Friday, November 26, 2010

Thank You, Lord....................A Special Thanksgiving Message

Thank You, Lord

A Special Thanksgiving Message From Billy Graham

by Billy Graham

This year as we observe our season of thanksgiving, let us be grateful not only in word but also in deed. Let our gratitude find expression in a resolve to live a life more unselfish and more consecrated to Jesus Christ.

When we sit around our tables laden with sumptuous delicacies, let us not forget that nearly a billion people around the world will go to bed hungry. As we enjoy the comforts of our cozy homes, let us not forget that great numbers have no homes to go to. When we step into our modern cars, let us not forget that many people in the world cannot afford even a bicycle.

As we go to our churches to thank God for material and spiritual blessings, let us remember that millions have never heard the Gospel of salvation. Let us remember the servants of God in many parts of the world who deprive themselves in order to take the Gospel to the multitudes who have not yet been reached with the message of Christ.

In the Lord's Prayer as recorded in the sixth chapter of Matthew we read, "Give us this day our daily bread" (Matthew 6:11, NKJV). Scripture teaches that the good things of this life are the gifts of God, and that He is the provider of all our blessings. James declares that "every good gift ... is from above, and comes down from the Father of lights" (James 1:17, NKJV). Isaiah says that wisdom is the gift of God. The knowledge that builds our great scientific instruments is a gift from heaven.

Some people have asked, "Why should those who have plenty pray, 'Give us our daily bread'?" Even those favored with plenty should pray this way in order to have a blessing upon their provisions and to teach them their continued dependence upon God.

Christ said, "Man shall not live by bread alone, but by every word that proceeds from the mouth of God" (Matthew 4:4, NKJV). That is a word of blessing. Although the bread be in our hand, yet the blessing is in God's hand, and it is obtained from His hand only by prayer. If God withheld His blessing, nothing we have would do us any good. Our food would not nourish us and our clothes would not warm us.

One of the frightening passages in the Bible is found in Psalm 106:15. It reads, "He gave them their request, but sent leanness into their soul" (NKJV). Many people have riches today as a result of greed and covetousness; but their souls are lean, their hearts are cold toward God, their consciences are dulled and their minds are blinded. They know spiritual poverty here, and the moment they die they will know material poverty as well.

The very prosperity that we know should lead us to repentance, and we should give humble thanks to God. Jesus said, "How hard it is for those who trust in riches to enter the kingdom of God!" (Mark 10:24, NKJV).

Christ taught that from everyone who is given much, much shall be required. Some day God will ask for an accounting of our stewardship.

A great percentage of the wealth of the nations of the world is being expended on alcohol, gambling, entertainment, cosmetics and overeating. A very small percentage of the national income goes to churches. We are enjoying the bounty that God has bestowed upon us, but often we are biting the hand that feeds us.

The Bible teaches that God delights in giving and that He gives even to His enemies. Men and women spread nets and snares for their enemies, but God spreads a table. The dew forms on the thistle as well as on the rose. The rain of God's mercy falls upon the worst of people. God puts bread in the mouths that are opened against Him. God feeds millions, and they fight against Him. He gives them bread, and they give Him rebellion. Not only do the ungrateful millions forget His mercies, they abuse Him. The Lord said to Jeremiah, "When I had fed them to the full, then they committed adultery" (Jeremiah 5:7, NKJV).

God gives people wisdom, and they serve the devil with it. He gives them strength, and they waste it in fornication. He gives them food to eat, and they lift up their heel against Him. They are like Absalom who, as soon as David his father had kissed him, plotted treason against him.

However, the Bible warns that
a day is coming when those who sin against their Giver and abuse God's royal favors will face a terrifying judgment. They will scream for mercy and call for the rocks to fall on them and hide them, but they will not escape the wrath of God. All of God's giving ought to drive us to thanksgiving. He is the founder and provider of all our blessings and is entitled to all our acknowledgments. The Bible says that all the rivers come from the sea and there they return again. So all our gifts come from God, and to Him must all our praises return.

We are told in Psalm 119:165 that peace is also the gift of God. He has a formula for peace.
His formula is in the person of His Son, Jesus Christ, whom He has designated as Prince of Peace. The nations of this world have rejected the peace that God offers. They plan and build for war. Yet there are millions of people around the world who do have peace at this moment, because they have found the secret of peace. They have peace in their hearts, as the Bible teaches: "Therefore, having been justified by faith, we have peace with God through our Lord Jesus Christ" (Romans 5:1, NKJV).

The real war in which men and women are engaged is a war of rebellion against God. This rebellion has brought about destruction, suffering, misery, frustration and a thousand and one ills to the population of the world. God longs to see this rebellion cease. He has sent His Son, Jesus Christ, to the cross as a demonstration of His love and mercy. He asks us to come to that cross in repentance of our sins and submission of our will to Him. He promises a peace treaty for all who will come by faith.

Several years ago I received a letter from a man who said that he had been on the verge of alcoholism. His home had broken up, and twice he had been on the brink of committing suicide. With this deep need in his soul, he came to one of our Crusade meetings. As he sat among the thousands of people, he felt lonely and miserable. He hated himself and despised God. He made fun of Cliff Barrows as he led the singing. When the offering was taken he thought, "What a racket!" When I stood to preach, he sneered.

This man was a University of California graduate who had taken several speech courses. He said that during the first five minutes I broke every law of speech he had ever learned. Yet even as I spoke, another Voice began speaking to his soul. That night I preached on the text,
"What will it profit a man if he gains the whole world, and loses his own soul?" (Mark 8:36, NKJV). At the invitation, this man who had cursed God and made fun of his wife's churchgoing felt himself pulled out of his seat by an irresistible power. Tearfully he made his way to the front of the auditorium to stand with the others, indicating his need for repentance and asking to receive Christ as Savior.

He wrote,
"That night I made my peace with God. I never dreamed what a transformation would take place in my life. I lost all taste for alcohol. My business is prospering. I am back with my family, and we are enjoying daily Bible readings and prayers. I have joined the church and was recently asked to teach a Sunday school class. I wish to thank you, but most of all I want to give thanks to Him who died on the cross to make it all possible."

Thanksgiving? Yes. Let us get on our knees humbly and thank God for the blessings He has given us,
both material and spiritual. They have come from His hand. Let us not neglect to thank Him.

Wednesday, November 24, 2010

HAPPY THANKSGIVING TO ALL..............

In 1621, the Pilgrims (Leyden Puritans), along with 90 Wampanoag Indians who taught them how to sustain themselves, held a feast after their first harvest, often referred to as the First Thanksgiving. Actually, the Pilgrims considered it "a day of thanksgiving and of prayer and fasting," as they would have considered any day that warranted the recognition of God's goodness.

In 1789, both Houses of Congress called on George Washington "to recommend to the People of the United States a day of public thanksgiving and prayer (Thursday, November 26th) to be observed by acknowledging with grateful hearts the many favors of Almighty God especially by affording them the opportunity to peaceably establish a form of government for their safety and happiness."

Two hundred and twenty-two years, seven major wars (from the War of 1812 to the War in Afghanistan) and ten profound financial crises later (from the Panic of 1819 to the Mortgage Crisis of 2007), and despite the current economic difficulties we face, Americans still have much to be thankful for.

MAY YOU BE BLESSED WITH ALL THAT YOU NEED, THE LOVE OF FAMILY AND FRIENDS, GOOD HEALTH, WISDOM AND COMPASSION.

MAY YOUR STUFFING BE TASTY,

MAY YOUR TURKEY BE PLUMP.

MAY YOUR POTATOES 'N GRAVY HAVE NARY A LUMP.

MAY YOUR YAMS BE DELICIOUS.

MAY YOUR PIES TAKE THE PRIZE,

MAY YOUR THANKSGIVING DINNER STAY OFF OF YOUR THIGHS!!

HAPPY THANKSGIVING TO ALL

Finally a positive note on the economy... .......TOO FUNNY NOT TO SEND

Finally a positive note on the economy...

Things are looking up.

A friend of mine just started his own business, making land mines that look like prayer mats.

It's doing quite well.

He says Prophets are going through the roof.

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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America and most Americans are simply hiding from reality.

"The men the American people admire most extravagantly are the greatest liars; the men they detest most violently are those who try to tell them the truth."

H.L. Mencken

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Let us vow and be determined to never allow the deceitfulness of wealth to lead us into social or financial bondage, or to lure us into abandoning fiscal or moral responsibility.

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Ignoring the facts and pretending that we can count on cheap oil for eternity is delusional. It is also the American way. The age of oil is coming to an end.

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We don't even seem to realize how deep a hole we're in. If student test scores jumped a couple of points or the jobless rate fell by a point and half, the politicians and the news media would crow as if something great had been achieved. That's how people behave when they're in denial.

America will never get its act together until we recognize how much trouble we're really in, and how much effort and shared sacrifice is needed to stop the decline. Only then will we be able to begin resuscitating the dream.

We're in deep denial about the extent of the rot in the system, and the effort that would be required to turn things around.

A FROG IN A POT OF WATER SLOWLY BEING HEATED HAS A BETTER CHANCE.

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The United States has become mired in a complex web of economic instruments that are directly tied to the so-called "bubble" economy. These instruments have merely enabled fraudulent behavior that wrecked the U.S. economy. Making matters worse is the dearth of understanding among many in the public and the exploitation of that misunderstanding by particular politicians.

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Politicians across the spectrum insist that they are all about job creation while the employment situation in the real world remains beyond pathetic.

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Risk? Who cares about risk anymore? There's no escaping it—there is unacceptable risk everywhere you look!

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We've become a hapless, incompetent, can't-do society, and it's, frankly, embarrassing.

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Most Americans are oblivious to the danger all around them.

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A SYSTEM THAT IS OUT OF CONTROL AND HELD TOGETHER BY DUCT TAPE AND LIES DOES NOT GIVE ME GREAT CONFIDENCE IN IT'S ABILITY TO SELF REGULATE OR REPAIR. I'M WAITING FOR AN UNSEEN AND OR UNEXPECTED ISSUE TO COME OUT OF LEFT FIELD AND BECOME THE STRAW THAT BREAKS OUR FINANCIAL CAMELS BACK. THAT WILL START A CASCADE OF ISSUES WHICH BASED ON THE MAGNITUDE OF OUR DEBT AND THE COMPLEXITY OF THE SYSTEM MAY NOT ALLOW US TO RECOVER.

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Today, central bankers are caught in a trap of their own making.

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The parade of illegality, corruption and fraud seems to be never ending.

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When it comes to violating the separation of powers and seizing executive power, no president has done more since FDR than Obama.

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Municipal debt collapsed by nearly 10% over the last two weeks. As it became more and more obvious that state and local governments were headed for default.

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Bankers are self-serving parasites whose dispensation of credit ultimately leaves societies, businesses and nations bankrupt on the gallows of compounding unpayable debt.

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The Federal Reserve is probably the single most dangerous entity in existence in America. The Federal Reserve has the power to create money electronically at will, set interest rates, and buy whatever it wants in the economy with practically no need to consult Congress for approval.

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Capitalism, a system of credit and debt that produced 300 years of growth is now dying. The bankers' debt-based money has created such levels of debt that even 0 % credit can no longer induce growth. In the endgame, the problem is not the lack of credit—it's the excessive amount of debt.

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Capitalism's problem has always been debt, the inevitable byproduct of credit-driven expansion. In times of economic growth, merchants of debt, i.e. bankers, sell debt to those seeking returns; but, in the endgame when economies contract, IOUs cannot be repaid as defaulting debt overwhelms the ability to pay what is owed.

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By keeping interest rates low, central bankers are trying to force investors to take on more risk to keep their economies functioning. By so doing, however, central bankers are distorting underlying free market dynamics as investors should be reducing, not increasing risk, in such times. The consequences of distorting free-market forces have devastating repercussions in the end. This is what happened in 2002 when Greenspan cut interest rates to 1% and in so doing created the catastrophic US real estate bubble whose collapse brought global credit markets to a halt in 2007.

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Never in the history of man has a government with highly centralized powers and minimal checks and balances ended well. Today, the executive branch in the USA has the power to do almost anything it wants. The legislature is all but powerless, having ceded all their authority to the executive-appointed bureaucracy. The judicial branch is still alive and kicking feebly, but the death or retirement of one conservative justice will put a stop to that. The law enforcement political appointees have become arbitrary in their enforcement of the law and politically motivated. Never has America faced such troubling times.

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MUST READ ARTICLE

U.S. Military War Gaming for Large Scale Economic Breakdown and Civil Unrest

http://www.marketoracle.co.uk/Article24484.html

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MUST WATCH VIDEO CLIP

Pentagon, Military Actively War Gaming 'Large Scale Economic Breakdown' and 'Civil Unrest'

http://www.youtube.com/watch?v=DInGq0mIWro&feature=player_embedded

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Uneasy rests the head that wears the crown...

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We are never deceived; we deceive ourselves.

Sir Walter Scott

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"With all due respect, US policy is clueless,"

German Finance Minister Wolfgang Schauble

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My reading of history convinces me that most bad government results from too much government.

Thomas Jefferson

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"The growth in foreign dollar holdings has placed upon the United Stated a special responsibility – that of maintaining the dollar as the principal reserve currency of the free world. This requires that the dollar be considered by many countries to be as good as gold. It is our responsibility to sustain this confidence."

John F. Kennedy in 1961

I REALLY WONDER DO THESE MEN MEAN WHAT THEY SAY OR SIMPLY SAY WHAT OTHERS WANT TO HEAR? ARE THEY REALLY THAT EVIL?

ECONOMIC BITS AND PIECES

ENERGY CONSEQUENCES...........

There are consequences to every action. There are also consequences to every inaction. Over the next decade Americans will experience the dire consequences of inaction.

The implications of peak cheap oil have been apparent for decades. The Department of Energy was created in 1977. The Department of Energy's overarching mission was to advance the national, economic, and energy security of the United States. In 1970, the U.S. imported only 24% of its oil. There were 108 million motor vehicles in the U.S., or .53 vehicles per person in the U.S. Today, the U.S. imports 70% of its oil and there are 260 million vehicles, or .84 vehicles per person.

America is sleepwalking into a future of hardship and turbulence. The coming energy emergency will change everything.

Globalism will wither. Life will become profoundly and intensely local. The consumer economy will be a strange memory. Suburbia – considered a birthright and a reality by millions of Americans – will become untenable. We will struggle to feed ourselves. We may exhaust and bankrupt ourselves in the effort to prop up the unsustainable. And finally, the United States may not hold together as a nation. We are entering an uncharted territory of history.

The land of the delusional has no inkling that their lives of happy motoring are winding down.

The vast majority of Americans believe that oil is abundant and limitless. Their leaders have lied to them. They will be completely blindsided by the coming age of hardship.

If Americans had any sense of history longer than last week's episode of Dancing with the Stars they may have noticed that the modern age has lasted a mere 150 years and has been completely dependent upon cheap plentiful oil. This is a mere eye blink in the history of mankind.

Every characteristic about the condition we call modern life has been a direct result of our access to abundant supplies of cheap fossil fuels.

Fossil fuels have permitted us to fly, to go where we want to go rapidly, and move things easily from place to place. Fossil fuels rescued us from the despotic darkness of the night. They have made the pharaonic scale of building commonplace everywhere. They have allowed a fractionally tiny percentage of our swollen populations to produce massive amounts of food. All of the marvels and miracles of the twentieth century were enabled by our access to abundant supplies of cheap fossil fuels. The age of fossil fuels is about to end. There is no replacement for them at hand. These facts are poorly understood by people who are preoccupied with the thrum of daily life.

By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 MBD. –

Joint Operating Environment Report

When worldwide oil demand slightly exceeded worldwide oil supply in 2008, prices surged to $145 per barrel. A 10 million barrel per day shortfall is unfathomable and will drive prices over $200 per barrel.

The entropic mess that our economy has become is in the final blow-off of late oil-based industrialism. The destructive practices known as "free market globalism" were engendered by our run-up to and arrival at the world oil production peak. It was the logical climax of the oil "story".

It required the breakdown of all previous constraints – logistical, political, moral, cultural – to maximize the present at the expense of the future, and to do so for the benefit of the very few at the expense of the many. Soon deviations in price and or supply of oil and gas will crush our economy and make the logistics of daily life impossible.

The United States is already tottering, as the oligarchy of the Wall Street banking syndicate, global mega-corporations and corrupt political hacks in Washington DC have pillaged the wealth of the country and left a middle class gasping for air.

The recognition by the masses that peak cheap oil is a fact will contribute greatly to the next stage of this Crisis.

American troops are not in the Middle East to spread democracy. They are the forward vanguard in the coming clash over depleting oil resources. Notice that they aren't leaving as Obama promised either, the reason is oil!

The U.S. will be forced to downscale, localize and adapt to a new reality. No technological miracle will save us. Decades of inaction will have a price.

AMERICA NEEDS TO WAKE UP!

THE MOMENT WE LIVE IN.............

In a corrupt, dysfunctional society perfectly incapable of healthy, meaningful change, nothing "good" can happen, not now, not next week, not next year, not five years from now, not ever. That's the historical moment we live in.

For meaningful change to occur, the entire societal edifice would have to collapse and be rebuilt piece by piece from the ground up, as the founders did in 1787 when they convened to create our (now ignored) Constitution in Philadelphia. Unfortunately, collapse invariably makes things much worse, not better.

 

TAKE A LOOK AROUND.........

Wherever you choose to look — at the economy and jobs, the public schools, the budget deficits, the nonstop warfare overseas — you'll see a country in sad shape. Standards of living are declining, and American parents increasingly believe that their children will inherit a very bad deal.

We're in denial about the extent of the rot in the system, and the effort that would be required to turn things around.

 

THE FED IS THE PROBLEM...........

The bailout of LTCM was truly the first time the Fed intervened in markets to make sure that losers didn't have to become losers.

LTCM was the epitome of failed economic theory at work in markets. A group of brilliant economists believed they had discovered the path to minting money in the financial markets. On paper their equations appeared flawless. In reality, they were a disaster waiting to happen.

The Federal Reserve is not dissimilar in this regard.

For 18 years Alan Greenspan ran the nations central bank based on theories and beliefs that he later referred to as being "flawed". Despite this, much of his work influences the current central bank. In fact, today's Fed is more involved in markets than ever.

 

S&P SAYS HOUSING MELTDOWN TO CONTINUE THROUGH NEXT YEAR...........

"Standard & Poor's analysts believe

home prices will drop between 7% and 10% through 2011..." I wonder what people think when they read something like this. House prices drive a positive feedback loop. When prices drop, more homeowners become underwater on their mortgages, which drives more defaults and foreclosures, which increases the inventory of unsold homes on the market, which causes house prices to drop, which causes more homeowners to become underwater... It's a continuing meltdown. When will the Housing Market hit bottom and stabilize? 2013? 2015? Never? Meanwhile, the Fed and the government congratulate themselves on how their prompt action stabilized the Housing Market! Yeah, sure, right. And let's not forget to mention foreclosure fraud.

MORE EMPLOYMENT LIES ABOUT UNEMPLOYMENT..............

The government changed the "seasonal adjustment" it made to the payroll numbers — and, in so doing, boosted the number of "jobs" created in October by 100,000.

Stephanie Pomboy of MacroMavens explains: "The seasonal bar which the payroll data must jump was (inexplicably and dramatically) lowered from prior Octobers. "Thus, in October 2009, the BLS set the bar at 870,000 jobs, similar to the 840,000 it anticipated in October 2008. This year, by contrast, it lowered the bar to 768,000. Mumbo, jumbo, payrolls presented "an upside surprise" of 100,000."

The jobs market is nowhere close to making even a modest comeback. And I am sick and tired of being lied to by politicians, government bureaucrats, bankers, Warren Buffett and whoever else thinks it's in their best interest to tell a few whoppers.

GODEN NUGGETS...........

There's a lot of speculation these days about the gold price. One of the favorite theories is dollar weakness. The rising gold price is caused more by a falling dollar, than by increasing demand for the metal. But the data says otherwise. This week, the gold price in yen neared a record. Front-month Japanese gold hit 3,725 yen per gram. Just a hair below the all-time high of 3,788 yen/gram set on February 22, 1983.

Seeing gold at record levels in other currencies is a sign something beyond dollar weakness is afoot.

GM FIXED........... THAT'S A GOOD ONE!

GM is not as clean as it appears, the disclosures on the book (prospectus) notes the following;

"We have determined that our disclosure controls and procedures and our internal control over financial reporting are currently not effective. The lack of effective internal controls could materially adversely affect our financial condition and ability to carry out our business plan."

If any other company put the above statement in an S-1 how long would you bet on their existence? The cancer that caused GM to go bankrupt has not been removed, bad management and bad Union contracts.

The Fed has to raise rates eventually — ending the cheap financing that currently makes GM appear to be a survivor at present. When the facts are considered and realistic analysis is made what one finds is that GM is not strong enough to survive the next recession.

GMs recent IPO is the equivalent of the Edsel.

THE TRUTH HAS BEEN KNOWN FOR A LONG TIME...............

As government and society become more complicated, the individual is apt to lose his understanding of realities. Most people in their daily life forge a single link in a chain of circumstances. In the older and simpler days when a man needed bread, he cultivated the soil, planted seed, harvested it and ground it into flour. It was perfectly clear that if he neglected to do any of these things, he would not have any food. As it is now, the chemist studies the fertilization, the manufacturer makes farm implements, the miller grinds grain, and a sales organization markets the produce of the farmer. The man who gets the reward, or to carry the figure on, who receives the bread, is dependent upon a great number of people each doing his part in a long sequence of events. Under the simpler order, where the farmer carried on the whole cycle from the field to the dinner table, the results of indolence or stupidity affected him directly and him alone. Under the present complicated order, he can suffer only indirectly himself, but his interruption of an involved process will throw the whole system out of gear and injure an infinite number of others. The responsibility of the individual today, therefore, is greater than it was in the past, and while the incentives may be as great as they were, they are less obvious.

The simple underlying principles on which a happy and successful life must be based do not change with the centuries. Because with a complicated social organization they are at times obscured, they are none the less all powerful.

Because the effect of an individual's failure to do his part does not immediately react upon himself as it did in the early days of this country, an opportunity is offered for the irresponsible to preach doctrines which are essentially unsound. None of these preachings is more dangerous than the assertion that the wealth of a nation can be increased in some other way than through stimulating production as a result of work and thrift. We boast of a great deal of progress these days, but if this country ever adopts such a theory it will be committed to a policy almost inconceivably reactionary.

Henry M. Dawes

President, The Pure Oil Company,

1938

REAL ESTATE STARTS LAST WEEK INDICATED THAT THE HOUSING MARKET IS NOT GETTING ANY BETTER........

Oct Housing Starts were well below expectations at 519k annualized vs the forecast of 598k.

It's at the lowest level since Apr '09 and was mostly led by a very sharp fall in the multi family category where starts fell to 83k from 147k, the lowest since Feb and is 82% below the peak in '06. Single family starts fell modestly to 436k from 441k. Permits for both sectors were little changed from Sept and for the multi family area specifically, it implies a snap back in construction. Also, the secular drop in homeownership rates should also buoy multi family housing for years to come. In terms of single family starts and the high level of existing homes for sale, we should root for lower starts at the short term expense of a lower contribution to GDP from residential construction.

 

A FLORIDA JUDGE TAKES A CLOSER LOOK.........

Tampa Tribune:

"Pasco County Circuit Judge Susan Gardner decided to take a closer look at her foreclosure cases after law firms were accused recently of overbilling and forging documents.

She doesn't like what she's finding – a mountain of fees to serve notice of foreclosure lawsuits to homeowners and to people who don't exist.

"Routinely, routinely, I'm seeing charges of $1,600, $1,800, $1,000, $800, any of those are ridiculous, and there had better be a good reason for it," Gardner said, noting that these fees should typically be $45 to a couple hundred bucks.

The judge chose 12 random files and said she found 11 of them had what she says appear to be inflated charges to serve homeowners with lawsuits.

Some of the lawyers who submitted affidavits to the court saying the fees are "reasonable" often sign their names and bar numbers in an illegible scribble, court records show.

"I used to think this was just sloppy work, but I truly have begun to wonder if it's not concealment,"

Gardner said.

Funny what happens when Judges get pissed off . . .

 

MICHIGAN CITIES ARE IN BIG TROUBLE..............

This week's attempted

bankruptcy by Hamtramck, Mich. could be the start of an avalanche. Gov.-Elect Rick Snyder says hundreds of Michigan municipalities are nearing bankruptcy, and the darkest hour is years away, according to Bloomberg:

There are "wealthy communities that are not in that different a position" from Hamtramck, said Snyder, a Republican who is a former computer-company executive. "They simply haven't had the day of reckoning arrive yet that is liable to happen in the next two or three years, with the way property tax revenues are going,"

"The most challenging period is probably about 2013 to '15. Literally, there could be hundreds of jurisdictions."

Michigan's plan to stave off bankruptcy in Hamtramck is hardly reassuring. The city would receive an emergency loan, while continuing it's suit against Detroit over tax revenue. If Hamtramck survives, it will do so with money from Michigan and near-bankrupt Detroit.

What happens when hundreds of cities are on the brink?

WHAT HAPPENS AS THE BURDEN OF 50 STATES WORTH OF THESE PROBLEMS ARE PILED ON TO THE FEDERAL GOVERNMENT AND EVERYONE IS DEPENDING ON THE GOVERNMENT TO BAIL THEM OUT.

STATES CAN'T PRINT MONEY SO THEY WILL GO BEGGING FROM THE FEDERAL GOVERNMENT. AFTER THIS RECENT ELECTION AND CONSIDERING THE LIKELY DOLLAR VOLUME OF THESE SHORTFALLS THE FEDERAL GOVERNMENT WILL NOT BE ABLE TO HELP, UNLESS THEY ARE WILLING TO DESTROY WHAT IS LEFT OF THE DOLLAR AND OUR ECONOMY.

THE NEXT FEW YEARS WILL BE EXTREMELY INTERESTING TO SAY THE LEAST. PROBABLY PRETTY DESPERATE IN MANY PLACES AS WELL.

IF ANYONE UNDERSTANDS EXCESS IT IS THE FRENCH..........

The French politician, economic & finance expert Jacques Rueff said in 1972:

"It is that when a country with a key-currency runs a balance-of-payments deficit – that is to say, the United States, for example – it pays the creditor country dollars, which end up with the latter´s central bank. But the very same day, they are reloaned to the New York money market, so that they return to the place of origin. Thus the debtor country does not lose what the creditor country has gained. So the key-currency country never feels the effect of a deficit in its balance-of-payments. And the main consequence is that there is no reason whatever for the deficit to disappear, because it does not appear. Let me be more positive: If I had an agreement with my tailor that whatever money I pay him he returns to me the very same day as a loan, I would have no objection at all to ordering more suits from him and my own balance of payments would then be in deficit. Because of this situation, the United States could pay off its balance of payments deficit in paper dollars. As the central banks received dollars, they used them immediately to buy U.S. Treasury Bills or certificates of deposit in New York banks, thus returning the dollars to their country of origin which thus recovered all the assets it had just paid out."

Rueff warned that, if this system is continued for long, it would inevitably have 3 consequences:

"1) A permanent deficit would develop in the United States' balance of payments whose overseas settlements would no longer automatically reduce the amount of credit available at home. Thus the United States was in the privileged position of being able to buy, invest, loan or donate money in other countries without limit since its money markets would not feel any effects from this capital outflow. Having learned the secret of having a "deficit without tears", it was only human for the United States to use that knowledge, thereby putting its balance of payments in a permanent state of deficit.

2) Inflation would develop in the surplus countries as they increased their own currencies on the basis of the increased dollar reserves held by their central banks.

3) The convertibility of the reserve currency, the dollar, would eventually be abolished owing to the gradual but unlimited accumulation of sight loans redeemable in the Unites States gold."

OUR EDUCATION SYSTEM HAS FAILED............

There was a time when the United States understood the importance of educating its young people and led the way in compulsory public schooling. It also built the finest higher education system in the world. Now, although no one will admit it publicly, we've decided to go in another direction.

In New York City, for example, Mayor Michael Bloomberg's choice to run the public school system is Cathleen Black, a wealthy corporate executive with no background in education whose children attended expensive private schools. Mr. Bloomberg has asserted that Ms. Black's management expertise will be a boon to the city's public school children. But the truth is that Ms. Black, if she gets a necessary waiver for her new job, will be presiding over budget cuts that can only hurt the schools. As part of a proposed austerity budget, the mayor is planning to eliminate the jobs of thousands of public school teachers over the next two years. Take that, kids.

Public figures talk endlessly about "transformative changes" in public education, but the years go by and we see no such thing.

 

I THINK A LOT OF OUR SO CALLED LEADERS WILL HAVE AN AWFUL LOT TO ANSWER FOR ONE DAY...........

"Woe to those who make unjust laws, to those who issue oppressive decrees, to deprive the poor of their rights and withhold justice from the oppressed of my people, making widows their prey and robbing the fatherless."

-Isaiah 10:1-2

Government corruption in these United States has been prevalent and systemic for half a century or more.

Biblical prophecy warns that in the last days - these times – there will be a turn to preponderant immorality

of a bestial nature, and that the people will give themselves up to perversions precisely such as those that were pursued and acted on in Sodom and Gomorrah and their surrounding environs. Scripture makes clear that these perversions were taught by demons and that these very despicable and filthy practices will be institutionalized by governing authority and endorsed and sanctified by an apostate church in the latter days.

No one can deny that in this nation and in these days that these predictions have come to pass.

Sodomy is pursued with militant aggressiveness. Activist judges - many of them sodomites - unfettered by ethics, scruples, morality or the Constitution are by-passing the people and legislative prerogatives with judicial decrees that are rapidly institutionalizing sodomy.

A majority of the denominational churches now condone, support, and encourage sodomy and the co-occurring spin off of same sex marriage, this even to the point of ordaining sodomite pastors and uniting same sex couples in marriage. That they would pervert the sacrament of marriage and deny the authority of God's word thusly speaks to the depth of apostasy to which they have descended. Those that use Jesus, the very author of the destruction of Sodom and Gomorrah, as justification for their despicable and impious religious dictums in regard to sodomy have reserved unto themselves the punishment of eternal fire.

They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity

. -Ezekiel 7:19

WHEN A COUNTRY AND PEOPLE WON'T STAND UP FOR WHAT THEY BELIEVE, THEY WON'T STAND FOR LONG. I HAVE NOT HEARD ANYONE, NOT A SINGLE PERSON TALK ABOUT HOW EVIL MANY THINGS HAVE BECOME IN AMERICA........ WE DON'T WANT TO DISCUSS CERTAIN THINGS FOR FEAR OF OFFENDING PEOPLE, OUR DETERMINATION TO BE POLITICALLY CORRECT AND OUR FEAR OF OFFENDING ARE DESTROYING AMERICA. WE WOULD RATHER BE CIVIL THAN FIGHT FOR WHAT IS RIGHT. MANY OF THE THINGS HAPPENING IN AMERICA OFFEND GOD AND HIS STANDARDS, IT IS IRONIC THAT MOST AMERICANS ARE FAR MORE WORRIED ABOUT OFFENDING CERTAIN PEOPLE OR GROUPS THAN THEY ARE ABOUT OFFENDING ALMIGHTY GOD. AMERICA IS LOST UNTIL THIS CHANGES.

Tuesday, November 23, 2010

"Protecting Bank Solvency Has Been A Goal Of Treasury That I Do Not Share"

Congressman: "Protecting Bank Solvency Has Been A Goal Of Treasury That I Do Not Share"

Rep. Brad Miller (D-NC) and nine more House Democrats have sent a letter to the Financial Stability Oversight Council urging the use of emergency action to bust up foreclosure-gate.

Their most controversial demand is that banks should be required to divest of mortgage servicing companies, which the letter calls an obvious conflict of interest. Namely, servicing companies are rushing foreclosure to get them off bank balance sheets.

Miller addresses the letter in an interview at FDL: " I do not place a high priority on protecting the solvency of the banks if they are insolvent. Protecting bank solvency has been a goal for Treasury that I do not share. It has prevented them from doing anything about foreclosure crisis which is killing the economy. Millions of people are losing their homes. Millions more, pretty much everyone, are seeing the value in their home decline, which for most Americans is the bulk of their net worth. This is a huge burden on families."

Miller and Democrats including Barney Frank want the government to use authority under Dodd-Frank to intervene -- although in this case it seems that intervention would increase bank risk.

Here's the rest of the letter sent last night:

Members of the Financial Stability Oversight Committee
c/o Secretary Geithner, Chairman of the FSOC
1500 Pennsylvania Avenue NW
Washington DC, 20220

In light of the recent report from the Congressional Oversight Panel regarding mortgage irregularities, we are writing to support the panel's call for a new round of stress tests to examine stability issues arising from residential mortgages held in securitized pools. Stability issues that have not been included in previous stress tests include liabilities for breaches of representations and warranties in Pooling and Servicing Agreements, liabilities arising from systemic mortgage documentation irregularities, and conflict of interests for servicers affiliated with firms that hold significant portfolios of second liens. We urge the council to recommend that its members conduct specific, thorough reviews of the potential effects of these issues on the risk profiles of the institutions they regulate and also that the Federal Reserve incorporate these potential liabilities into the new round of stress tests it announced earlier this week. We urge that the Financial Stability Oversight Council consider, in light of those stress tests, requiring that some financial companies divest affiliates involved in servicing securitized mortgages.

First, we urge that the members of the Council examine a representative sample of collateral loan files of each major servicer to determine if the files contain all the documents required by contract or by law, including the note; mortgage, deed of trust or equivalent document; and all documents evidencing or constituting the necessary assignment, delivery and recording of those documents. The Council should determine if the documents satisfy contractual representations and warranties in the pooling and servicing agreement or other governing instrument for the mortgages in question, and if not, any potential liability that may result. The collateral loan files examined should be selected at random, not by the servicers.

Questions about the documentation of securitized mortgages have received much recent attention. The financial institutions involved in securitization, including sponsors, trustees and servicers, have said publicly that any problems are isolated, technical in nature and easily cured. Others contend that the problems are pervasive, incapable of cure, and may ultimately require financial institutions involved in the securitization of residential mortgages to repurchase at face value hundreds of billions of dollars of mortgages, many of which are now non-performing. Many of the financial companies with potential liability to repurchase those mortgages are on any list of systemically significant firms.

Second, we urge the Council to examine the servicing of first mortgages by servicers that hold second liens or are affiliated with firms that hold second liens. The largest servicers hold almost half a trillion dollars in second liens, which are valued for accounting purposes at approximately 85 percent of face value. Those servicers, also systemically significant firms, assert that the second liens are performing, as are the first mortgages on the same property, and thus the second liens are accurately valued. The servicers contend that any interest the servicers may hold in second liens has not affected their servicing of securitized first mortgages. Others contend that there is an indefensible conflict of interest for servicers of securitized first mortgages to hold second liens on the same property, that servicers have acted contrary to the interest of the beneficial owners of first mortgages to avoid accounting losses on second liens, and that servicers face significant unrealized losses on those second liens.

An important purpose of the Dodd-Frank Act is to identify risks to the financial system as early as possible, so that regulators can take corrective action or minimize the disruption to the financial system that results from the insolvency of systemically significant financial companies. It is also a purpose of the Act to make risk to our nation's financial system transparent in order to restore the confidence of the American people in the financial system and in their government. It would serve those purposes to examine these issues and make the result of that examination public.

Finally, we urge that the Council consider use the authority under the Dodd-Frank Act to require that financial companies divest affiliates or other holdings involved in servicing securitized mortgages. There is no apparent advantage in having financial companies that securitized mortgages also act as trustees or servicers, and there is an obvious conflict of interest. The uncertainty about the extent of the risk to our nation's financial stability posed by the mortgage irregularities is largely the result of the control of critical information by financial companies at risk of insolvency from potential legal liability to mortgage investors and others. The control of critical information by financial companies with a possible motive to conceal systemic risks is incompatible with the intent of the Dodd-Frank Act, and is a grave threat to our nation's financial stability.

Thank you for your attention to this matter.

Andre Carson (IN)
Stephen Lynch (MA)
Joe Baca (CA)
Jackie Speier (CA)
Danny K. Davis (IL)
Laura Richardson (CA)
Barney Frank (MA)
John Conyers (MI)
Luis Gutierrez (IL)
Maxine Waters (CA)

WHERE WERE THESE PEOPLE PRIOR TO THE ELECTION? THIS IS CYA NOT AN HONEST BROKERING OF POWER FOR WHATS RIGHT. POLITICIANS ARE WORRIED ABOUT WHICH WAY THE WIND IS BLOWING NOTHING MORE.

NO SITUATION REALLY EXIST'S UNLESS IT TRADES............

 
Tensions are high following the shooting skirmish between them Koreas. Since this event is 5,000 miles away, and does not involve any banks, it will probably fade rapidly, as it doesn't really exist unless it trades. "We were watching to see if steel or copper futes rallied, but the shells fired were insufficient in number to really move the needle," said one trade, who didn't really exist. Were it to go nuclear, Uranium futures would rally. Traders are comfortable with that outcome.
 
"No matter how cynical you get, it's impossible to keep up."
                                                                                              Lily Tomlin
 
THE WORLD HAS ABSOLUTELY COME OFF IT'S HINGES!
 
      

Bonds have outperformed stocks for a generation and counting.

Bonds have outperformed stocks for a generation and counting. 
 
 
 

Buy and hold…..... your ankles.

 

The obstacle in Our Path..............

 
The obstacle in Our Path

In ancient times, a King had a boulder placed on a roadway.  Then he hid himself and watched to see if Anyone would remove the huge rock.  Some of the King's' wealthiest merchants and courtiers came by And simply walked around it..  Many loudly blamed the King for not keeping the roads clear, but none did anything about getting the stone out of the way.

Then a peasant came along carrying a load of Vegetables.  Upon approaching the boulder, the peasant laid down his burden and tried to move the stone to the side of the road.  After much pushing and straining, he finally succeeded. After the peasant picked up his load of vegetables, he noticed a purse lying in the road where the boulder had been. The purse contained many gold coins and a note from the King indicating that the gold was for the person who removed the boulder from the roadway.  The peasant learned what many of us never understand!

Every obstacle presents an opportunity to improve our condition.

The Huge Insider Trading Investigation..............

Yesterday, stocks climbed back from under pressure, closing nearly flat after an earlier shellacking, ostensibly due to the FBI raids of hedge funds. The market action was caused by Traders surprise in learning that some Federal agencies plan to continue enforcing laws, despite the best efforts of bank lobbyists.

The Huge Insider Trading Investigation
 
The FBI's huge investigation into institutional insider trading is apparently close to a turning point - they could charge the largest number of people in history with participating in a vast insider trading "ring" "within weeks," a person familiar with the situation told Reuters.

The people who the government will name is unknown at the moment, but we have an idea of more than a few people who have been implicated.

The government is trying to bust traders/people at Jennison, Wellington, MFS, Citadel, Maverick, Goldman Sachs and SAC Capital, one of the most prestigious - and "squeaky clean" - hedge funds in the world. 

But so far, they only seem to have dirt on one trader at SAC who left in 2008, and none at Citadel, Jennison, Wellington, MFS, or Maverick.

The names we know are other people who are involved in the case, and who have been implicated in insider trading charges before. That their charges are being brought up again is an indication of how big the government's investigation is - they're trying to get everyone who receives "advantageous" information from industry experts, it seems. New names are probably being kept private at the moment, so no one's career is smudged unnecessarily - and so they make a big splash when the charges are announced.

The people involved so far are:

Chip Skowron - a former portfolio manager at Front Point partners, a hedge fund at Morgan Stanley (that is currently spinning out of the fund and will be run independently). He has been suspended. There are more details of his implication in the Wall Street Journal.

  • The Doctor - Dr. Yves M. Benhamou provided information about a company called Human Genome Sciences to Skowdown. It enabled the $1 billion fund Skowdon managed at Front Point to avoid $30 million in losses in late 2007 and early 2008. There are more details of his implication in the Wall Street Journal.
  • Jonathan Hollander - a former SAC Capital Advisors analyst (who left November 2008). Prosecutors took at least two confidential statements from Hollander at some point over the last 21 months. Hollander was charged in 2006 with receiving confidential information about the status of buyout negotiations involving the Albertstons supermarket chain. The tip apparently generated $3.5 million for Hollander's firm at the time, CR Intrinsic, a subsidiary of SAC Capital. More details about his involvement are in Reuters.
  • Joseph Contorinis
    Joseph Contorinis - a former Jefferies Group Inc hedge fund manager who was convicted by a Federal jury of insider trading in October. More details about his involvement are in Reuters.
  • The squealer / the witness - Nicos Stephanou, a former UBS banker, is one of the government's star witnesses against Contorinis. He testified that he had provided insider information to Contorinis about corporate buyouts and testified that he had given the same information to Hollader - while he was at SAC. More details about his involvement are in Reuters.
  • Ramesh Chakrapani - a Blackstone Group banker who the government charged with insider trading. The charges were later dismissed. More details about his involvement are in Reuters.
  • John Kinnucan - a principal at Broadband Research LLC, who was asked to wear a wire. For more on his involvement read the Wall Street Journal.
  • John Deutsch - a former Galleon Group fund manager, who knew a fund manager at Level Global, Anthony Chiasson, according to the Wall Street Journal. He recieved a subpeona last fall.
  • Mark Adams - a former Balyasny analyst who is suspected of being a person who gave nonpublic information to a cooperating witness in the Galleon case, hedge-fund manager Steven Fortuna, according to the Wall Street Journal.
  • Anthony Chiasson - a co-founder of the hedge fund Level Global (the other co-founder is David Ganek) who is said to have exchanged stock ideas with John Deutsch, according to the Wall Sreet Journal.

The firms that have been ensnared in the scandal where people may be named are:

So stay on the lookout. Reuters has heard that the charges could be brought within weeks - so many more traders could be named soon.



OBAMANOMICS EXPLAINED........... AND MORE

 
 
 

SUBPRIME INFERNO...............

Monday, November 22, 2010

Sixteen key commodities that have seen huge price increases over the past year..............

Sixteen key commodities that have seen huge price increases over the past year:

Agricultural Raw Materials: 24%

Industrial Inputs Index: 25%

Metals Price Index: 26%

Coffee: 45%

Barley: 32%

Oranges: 35%

Beef: 23%

Pork: 68%

Salmon: 30%

Sugar: 24%

Wool: 20%

Cotton: 40%

Palm Oil: 26%

Hides: 25%

Rubber: 62%

Iron Ore: 103%

The Dow Jones Industrials average has just had its best September in seventy-one years, rising 7.7 percent. Just in the past month, cotton, sugar, wheat, oil, and rice have risen more than 12 percent. The motor oil in your garage and the Uncle Ben's in your kitchen cupboard outperformed the best traders on Wall Street.

THE MARKETS ABOVE ARE THE ONES MAKING MONEY YET AMERICAN INVESTORS CONTINUE TO FOCUS ON ARTIFICIAL STOCK MARKET RALLIES INDUCED BY CORRUPT FED POLICIES, DENOMINATED IN A FAILING CURRENCY AND DOOMED TO CERTAIN FAILURE BY SOON TO BE RISING INTEREST RATES.

The Entire State Of The World Economy In 11 Charts..............

The Entire State Of The World Economy In 11 Charts

Societe Generale have published their global economic outlook and it's full of charts explaining the problems in the world, and U.S. economy. It focuses in a large way on inflation, the dangers present in emerging markets, the China-U.S. imbalance, and the deleveraging process in the U.S. A worth while visual guide to what's going wrong, and right, in the global economy right now.

1. Inflation, surging in emerging markets.
Inflation, surging in emerging markets.

2. And don't worry, there are plenty more dollars around to drive that inflation.

And don't worry, there are plenty more dollars around to drive that inflation.

3. But emerging markets showing signs of decoupling from the developed world.

But emerging markets showing signs of decoupling from the developed world.

4. China's consumers, rising at a slower rate than exports.

China's consumers, rising at a slower rate than exports.

5. China U.S. trade balance getting back to "normal."

China U.S. trade balance getting back to "normal."

6. And by normal we mean a massive trade deficit with China.

And by normal we mean a massive trade deficit with China.

7. But how does the U.S. turn it around?

But how does the U.S. turn it around?

8. With the household savings rate still high.

With the household savings rate still high.

9. And fiscal expansion only helping somewhat...

And fiscal expansion only helping somewhat...

10. But what with consumption in decline, can anything come in to prop up the U.S. economy? Maybe exports?

But what with consumption in decline, can anything come in to prop up the U.S. economy? Maybe exports?

11. That wonderful global leverage clock, with the U.S. and UK at rock bottom, welcoming Ireland and Greece in.

That wonderful global leverage clock, with the U.S. and UK at rock bottom, welcoming Ireland and Greece in.

YOU FIX OUR DEFICIT PROBLEMS............. VERY COOL

FIRST LINK IS TO THE ARTICLE 
 
O.K., You Fix the Budget
 
 
YOU CAN USE THIS LINK BELOW TO GO TO THE INTERACTIVE ONLINE FORM TO FIX THE BUDGET 
 
 

OUR GOVERNMENT IS A REAL MAZE..........

 

A PRODUCT OF HUMANISM, A COMPLETE AND UTTER FAILURE................

THE ARCHITECT OF ECONOMIC FOLLY AND FAILURE. THIS MAN'S LEGACY IS A TRAIL OF ECONOMIC BULLSHIT THAT EVEN THE GREAT HERDS OF AMERICAN BISON WOULD FIND HARD TO MATCH. THIS MAN IS A PRODUCT OF HUMANISM, HE IS A COMPLETE AND UTTER FAILURE.
 
I HAVE CALLED HIM THE WEASEL FOR ALMOST TWO DECADES NOW AND THAT IS EXACTLY WHAT HE AND HIS BUDDIES ARE! THIS MAN IS RESPONSIBLE FOR MORE AMERICAN PAIN THAN ANY ENEMY WE HAVE EVER FACED. THE SAD THING IS THAT OUR CONGRESS AND SENATE ARE NOT FAR BEHIND THIS MANS RECORD OF ABSOLUTE FAILURE.

Saturday, November 20, 2010

FURTHER ANALYSIS OF THE COMING NEWSWEEK COVER.............. I THINK YOU WILL FIND THIS INTERESTING

I SENT THIS PICTURE ON FRIDAY.
BELOW YOU WILL FIND SOME INTERESTING FOLLOWUP ANALYSIS.
The date of this cover is 11/22/2010.
It is very obvious that the position of President Obama in the picture above has a great similarity to Shiva, The Destroyer below.
"As the destroyer is dark and terrible, encircled with serpents and a crown of skulls…… The crescent moon Shiva wears on his crown…… Shiva himself also represents this complete cycle because he is Mahakala the Lord of Time, destroying and creating all things….."
I don't think that I have to point out how utterly mocking the above description is towards God Almighty.
Jesus wore a crown of thorns, and Shiva wears a crown of skulls, so it is safe to say this 'god' encircles itself in death.
The comment about the crescent moon being linked with Shiva really gave me a pause as the crescent moon is seen so often in association with President Obama, as I'm sure everyone knows, which I know a lot of people have thought symbolizes Islam, and while I believe that to be part of it, I am now wondering if there isn't a little deeper reason that no one has been seeing: a link to Shiva, and the old 'gods'. Finally this 'god' cannot create, but can only destroy, and that is why he is known as the destroyer.
There was an announcement as of November 12, 2010 that a 50/50 Joint Venture will Merge all Newsweek Businesses and The Daily Beast's Digital Assets.
Let's study this cover a little further:
President Obama, with sun shining behind him in golden rays, is holding not only the world in his 6 hands, but also a military helicopter, a house, a wad of money, a dove, and a stethoscope. Only God could manage all of this. Is Obama pretending to be God?
Notice that the globe is turned to the United States and there is a military helicopter above it; this could possibly indicate a military move here soon in the U.S. Perhaps even signaling that there will be a military take-over (remember the FEMA camps/martial law) soon.
President Obama is holding a large wad of money that are $100 bills; it's hard to see what the exact number of bills are that are in his hand, but did you know that not only is a new design now up for the new $100 bills, but that they will be in circulation February, 2011?
The house that President Obama holds is of interest because of what has happened to the housing market since Obama's Presidency? There have been millions of foreclosures, and indeed, the housing market is slowly being destroyed, along with the financial industry. We may be seeing the destroyer at work a lot closer to home than anyone is piecing together, especially with his uncanny depiction of Shiva.
President Obama is holding a dove which often times signifies peace; however, it can have other meanings. It is poised as though looking upwards towards Heaven, but in Hindu religion (and I think it's safe to say we can continue on this vein because of the obvious Shiva connection) the dove symbolizes Yama, god of the dead, who has birds such as owls and doves or pigeons as messengers. Obviously, this dove bodes nothing good, and neither does the messenger.
Finally, there is the stethoscope to symbolize healthcare, but also it is another stab in the eye of God as He is known as 'The Great Physician'.
Daniel 11:36, "The king will do as he pleases. He will exalt and magnify himself above every god and will say unheard-of things against the God of gods. He will be successful until the time of wrath is completed, for what has been determined must take place."
Daniel 8:24, "And his power shall be mighty, but not by his own power: and he shall destroy wonderfully, and shall prosper, and practice, and shall destroy the mighty and the holy people."
One more thing that President Obama is trying to do,he is trying to 'jumpstart' the 'peace' process for Israel/Palestine and this time Prime Minister Netanyahu is actually on board.
IF YOU STUDY YOUR BIBLE YOU WILL FIND THAT THE RAPTURE OCCURS PRIOR TO THE PEACE TREATY BETWEEN ISRAEL AND ARAB NATIONS BEING SIGNED. THIS PEACE TREATY MAY NOT BE THE ONE THAT IS FINALLY SIGNED, BUT IF IT IS THE ONE THAT IS SIGNED THEN THE CHURCH OF JESUS CHRIST WILL HAVE BEEN REMOVED PRIOR TO IT'S SIGNING. THAT IS A BIBLICAL FACT! INTERESTING TIMES INDEED.

Friday, November 19, 2010

Mortgage Origination, Assignment, and Securitization Process..........

Mortgage Origination, Assignment, and Securitization Process

The Employment Numbers Are A Lot Weaker Than You Think..............

The Employment Numbers Are A Lot Weaker Than You Think

Comstock

The headline numbers for changes in non-farm payroll employment are significantly overstated

according to our examination of the data in the Bureau of Labor Statistics (BLS) website. This occurs as a result of the distorting effects of two factors---- seasonal adjustments over a year's time and the annual benchmark revisions that correct earlier incomplete data.

Let's deal with the seasonal adjustment distortion first. The recently released employment number for October indicates that seasonally adjusted jobs increased by 829,000 over October 2009. However, BLS data show that non-seasonally adjusted employment increased only 626,000 over the same period. Since normal seasonal fluctuations are not a factor when comparing any number to a year-earlier period, monthly seasonal adjustments in this case are overstating the change in employment by 203,000. In other words, the actual increase in employment for the 12 months ending October is 203,000 less than the total you would get by adding up the last 12 months of the seasonally-adjusted data that everyone uses.

The second distorting factor is the annual benchmark revision, which the BLS estimates at this time each year. In line with this routine practice the Bureau recently announced an estimated downward adjustment to March 2010 nonfarm employment of 366,000. This essentially wipes out more than the entire birth/death adjustment for the period of 336,000. This will be the second consecutive year in which the benchmark revision more than wiped out the additional jobs added by the birth/death adjustment. The final benchmark revision will be issued with the employment report to be released on February 4, 2011.

We further note that for the 12 months ended October 31st, 2010, the birth/death estimate added 496,000 jobs to the non-seasonally adjusted monthly numbers. Since it is highly unlikely that new business startups have actually added any jobs in that period, it is probable that these estimates will also be wiped out by subsequent benchmark revisions. Thus, when we eliminate this birth/death adjustment of 496,000 from the 626,000 added for the 12 months ended October 31st, we are left with only 130,000 jobs added for the period rather than the 829,000 that everyone uses without actually analyzing the data that is readily available on the BLS site.

To sum up:

Start with the 829,000 jobs added on a seasonally adjusted basis. Subtract the 203,000 jobs added through the distortion of seasonal adjusting. That leaves 626,000 non-seasonally adjusted jobs added. Then subtract the 496,000 jobs added by the birth/death adjustment that will probably be wiped out by a subsequent benchmark revision. That leaves an estimated 130,000 jobs added for the entire 12 months.

Note: All of the statistics cited above can readily be found in the BLS website at bls.gov. For monthly changes in payroll employment, both seasonal and non-seasonal as well as the birth/death adjustment, see "CES Net Birth/Death Model". For the benchmark revision, see "CES Preliminary Benchmark Announcement".

IT'S CALLED BULLSHIT AND IT IS WHAT OUR GOVERNMENT, WALL STREET AND POLITICIANS DO BEST! HOW LONG DO YOU THINK WE WILL BE ABLE TO KEEP SPREADING THIS KIND OF FERTILIZER AND REALLY BE ABLE TO FOOL ANYONE AT ALL? WHEN OTHER COUNTRIES RESORT TO THIS KIND OF INFORMATION FIXING WE CALL IT PROPAGANDA AND THAT IS EXACTLY WHAT AN AWFUL LOT OF THE ECONOMIC INFORMATION COMING FROM OUR GOVERNMENT IS!

FIXING OUR DEFICIT PROBLEMS.............

The economy cannot recover on a sustained basis, and return to a sustained level of output and consumption, until the bad debt is cleared. Attempting to paper it over will at best lead to a Japan-style outcome and at worst a bond-market and currency collapse that wipes out virtually everyone.

Here's the budget by percentage,

In no particular order, all annualized, so as to stop the games of claiming 10-year "savings" or "costs" where the real number that matters is this year's (or next year's) number.

  • The military (or "un-paid for wars" if you prefer) is responsible for most of the deficit. This is a blatant lie. The Defense Department consumes approximately $750 billion a year. (And don't start prattling about "off-balance sheet" nonsense either - the actual deficit numbers in borrowing track pretty closely with the as-claimed DOD numbers.) Note that the deficit is closer to $1.6 trillion at present. If we were to presume that half of the DOD budget could be eliminated, we would save $325 billion. This is likely entirely unrealistic - and is in fact double the claimed amount of the war costs.

  • We can close the budget gap without cutting Medicare, Medicaid, related programs, Welfare or Social Security. No we can't. 75% of the budget, or three trillion dollars, is comprised of Social Security, Defense, Unemployment/Welfare/etc, Medicare and Medicaid. If you cut defense by half and eliminate all discretionary programs including Education, Agriculture, Justice (yes, the FBI, CIA, BATFE, etc), Homeland Security, etc - you'd still be well in the hole. Welcome to reality.

  • We can eliminate off-budget discretionary spending and thus fix the problem (e.g. earmarks, etc.) Wrong again. Off-budget discretionary spending is less than 3% of the budget. Yes, it's a lot - $120 billion - and some of the war spending is in there. But it's not enough to make the difference.

  • Eliminating The Bush tax cuts for the rich will fix it. No it won't. That's $700 billion over 10 years, or $70 billion a year in additional revenue, assuming zero avoidance is undertaken. Of course there will be some avoidance, but let's be realistic - out of $1.6 trillion in deficits ($1600 billion) $70 billion is a mere 4% of the deficit. Every bit matters, but don't tell me "tax cuts for the rich" are about deficit reduction - they're not. They're about social disapproval of people making a lot of money. Maybe legitimate, maybe not, but don't lie about the impact on the deficit.

  • Raising taxes can fix it. No it won't. There are roughly 239 million Americans of working age today (BLS data.) Of that, about 140 million have a positive AGI on their tax return. The deficit is $1.6 trillion. Closing the gap with tax increases would mean increasing taxes by $6,700 on every single working-age American, including those who have negative AGIs! To do it on the back of only those employed (or those with positive AGIs) the damage would be over $11,400 - per employed person. The problem with trying to do it with the top 1% of taxpayers (and leaving everyone else alone) is that you'd have to raise taxes by $670,000 per person on that top 1%. Unfortunately this exceeds their taxable income; the top 1% has an AGI (as of 2008) of approximately $380,000 - so confiscating their entire income would only get you about halfway there. If you were to impose a 100% surcharge on the top 5% you'd do worse - 58% of $1.0 trillion is ~$580 billion, and thus doubling the tax on the top 5% of Americans would result in about 35% of the deficit being covered. Nowhere near enough - and that would double income tax on anyone making more than $160,000 a year. You can't solve the problem with tax increases.

  • It's going to get better. No, it's going to get much worse. While Social Security can be "fixed" with things like raising the retirement age the other "fixes" do serious damage - like changing the COLA formula. Everyone who believes there has been no inflation in food and energy over the last two years raise your hand. Ok, if there has been, why has there been no COLA increase in Social Security? Obviously, the government numbers in this regard are lies. Never mind the health care problem - I've yet to not get a double-digit increase in my health insurance premiums over the last decade.

  • We can have Medicare as we know it and solve the problem. No we can't. Medical costs are growing at more than 10% a year. This means they will double every seven years - if we're lucky. Medicare and Medicaid are currently 21% of the budget, or about $840 billion. In seven years if we keep with the 10% increases (and that's low, if you're paying premiums today, as you know full well!) assuming there are no boomers to swell the ranks of those entitled to the benefit we will spend $1.6 trillion. In another ten years we will spend more than the entire current Federal Budget on these two programs alone. There is no possible way for Medicare and Medicaid to survive for the next 20 years as currently constituted. This is arithmetic; social policy and the desire of those who want it to be this or that is immaterial to this reality. It is for this reason I devoted an entire category on The Ticker to this topic; you'd do well to read it. Specifically, you can read backward from here..

  • We can fix things with a gold standard. No we can't. This idiocy showed up again in the NY Times this weekend. The problem with such a standard is that it puts your monetary policy at the mercy of international raids. The problem is credit creation, not monetary emission. Note that a gold standard would not have stopped the Federal Government from running a $1.6 trillion deficit - yet that sort of "response" to excessive debt is exactly why we're in the mess now. There are in fact lots of people who want a gold standard and most of them are big banking interests! It's a trap - the issue is credit issuance, not monetary linkage.

I wish there were simple solutions. But there aren't. We live in a global world. Attempting to raise taxes on corporations will simply force more operations overseas, and cause more capital flight. We can ill afford that.

We must face that the Ponzi Scheme of increasing both debt and government spending by 100% during a time when output rose 40% must be unwound.

This weekend's talk shows all claim that we "want an answer" but they also say "we must not hurt our recovery." They're liars - there has been no actual recovery - all there has been is more government spending to cover up the Depression that is still underway!

Unless you are willing to countenance and support a major war - one that kills a literal billion people and destroys 30% of more of the global industrial infrastructure, we have to deal with the imbalances we have papered over for the last 30 years and more. There is no other alternative.

Those steps - dealing with reality - will result in a temporary setback. It will result in the destruction of all of the existing large banks - but those institutions are where most of the bad debt is concentrated, and are also the people who caused the problem. It is thus "fair" for them to bear their brunt of the debt destruction.

Medical care must be dramatically reformed. There is no alternative. Read the above links - I have a proposal that will actually work, but it will be extremely unpopular with the pharmaceutical industry, among others. Nonetheless, choice beats no choice and enforced medical rationing, which is exactly where we're headed within the next 20 years.

Taxes on individuals should probably go up somewhat. Allowing all of the Bush Cuts to expire is just more tinkering and BS. I would much prefer a flat three-bracket income tax (10%, 20%, 30%) with no deductions of any sort, or even better, The Fair Tax. But once you start playing with deductions - especially refundable ones like the EITC - you run into trouble. I can justify a zero boundary of $10,000 in income (that is, no tax due on the first $10k of income), a $3,000 credit per child up to but not to exceed two, and no other deductions of any sort. From the zero boundary up to 50k set the rate at 10%, from 50-150k set it at 20%, and over $150k it's 30%. No mortgage credit, no EITC, nothing. Everyone's tax form is literally three lines plus your signature. The family of four who makes $25,000 will thus have skin in the game with a roughly $100 per month federal tax bill, and it will rise dramatically as does income, with 1/3rd of the rich man's income being taxable. No shelters, no games, no BS - but if you're truly destitute (below the federal poverty level) you will pay near zero.

Social Security and Medicare have to be both self-funding and their funds convertible. This means no more stealing from the fund - the Trustees have Treasuries they can sell, and they can also hold cash. Medicare and Medicaid must have massive reforms. Social Security we can deal with via reasonably-simple changes. This is not true for the medical benefits system - period.

The Federal Reserve must be forced to adopt ZIRP - actual ZIRP.

That is, Zero Inflation Rate Policy.

This must be enforced in the Federal Reserve Act (the simple words were not enough, obviously!) and force automatic stabilization at that rate if abused, plus removal of the Board of Governors should any five-year moving average have a positive inflation outcome. We all seek deflation in our daily lives - at WalMart, at the grocery, at the gas station. The goal should be actual price stability - not a slow depreciation of the currency - with overshoots on the downside, not the upside. This is the only tool that will actually discourage the taking of debt for other than productive purpose.

These are difficult choices.

Withdrawal from addiction always is.

I'm not going to blow smoke up your ass. There's no answer to these problems that does not involve defaulting out the bad debt and forcing the realization of existing bankruptcies. There are millions of Americans who are functionally bankrupt right now, and all of the major banks are as well.

And while we're at it, we must investigate and prosecute each and every bankster involved in these scams for the last 20 years. All of them. They need to be sent to general-population Federal Prisons with all of their assets confiscated by the government and taken off the Federal Debt. Why? Because this crap must never happen again, and the only way to stop it is to make the people who did it pay in such a severe fashion that until everyone now alive is dead they won't even consider trying it again.

The economy cannot recover on a sustained basis, and return to a sustained level of output and consumption, until the bad debt is cleared. Attempting to paper it over will at best lead to a Japan-style outcome and at worst a bond-market and currency collapse that wipes out virtually everyone.

If we want to stop the boom/bust cycle, and furthermore prevent the collapse of our economic future, these steps must be taken.