
People in Europe do not like it and do not understand it.
The governments have been deficit spending for years and as well guaranteed debts of banks which have been reckless.
The credit card limits are being hit. US will be next.
Then what?
And we think mankind can understand and manage economics? Look at Germany after WWII, there was two very different systems with same people. One was sucessful the other not.
The unseen hand rules.
Gloom, anger spreads as European economies teeter - Yahoo! News
The governments have been deficit spending for years and as well guaranteed debts of banks which have been reckless.
The credit card limits are being hit. US will be next.
Then what?
And we think mankind can understand and manage economics? Look at Germany after WWII, there was two very different systems with same people. One was sucessful the other not.
The unseen hand rules.
Gloom, anger spreads as European economies teeter - Yahoo! News
Tuesday, November 23, 2010
The Greatest of All Ponzi Schemes
This is part of the reason that the economy is in a mess; investment banks, misallocation of resources, government funding (central planning) and greed.
The Greatest of All Ponzi Schemes Oil Price.com
The Greatest of All Ponzi Schemes Oil Price.com
People Who Resist Authority, Stand Up for Privacy, Could Be Classified As Mentally Ill | Network World
Hey, don't they do this is totalitarian systems. Could it be coming?
Privacy and Security Fanatic: People Who Resist Authority, Stand Up for Privacy, Could Be Classified As Mentally Ill Network World
Privacy and Security Fanatic: People Who Resist Authority, Stand Up for Privacy, Could Be Classified As Mentally Ill Network World
Time for Mortgage Lenders to Consider a Jubilee?
Biblical principles getting more consideration. The year of Jubilee, the economy, the people need it. Next time, let's plan for it. Smarter economics. Compare that to gee we really don't know what works or why.
Time for Mortgage Lenders to Consider a Jubilee? — Rick's Picks#more-28569
Time for Mortgage Lenders to Consider a Jubilee? — Rick's Picks#more-28569
Monday, November 22, 2010
A Full Body Scan of American Corruption
Body Scanners being sold by former Home Land Security guy. They really don't work, but he is getting paid very well due to his connections. America's form of corruption that the public buys.
Gonzalo Lira: A Full Body Scan of American Corruption
Gonzalo Lira: A Full Body Scan of American Corruption
UN IPCC Official Admits 'We Redistribute World's Wealth By Climate Policy'
Climate change is part of the control managment tool of the misguided globalist and progressives. The public do not get the facts but story bits.
GetLiberty.org >> NewsBusters: UN IPCC Official Admits 'We Redistribute World's Wealth By Climate Policy'
GetLiberty.org >> NewsBusters: UN IPCC Official Admits 'We Redistribute World's Wealth By Climate Policy'
Sunday, November 21, 2010
New Republican Leadership or Politics as Usual
Very disappointing, but not surprised. Life continues as it was, in its troubled destructive state.
New Republican Leadership or Politics as Usual - Home - theboldpursuit.com
New Republican Leadership or Politics as Usual - Home - theboldpursuit.com
Thursday, November 18, 2010
Dear Uncle Sucker . . . | The Big Picture
Warren Buffett's letter thanking Uncle Sam for the protection / buy out.
Dear Uncle Sucker . . . The Big Picture
Dear Uncle Sucker . . . The Big Picture
Wednesday, November 17, 2010
Tuesday, November 16, 2010
Soros: Conditions 'Pretty Perfect' for Gold to Rise
Not that I think what George does is always good, but he is worth a listen.
Soros: Conditions 'Pretty Perfect' for Gold to Rise
Soros: Conditions 'Pretty Perfect' for Gold to Rise
Monday, November 15, 2010
"The Fed's Business Is Price Instability"
The US Fed is out of control. Ben does not understand risk and he is taking very risky position.
Nassim Taleb: "The Fed's Business Is Price Instability" zero hedge
Nassim Taleb: "The Fed's Business Is Price Instability" zero hedge
Portugal "Euro Zone Exit"?
Portugal may have to leave the Euro. It would not be alone.
Mish's Global Economic Trend Analysis: Portugal Foreign Affairs Minister Threatens "Euro Zone Exit"
Mish's Global Economic Trend Analysis: Portugal Foreign Affairs Minister Threatens "Euro Zone Exit"
TREASURY YIELDS NOW HIGHER THAN BEFORE JACKSON HOLE
Printing money will raise interest rates. It has started.
TREASURY YIELDS NOW HIGHER THAN BEFORE JACKSON HOLE PRAGMATIC CAPITALISM
TREASURY YIELDS NOW HIGHER THAN BEFORE JACKSON HOLE PRAGMATIC CAPITALISM
TSA Threatens $10,000 Fine and Civil Court For Man Who Refused Scan and Groping
This is not right
Today, I saw some smiling faces today as a guy escorted a well built woman to the body scanning machine.
SHOWDOWN: TSA Threatens $10,000 Fine and Civil Court For Man Who Refused Scan and Groping
Today, I saw some smiling faces today as a guy escorted a well built woman to the body scanning machine.
SHOWDOWN: TSA Threatens $10,000 Fine and Civil Court For Man Who Refused Scan and Groping
Open Letter to Ben Bernanke
Other economist, investment managers and finance folks understand it, but Ben doesn't. Scary, real scary what this guy is doing.
Open Letter to Ben Bernanke - Real Time Economics - WSJ
Open Letter to Ben Bernanke - Real Time Economics - WSJ
Sunday, November 14, 2010
Wednesday, November 10, 2010
George Sores - The Puppet Master
From Van Jones - The Strategy is:
Top Down
Bottom Up
Inside Out
Top down is in place. Now it is your turn - bottom up.
I think we should be concerned. Very concerned.
Glenn Beck: The Puppet Master - Glenn Beck - FOXNews.com
Top Down
Bottom Up
Inside Out
Top down is in place. Now it is your turn - bottom up.
I think we should be concerned. Very concerned.
Glenn Beck: The Puppet Master - Glenn Beck - FOXNews.com
Friday, November 5, 2010
Thursday, November 4, 2010
Why Your Adviser Is Scared to Set You Straight - WSJ.com
I agree. My investment advisor costs me over six figures within short 4 months. He was good for a period of time for about a year, careful with a part of our portfolio. Gained my trust and confidence. Kept us out of the initial down turn in 2008. In 2009 he was then given our entire portfolio to manage. With the subsequent down turn in 2009 he did not manage that very well. Became very emotional, did not have stops (unbelievable) and did not follow the markets. He scared me big time. He was lost. As result, in short four months, I had to pull the accounts, and we were down over six figures. Big lesson learned. The investor advisors are only human and they are emotional beings. In addition, to the pain, the guy charged 1% management fee.
I agree with the article, one is better managing their finances than an advisor.
The Intelligent Investor: Why Your Adviser Is Scared to Set You Straight - WSJ.com
I agree with the article, one is better managing their finances than an advisor.
The Intelligent Investor: Why Your Adviser Is Scared to Set You Straight - WSJ.com
Wednesday, November 3, 2010
10 Signs The U.S. is Becoming a Third World Country
US Fed announced today further devaluation and its dollar by printing more dollars. US is acting like many 3rd world nation. Risky bettors, lottery players they are, or just plain losers.
Activist Post: 10 Signs The U.S. is Becoming a Third World Country
Activist Post: 10 Signs The U.S. is Becoming a Third World Country
Fed takes bold, risky step to bolster economy
Disappointing action by the Fed. They say it is risky and don't know if printing more paper dollars will work. Of course it will not. Any country that prints money to solve its trade and or fiscal problems or irresponsibility had demonstrated that it does not work. Ben is not in the real world and he should not be in charge of the Fed. Dangerous guy that is running lose.
Fed takes bold, risky step to bolster economy - Yahoo! News
Fed takes bold, risky step to bolster economy - Yahoo! News
Tuesday, November 2, 2010
Monday, November 1, 2010
Saturday, October 23, 2010
Tuesday, October 19, 2010
Saturday, October 16, 2010
Mish's Global Economic Trend Analysis: Gold Market on U.S. Elections: So What?
Yup, I got to agree, the election in November does not really matter; whether it is Demo or GOP. Americans are looking for easy answers. There is none. So result will be only big disappointment. And then the "fun" will start! Hang on for real change.
Mish's Global Economic Trend Analysis: Gold Market on U.S. Elections: So What?
Mish's Global Economic Trend Analysis: Gold Market on U.S. Elections: So What?
Climate Change is Fraud
Climate change is a big business fraud on the people.
Professor Emiritus Hal Lewis Resigns from American Physical Society – reasonmclucus - My Telegraph
Professor Emiritus Hal Lewis Resigns from American Physical Society – reasonmclucus - My Telegraph
Permabear to English Translation Guide
The PermaBear to English Translation Guide
Apple: A fictitious company that does not exist.
BLS: A secret society of mathematicians and statistical wonks conspiring to falsify economic data, formerly known as the the sect of Opus Dei; See also Birth Death Adjustment.
Bernanke, Ben: Beelzebub
Bonds: An asset class that will eventually be worthless paper as its value is inflated away, but in the meantime, are a good alternative to equities.
Bubble: A catchall phrase used to describe any market not in freefall.
China: The centrally planned communist economy that is the model for Free Market Economies in the West. alt. An idealized form of Capitalism;
Death Cross: The most reliable and certain technical formation known to man. See also Golden Cross: An old wives’ tale, not to paid attention to or taken seriously at all.
Depression: The current state of economic affairs; See also Pornography.
European Union (EU): A soon to be dissolved association of Socialist states, whose sole purpose is to mislead investors into believing the United States is (comparatively) fiscally responsible. See alsoEuroFASB: A criminal legal enterprise of accountants whose members help banks hide massive losses;
Fiat Currency: The root of all evil
FOMC: Fertilizer for the root of all evil
Gold: A shiny yellow metal used primarily as an excuse for missing a generational rally in equities.
Google: See Apple
Greece: A nation of tax cheats that will lead to the dissolution of the EU;
Greenspan, Alan: Lucifer
Housing Bottom: A theoretical but mathematically impossible construct.
Hindenburg Omen: A common pick up line at permabear cocktail parties, good for for attracting sexual partners but of little use for anything else.Vernacular: “Did you see another Hindenburg Omen signal was given today?”
Hyper-Inflation: The eventual fate of all humanity due to the existence of central banks.
Inflation: The precursor condition to Hyper-Inflation.
Japan: A large manufacturing island in the Pacific, whose decades-long recession is the inevitable model for the United States
Money Supply: ?, an imaginary number.
New Normal: A combination of contracting credit availability, stubborn unemployment and US consumer de-leveraging; See also 1930s, 1950s, 1970s (aka Old Normal).
Overbought: The normal state of equity markets;
Oversold: A theoretical market condition last seen in 1982.
P&L: We don’t talk about that.
POMO: An acronym used by rookie traders in failed attempts to explain the “mysterious” impact of massive liquidity on equities.
QE2: A code word or shorthand for the event that has been prophesied to bring about the End of the World. Interchangeable with “Apocalypse” as Perma-bears regard both its coming and its destructive power as a quasi-religious inevitability. See also POMO
Recession: See Depression
Risk On: Any Bull market
Rosenberg, David: A minor deity amongst the Perma-bear faithful. The very mention of his name causes a reverential hush to fall over the gathered masses as they hungrily devour his latest proclamations of death and dismemberment. See also Roubini, Faber, Rogers, Cassandra, et. al.
Stress Test: Hoax or Conspiracy
Subprime: The state of all credit in the US
Tony Robbins: The newest economic sage to warn of the coming economic apocalypse, most recently during August 2010; See also John Tudor Jones.
Unemployment: An irreversible condition, symptomatic of declining empires. Hence the reason no one in Great Britain ever found a job again after the 1830?s.
Uptrend: Not found.
Permabear to English Translation Guide
Apple: A fictitious company that does not exist.
BLS: A secret society of mathematicians and statistical wonks conspiring to falsify economic data, formerly known as the the sect of Opus Dei; See also Birth Death Adjustment.
Bernanke, Ben: Beelzebub
Bonds: An asset class that will eventually be worthless paper as its value is inflated away, but in the meantime, are a good alternative to equities.
Bubble: A catchall phrase used to describe any market not in freefall.
China: The centrally planned communist economy that is the model for Free Market Economies in the West. alt. An idealized form of Capitalism;
Death Cross: The most reliable and certain technical formation known to man. See also Golden Cross: An old wives’ tale, not to paid attention to or taken seriously at all.
Depression: The current state of economic affairs; See also Pornography.
European Union (EU): A soon to be dissolved association of Socialist states, whose sole purpose is to mislead investors into believing the United States is (comparatively) fiscally responsible. See alsoEuroFASB: A criminal legal enterprise of accountants whose members help banks hide massive losses;
Fiat Currency: The root of all evil
FOMC: Fertilizer for the root of all evil
Gold: A shiny yellow metal used primarily as an excuse for missing a generational rally in equities.
Google: See Apple
Greece: A nation of tax cheats that will lead to the dissolution of the EU;
Greenspan, Alan: Lucifer
Housing Bottom: A theoretical but mathematically impossible construct.
Hindenburg Omen: A common pick up line at permabear cocktail parties, good for for attracting sexual partners but of little use for anything else.Vernacular: “Did you see another Hindenburg Omen signal was given today?”
Hyper-Inflation: The eventual fate of all humanity due to the existence of central banks.
Inflation: The precursor condition to Hyper-Inflation.
Japan: A large manufacturing island in the Pacific, whose decades-long recession is the inevitable model for the United States
Money Supply: ?, an imaginary number.
New Normal: A combination of contracting credit availability, stubborn unemployment and US consumer de-leveraging; See also 1930s, 1950s, 1970s (aka Old Normal).
Overbought: The normal state of equity markets;
Oversold: A theoretical market condition last seen in 1982.
P&L: We don’t talk about that.
POMO: An acronym used by rookie traders in failed attempts to explain the “mysterious” impact of massive liquidity on equities.
QE2: A code word or shorthand for the event that has been prophesied to bring about the End of the World. Interchangeable with “Apocalypse” as Perma-bears regard both its coming and its destructive power as a quasi-religious inevitability. See also POMO
Recession: See Depression
Risk On: Any Bull market
Rosenberg, David: A minor deity amongst the Perma-bear faithful. The very mention of his name causes a reverential hush to fall over the gathered masses as they hungrily devour his latest proclamations of death and dismemberment. See also Roubini, Faber, Rogers, Cassandra, et. al.
Stress Test: Hoax or Conspiracy
Subprime: The state of all credit in the US
Tony Robbins: The newest economic sage to warn of the coming economic apocalypse, most recently during August 2010; See also John Tudor Jones.
Unemployment: An irreversible condition, symptomatic of declining empires. Hence the reason no one in Great Britain ever found a job again after the 1830?s.
Uptrend: Not found.
Permabear to English Translation Guide
McHugh's Expanded Weekend Market Report, October 16, 2010
From McHugh
Friday's internals were weak, in spite of being a mixed market. The NASDAQ 100 had a huge price move up, but a significant chunk of the price gain came from one stock, Google. Google rose $60.52 per share, or 11.10 percent, in one day, Friday. Google is one of those stocks that a market manipulator can buy to move an index in the hopes it starts bandwagon buying. During the 2003 and 2006 rallies, we saw MMM move the Industrials with bizarre isolated rising price days. At the time, it appeared to us a market manipulator was moving the Industrials higher with 3M purchases. From time to time we see concerted efforts to push markets higher. Now is one of those times. But each time this happens, it causes the subsequent decline to be worse than would otherwise have been the case, like stretching a rubber band too far. The snapback is nasty. Deep pockets can only delay the inevitable. They cannot stop it. Quantitative Easing talk is raising expectations for liquidity infusions that people think will seep into stock markets. Hedge funds are buying stocks ahead of the actual Quantitative Easing from the Fed. QE2 is simply a fancy name for the Federal Reserve printing U.S. Dollars and buying fixed income securities from large Wall Street firms, buying junk bonds, corporate bonds, mortgage backed securities or Treasuries. It is essentially a fraud on U.S. Dollar holders, is a fraud on the taxpaying U.S. Consumer and Small Business, a fraud on the working person who has to get his money through hard labor. We will discuss this further later, and why this policy will destroy what is left of this fragile economy, and will eventually help drive stock market values down toward zero, and drive the U.S. Dollar down toward 40ish. QE2 is wonderful for large Wall Street firms' short-term profits. They love it. Imagine having a business where the Federal Reserve is interested in helping you make as much money as possible at the expense of everyone else? That is QE2.
We learned Friday that the U.S. Federal Deficit for the Fiscal Year Ending September 30th, 2010, was $1.3 trillion. With a total Federal Budget of $3.5 trillion, this means that for every dollar spent by the Federal Government, they had to borrow 37 cents to cover that expense. Can you imagine running your household or small business like that? You would go bankrupt in short order.
Quantitative Easing will some day be looked back upon as we now look at healing the sick through bleeding back in the 1700s. It is terrible economic policy, in fact should be considered criminal activity. Criminal for many reasons, such as debasing the value of the Dollar, but more importantly because it will be the final nail that destroys our economy. Wall Street is the key beneficiary. Households (consumers) which account for 70 percent of GDP, and small businesses, which account for 70 percent of employment, will not benefit from this fraudulent activity by the Federal Reserve. Where on earth is it right for someone to print trillions of Dollars out of thin air and then buy legitimate legally binding debt instruments in exchange for this printed paper? Anyone else doing this would be arrested and thrown in jail, with the key tossed into the deep blue sea.
But forgetting that this is probably a criminal act, and assuming that it is legally acceptable because the Central Planners enact legislation to permit QE2, let's explore why it is a fraud on pretty much everyone except the sellers of the fixed income securities the Fed will be buying, primarily mega Wall Street firms, surrogates for the president's Working Group (the Plunge Protection Team).
Bernanke suggested in his speech in Boston Friday on the subject of QE2, that he is justified in doing this to raise the inflation rate, which he believes is too low, and to increase employment. His economics are dead wrong. He believes it is perfectly appropriate to print trillions of dollars of U.S. Federal Reserve notes (Dollars) out of thin air, and then send this money from the Fed's print shop across the invisible wall that separates the real economy from the non-economy (the Fed) to the lucky recipients of this cash. Here is the problem: This transfer of printed cash for securities in the market are normally known as open market operations, and the point of this exercise is to lower interest rates in the market to spur lending and filter cash through Wall Street intermediaries to banks to borrowers which would stimulate the economy and multiply the money supply in the market. However, short-term interest rates are already zero, and long-term interest rates are at historic lows. So QE2 will not reduce interest rates. Therefore it will not increase borrowing. Therefore it will not multiply the money supply or spur spending, ergo it will not improve GDP, will not help households or small businesses. The cash will simply move from the Fed to Wall Street where the mega banks can then leverage their investing and trading activities which will improve their short-term profits. There will be no trickle down benefits to households or small businesses. Without benefits to households or small businesses, there will be no improvement in spending (GDP) or employment.
What will result from QE2 is the devaluation of the U.S. Dollar as there will be too many Dollars floating around, in relation to hard assets such as precious metals, and foreign currencies. This reduces the purchasing power of Dollars, and reduces the value of cash in bank accounts. In other words, the consumer gets hurt.
The only way QE2 makes any sense at all is if it is conducted in such a way that the cash being printed by the Fed finds its way directly into the hands of households and small businesses, instead of Wall Street. The only way for this to happen is if newly issued debt from the U.S. Treasury is sold to the Fed for newly printed Dollars, and then the trillions of QE2 Dollars sent to the Treasury from the Fed are sent directly to U.S. Households in the form of a massive income tax rebate, and tax cut, with a minimum amount of $50,000 rebated to every household, since many good folks did not have jobs over the past few years to receive rebated taxes. Then half the income tax rebates, which would be ideally two years worth, would be required to pay down debt, with the other half available to be used at households' discretion. The result would be an immediate improvement in household and bank balance sheets, and an increase in comsumer spending (GDP). This would increase small business revenue, which would increase hiring, which would result in an increase in demand for large firms' products and services, which would mean more investment banking business for Wall Street. The economy would grow, increasing the overall pie for all to share and prosper, with a resultant corresponding desirable modest level of inflation. Local, State and Federal governments would benefit immensely as they get an increase in tax revenues from the trickle up economic growth, capturing taxes at every level of spending, which can be used to reduce government deficits and debt. Stock Markets would rise as corporate revenues and profits rise.
If the intent of QE2 fails to include the household, it should not be allowed to happen. Congress must put a stop to QE2 immediately, and require a full explanation of the intended program before Bernanke destroys our economy. There should be an open debate in Congress on the merits of QE2, with testimony from all interested parties, in front of television cameras, for the American public to study before QE2 is effectuated. This is not something the Fed should conduct in secret. This is new turf, new territory for the Fed, and warrants careful scrutiny. The Justice Department needs to study if in fact the Fed is legally empowered to conduct QE2. This is serious stuff, an intentional devaluation of the U.S. Dollar, and thus needs to be treated as such. Intelligent, thoughtful contemplation is essential in an open public forum. Households and small businesses need to be able to weigh in by calling their congressional representatives before QE2 happens. QE2 should require an act of Congress. The Fed should not be allowed to do this on their own.
Unfortunately, the language of the markets, price patterns and indicators, have been warning for months that the U.S. Dollar is headed to 40ish (it knew QE2 was coming), and is telling us the stock market will react very badly once QE2 starts.
It does not look like there is any stopping QE2. The Central Planners are convinced that the more they do, the more control they take, the more they couch their activities with terminology that makes it impossible for the average Joe and Mary to understand what they are doing, the more they involve mega Wall Street firms in their fixes, the better. It is becoming very difficult to know if the Central Planners are simply misguided in their policies, that their intentions are good, that they really care about households and small businesses and the economy, or is this all an intentional game to benefit only the few large and powerful Wall Street banks, to build an oligarchy of Centralized power by design. That is for those who can figure out the schemes to decide for themselves.
The market's language, technical analysis, suggests that regardless of intention, mistakes will be conducted, and the worst will occur.
This weekend we see that the Bearish Divergences between stock prices and the 10 day average of Advancers/Decliners are worsening, extending, which is a leading indicator warning that a nasty stock market decline, albeit delayed, is coming.
We got a new Sell Signal in the VIX on Wednesday, as the VIX closed back inside its upper and lower Bollinger Bands Wednesday, and remains in effect this weekend. Sell Signals in the VIX have been very reliable and led to sharp declines over the past three years, however we did not get a sharp decline after September 7th, 2010's VIX Sell. For two consecutive VIX Sell Signals to fail in a row would be extremely rare, so the odds are that today's Sell Signal will lead to a sharp decline, starting sometime over the next week. Sometimes VIX Sell Signals come early. We show charts of these Sell Signals over the past three years and the subsequent declines on pages 10 through 13 in this weekend's newsletter to subscribers.
Both Gold and the HUI Mining Stocks Index hit new All-time Record Highs Thursday, October 14th, 2010, great for our Conservative Portfolio.
technicalindicatorindex.com
http://www.technicalindicatorindex.com/
Friday's internals were weak, in spite of being a mixed market. The NASDAQ 100 had a huge price move up, but a significant chunk of the price gain came from one stock, Google. Google rose $60.52 per share, or 11.10 percent, in one day, Friday. Google is one of those stocks that a market manipulator can buy to move an index in the hopes it starts bandwagon buying. During the 2003 and 2006 rallies, we saw MMM move the Industrials with bizarre isolated rising price days. At the time, it appeared to us a market manipulator was moving the Industrials higher with 3M purchases. From time to time we see concerted efforts to push markets higher. Now is one of those times. But each time this happens, it causes the subsequent decline to be worse than would otherwise have been the case, like stretching a rubber band too far. The snapback is nasty. Deep pockets can only delay the inevitable. They cannot stop it. Quantitative Easing talk is raising expectations for liquidity infusions that people think will seep into stock markets. Hedge funds are buying stocks ahead of the actual Quantitative Easing from the Fed. QE2 is simply a fancy name for the Federal Reserve printing U.S. Dollars and buying fixed income securities from large Wall Street firms, buying junk bonds, corporate bonds, mortgage backed securities or Treasuries. It is essentially a fraud on U.S. Dollar holders, is a fraud on the taxpaying U.S. Consumer and Small Business, a fraud on the working person who has to get his money through hard labor. We will discuss this further later, and why this policy will destroy what is left of this fragile economy, and will eventually help drive stock market values down toward zero, and drive the U.S. Dollar down toward 40ish. QE2 is wonderful for large Wall Street firms' short-term profits. They love it. Imagine having a business where the Federal Reserve is interested in helping you make as much money as possible at the expense of everyone else? That is QE2.
We learned Friday that the U.S. Federal Deficit for the Fiscal Year Ending September 30th, 2010, was $1.3 trillion. With a total Federal Budget of $3.5 trillion, this means that for every dollar spent by the Federal Government, they had to borrow 37 cents to cover that expense. Can you imagine running your household or small business like that? You would go bankrupt in short order.
Quantitative Easing will some day be looked back upon as we now look at healing the sick through bleeding back in the 1700s. It is terrible economic policy, in fact should be considered criminal activity. Criminal for many reasons, such as debasing the value of the Dollar, but more importantly because it will be the final nail that destroys our economy. Wall Street is the key beneficiary. Households (consumers) which account for 70 percent of GDP, and small businesses, which account for 70 percent of employment, will not benefit from this fraudulent activity by the Federal Reserve. Where on earth is it right for someone to print trillions of Dollars out of thin air and then buy legitimate legally binding debt instruments in exchange for this printed paper? Anyone else doing this would be arrested and thrown in jail, with the key tossed into the deep blue sea.
But forgetting that this is probably a criminal act, and assuming that it is legally acceptable because the Central Planners enact legislation to permit QE2, let's explore why it is a fraud on pretty much everyone except the sellers of the fixed income securities the Fed will be buying, primarily mega Wall Street firms, surrogates for the president's Working Group (the Plunge Protection Team).
Bernanke suggested in his speech in Boston Friday on the subject of QE2, that he is justified in doing this to raise the inflation rate, which he believes is too low, and to increase employment. His economics are dead wrong. He believes it is perfectly appropriate to print trillions of dollars of U.S. Federal Reserve notes (Dollars) out of thin air, and then send this money from the Fed's print shop across the invisible wall that separates the real economy from the non-economy (the Fed) to the lucky recipients of this cash. Here is the problem: This transfer of printed cash for securities in the market are normally known as open market operations, and the point of this exercise is to lower interest rates in the market to spur lending and filter cash through Wall Street intermediaries to banks to borrowers which would stimulate the economy and multiply the money supply in the market. However, short-term interest rates are already zero, and long-term interest rates are at historic lows. So QE2 will not reduce interest rates. Therefore it will not increase borrowing. Therefore it will not multiply the money supply or spur spending, ergo it will not improve GDP, will not help households or small businesses. The cash will simply move from the Fed to Wall Street where the mega banks can then leverage their investing and trading activities which will improve their short-term profits. There will be no trickle down benefits to households or small businesses. Without benefits to households or small businesses, there will be no improvement in spending (GDP) or employment.
What will result from QE2 is the devaluation of the U.S. Dollar as there will be too many Dollars floating around, in relation to hard assets such as precious metals, and foreign currencies. This reduces the purchasing power of Dollars, and reduces the value of cash in bank accounts. In other words, the consumer gets hurt.
The only way QE2 makes any sense at all is if it is conducted in such a way that the cash being printed by the Fed finds its way directly into the hands of households and small businesses, instead of Wall Street. The only way for this to happen is if newly issued debt from the U.S. Treasury is sold to the Fed for newly printed Dollars, and then the trillions of QE2 Dollars sent to the Treasury from the Fed are sent directly to U.S. Households in the form of a massive income tax rebate, and tax cut, with a minimum amount of $50,000 rebated to every household, since many good folks did not have jobs over the past few years to receive rebated taxes. Then half the income tax rebates, which would be ideally two years worth, would be required to pay down debt, with the other half available to be used at households' discretion. The result would be an immediate improvement in household and bank balance sheets, and an increase in comsumer spending (GDP). This would increase small business revenue, which would increase hiring, which would result in an increase in demand for large firms' products and services, which would mean more investment banking business for Wall Street. The economy would grow, increasing the overall pie for all to share and prosper, with a resultant corresponding desirable modest level of inflation. Local, State and Federal governments would benefit immensely as they get an increase in tax revenues from the trickle up economic growth, capturing taxes at every level of spending, which can be used to reduce government deficits and debt. Stock Markets would rise as corporate revenues and profits rise.
If the intent of QE2 fails to include the household, it should not be allowed to happen. Congress must put a stop to QE2 immediately, and require a full explanation of the intended program before Bernanke destroys our economy. There should be an open debate in Congress on the merits of QE2, with testimony from all interested parties, in front of television cameras, for the American public to study before QE2 is effectuated. This is not something the Fed should conduct in secret. This is new turf, new territory for the Fed, and warrants careful scrutiny. The Justice Department needs to study if in fact the Fed is legally empowered to conduct QE2. This is serious stuff, an intentional devaluation of the U.S. Dollar, and thus needs to be treated as such. Intelligent, thoughtful contemplation is essential in an open public forum. Households and small businesses need to be able to weigh in by calling their congressional representatives before QE2 happens. QE2 should require an act of Congress. The Fed should not be allowed to do this on their own.
Unfortunately, the language of the markets, price patterns and indicators, have been warning for months that the U.S. Dollar is headed to 40ish (it knew QE2 was coming), and is telling us the stock market will react very badly once QE2 starts.
It does not look like there is any stopping QE2. The Central Planners are convinced that the more they do, the more control they take, the more they couch their activities with terminology that makes it impossible for the average Joe and Mary to understand what they are doing, the more they involve mega Wall Street firms in their fixes, the better. It is becoming very difficult to know if the Central Planners are simply misguided in their policies, that their intentions are good, that they really care about households and small businesses and the economy, or is this all an intentional game to benefit only the few large and powerful Wall Street banks, to build an oligarchy of Centralized power by design. That is for those who can figure out the schemes to decide for themselves.
The market's language, technical analysis, suggests that regardless of intention, mistakes will be conducted, and the worst will occur.
This weekend we see that the Bearish Divergences between stock prices and the 10 day average of Advancers/Decliners are worsening, extending, which is a leading indicator warning that a nasty stock market decline, albeit delayed, is coming.
We got a new Sell Signal in the VIX on Wednesday, as the VIX closed back inside its upper and lower Bollinger Bands Wednesday, and remains in effect this weekend. Sell Signals in the VIX have been very reliable and led to sharp declines over the past three years, however we did not get a sharp decline after September 7th, 2010's VIX Sell. For two consecutive VIX Sell Signals to fail in a row would be extremely rare, so the odds are that today's Sell Signal will lead to a sharp decline, starting sometime over the next week. Sometimes VIX Sell Signals come early. We show charts of these Sell Signals over the past three years and the subsequent declines on pages 10 through 13 in this weekend's newsletter to subscribers.
Both Gold and the HUI Mining Stocks Index hit new All-time Record Highs Thursday, October 14th, 2010, great for our Conservative Portfolio.
technicalindicatorindex.com
http://www.technicalindicatorindex.com/
Friday, October 15, 2010
Thursday, October 14, 2010
Jim Grant: The World Is Abandoning the US Dollar
The dollar has seen its time. There could be a bounce, but really, no one trust the US. They just don't get it.
Jim Grant: The World Is Abandoning the US Dollar
Jim Grant: The World Is Abandoning the US Dollar
Monday, October 11, 2010
The Folly of Competitive Currency Devaluations - Casey's Daily Dispatch
As well as the folly of currency devaluations, a very good article on the folly of climate change.
Heads up....
The Folly of Competitive Currency Devaluations - Casey's Daily Dispatch
Heads up....
The Folly of Competitive Currency Devaluations - Casey's Daily Dispatch
Saturday, October 9, 2010
Friday, October 8, 2010
Thursday, October 7, 2010
Wednesday, October 6, 2010
Tuesday, October 5, 2010
Daniel Hannan MEP, possibly the sanest man on the planet: part 3/3
A great British stateman advising Americans
YouTube - Daniel Hannan MEP, possibly the sanest man on the planet: part 3/3
YouTube - Daniel Hannan MEP, possibly the sanest man on the planet: part 3/3
Monday, October 4, 2010
Sunday, October 3, 2010
Friday, October 1, 2010
US 'Practically Owned' by China so Buy Gold
John Paulson has 80% of his assets in Gold. Wow!!
Analyst: US 'Practically Owned' by China so Buy Gold
Analyst: US 'Practically Owned' by China so Buy Gold
Traveling Down the Road to Serfdom: History of Socialism from Marx to Obama | Yuri N. Maltsev
How Socialism works....from some one that has been there
YouTube - Traveling Down the Road to Serfdom: History of Socialism from Marx to Obama Yuri N. Maltsev
YouTube - Traveling Down the Road to Serfdom: History of Socialism from Marx to Obama Yuri N. Maltsev
Thursday, September 30, 2010
Wednesday, September 29, 2010
Tuesday, September 28, 2010
Monday, September 27, 2010
Sunday, September 26, 2010
Friday, September 24, 2010
Thursday, September 23, 2010
Wednesday, September 22, 2010
Shiller Warns Seven Years of Economic 'Bad Times' in Store for US
Well, I sort of agree, what will be positive for the next 7 years? Any thing?
Obama will be gone, but America and rest of the world probably will still have too much debt.
Shiller Warns Seven Years of Economic 'Bad Times' in Store for US
Obama will be gone, but America and rest of the world probably will still have too much debt.
Shiller Warns Seven Years of Economic 'Bad Times' in Store for US
Great Britain is 'worst place to live in Europe'
Hmm.....not great news for us living in the UK
Great Britain is 'worst place to live in Europe' - Yahoo! News UK
Great Britain is 'worst place to live in Europe' - Yahoo! News UK
Monday, September 20, 2010
Saturday, September 18, 2010
10 Get-Paid-To-Wait Dow Stocks
MRK, KFT, CVX, JNJ, INTC, HD, PG, KO, MCD, XOM - Dividend yield from 4.1% to 2.8%
YCharts: — 10 Get-Paid-To-Wait Dow Stocks
YCharts: — 10 Get-Paid-To-Wait Dow Stocks
Empires on the Edge of Chaos - Niall Ferguson
Very good review of empires and the economy by Niall Ferguson; a one hour lecture. From the Australian Broadcasting Corporation
If this does not load - here is the link
http://fora.tv/2010/07/28/Niall_Ferguson_Empires_on_the_Edge_of_Chaos
If this does not load - here is the link
http://fora.tv/2010/07/28/Niall_Ferguson_Empires_on_the_Edge_of_Chaos
Greenspan’s Warning on Gold - September 15, 2010 - The New York Sun
Now Greenspan is thinking Gold has merit. Of course he did previously as well, however, it sort of threw aside when he was Fed governor as he inflated.
Greenspan’s Warning on Gold - September 15, 2010 - The New York Sun
Greenspan’s Warning on Gold - September 15, 2010 - The New York Sun
Friday, September 17, 2010
Thursday, September 16, 2010
Faber: Rich Dividends May Spark Stock Market Rally
What else is there....timing will be everything though
Faber: Rich Dividends May Spark Stock Market Rally
Faber: Rich Dividends May Spark Stock Market Rally
Preserve Your Capital With Gold, Silver
The only safe investment (maybe few gold stocks)
Preserve Your Capital With Gold, Silver - Bob Chapman -- Seeking Alpha
Preserve Your Capital With Gold, Silver - Bob Chapman -- Seeking Alpha
Wednesday, September 15, 2010
New supply, flat demand will create an oil surplus
Short term view of oil price - get ready for $50/bbl - Fortune Mag
New supply, flat demand will create an oil surplus - Sep. 8, 2010
New supply, flat demand will create an oil surplus - Sep. 8, 2010
Long Term Graph of Dow
http://dshort.com/articles/Kimble/100915-Dow-70-Year-Resistance.html
US Air looks at hedging and says, "No thanks" - The Barrel
Hedging - Does it make sense?
US Air looks at hedging and says, "No thanks" - The Barrel
US Air looks at hedging and says, "No thanks" - The Barrel
Friday, September 10, 2010
Wednesday, September 8, 2010
This has been no garden-variety recession
This is not a recession! We know that....
This has been no garden-variety recession - The Globe and Mail
This has been no garden-variety recession - The Globe and Mail
Monday, September 6, 2010
Quote from Democrat Govenor - What Progressives Want
"'It's a free country. I wish it weren't...' --Massachusetts Gov. Deval Patrick, a Democrat.'
Friday, September 3, 2010
Malaysian Muslims Go for Gold, But It's Hard to Make Change - WSJ.com
USD is being rejected....the US can not continue its ways of deceit and deception, the world is beginning to reject the US, they have caught on what the US is doing. Question, will the US change? I hope but doubt it.
Malaysian Muslims Go for Gold, But It's Hard to Make Change - WSJ.com
Malaysian Muslims Go for Gold, But It's Hard to Make Change - WSJ.com
Thursday, September 2, 2010
Priceless: How The Federal Reserve Bought The Economics Profession
The Fed buys protection and takes the taxpayers / government for a ride. From the Huffington Post
Priceless: How The Federal Reserve Bought The Economics Profession
Priceless: How The Federal Reserve Bought The Economics Profession
Wednesday, September 1, 2010
The Fed's Plans - Start Throwing Rocks
The quote of the day has to go to Alan Blinder in his comment on Ben Bernanke’s menu of quantitative easing options outlined last Friday
“The Fed has run out of the strong tools, and is turning to weak ones. When you're fighting in a foxhole and you’ve used up the machine guns and hand grenades, then you pull out the sword and start throwing rocks.”
“The Fed has run out of the strong tools, and is turning to weak ones. When you're fighting in a foxhole and you’ve used up the machine guns and hand grenades, then you pull out the sword and start throwing rocks.”
Third Point Q2 2010 Investor Letter
Good read.
Daniel S. Loeb's investment letter for Third Point 2Q 2010 results.
Third Point Q2 2010 Investor Letter
Daniel S. Loeb's investment letter for Third Point 2Q 2010 results.
Third Point Q2 2010 Investor Letter
Tuesday, August 31, 2010
Jim Rogers: Investors Must Own Real Assets
Mr. Bernanke has never been right about anything,” comments Rogers. He notes that Fed chairman Bernanke doesn’t understand economics, finance, or currencies and is merely pushing the problem to the future by printing more money.
Rogers says that central banks are destroying the saving and investing class. “We’re going to have a lot more currency turmoil over the next 2 or 3 years because of the huge imbalances that exist in the world.”
Jim Rogers: Investors Must Own Real Assets
Rogers says that central banks are destroying the saving and investing class. “We’re going to have a lot more currency turmoil over the next 2 or 3 years because of the huge imbalances that exist in the world.”
Jim Rogers: Investors Must Own Real Assets
China's Insatiable Appetite for Gold
Take note, China does not trust the USD, buying Gold.
China's Insatiable Appetite for Gold Oil Price.com
China's Insatiable Appetite for Gold Oil Price.com
Monday, August 30, 2010
Friday, August 27, 2010
Visa restrictions: No visa required
Gotta love being British.
Visa restrictions: No visa required The Economist
Visa restrictions: No visa required The Economist
Thursday, August 26, 2010
Andrw Lahde's Farewell
Andrew Lahde’s infamous “farewell” upon shuttering his hedge fund in October of 2008:
Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.
Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.
There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.
I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.
So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.
I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.
On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government. Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to crea te a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.
Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won.
At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country? Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You wou ld not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.
With that I say good-bye and good luck.
All the best,
Andrew Lahde
Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.
Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.
There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.
I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.
So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.
I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.
On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government. Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to crea te a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.
Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won.
At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country? Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You wou ld not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.
With that I say good-bye and good luck.
All the best,
Andrew Lahde
Wednesday, August 25, 2010
China Will Force the World Off Oil
Price of oil will be going up.
Geo-Graphics » Blog Archive » China Will Force the World Off Oil
Geo-Graphics » Blog Archive » China Will Force the World Off Oil
Tuesday, August 24, 2010
Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing
Very interesting proposal. Amazing what man will dream up.
Think the Euro has problems, watch this one.
Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing
Think the Euro has problems, watch this one.
Bancor: The Name Of The Global Currency That A Shocking IMF Report Is Proposing
Monday, August 23, 2010
Dr. Keynes Killed the Patient
The link is to an allegory about Dr Hayek and Dr Keynes which discusses the dangers of quackery, whether medical or economic. Right now, economic quackery - in the form of Keynesianism - has overtaken Washington.
RealClearMarkets - Dr. Keynes Killed the Patient
RealClearMarkets - Dr. Keynes Killed the Patient
Sunday, August 22, 2010
Saturday, August 21, 2010
Are Your Ready for the Big One?
Get ready and hang on. Watch what fear will do once it is released.
Are Your Ready for the Big One? — Rick's Picks#more-25527
Are Your Ready for the Big One? — Rick's Picks#more-25527
Monday, August 16, 2010
Friday, August 13, 2010
Ten Reasons to Be Cautious
From the WSJ - 10 reasons to stand aside
ROI: Is a Crash Coming? Ten Reasons to Be Cautious - WSJ.com
ROI: Is a Crash Coming? Ten Reasons to Be Cautious - WSJ.com
Thursday, August 12, 2010
U.S. Is Bankrupt
I disagree...The US is Bankrupt and we know it.
U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff - Bloomberg
U.S. Is Bankrupt and We Don't Even Know It: Laurence Kotlikoff - Bloomberg
Japan's Debt Safer Than US Debt
China is buying Japan's debt. It is safer than the US debt. I would have to agree. The US has chosen its path. Until it demonstrates that it has changed it ways, we can only assume that it will continue what it has been doing. Printing money. The republic, the empire is on its way out.
China Economist: Japan's Debt Safer Than US Debt
China Economist: Japan's Debt Safer Than US Debt
Gov't horror: Budget disaster "will destroy the country from within"
Gov't horror: Budget disaster "will destroy the country from within"
By Walter Williams, Professor of Economics at George Mason University:
A MINORITY VIEW
By Walter Williams, Professor of Economics at George Mason University:
A MINORITY VIEW
Wednesday, August 11, 2010
America looks like Russia in 1998
Hmmm.....Russia was pretty messed up.
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"America today looks like Russia in 1998," Jochen Wermuth, Chief Investment Officer at Wermuth Asset Management, explained to CNBC today. "Consumers, companies and the government are all highly indebted. America as a result is a bankrupt Mickey Mouse economy."
Wermuth went on to remind pundits that "Even before the (Troubled Asset Relief Program) and the expansion of the Fed's balance sheet, total US public and private debt as a percentage of GDP...stood at 290 percent..."
*********
"America today looks like Russia in 1998," Jochen Wermuth, Chief Investment Officer at Wermuth Asset Management, explained to CNBC today. "Consumers, companies and the government are all highly indebted. America as a result is a bankrupt Mickey Mouse economy."
Wermuth went on to remind pundits that "Even before the (Troubled Asset Relief Program) and the expansion of the Fed's balance sheet, total US public and private debt as a percentage of GDP...stood at 290 percent..."
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