Saturday, October 30, 2010

HAPPY HALLOWEEN...................

H

APPY HALLOWEEN

THE NUN AND THE CABBIE

A N.Y. cabbie picks up a Nun. She gets into the cab, and notices that the VERY handsome cab driver won't stop staring at her.

She asks him why he is staring.

He replies: "I have a question to ask, but I don't want to offend you"

She answers, "My son, you cannot offend me. When you're as old as I am and have been a nun as long as I have, you get a chance to see and hear just about everything. I'm sure that there's nothing you could say or ask that I would find offensive."

"Well, I've always had a fantasy to have a nun kiss me."

She responds, "Well, let's see what we can do about that:

#1, you have to be single and

#2, you must be Catholic."

The cab driver is very excited and says, "Yes, I'm single and Catholic!

"OK" the nun says. "Pull into the next alley."

The nun fulfills his fantasy with a kiss that would make a hooker blush.

But when they get back on the road, the cab driver starts crying.

"My dear child," said the nun, "Why are you crying?"

"Forgive me I've sinned. I lied and I must confess; I'm married and I'm Jewish."

The nun says, "That's OK. My name is Kevin and I'm going to a Halloween party."

Friday, October 29, 2010

EUROPE IS GETTING READY TO BLOW. AND THE NIKKEI IS TANKING ...............

The next PIIGS crisis has been brewing for the last few days.

5-year Spanish, Greek, and Portuguese CDS are blowing out this morning.

The euro, which has remained shockingly elevated in recent weeks, is sliding again:

chart

The Nikkei Is Tanking

Is next week's "sell the news" selloff starting a day early?

After all, why wait to be the first out the door.

The Nikkei is down over 1.5%.

chart

Since May, the DOW and the Nikkei are 1800 points (or 15%) apart, after tracking closely together before that. One of them is wrong. Let's take a wild guess.


NIGHT OF THE LIVING FED.............

If I were a benevolent dictator, I would strip the Fed of its obligation to worry about the economy and ask it to limit its meddling to attempting to manage inflation. Better yet, I would limit its activities to making sure that the economy had a suitable amount of liquidity to function normally. Further, I would force it to swear off  manipulating asset prices through artificially low rates and asymmetric promises of help in tough times – the Greenspan/Bernanke put. It would be a better, simpler, and less dangerous world, although one much less exciting for us students of bubbles. Only by hammering away at its giant past mistakes as well as its dangerous current policy can we hope to generate enough awareness by 2014: Bernanke's next scheduled reappointment hearing." 
 
 
America needs to get real, you can't turn straw into gold.

GREAT THINGS ARE POSSIBLE IN AMERICA IF WE ALL PULL TOGETHER.............. NEVER GIVE UP!

The band Atomic Tom had their instruments stolen. They were riding the New York subway, happened to have a speaker set up with 4 inputs from iPhones (and a hardly impromptu two camera shoot). All four members play their iPhones and put on quite the show for their fellow riders. The result is fairly amazing.
 
 
"Take Me Out" by Atomic Tom LIVE on NYC subway
 
 
 
TECHNOLOGY AND THE ENERGY OF YOUTH. IMAGINE THE POSSIBILITIES IF WE WOULD ALL PULL TOGETHER INSTEAD OF BEING DIVIDED BY THE FORCES OF EVIL. YOU DON'T EVEN HAVE TO LIKE THE MUSIC TO APPRECIATE THE CREATIVITY AND TALENT OF THESE YOUNG MEN.  GREAT THINGS ARE POSSIBLE IN AMERICA IF WE ALL PULL TOGETHER!
 

HOW DO WE EDUCATE OUR CHILDREN IN THE FACE OF AN UNCERTAIN FUTURE...... THIS IS VERY IMPORTANT ...A MUST WATCH VIDEO

PLEASE DON'T MISS THIS SHORT CLIP.
 
PLEASE SEND IT TO EVERY TEACHER AND EDUCATOR YOU KNOW.
 
HOW DO WE EDUCATE OUR CHILDREN IN THE FACE OF AN UNCERTAIN FUTURE.
 
 
 

Alan Greenspan’s Asset Bubble Band............. MAY OUR ECONOMY REST IN PEACE

Alan Greenspan's Asset Bubble Band
 
 MAY OUR ECONOMY REST IN PEACE
 
See if can you find the following:

George Dubya Bush, Ayn Rand,  Erin Callan, Steve Flintstone, Wall Street Madam, Chris "Party Time" Cox, Chucky the Dancer Prince, Sandy 2Big2Fail Weill, Charles Ponzi, Johnny Comode, Hank Greenberg, Senator Dodge, Ronald & Bonzo, Jamie Dimon, Bubba Clinton, Gideon Gono, Barney Rubble, Robert Rubin, Vikram Pandit, Tyler Durden, John Howstheweather, Jimmy Cannibis, Bernie Madoff, Dr Ben, Alan Greenspan, Hank Paulsen, Forest Gump, Bobby Dylan, Christine Romer, WillamBanzai7, Mad Cramer, John Milton Clown, Maria Bartiromo, Uncle Milton, Obama Bin Banksta, Justin Bieber, Stan Oh Shit!, Super Gramm, Father Blankfein, Lucas Van Praag, Neal Cash N Carry, Warren Buffoon, TurboTim, Joey Fast Talk Cassano, Fabrice Tourre, Angelo Godzilla, Dick the Gorilla, Chuckie Fast Trade Schumer, Ken Screwless Lewis, Larry Summers

 
 
 
 

HOW TO HAVE A GREAT IDEA.................

AT THE LINK THE GRAPHIC IS MUCH BIGGER AND EASIER TO READ
 
 
 
 

AMERICA MUST AWAKEN........................

AMERICA MUST AWAKEN

We must join together, all of us, as Americans and unite all Americans from across the land whose honor is still evident and form a new alliance of salvation for our nation. We must do this in haste and in earnest or We will all perish. We must stand our posts and demand "loyalty be present" amongst us, from all with the courage and the soul to join us.

"We The People" must awaken and dare to be judged by our Founding Fathers as their heirs.

 

We accept full responsibility as citizens for what has happened to America on Our Watch.

We accept full responsibility as elected officials for what has been done to America and its citizens.

We accept full responsibility as citizens for repairing the damage caused by our lethargy.

We accept full responsibility as elected officials for repairing the damage caused by greed, ignorance and the addiction of power.

We accept our rights as free men and women given only by Nature and God, and not supposed by governments of any nation.

We accept all those rights granted to us by the Constitution of The United States or its lawful amendments.

We reject bigotry, racism, slavery, sloth, felony and religious hatred.

We reject entitlement, indolence, suppression, betrayal, subversion, any allegiance to foreign governments, corporate or any fanatical entities.

We reject totalitarianism in any of it forms: Progressivism, Socialism, Marxism, Nazism, Communism, Fascism, social justice, and all foreign unions except in times of war.

We reject any attempt to grant rights to us by any foreign government.

We reject any attempt to take any rights granted to us by the Constitution of The United States and our States by any government, any nation or any other entity.

We reject

Sharia Law.

We demand allegiance to our Nation, Our Constitution, and our Flag.

We demand our sacred national and state sovereignty and the absolute protection of our borders.

We demand allegiance to our Federal

Republican government. We are not a democracy.

We demand all our rights as guaranteed by the Constitution of The United States, The Bill of Rights and the Articles of Confederation.

We demand character, honor, sacrifice, decency, charity, service, and responsibility in our institutions and from our citizens.

We demand the return of our right of the freedom of religious expression in our mist.

We demand protection of States Rights as guaranteed by the Constitution of The United States.

We demand the end of racism, bigotry and the slavery of social justice.

We demand a united re-birth of our nation by our own doing and by The Grace of God.

We demand trials of Treason against all who betray their sacred oaths to our Nation, our States, our laws or our citizens.

We demand that We be righteous in all endeavors and accountable to "We The People", the legal heirs of the Republic.

To Defeat this tyranny of betrayal that bears down on us with poison and death, We must reclaim the vision passed to us. We must join together, all of us, to save our nation from the poison that attacks our children, our elderly, our veterans, the poison that attacks our history, the poison that attacks our decency. We must put aside our petty differences and our belief in entitlements. We must join together, all of us, to save our nation from the death of our heritages, our traditions, our laws, our dreams, our liberties and our Republican government.

Real Growth in US Stocks, 1871-2010....................

 

Thursday, October 28, 2010

MORAL ROT AND SOCIOPATHOLOGY IN AMERICA......................AN ABSOLUTE MUST READ

MORAL ROT AND SOCIOPATHOLOGY IN AMERICA

Misrepresentation, fraud and gaming the system are all heavily incentivized in the U.S. culture and economy, and honesty is punished. This truth is finally being revealed on a grand scale. The propaganda about the "recovery" has gone beyond the merely unbelievable and the surreal all the way to psychosis.

With accountability effectively lost, cheating, lying, misrepresention, embezzlement and fraud, both petty and monumental, have all been incentivized. Thus the "little people" game the welfare/entitlement system and the Financial Elites game the mortgage market, and everyone gamed whatever piece of the housing bubble they could grab.

Where does that leave the honest citizenry? At an extreme disadvantage.

Financial Power Elites and the Federal Government are both wedded to lies, half-truths, misrepresentation, omissions, fraud, corruption and the full panoply of propaganda. To tell the truth is to bring down the entire status quo.

The anger of the honest will soon know no bounds,

and the guilt of the complicit will settle like a silent pall over the nation: guilty as charged.

The moral rot at the center of American life results from a normalization of pathologies--sociopathic and psychopathic states and behaviors are now "normal" or incentivized.

Moral behavior is institutionally punished.

While the American/Western worldview holds that we are autonomous individuals exercising free will at every moment,

in reality we are all heavily programmed by our socio-economic class conditions. What is so striking about present-day America is the way in which the narcissistic, no-moral-compass social pathologies of entitlement, denial and fabrication of "truth"/reality has been "normalized" (accepted as normal behavior and thinking) in all social classes.

The depth of our own pathology can be measured by our resistance to admitting the systemic fraud, lying, entitlement and narcissistic pathologies in whatever slice of American society we value.

For example, Liberals experience an overwhelming urge to excuse or deny welfare fraud and indeed, all the pathologies of the "underclass."

That is a direct measure of their own internal normalization of social pathologies.

Conservatives experience an overwhelming urge to excuse or deny Corporate Welfare and the partnership/collusion of the Central State (which they fear) and Crony Capitalism (which they revere, even though it is only a simulacrum of classic free-market capitalism).

To the degree that an individual dismisses cheating on tests in school, fabricated resumes, bogus balance sheets and dishonest mortgage applications and tax returns because "everybody does it,"

the sociopathologies have been fully absorbed as not just normal but as beneficial and acceptable.

Though we like to favor ourselves as autonomous entities brimming with individuality, most of our worldview and behaviors are programmed by our social-economic status and conditioning.

Consider how easily the behaviors and values of most Americans fall into three basic classes in American culture which are remarkable predictors of worldviews and largely unconscious "values" and behaviors.

This reality is part of what I term the politics of experience: we can't experience the "water" we swim in until we consciously occupy another more objective perch which is informed by history and the awareness of who benefits from the normalization of various beliefs and behaviors.

The "working class" is programmed to rely on television for most of its "information" about life, and thus they are programmed to:

1. Consume copious quantities of fast foods and convenience foods, and consider indolence a luxury. As a result, they are programmed to become obese/diabetic.

2. The boys are programmed to favor football and basketball in sports, service in the Armed Forces as the only viable choice to low-skill, fitful employment, to drop out of four-year college if pressured to enter, and vocational training, often paid for by the G.I. Bill after military service.

3. Males are programmed to place identity value on their vehicles and real-world "manly" skills (working on vehicles, farm equipment, woodworking, etc.), but their programmed aspirations are aimed at impossibly narrow fields: professional sports, hip-hop and other entertainment, etc. As a result, their real-world skills are generally undeveloped or modest.

In essence, they are programmed to fail in the "knowledge economy" and in real-world practical jobs which are not glorified by the broadcast media.

They accept low-level work and are dissatisfied, often turning to drugs to relieve their ennui.

4. Their interests are channeled by the media into extreme sports, mixed martial arts, auto racing, football, etc., but they are programmed to express these interests through passive video games rather than by real-world experience. Programmed to low confidence, they generally give up quickly when faced with arduous training, except when forced by institutions such as the Military.

5. Working class families have few resources to draw upon, and the mobility favored by Corporate America has shredded the social networks which once offered support (church membership, social clubs, neighborhoods, etc.) Family "help" is a sofa to sleep on at a relatives' house.

6. The girls are programmed to have sex and children early, as motherhood has positive identity value, even if they are woefully unprepared for parenting. Career choices tend to be "pink collar" type labor in Corporate America's sickcare system or government jobs; females are programmed to support their children and demand little of the fathers. Dependency on the State /Welfare in one form or another is the norm.

7. Politics holds little interest and most of the working class are programmed not to vote as it "never does any good anyway."

8. There are few books or other reading materials around the house, little to no original decorative art, few musical instruments that can actually be played with any joy or expertise; the lived environment is a cultural desert. The TV and a computer offer distraction and entertainment and little else. If they pursue social media, they are members of My Space and Facebook. They are deeply attached to their cellphones, which are perceived as markers of accessible status. Passports are unknown; foreign travel is experienced through military service only.

The "middle class" aspires to the "upper class" life they see on television and other media, but their aspirations are for the trappings of wealth rather than for the engines of wealth.

1. Though the middle class person clings mightily to various totems of "membership" in the middle class, and experiences tremendous loss of identity and self-esteem when these totems are lost, in reality their wealth is modest and they have few family resources.

2. Though they watch a lot of TV, they also consume massive quantities of other low-value media through the electronic devices they see as emblematic of the "middle class" lifestyle: laptop computers, iPods, etc. Their cellphones and other electronics are key identity markers: the higher the status of the brand, the more valuable the device. Apple products are de riguer "high status."

3. Books and reading materials around the house tend to be best sellers or materials assigned in class; few households receive newspapers or magazines other than National Geographic. If books are read, they are genre books such as mysteries. Dog-eared copies of the Harry Potter series abound. Those households which aspire to "upper class" education may subcribe to a few magazines which are viewed as totems of high-class lifestyles: The New Yorker, Saveur, etc.

4.

"Education" is valued but mastery is not; the goal is to obtain the certificate or paper required by gatekeepers in the government or Corporate America, not the actual skillsets. Though education is "valued," few households (regardless of income, which is often high) save religiously enough to fund university educations; borrowing vast sums of student loans is the norm. Adult education is pursued to obtain the same gatekeeper certificates in whatever field the adults toil in. Learning for the pleasure of learning is unknown or deemed a waste of time when "we could be having fun."

"Enrichment" classes are provided to the children, but the purpose is to gain a veneer of respectability as an aspirant to upper-class membership; piano lessons are dutifully offered but nobody plays music in the house for enjoyment, so the lessons are soon dropped. Live performances are also attended occasionally as "enrichment." Foreign travel is experienced via college programs or packaged tours fit into 2-week vacations allowed by Corporate America.

5. Favored sports include soccer and volleyball for the girls, and skateboarding and baseball for the boys. Team sports are favored over individual competition, and adults spend significant time ferrying kids to various after-school sports, which are deemed "character-building."

6. Ownership of status brands is highly important; brand consciousness is acute. Target is favored over Wal-Mart, and designer-luxury brand purses, shoes, autos, etc. are highly desirable "markers" of success and identity. Most of the family income goes to paying for these "markers" of membership.

7. A four-year college degree is the goal, with an MBA or master's degree considered a higher-level enabler of a better career. The cherished goal is acceptance to an elite university which is viewed as a magical ticket to "fast track" advancement in the government or Corporate America. Meritocracy is accepted as the norm. Military service is shunned in favor of attending college right out of high school. Favored social media are related to career/corporate advancement: LinkedIn, etc. Foreign films and chic dining are valued as "markers" of high-class status.

The upper class has the confidence born of the knowledge that the family resources can always bail one out. High-paying jobs will be provided via networks; art-aspirant careers are highly valued, and family resources enable dilletante dabbling in acting, film-making, visual arts, etc.

Entrance to prep schools and family money/connections enable entrance to institutions the middle class must gain entrance to via meritocracy.

Favored careers include venture capital, high-status government positions, management of family businesses, plum slots in NGOs, etc. Noblesse Oblige is served via membership on boards of charities, the local symphony and museum, etc. These networks provide connections to business opportunities unavailable to the middle class.

Children already get passports and foreign travel to exotic locales is standard. Middle-class aspirants are viewed paternalistically or with scorn; they are worker-bees for the Corporate America/State owned or managed by the upper class. The working class is avoided except as servants, who are often immigrants.

My point is that to varying degrees, the normalization of narcissism and social pathologies is now embedded in the programming of all social classes.

The rot in America is not limited to "deviance" in any one class; it is present in various manifestations in all social classes.

Tweaking policies and gaming the gaming will not "cure" what ails America.

Moral will "must be cultivated and it demands truthfulness and willingness to sacrifice for its actualization." Until we are prepared to make those sacrifices, then the rot will only deepen.
THIS IS WHAT IS DESTROYING AMERICA!


The whole "recovery" facade is falling apart, and the market knows it................ AND WE KEEP GOING HIGHER ON SUSPECT VOLUME

The whole "recovery" facade is falling apart, and the market knows it. Take a look at this chart of the Dow Jones Industrial Average, and imagine large ravenous rats fleeing a sinking ship while media shills are cajoling retail investors to jump on board while the tickets are still cheap:
 
 
Look at the anemic volume. Who's buying to hold longer than a few minutes or perhaps days? Nobody. Insiders are selling at an unprecendented ratio of a gazillion-to-one (slight imprecision in the data) of shares sold versus shares bought. The scurrying of little desperate feet is becoming louder. The powers that be had to pummel the U.S. dollar mercilessly for the past two weeks to keep the equity rally going, and now they're encountering push-back on multiple fronts.

Every propaganda and manipulative tool has been pushed to the limit.

All the levers have been pulled and the wheels are all hard over; the engines are straining and the crew knows we're not going to miss the iceberg, but there is still a reservoir of magical thinking, a terribly misplaced hope that "it won't be too bad."

The stink of fear in the air, the whiff of desperate men (and a very few women) trying futilely to maintain the illusion that "everything's normal now" and most absurdly, "this recovery is tracking previous recoveries." Yeah, if your delusional and turn the charts upside down so "down" becomes "up."

Presenting More Proof That Quantitative Easing Doesn't Work.................

Presenting More Proof That Quantitative Easing Doesn't Work

The whole theory behind QE revolves around the idea that the Central Bank can reduce long-term interest rates.  If they can reduce rates they can make other assets more attractive, they can create a refinancing effect, they can entice borrowing/lending and they can alleviate the pressure on debtors.  All of this will theoretically help boost aggregate demand and result in sustained recovery.  There is only one problem with all of this.  There is no historical evidence that QE actually works to lower interest rates.  The two most famous cases – the USA and Japan where interest rates rose throughout the programs, borrowing remained weak and the economies remained weak.

One instance that is less well documented, however, is the case of quantitative easing in the UK.  The following chart shows the duration of the program and the interest rate effect:

chart
 

The conclusion is obvious.  Interest rates do not decline during a program of quantitative easing.  In fact, in all three cases I've highlighted interest rates rose throughout the program.  This is extremely important to understand because without the intended interest rate decline there is simply no argument in favor of this policy.  There is no refinancing effect, there is no reduced rates to borrow at, there is no fundamental change in the economy.  This is why, after all three instances, the economies remain(ed) very weak.  QE is merely an asset swap.  It doesn't alter net private sector financial assets.  It does not reduce rates.  It does not create jobs.  It does not boost aggregate demand.

Thus far, the only thing QE appears to do is drive asset prices higher without being supported by any underlying fundamental change.  This is largely due to the psychological impact of QE and the falsehood that QE = "money printing".  Thus far, this psychological impact of QE has backfired on the Fed as input costs have surged and the Fed has inadvertently begun to reduce corporate margins.  If the goal here is to keep "asset prices higher than they otherwise would be" then the Fed appears to be winning their battle.  Unfortunately, there is no evidence showing that there is a fundamental reason why QE would justify such a move.  In fact, the market collapses following the end of all three major historical QE programs appears to prove that this is bordering on ponzi Central Banking and nothing more.

Mr. Bernanke appears to be ignoring the simple historical facts.  And those who ignore history are destined to repeat it.

The disconnect between the sentiment on Wall Street and Main Street................

The disconnect between the sentiment on Wall Street and Main Street, looking at the SPX versus Consumer Confidence Survey:
 
It's a stark illustration and indictment of the Obama/Emanuel/Summers/Geithner folly. They pandered to Wall Street and gave them virtually every possible bailout with no strings attached. Typically, Wall Street has responded not with "thank you" but with "f**k you." Still need more tax breaks, still want less regulation, blah blah blah. It is never, ever enough for these white collar criminals and they don't know when enough is enough.
 
This gap is the worst kind of bubble creation because it's not cyclical, it's structural.
 
Don't buy into the "We had to do something" bullshit either. Every action was selfish, wrong and did nothing but make the situation even worse and harder to solution.   
 
HERE IS EXACTLY WHY WE MAY NEVER FIX THE PROBLEMS WE HAVE;
 

"It is difficult to get a man to understand something when his salary depends upon his not understanding it."

                                                                                                                                             Upton Sinclair 

DOING THE RIGHT THING AND THE TRUTH USED TO MATTER IN AMERICA, NOW MONEY IS ALL THAT MATTERS TO THOSE THAT ARE IN CONTROL. 

IMAGE HAS CLEARLY TRIUMPHED OVER CHARACTER. 

 

S&P 500 UPDATE............. AND A LONG TERM VIEW OF CURRENT PRICE LEVELS

 
The year-to-date performance is 6.33%, but the correction since the interim high on April 23 is -2.60%. The index is 75.3% above the March 9 2009 closing low but 24.2% below the peak in October 2007.
 
IF THE 75% THAT WE HAVE COME FROM THE LOW HAS IN LARGE PART BEEN ACHIEVED ON MANIPULATION AND RECOVERY EXPECTATIONS THAT HAVE FAILED, I THINK IT IS RATHER OBVIOUS WHICH WAY THE NEXT MOVE IS GOING TO TAKE US.
 

 

One thing we can do is examine the past to broaden our sense of the range of possibilities. An obvious feature of this inflation-adjusted chart of the S&P Composite is the pattern of long-term alternations between up- and down-trends. Market historians call these "secular" bull and bear markets from the Latin word saeculum "long period of time" (in contrast to aeternus "eternal" — the type of bull market we fantasize about).

Click to View 
If we study the data underlying the chart, we can extract a number of interesting facts about these secular patterns:

The annualized rate of growth since 1871 is 1.91%. If that seems incredibly low, remember that the chart shows "real" price growth, excluding inflation and dividends. If we factor in the dividend yield, we get an annualized return of 6.58%. Yes, dividends make a difference. Unfortunately that has been less true during the past three decades than in earlier times.

If we added in the value lost from inflation, the "nominal" annualized return comes to 8.79% — the number commonly reported in the popular press. But for an accurate view of the purchasing power of our returns, we'll stick to "real" numbers.

Since that first trough in 1877 to the March 2009 low:

  • Secular bull gains totaled 2075% for an average of 415%.
  • Secular bear losses totaled -329% for an average of -65%.
  • Secular bull years total 80 versus 52 for the bears, a 60:40 ratio.

This last bullet probably comes as a surprise to many people. Until the recent gloom descended over the investment horizon, the finance industry and media have conditioned us to view every dip as a buying opportunity. If we understand that bear markets have accounted for 40% of the past 122 years, we can see the current market in a more realistic context.

Based on the real S&P Composite monthly averages of daily closes, the S&P is 44% above the 2009 low, which is still 40% below the 2000 high. The 2009 low measures about 6% above the average decline for secular bear markets. Of course, this number is a bit skewed by the bottom in 1932, which saw a greater decline over a much shorter period (three years versus nine).

Add a Regression Trend Line

Let's review the same chart, this time with a regression trend line through the data.

Click to View

Regression to trend usually means overshooting to the other side. The latest monthly average of daily closes is 30% above trend after having fallen only 8% below trend in March of last year. Previous bottoms were considerably further below trend.

I THINK THAT IT IS PRETTY OBVIOUS THAT ONLY GOVERNMENT MANIPULATION KEPT US FROM GOING MUCH LOWER IN THE LAST EPISODE AND THAT WE STILL HAVE MUCH FARTHER TO FALL BEFORE ALL OF THE BAD INVESTMENTS, FOOLISH POLICIES AND CORRUPTION ARE PURGED FROM OUR ECONOMY. THE ONLY QUESTION IS DOES THIS HAPPEN QUICKLY OR DOES IT HAPPEN OVER A LONG PERIOD OF TIME MAKING RECOVERY EVEN MORE UNLIKELY FOR A LONG TIME TO COME.  

DOLLAR CHARTS

Actions being taken to "improve" our economic situation will dramatically weaken the Dollar. Should the Dollar substantially decline from here, the negative consequences will far outweigh any benefits.
 
 

Wednesday, October 27, 2010

IMPORTANT ECONOMIC AND FINANCIAL THOUGHTS, QUESTIONS AND QUOTES..............

Y

ou only get out of life what you put into it. Nothing great is achieved easily or effortlessly. Knowing what you want in life and then having the right mix of patience and preparation will make the difference between success and failure. Once you understand that, anything and everything you desire is within your reach.

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The reason that politicians try so hard to get reelected is that they would 'hate' to try to make a living under the laws they've passed.

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Financial Power Elites and the Federal Government are both wedded to lies, half-truths, misrepresentation, omissions, fraud, corruption and the full panoply of propaganda. To tell the truth is to bring down the entire status quo.

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Anybody with a functioning brain already knows the Fed is "pushing on a string". We already know that "this will not end well."

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Millions of homeowners are now upside down, because the housing bubble - fed to a large extent by fraud - has burst.

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Americans have completely lost faith in their Financial Elites and government, for obvious reasons.

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The Federal government has betrayed its people in the most profound way. The Foreclosure crisis is only one moving part in a much larger machine bent on impoverishing the citizenry for the benefit of the Power Elites.

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Once a market has been poisoned by fraud which goes unpunished, then institutional players will avoid that market as untrustworthy.

Without institutional trust and participation, the market then withers on the vine-- exactly what has happened to the U.S. mortgage securities market. The market for mortgage-backed securities has vanished, except for one player: the Federal Reserve, which has bought a staggering $1.2 trillion in the past 18 months to create the facsimile of an active market.

The only mortgages being traded are those 100% guaranteed by the U.S. government: in effect, the risks intrinsic to a corrupted market have been shifted to the taxpayers, while the criminals who profited from the fraud and embezzlement got away scot-free.

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Every day I ask myself how allegedly brilliant economists, the best and the brightest, cannot see that continuing down the current path will lead to a situation like we recently saw in Greece.

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We've spent six decades passing the generational buck -- taking ever-larger sums from the young and giving them to the old, while promising the young their turn, when old, to expropriate their own offspring. This massive Ponzi scheme is turning the American Dream into the American Nightmare.

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The "brilliant idiots" that we call leaders and professors want to go back to the well "one more time" hoping the system will right itself by more spending even though it should be perfectly obvious that mathematically, demographically, and in actual historic practice, that more government spending cannot possibly work.


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Anyone who believes the foreclosure crisis can be contained is deluded, because the real issue in play is the citizens' trust in their government's ability to govern the nation's Financial Elites according to the rule of law. Clearly, our government has failed its citizens--utterly, completely, totally, at every level of governance (Federal, State, local) and at every level of oversight and regulation.

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At present, the governors of the Fed are creating massive distortions in the financial markets with little hope of improving real economic growth or employment. There is no question that the Fed has the ability to affect the supply of base money, and can affect the level of long-term interest rates given a sufficient volume of intervention. The real issue is that neither of these factors are currently imposing a binding constraint on economic growth, so there is no benefit in relaxing them further. The Fed is in fact, pushing on a string.

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When the price of oil increases, the cost of nearly all economic activity rises. Oil supply and demand imbalances can destroy our economy.

The world's oil production capacity may not be sufficient to match growing demand in coming years. The potential for short-falls arises from geological, infrastructure, and political/economic constraints limiting the ability of world oil production capacity to grow while demand continues to rise. If oil supply cannot meet demand a price spike will be triggered, with major detrimental effects on economies, especially those heavily dependent on oil imports.

The probability that oil production on our planet has already peaked carries with it a death sentence for billions of people within a single generation from now.

When we explore the economic effects of ever rising oil costs on transportation, electricity, economic growth and contraction, political power, civilization and – perhaps most importantly – food production. The picture is horrific, the ramifications being the end of the industrial age.

In 1859, upon the introduction of petrol extraction technology, the world started running out of oil. There is only so much of it, and

we have now reached a point where more than half to two thirds of it have been used up. Every drop that is left to find will be hard to get at and more costly with each passing year.

What most people do not realize is that 60% of all hydrocarbon resources have be applied to food production.

Through the use of petrochemical fertilizers, pesticides, herbicides, diesel fuel for tractors and harvesters, gasoline for farm-to-market transport, gas generated electricity for refrigeration, plastics for packaging and storage, the lion's share of this resource has been used for food production.

Oil based agriculture is primarily responsible for the world's population exploding from 1 billion at the middle of the 19th century to 6.3 billion at the turn of the 21st. As oil production went up, so did food production. As food production went up, so did the population. As the population went up, the demand for food went up, which increased the demand for oil. The price of food will now skyrocket because of the cost of fertilizer will soar. The cost of storing and transporting the food that is produced will also soar.

In order for the planet to continue to support humanity, it's numbers will have to be reduced dramatically.

THE WORLD IS HEADED FOR A MAN MADE CATASTROPHE OF AN ENORMOUS MAGNITUDE AND 90% OR MORE OF THE POPULATION DOESN'T HAVE A CLUE. REMOVING A 100 CLUELESS IDIOTS FROM CONGRESS AND REPLACING THEM WITH 100 MORE WILL NOT EVEN SLOW THE CRISIS THAT IS HEADED OUR WAY.

HERE IS A PDF THAT EVERY THINKING AMERICAN SHOULD READ;

The Next Oil Shock?

http://www.parliament.nz/NR/rdonlyres/7BEC9297-DEBE-47B5-9A04-77617E2653B2/163251/Thenextoilshock3.pdf

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THE PRIMARY POLICIES OF POLITICIANS THESE DAYS ARE IGNORANCE AND INCOMPETANCE.

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All these denials by banks insisting that they have no foreclosure problems, remind me of the Wizard of Oz telling Dorothy to "pay no attention to that man behind the curtain. Dorothy wasn't fooled either.


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WHAT IS MOST INTERESTING TO ME IS THAT IN A FEW MONTHS TIME WE HAVE GONE FROM A MANTRA OF RECOVERY IS GUARANTEED, TO NUMEROUS ARTICLES ABOUT REVOLUTION. THAT'S NOT HEALTHY. WHEN THE FREQUENCY OF EMOTION OSCILLATES THAT VIOLENTLY OVER A VERY SHORT PERIOD OF TIME, SOMETHING IS VERY WRONG.

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If

the Fed is right about QE2, then investors and America have no worries. If the Fed is wrong, America faces the biggest economic crisis in it's history. Tarp, bailouts, stimulus, incentives to auto and home buyers, QE1 and the Feds unending jaw boning have all failed miserably. Why should QE2 be any different? The Fed stands firmly and arrogantly opposed to financial gravity, their policy positions and perscriptions are political not realistic.

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UNLESS FORECLOSURE GATE IS COVERED UP BY OUR GOVERNMENT THIS IS GOING TO BECOME THE BIGGEST SHIT STORM AMERICA HAS EVER SEEN

The largest problem for the economy could be - not from mortgages themselves - but from the securitizations of those mortgages. The impact from foreclosure gate on the securitized market could be huge. We have a larger and more significant concern, which, if proved out, could call into question the validity of nearly all securitizations. The current scandal may give investors an opening to challenge the legality of deals, threatening to unnerve financial markets completely.

Those challenges, which would result from the revelations unearthed during the foreclosure process, could then be used to investigate the documentation practices that occurred when these mortgages were first given to borrowers. Inflated income levels, fake home appraisals and other lies inserted into mortgage documents -- something Wall Street and Washington have long suspected, but never truly investigated -- could then be used to force big banks to buy back the garbage they peddled in the first place to unwitting investors. This would collapse every bank that sold this toxic crap in any quantity.

Just four firms dominate the trustee market for mortgage-backed securities in which the mortgages aren't guaranteed by Uncle Sam: Deutsche Bank, U.S. Bancorp, Bank of New York Mellon, and HSBC serve as trustees for 70.5 percent of all such issuance since 2005. An additional four firms -- Wells Fargo, Bank of America, JPMorgan Chase, and Citigroup -- control another 29.1 percent. All told, these eight firms have served as trustees for 99.6 percent of all private-label mortgage-backed securities issued since 2005.

This potential securitization problem is why bank stocks are now in big trouble. Bernanke and Geithner are now terrified of a meltdown in the securitization market.

GREENSPAN, BENANKE, GEITHNER AND HANK PAULSON ALL NEED TO GO TO JAIL ALONG WITH THE CEO'S AND OTHER OFFICERS OF THESE BANKS. EVERYONE OF THE ABOVE BANKS NEEDS TO GO OUT OF BUSINESS FOR GOOD.

NO FOREIGN ENEMY OF AMERICA HAS EVER HURT AVERAGE AMERICANS MORE THAN THESE FOUR MEN HAVE.

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The delusions continue. Unless American union workers are willing to work for $7 per hour with no benefits, the manufacturing jobs are not coming back from China. The corporate oligarchs and their bought off cronies in Congress sold the country down the river over the last 40 years. Mega-Corporation profits are at record levels as goods are produced by slave labor in the Far East at 80% lower costs than they could be produced in the U.S. With 86% of the U.S. workforce in the service industry, introducing tariffs on imported goods and devaluing the dollar will further put the squeeze on the American middle class who already have been systematically screwed by the ruling elite over the last 40 years. Our society took 40 years to dig this hole. It is now so deep, there is really no way out except for a lot of pain and time.

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One quick look at the demographics in both the united states and the UK show the present path is not sustainable and the system is bankrupt. Yet noble prize winning economists like Paul Krugman and Joseph Stiglitz cannot seem to grasp the simple reality of the situation.

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What we are actually facing is an all-out global currency war and old-fashioned "beggar-thy-neighbor" policies where every nation tries to devalue its currency (and anything else) to create more exports in order to boost its economy at the expense of every other nation.

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There is something intellectually suspect with the contention that low interest rates and debt creation can coalesce to generate spectacular 'returns' given that any rational look at U.S. history claims otherwise.


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Keynesian clowns think that the government can spend it's way to prosperity. It cannot and will not happen. We need to reduce government spending, not increase it.

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The sovereign debt problems of the weaker EU nations have been papered over without being solved and are still lingering just beneath the surface.

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Why hold enormous risk in your portfolio when the potential returns aren't particularly high?

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It is impossible to spend one's way out of a mess when the problem is unsustainable spending.

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Markets are totally surreal and that is because the US government has been manipulating them under the fascist model behind the curtain for years.

Now, good news is bad and bad news is good. Market manipulation is insanity and it guarantees a dreadful conclusion. There is no logic and the denizens of Wall Street go right along with the scam least they lose their jobs. Most all of the economic and financial news is bad and that is a fact, even worse we have little leadership and no solutions.

Markets cannot thrive on hope in the Fed or the administration or on QE2. The fundamentals simply are not there. Zero interest rates cannot last forever and neither can the growing Fed balance sheet.

The Fed's policies have been losers. How can you have faith in a failed system driven by the greed and looting of the American public by Wall Street and banking, which owns the Fed? In fact we now see them praying for inflation so their system doesn't collapse. They really believe they can propagandize the public into spending more again. That is going to be a very hard sell with real unemployment at 22-3/4% and real estate still collapsing.

In June, the banks began to try to lend to the better quality, small and medium sized businesses. Thus far it has been a failure. In fact there is no upturn, or recovery, in sight.

All the Fed is doing is creating another asset bubble in the face of mark-to-model and the carrying of two sets of books by major corporations, especially in finance and banking. That means the downside risks are still latently present.

What does Wall Street say about 30% of the unemployed having been out of work for more than a year and 40% have been out for more than six months? The projection is 11 million homeowners are going to lose their homes unless government offers an effective modification program. How do you get 42 million people off of food stamps? Can the health care bill be reversed? I certainly hope so because America can't afford it.

Here is an Ugly Truth about the economy, a truth that no one in power or who aspires to power wants to share with you, at least until after the midterm elections are over. It's this:

There is nothing that the U.S. government or the Federal Reserve or tax cutters can do to make our economic pain just vanish, it is going to take a very long time to solve our economic problems and we are not even being honest about most of them yet.

The public has been sold this notion that somehow we can control the economy that we can fine tune it so we don't get inflation on the upside, we don't get recessions on the downside, that when something happens, the Fed can step in and offset it. The economics profession is painfully aware that this is a complete lie and soon the public will understand just how far off course America is as well.

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The current market rally is not based on a self-sustaining economic recovery, but on blind faith that the Fed can pull out a magic wand and cure everything with another round of quantitative easing (QE2).

This is nothing but a desperate attempt by the Fed to try non-conventional means to get the economy going again after a massive dose of conventional measures resulted in complete failure.

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A POWERFUL ADD COMING TO TV SOON.........

Mourning In America

http://www.cftr.org/

ANOTHER ADD ALL AMERICANS SHOULD SEE;

http://www.youtube.com/watch?v=x_Os0cwpCQE

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INSIDE JOB

COMING TO THEATERS SOON

In his new documentary

Inside Job, filmmaker Charles Ferguson spoke to some of the biggest names from Wall Street to Washington to academia to get a first hand account of what caused the 2008 financial meltdown and how the financial system reach its breaking point.

Ferguson points to 20 years of deregulation, rampant greed (

a la Gordon Gekko) and cronyism. This cronyism is in large part due to a revolving door between not only Wall Street and Washington, but also the incestuous relationship between Wall Street, Washington and academia.

The conflicts of interest that arise when academics take on roles outside of education are largely unspoken, but a very big problem. "The academic economics discipline has been very heavily penetrated by the financial services industry," Ferguson tells Aaron in the accompanying clip.

"Many prominent academics now actually make the majority of their money from the financial services industry, not from teaching or research. This fact]has definitely compromised the research work and the policy advice that we get from academia."

"I was quite shocked at what I had learned in the course of making the film [INSIDEJOB]. Quite shocked. . . . The first [thing that surprised me the most] was how low Wall Street had sunk with regard to its ethics. When I started making the film if somebody had told me that Goldman Sachs and other investment banks had been designing securities to fail so that they can profit by betting against them, I wouldn

ʼt have believed it. I would have said, "No, you know, people donʼt do that in the United States." But in fact they did exactly that with tens of billions of dollars of securities."

Charles Ferguson, Director of "

INSIDE JOB"

HERE IS THE TRAILER

http://www.sonyclassics.com/insidejob/

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Banks: We don't have to live with them in their corrupt, incompetent form, but we can't live without them. So we best clean uo the mess before these bastards cost taxpayers yet another trillion dollars!

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Higher taxes are on the way.

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We could see a lot of fireworks leading up to year-end.

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In general, radical change just isn't good for economies. When the future isn't predictible, people don't invest.

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The foreclosure scandal will likely depress the real estate market, as clear title for millions of homeowners comes into question.

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There are roughly 3 million vacant housing units more than usual. And more vacancies are added daily as the foreclosure process moves homes from families to mortgage lenders.

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Keynesian fools never address the question of what happens when the stimulus is cut off. None of them can see that Japan has proven in spades that neither Keynesian nor Monetarist solutions did anything for Japan but increase debt.

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Nearly two years after the Fed cut short-term interest rates to basically zero, more and more economists are questioning whether the US central bank is making the right moves. The economy is still very weak and unemployment seems stubbornly stuck near 10%.

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The public pension system is bankrupt at every level: city, county, state, and federal. We cannot afford the pension promises and benefits made to public union workers. Pension plans in general are at least $3 trillion in the hole. Changing demographics seal the fate. Few are prepared for the sacrifices that must be made to bring the system back into fiscal soundness.

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The Fed is myopic when it comes to the economy. It only sees money, when there are other things going on. The Fed is pumping money in with one hand, while the banking regulators are raising capital standards and marking assets down in value with the other. At the same time,

government spending and regulation is retarding growth, which offsets the impact of easy money.

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If you seek the truth you will be richer for it. Don't just belittle the opposition. Search for the truth. Democrats, Republicans, Independents, Constitutionalists, Libertarians all need to pull together or watch the demise of a free democratic society.

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Fundamental analysis anticipates what "should be". Technical analysis reflects what "is" – whether it should be or not.

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MARKET REVIEW

The current stock market rally is proof that the recent open-mouth activities of the Fed are far more potent and effective than the Fed's open market activities have ever been.

The world is no longer capable of economic expansion.

We are entering a period of civilization where the keyword is sustainability, not growth.

Sustainability is job one. In order to incite the massive contraction that is desperately needed, economics will be used as a weapon. It is the weapon of choice when it comes to survival. The possession of Hard Assets, Energy and Fresh Water will rule the day.

In a world of $100/barrel oil, the weak die and the strong survive.

In a world of $200/barrel oil and $100/barrel water, there will not be 6.5 billion people on the earth.

In today's upside-down financial marketplace logic doesn't dictate intermediate or longer term market moves.

The current market rally is not based on a self-sustaining economic recovery, but on blind faith that the Fed can pull out a magic wand and cure everything with another round of quantitative easing (QE2). This is nothing but a desperate attempt by the Fed to try non-conventional means to get the economy going again after a massive dose of conventional measures resulted in complete failure.

It is that simple.

If the Fed is right about QE2, then investors have no worries. If the Fed is wrong, America faces the biggest economic crisis in it's history. Tarp, bailouts, stimulus, incentives to auto and home buyers, QE1 and the Feds unending jaw boning have all failed miserably. Why should QE2 be any different? The Fed stands firmly and arrogantly opposed to financial gravity, their policy positions and perscriptions are political not realistic.

What goes around, comes around – even for bankers. The nation's top mortgage lenders are under attack from both sides as they navigate through a foreclosure nightmare. This storm is going to be with us for some time. Predicting an outcome at this point is very difficult.

Currency action continues to drive the financial markets in both directions. The U.S. Dollar, which had been dropping through the floor, stabilized and even turned up last week. The prior downtrend will probably resume over the next few weeks. Since nearly all markets have high dollar correlation these days,

we could see a lot of fireworks leading up to year-end.

Driven largely by the dollar, the stock market has turned a little frothy but is generally holding on to recent gains. The S&P 500 dropped hard when the dollar rallied last Tuesday, then regained the lost ground the following day.

Gold reacted negatively to dollar strength and did not bounce back as strongly as other asset classes did. Treasury yields, which had climbed sharply at the end of last week, are on the decline again. We see particular strength in the market for Treasury Inflation-Protected Securities. The TIPS rally is consistent with expectations that the Federal Reserve will launch a new wave of quantitative easing at its November 2-3 policy meeting.

That also happens to be election week in the U.S., so there may be interesting news on several fronts.

Total insider sell transactions relative to purchases on the New York Stock Exchange are running at a ratio of more than four to one over the last eight weeks. The normal reading, because of options selling and other factors, is about 2 sales for every buy. Clearly, insiders are seeing great value only in cash. Their actions speak volumes for the veracity for the current rally.

Insider selling is just another reason, along with the mortgage foreclosure mess and fully invested mutual fund managers with no fresh powder to put to work, to be very cautious on the market.

Almost every thing is telling investors and traders to expect that a significant correction is coming. Many inteligent observers sense that something is going to trigger

a decline so sharp and "unexpected" that the mainstream media shills will be gulping for "answers" when the reality has been staring them in the face all year: the recovery and current market rally is nothing but manipulation and those who have believed in it are simply delusional.

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"Habits change into character."

Ovid

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"It is conceivable that accommodative monetary policy could provide tinder for a buildup of leverage and excessive risk taking."

Fed Vice Chair Janet Yellen

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"There is the possibility... that after the rate of interest has fallen to a certain level, liquidity preference is virtually absolute in the sense that almost everyone prefers cash to holding a debt at so low a rate of interest. In this event, the monetary authority would have lost effective control."

John Maynard Keynes,

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"There is no means of avoiding the final collapse of a boom brought on by credit and fiat monetary expansion. The only question is whether the crisis should come sooner in the form of a recession or later as a final and total catastrophe of depression as the currency systems crumble."

Ludwig von Mises

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"I admit it: I want to see the banks feel some pain. Most people do, I think. Banks did terrible things during the subprime bubble, and they still haven't paid any real price. I find myself rooting for judges to rule against banks in foreclosure cases. I would love to see these big investors put the serious hurt on Bank of America, which will encourage other investors to pile on.

Joe Nocera

THE TEN LARGEST BANKS SHOULD ALL GO OUT OF BUSINESS. THEY ARE CRIMINAL ENTERPRISE AT IT'S FINEST OR WORST DEPENDING ON YOUR POINT OF VIEW. EITHER WAY THEY ARE RUN BY WHITE COLLAR CRIMINALS FOR THE BENEFIT OF ELITES AND MANAGEMENT.

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"...in an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes. What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it"

Herbert Simon

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"That's why most people, myself included, have no sympathy for Bank of America's legal predicament — and no patience for its "we're not the bad guys here" arguments. It is absolutely true that the homeowners that Bank of America wants to foreclose on are in default on loans they should never have gotten in the first place. (Gee, whose fault was that?) But it simply does not follow that the bank therefore has an absolute right to take back the home. Under the law, it has to prove it has that right — by filing documents that show that the owner of the mortgage has conveyed that right to it. That's why this affidavit scandal isn't some legal nicety. It's about the single most important value of American jurisprudence: due process."

Joe Nocera

This is why I have been hammering the fraudclosure issue so hard — my focus is on the rule of law, property rights and due process. The banks expediency needs does not mean that they get to throw away centuries of laws because they are inconvenient.

ECONOMIC BITS AND PIECES......................

THE FED IS DESPERATE...........

The Fed isn't just dumb--it's desperate.

The markets, systemically riddled with collusion, cronyism, fraud, embezzlement, misrepresentation and outright lies, have no participants except Central State proxies and "marks" who sadly still believe the ceaseless propaganda about "rising corporate profits," "recovery" and "a free-market economy."

 

NO ONE TRUST'S THE MARKET ANYMORE..............

For 24 straight weeks, retail investors have been pulling tens of billions of dollars out of U.S. mutual funds and plowing hundreds of billions into low-yield Treasury bonds.

Why? Because they sense the stock market is hopelessly, deeply corrupt and by comparison Treasuries are trustworthy.

You won't make a lot of yield in Treasuries, thanks to the Fed's zero-interest rate policy (ZIRP) which is designed to drive money into risky assets, but then you won't lose 40% like you did in 2008-09 or 2000-2002 in the stock market.

Insiders are selling 500 shares for every share they buy.

This unprecedented cascade of insider selling has been noted elsewhere many times, as has the declining expectations for the "recovery" of U.S. CEOs. Those who know the most are selling their shares as fast as they legally can, and are publicly expressing their lack of faith in the tricked-up "recovery."

Only crooks, fraudsters and "marks" (those who still believe the propaganda about the "recovery" and "stocks are cheap" poison) will be left in a stock market propped up by the same socialization of risk which keeps the flimsy facade of a mortgage market from crumbling. High-frequency trading machines create the illusion of a market, and State intervention via proxies and other corrupt games provides the liquidity needed to fund the facsimile of a "rising market" and a "recovery" in the U.S. economy. But the public isn't buying the fraud any longer; they finally "get it":

The well has been poisoned and only a fool drinks from a poisoned well.

Until the crooked players are indicted and the financial markets are thoroughly cleaned out the market will not return to anything resembling normal. That will take political will which is completely lacking in the Demopublican-Republicrat status quo at this point.

POLITICIANS AND THE PUBLIC ARE BUSY REARRANGING DECK CHAIRS ON A SINKING SHIP WHILE THE CROOKS ESCAPE AND THE SYSTEM CRUMBLES.

LET'S HOPE MA JOAD IS RIGHT.........

The real people of this country who have worked and saved and done the right things have been beaten down. It is time to stand up to those in power and take this country back.

We need the moral backbone of Ma Joad at the end of

The Grapes of Wrath:

I ain't never gonna be scared no more. I was, though. For a while it looked as though we was beat. Good and beat. Looked like we didn't have nobody in the whole wide world but enemies. Like nobody was friendly no more. Made me feel kinda bad and scared too, like we was lost and nobody cared…. Rich fellas come up and they die, and their kids ain't no good and they die out, but we keep on coming. We're the people that live. They can't wipe us out, they can't lick us. We'll go on forever, Pa, cos we're the people.

THE TRUTH IS AN ORPHAN IN AMERICA......

There was a time when the pen was mightier than the sword. That was a time when people believed in truth and regarded truth as an independent power and not as an auxiliary for government, class, race, ideological, personal, or financial interest.

Today Americans are ruled by propaganda. Americans have little regard for truth, little access to it, and little ability to recognize it.

Truth is an unwelcome entity. It is disturbing. It is off limits. Those who speak it run the risk of being branded "anti-American," "anti-semite" or "conspiracy theorist."

Truth is an inconvenience for government and for the interest groups whose campaign contributions control government. Truth is an inconvenience for prosecutors who want convictions, not the discovery of innocence or guilt.

Truth is inconvenient for ideologues.

Today many in positions of power whose goal was once the discovery of truth are now paid handsomely to hide it.

EVERYTHING IN AMERICA HAS A PRICE..........

"Free market economists" are paid to sell offshoring to the American people. High-productivity, high value-added American jobs are denigrated as dirty, old industrial jobs. Relicts from long ago, we are best off getting rid of them. Their place has been taken by "the New Economy,"

a mythical economy that allegedly consists of high-tech white collar jobs in which Americans innovate and finance activities that occur offshore. All Americans need in order to participate in this "new economy" are finance degrees from Ivy League universities, and then they canl work on Wall Street at million dollar jobs.

Economists who were once respectable took money to contribute to this myth of "the New Economy"

And not only economists sell their souls for filthy lucre. Recently we have had reports of medical doctors who, for money, have published in peer-reviewed journals concocted "studies" that hype this or that new medicine produced by pharmaceutical companies that paid for the "studies."

Wherever money is insufficient to bury the truth, ignorance, propaganda, and short memories finish the job.

WHERE DOES THIS END? IF EVERY AMERICAN DOESN'T SOON PUT THEIR FOOT DOWN AND SAY ENOUGH IT ENDS WITH THE END OF AMERICA. THE RULE OF LAW IS AN IMPORTANT AND NECESSARY PILLAR OF OUR SOCIETY. WITHOUT IT, EVERYTHING ELSE WILL CRUMBLE. THE RULE OF LAW BEGINS AND ENDS WITH TRUTH.

 

ECONOMISTS HAVE SOLD THEIR SOULS........

I am astonished that the American economics profession has no awareness whatsoever that the U.S. economy has been destroyed by the offshoring of U.S. GDP to overseas countries. U.S. corporations, in pursuit of absolute advantage or lowest labor costs and maximum CEO "performance bonuses," have moved the production of goods and services marketed to Americans to China, India, and elsewhere abroad.

When I read economists describe offshoring as free trade based on comparative advantage, I realize that there is no intelligence or integrity in the American economics profession.

Intelligence and integrity have been purchased by money.

The transnational or global U.S. corporations pay multi-million dollar compensation packages to top managers, who achieve these "performance awards" by replacing U.S. labor with foreign labor. While Washington worries about "the Muslim threat," Wall Street, U.S. corporations and "free market" shills destroy the U.S. economy and the prospects of tens of millions of Americans.

 

SHEEPLE GOING OFF TO THE SLAUGHTER...........

Americans have bought into the government's claim that security requires the suspension of civil liberties and accountable government. Astonishingly, Americans, or most of them, believe that civil liberties, such as habeas corpus and due process, protect "terrorists," and not themselves. Many also believe that the Constitution is a tired old document that prevents government from exercising the kind of police state powers necessary to keep Americans safe and free.

The American corporate media does not serve the truth. It serves the government and the interest groups that empower the government.

NO FREE LUNCH...........

The truth is that the US is insolvent and its policymakers will stop at nothing in order to avoid sovereign default.

So, it should come as no surprise that at its latest meeting, the Federal Reserve downplayed the risk of inflation, thereby setting the stage for another round of money creation.

Despite the fact that this financial wizardry was a lifeline for American policymakers and their banking cronies, let there be no doubt that it was an unmitigated disaster for the American public.

Not only did the Federal Reserve nationalise the banks' losses but more importantly, Mr. Bernanke's money creation efforts have seriously undermined the viability of the US Dollar.

Unfortunately, as any serious student of economic history knows, there is no such thing as a free lunch. By adding trillions of additional dollars to the monetary stock, Mr. Bernanke may succeed in bailing out his friends in high places but he is seriously jeopardising the US Dollar. In fact, bearing in mind the recent developments, it has become clear that the Federal Reserve wants to debase its currency.

The US Dollar is a doomed currency and there is a real risk of an abrupt plunge in its value.

FRAUD IS EVERYWHERE

Fraud by homeowners who lied on their loan applications

Fraud by banks who didn't follow proper legal procedures around the notarization and processing of mortgage documents

Fraud by investment banks who packaged this junk and resold it to unsuspecting pension funds

Pension funds promised returns to their pensioners they could never achieve

 

A COMPLETE SHAM.........

Today's Keynesian economists have convinced boobus Americanus that the Great Depression was caused by the Federal Reserve being too tight with monetary policy and the Hoover administration not providing enough fiscal stimulus. Ben Bernanke and Barack Obama used this line of reasoning to ram through an $850 billion pork-laden stimulus package, as well as the purchase of $1.2 trillion of toxic mortgages by the Federal Reserve.

The only trouble is that this storyline is a complete sham.

The fact that colossal stimulus spending, zero interest rates, the purchase of over a trillion in toxic assets by the Fed, and the loosest monetary policy in history have done absolutely nothing to revitalize the economy, has proven that Keynesian policies have been a wretched failure. This is not a surprise to Austrian school economists.

Keynesian policies failed during the Great Depression, and they are failing today.

An economic catastrophe caused by loose monetary policies, crushing levels of debt, and appalling lending practices cannot be solved by looser monetary policies, issuance of twice as much debt, and government commanding banks (or, in the case of Fannie and Freddie, "commandeering") to make more bad loans.

 

TIME MAGAZINE SPECULATES ABOUT SOCIAL UNREST.........

Time Magazine: Prospect Of Civil War In U.S. "Doesn't Seem That Far Fetched"

Many political observers in the U.S. are now wondering how long it will be before similar scenes unfold on American streets, with even Time Magazine now conceding that the prospect of a civil war in the States "doesn't seem that far fetched".

To be clear, Stephen Gandel's article in Time, entitled

Will the Federal Reserve Cause a Civil War?

I NEVER THOUGHT I WOULD LIVE TO SEE AN ARTICLE LIKE THIS PUBLISHED IN A MAJOR MAGAZINE IN AMERICA. MOST AMERICANS ARE STILL BUSY HOPING IT'S NOT THIS BAD. IT IS WORSE THAN MOST IMAGINE AND WE STILL HAVE NO LEADERSHIP OR SOLUTIONS.

 

U.S. DOLLAR IS IN REAL TROUBLE..............

Let there be no doubt, a paper money system usually ends in the reckless destruction of money and it is no coincidence that all hyperinflations in history have occurred in the presence of discretionary paper money regimes.

Furthermore, it is important to understand that a political system based on democracy is inherently inflationary and political leaders have been responsible for all major inflations in the past. Conversely, history has shown that monetary systems binding the hands of political leaders are essential for keeping inflation in check. If history is any guide, metallic monetary systems have shown the largest resistance to inflation and this is due to the fact that currencies anchored by a tangible asset cannot be inflated ad infinitum.

It is our conjecture that the current monetary system is absolutely pathetic;

a system designed to enslave society. Unfortunately, the vast majority of humans do not understand the endless inflation agenda and this is why the perpetrators get away with this crime. Furthermore, let it be known that the Federal Reserve is largely responsible for the incredible inflation we have experienced over the past century.

Unfortunately, the Federal Reserve and its allies have not finished inflating and over the following years, they will create even more confetti money. Under this scenario, cash will continue to lose purchasing power and the asset poor middle-class will become even more impoverished. Cash and most dollar denominated assets will prove to be a disastrous values over the next decade and once the Federal Reserve's manipulation ends, fixed income securities will also depreciate in value.

Hard assets such as precious metals and energy as well as most other high demand commodities should provide investors profits and act as an adequate inflation hedge in this environment.

 

THE RAMIFICATIONS OF FORECLOSURE GATE...........

Here's a key question: If these foreclosures aren't being legally executed, are homeowners being kicked out illegally? And what about the buyers of foreclosed properties: Are they rightful owners if the previous owner still has a legal claim to the home?

Is everyone going to sue everyone? What will a nationwide moratorium on foreclosures do to the inventory and prices of unsold homes? And what e ffect will all this have on homes situated near foreclosed properties?

What will happen to all the mortgage-backed securities that contain all these properties and that banks still hold? What will happen to the economy if these problems take years to work through?

And that's not even the worst of it all.

There's actually a much deeper problem that could lead to troubles far worse than anything you can imagine.

The whole mess begins at Square One.

And "Square One" is a circle of fraud and deceit so large that if civil and criminal charges and fines were eventually levied against the perpetrators, there isn't a big bank in this country that wouldn't be insolvent.

What happens if there's widespread panic that this new round of mortgage-related stress won't be fixed quickly?

Markets will tank as leveraged players see their holdings drop and get margin calls. All the speculative, leveraged momentum trades based on a slow- but- upward recovery (especially hoped for in housing) will get upended as speculators rush for the doors.

The bitter truth is that the nation's Financial Power Elites are not constrained by rule of law, and as a result of this revelation Americans' trust in their government and political class has been shattered.

Anyone who believes the foreclosure crisis can be contained is deluded, because the real issue in play is the citizens' trust in their government's ability to govern the nation's Financial Elites according to the rule of law. Clearly, our government has failed its citizens--utterly, completely, totally, at every level of governance (Federal, State, local) and at every level of oversight and regulation.

I BELIEVE THAT LAWYERS IN SEARCH OF DOLLARS NOT JUSTICE WILL FORCE THIS ENTIRE MESS TOWARDS SQUARE ONE WHICH WILL EXPOSE OUR ENTIRE ECONOMY TO ANOTHER SEVERE FINANCIAL CRISIS. GREED BEGETS MORE GREED AND I'M NOT SURE WE CAN GET BACK TO A FAIR AND EQUITABLE ENVIRONMENT FROM WHERE WE CURRENTLY ARE. PERSONALLY I CAN'T WAIT TO HEAR THAT ALL OF THE BIG BANKS ARE GOING OUT OF BUSINESS AND THAT THE OFFICERS OF THESE BANKS ARE GOING TO JAIL.

 

COULD OUR ENTIRE FINANCIAL SYSTEM BE AT RISK.............

Millions of U.S. mortgages have been shuttled around the global financial system - sold and resold by firms - without the documents that traditionally prove who legally owns the loans.

Now, as many of these loans have fallen into default and banks have sought to seize homes, judges around the country have increasingly ruled that lenders had no right to foreclose, because they lacked clear title.

These fundamental concerns over ownership extend beyond those that surfaced over the past two weeks amid reports of fraudulent loan documents and corporate "robo-signers."

The court decisions, should they continue to spread, could call into doubt the ownership of mortgages throughout the country, raising urgent challenges for both the real estate market and the wider financial system.

The banks' tab from the housing bust is set to get a lot bigger.

I LOVE HOW THE MARKET HAS SIMPLY IGNORED ALL OF THIS AND JUST KEEPS RISING. PEOPLE, THOSE MANAGERS AND INVESTORS BUYING AS THIS MESS CONTINUES TO DEVELOP ARE MENTALLY CHALLENGED TO SAY THE VERY LEAST. THE MARKET HAS PRICED NONE OF THIS IN, IT HAS COMPLETELY IGNORED THE SERIOUSNESS OF THIS ISSUE. A GOOD EXAMPLE OF THE MARKET BEING COMPLETELY AND ABSOLUTELY WRONG AND JUST NOT KNOWING IT.

 

So on the scandal scale, is this Martha Stewart or Enron?

Here are the facts that we know: When the housing bubble was going up, banks made thousands of mortgage loans or often they bought loans from mortgage brokers who made them directly to consumers. Banks would then take those mortgage loans and bundle them up into bonds that they would then sell to investors, passing the monthly payments of borrowers over to these new "owners" of the mortgages. To make this all work, the banks had to file and retain paperwork that transferred the ownership of the mortgages from the original lenders to the new investors. Well, it appears the banks bungled that process, or at the very least in a number of case, in potentially many cases, they lost the paperwork. That's part 1.

Part 2: Instead of owning up to the fact that they had messed up or lost the paperwork on thousands, maybe millions, of mortgages, the banks tried to cover it up. When borrowers stopped making payments and the banks wanted to foreclose on the properties, the banks hired low-level employees to sign and file affidavits, hundreds of thousands of them, with the courts all around the country attesting to the fact that they had reviewed the loans and could prove their employer, the banks, were the rightful owners. The only problem is that they didn't and couldn't. In the past few weeks, it has come out that the so-called robo-signers, who are now being questioned by authorities, knew very little about the mortgages they signed-off on or mortgages in general. Some couldn't define the word affidavit.

At first this may look like a minor paperwork problem. So a Martha Stewart type scandal.

But once you dig a little deeper you can start to construct something that seems a little more nefarious. For months, borrowers have been complaining about how difficult it is to get a bank to modify their loans. The mortgage help-lines are overwhelmed. The bank processors ask for documents two or three times. Often it's hard to get the same person on the phone. This all seemed like a problem of system not ready to deal with the hundreds of thousands of borrowers who because of the Great Recession were suddenly having problems paying their home loans. But what if the banks were just using their "modification" attempts as a means to distract borrowers, so they wouldn't realized they were filing phony documents at the courthouse to kick them out.

And here's the real kicker. Some observers are now saying that the banks may have purposely lost the loan documents in order to mislead investors. The Financial Crisis Inquiry Commission recently found that the banks hired firms to evaluate the mortgages they were considering buying and found many of them unworthy--meaning there was a high chance they would default. So did the banks not buy these loans? No, instead they bought the risky loans at a discount and then passed those loans off to investors at full face value, scooping up more profits for the banks. Then destroyed the paperwork so the investors couldn't figure out what had happened. Sound Enron-like yet?

If it turns out that the banks committed widespread fraud on the investors of mortgage bonds, then we could be looking at another financial crisis. Forcing the banks to buy back all the loans they duped the investors on and are now in default or have already gone to foreclosure

would cost hundreds of billions, if not trillions.

Here's reality:

Lots of notes appear to have never been conveyed. When the MBS holders get their landsharks into this, the servicers and securitizers are screwed. Got it? Done, baked, cooked, finished.

The only "Global Solution" is to put the institutions that did this into recievership. Right now. BEFORE the landsharks cause a VERY disorderly collapse. We have a resolution authority. Use it. These institutions must be forced to eat the crap that they foisted off on pension funds and insurance companies. If they claimed they had original endorsed paper for each loan (and they all did) and did not that is black-letter fraud. So is selling someone paper you claim is good when you know it is not, and again, we have under-oath testimony documenting that this was done willfully and intentionally. This is fraud in the inducement against MBS holders and those who committed it must be forced to eat the consequences.

The question of fraud in the inducement against borrowers must be answered to. This is not a "technical matter." Citibank's former chief underwriter has testified under oath that he, and the rest of management, knew that 60% of production was bogus in 2006 and 80% in 2007. These loans are avoidable under long-existing law. You cannot create a binding contract where you have reason to know that the other party cannot perform, and long-standing law codifies this officially in terms of debts and security instruments - giving someone a loan where they retain insufficient assets and income to pay as agreed renders the security of the instrument and thus the loan avoidable. Period!

AFTER NOV 2ND, IT IS HIGHLY UNLIKELY THAT THERE WILL BE ANY MORE BAILOUTS. WE ARE IN FOR A VERY INTERESTING, VOLATILE AND DISTURBING ECONOMIC FUTURE OVER THE NEXT 6 TO 8 MONTHS.

 

WHOSE GOING TO JAIL?

Did you know that in the aftermath of the Savings and Loan (Thrifts) scandal there were more than a thousand felony convictions of financial elites?

The cost of the wrongdoing associated with the rip-off and closure of nearly 800 Thrifts cost taxpayers more than $160 billion. The current sub-prime/mortgage-backed security scandal is 40 times bigger according to Economics professor William Black. That means the size of the crime is $6.4 trillion by my calculation.

Can you guess how many indictments there have been on financial elites who created this enormous mess? Zero, none, nada, zip. Yes, not one single prosecution or conviction has been started of achieved as of today.

I guarantee that's going to change.

That is simply outrageous considering the width and breadth of the many crimes committed. There was "rampant"

mortgage fraud in the loan application process according to the FBI as far back as 2004.
(Click here to see one of many stories of the FBI warning of mortgage fraud) There was real estate document fraud when the original Promissory Notes and loan documents were "lost." The Promissory Notes were required to create tens of thousands of mortgage-backed securities (MBS). No "note," no security. That is security fraud. No security means the special IRS tax treatments for the MBS's were fraudulently obtained. That is IRS tax fraud.

Because there were no documents, the rating agencies fraudulently made up triple "A" ratings for the securities. When the whole mess blew up, big banks hired foreclosure mill law firms to create forged documents. That phony paperwork was and is being used to wrongfully remove homeowners from their property. That is

foreclosure fraud.

The entire mortgage/securitization industry is one giant criminal enterprise.


PENNSYLVANIA's PROBLEMS MIRROR THOSE OF OUR NATION............

Governor Ed Rendell has traveled to the Middle East, trying to sell the Pennsylvania Turnpike to the same oil states who've been pocketing all our gas dollars. It's an almost frictionless machine for stripping wealth out of the heart of the country,

one that perfectly encapsulates where we are as a nation.

When you're trying to sell a highway that was once considered one of your nation's great engineering marvels — 532 miles of hard-built road that required tons of dynamite, wood, and steel and the labor of thousands to bore seven mighty tunnels through the Allegheny Mountains —

when you're offering that up to petro-despots just so you can fight off a single-year budget shortfall, just so you can keep the lights on in the state house into the next fiscal year, you've entered a new stage in your societal development.

American banks used bubble schemes to strip the last meat off the bones of America's postwar golden years, the cruelest joke is that American banks now don't even have the buying power needed to finish the job of stripping the country completely clean.

For that last stage we have to look overseas, to more cash-rich countries we now literally have to beg to take our national monuments off our hands at huge discounts, just so that our states don't fall one by one in a domino rush of defaults and bankruptcies.

THE GOOD OLD DAYS ARE GONE FOREVER...........

THE GREAT DEPRESSION AND THE BIG LIE..............

The mainstream media's popular narrative about the causes and cure for the Great Depression invariably start with the storyline that the stock market crash caused the Great Depression. Herbert Hoover purportedly refused to spend government money in an effort to reinvigorate the economy. Franklin Delano Roosevelt's New Deal government spending programs allegedly saved America.

This storyline is a big lie.

The Great Depression was caused by Federal Reserve expansion of the money supply in the 1920s that led to an unsustainable credit-driven boom.

When the Federal Reserve belatedly tightened in 1928, it was too late to avoid financial collapse. According to Murray Rothbard, in his book America's Great Depression, the artificial interference in the economy was a disaster prior to the depression, and government efforts to prop up the economy after the crash of 1929 only made things worse. Government intervention delayed the market's adjustment and made the road to complete recovery more difficult.

The parallels with today are uncanny.

Alan Greenspan expanded the money supply after the dot-com bust, dropped interest rates to 1%, encouraged a credit-driven boom, and created a gigantic housing bubble. By the time the Fed realized they had created a bubble, it was too late. The government response to the 2008 financial collapse has been to expand the money supply, reduce interest rates to 0%, borrow and spend $850 billion on useless make-work pork projects, encourage spending by consumers on cars and appliances, and artificially prop up housing through tax credits and anti-foreclosure programs. The National Debt has been driven higher by $2.7 trillion in the last 18 months.

The government has sustained insolvent Wall Street banks with $700 billion of taxpayer funds and continues to waste taxpayer money on dreadfully run companies like Fannie Mae, Freddie Mac, General Motors, and Chrysler.

The government is prolonging the agony by not allowing the real economy to bottom and begin a sound recovery based on savings, investment, and sustainable fiscal policies. President Obama continues to scorn business by creating more burdensome healthcare, financial, and energy regulations.

Today's politicians and monetary authorities have learned the wrong lessons from the Great Depression. The result will be a second, Greater Depression and more pain for the middle class.

The investment implications of government stimulus programs are further debasement of the currency and ultimately inflation and surging interest rates. Owning precious metals and shorting U.S. Treasuries will pay off over the next few years.

 

DELUSION vs REALITY..............

Ignoring the ups and downs of various markets. What is the situation in the United States? The Middle Class is increasingly down and out. It will take a decade or more to recover the jobs lost during the recession. America's manufacturing sector continues its downhill slide. After the meltdown, we fell right back into running large trade deficits—what other outcome was possible? The collapse of the Housing Bubble took away the phony wealth created by rising house prices but the mortgage debt remained behind. The housing market is on a heart-lung machine. Fannie & Freddie are so screwed up that nobody wants to even talk about them.

A massive fiscal stimulus juiced up the economy and then faded—this was predictable and many of us predicted it. The first round of quantitative easing, in which the Fed purchased $1.3 trillion in mortgage-backed securities, lowered interest rates but the problem is debt, not the availability of affordable credit. The Fed's zero short-term interest rates helped the Big Banks and big Wall Street investors but nobody else. Outstanding credit has been falling for almost 2 years. Final demand for goods & services continues to dwindle. Small businesses can't hire. America's public debt now exceeds 100% of GDP. Wealth and income inequality is getting worse, not better. The number of Americans on food stamps or living below the poverty line is rising by leaps and bounds. Etc.

So if you're Tim Geithner or Ben Bernanke, faced with a decline of this magnitude, what do you do?

Certainly you don't want to acknowledge how screwed up America is, and will continue to be, because that's just a prescription for personal, political or institutional suicide. So how do we fix what our leaders can't even admit is wrong?

American leadership needs to shift the blame elsewhere.

Find some scapegoats. Distract the people from the real causes of what ails them. Damn the consequences—we'll worry about those later or not at all. After all, John Maynard Keynes observed correctly that "in the long run, we're all dead."

And we've still got two hammers—the dollar is still the world's reserve currency, and we've got world's largest military by far.

But we're constrained. We can't wage a traditional blood & guts war on the ground because that would be wholly contrived, and we can't afford the occupation (Iraq) and the losing war (Afghanistan) we've already got.

But we've still got that currency hammer, and those evil export surplus economies certainly do look like nails, don't they? Yes, that's the ticket, we'll wage a "currency war". This will leave them with two alternatives: 1) they'll have to allow their currencies to strengthen with respect to the weakening dollar, or 2) they'll have to intervene in the currency markets to keep their paper money competitive with the weakening dollar to support their export markets.

If the surplus countries pursue option #1, we've really got 'em by the short hairs. Remember what happened to Japan after the 1985 Plaza Accord? Those poor schmucks let their currency rise against the dollar and five years later voila! — they've had not one, but two lost decades since then. And if they pursue option #2, well, we can print money, but they can't! We'll flood their economies with worthless paper.

Aside from unnecessarily punishing emerging Asian economies (and Brazil, among others), will the "currency war" actually benefit the United States? Well, no! But that's not the main point of waging the war, is it? Here's Gluskin Sheff's Dave Rosenberg;

The Fed is pushing on a string and is in a classic liquidity trap but the markets love the prospect of more reserves flowing into risk assets even if the economy is left in the dust.

In this respect, the quote of the day goes to former Dallas Fed President Mike McTeer, regarding the move afoot to QE2

"If you lead the horse to water and it won't drink, just keep adding water and maybe even spike it …"

Yikes! This will not end well, even if it is next to impossible to say when it does.

"Investors increasingly believe the U.S. is putting itself at the forefront of the competitive devaluation race. That view is driven in part by the Treasury's increased pressure on China to allow its currency to rise against the dollar, which would likely result in the dollar falling against a range of other emerging market currencies."

Since 1985, dollar-yen has sunk nearly 70% and yet the US has the same bilateral deficit with Japan today as it had then.

So why does everyone think that a Chinese revaluation will necessarily clear out any perceived imbalances?

Maybe if U.S. policy encouraged thrift over asset-based consumption growth, these trade imbalances would dissipate more quickly.

In Isaac Asimov's great science fiction Foundation series, his character Salvor Hardin famously proclaims that "violence is the last refuge of the incompetent." That's certainly true this time around as well.

And taking an historical view of current events, in the context of the Empire's Decline, this "currency war" is also the last refuge of the doomed.

THE GLOBAL ECONOMY IS IN DESPERATE TROUBLE AND CURRENCY WARS ARE COMING. REAL WARS MAY FOLLOW.

 

THE GULF DISASTER IS ON GOING......

The impression currently being purveyed in the mainstream media is that the damage in the Gulf was less than feared and that natural micro organisms are swiftly cleaning up the oil spill. This is false and very misleading. Although the Louisiana Gulf waters are no stranger to fish kills, the oxygen depletion created by the massive amount of oil, combined with the highly toxic dispersant, has created a situation that is far worse than the quality of water prior to the blowout.

The media has moved on. Yet, the on-going disaster in the Gulf of Mexico is of a vast and growing proportion. The oil is not gone.

The majority of it is sitting at the bottom of the ocean or dangerously spread throughout the water column and is killing off countless numbers of marine and wildlife. There are unprecedented numbers of people going into hospitals or medical clinics around the Gulf with severe health issues related directly to the extraordinarily toxic combination of oil and chemical dispersant.

They come in contact with it through the water, eating seafood, or breathing the air which has evaporated off the Gulf waters. There are many reports of farmer's crops being destroyed by the oil and dispersant in the air. Gulf fish is added to the feed of livestock, and it has been scientifically proven that the toxins move up the food chain to humans. The testing for seafood safety is woefully inadequate because, per the EPA and the FDA, they have only been testing for oil, not the far more toxic chemicals in the dispersant. This is of great concern to the Gulf seafood and restaurant industry, as well as a large number of scientists.

LIES, LIES AND MORE LIES...........

WHERE IS THE WISDOM AND ANSWERS THAT THE WORLD NEEDS...............

"Whence then cometh wisdom? and where is the place of understanding?" (Job 28:20)

"But where shall wisdom be found? and where is the place of understanding?" (v. 12). Job is driven to ask: "Where must one go to find and mine the vein of true wisdom?"

It is certainly "not the wisdom of this world, nor of the princes of this world, that come to nought" (1 Corinthians 2:6). The mine of evolutionary humanism which dominates modern education and scholarship will yield only the fool's gold of "science falsely so called" (1 Timothy 6:20).

Job found true wisdom only through God, and so must we

, for only "God understandeth the way thereof, and he knoweth the place thereof . . . unto man he said, Behold, the fear of the LORD, that is wisdom; and to depart from evil is understanding" (Job 28:23, 28). The Lord Jesus Christ Himself is the ever-productive mine, "in whom are hid all the treasures of wisdom and knowledge" (Colossians 2:3).

UNLESS AND UNTIL OUR NATION RETURNS TO GOD AND GODLY PRINCIPLES WE WILL BE A NATION FALLING FROM GRACE AND FACING TROUBLES WE CANNOT OVERCOME.