MONEY: Dollar is in big trouble

Saturday, August 22, 2009

http://www.lewrockwell.com/lilley/floy10.1.html

Sound Money: The Impossible Dream?
by Floy Lilley

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Debt: The US must borrow 46 cents for every dollar spent this year. Outstanding public debt as of 18 August is $11,704,322,903, 918. An estimated population of the United States is 307,209,243, so each citizen’s share of this debt is $38,127. The debt-to-GDP ratio is 82%. This debt will grow by a trillion dollars a year. The debt has to be rolled over every four years. That’s $240 billion a month to be skimmed off capital markets. The four largest budget items are wars, social security, Medicare/Medicaid, and interest on the debt.

*** end quote ***

How does the Republic get out of the mess that the congresscritters have created?

Inflation? Repudiation? What Chapter applies to the nation?

It’s clear we can’t meet our commitments. So what, or rather who, gets thrown under the bus?

Clearly the Chinese, and any one holding our debt. Senior citizens, pensioners, the sick and elderly.

Social security goes broke. What does that look like?

Argh!

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SOCIALISM: “Cash for Clunkers”; bad strategy, bad tactically

Tuesday, August 4, 2009

http://apnews.myway.com/article/20090801/D99Q3N5G1.html

Popularity, Web snafus nearly broke ‘clunkers’
Aug 1, 8:56 AM (ET)
By DAN STRUMPF

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Far more drivers signed up for the “cash for clunkers” program than anyone thought, overwhelming showrooms, blowing through the initial $1 billion set aside by Congress and leaving dealers panicked over when or if the government would make good on the hefty rebates.

*** end quote ***

Sure steal from the taxpayer to give money to car dealers?

No wonder the program is a success.

Like a bank robber giving out free samples.

And, there folks want to run health care?

It’s like everyone had gone nuts. Financial restraint, fiscal discipline, out the window. It’s like a Frat Party on the taxpayer’s dime.

One website pointed out that (1) these are future sales brought forward. (2) the “clunkers” are the cars that poor people would have bought used.

So like Basat said, (paraphrasing) we can’t see the hidden costs.

Politicians and bureaucrats are stupid. And, I ain’t buying them a beer. And, for sure, I’m not drinking with them!

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RANT: Sheepke are suckers

Monday, August 3, 2009

http://channel-surfing.blogspot.com/2009/07/forget-tea-parties-wherere-pitchforks.html

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We will continue to need significant public spending to get us out of this mess

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SORRY, buzzz, incorrect thinking.

The gooferment can’t get us out of this mess, that THEY put us into. (Sweetheart deals for their pals on Wall Street. See CRA, Freddie, Fannie, FED, FTC, etc, etc! Oiled by “contributions” to Dodd, Barney, and others.)

The gooferment has completely corrupted our concept of money. The stuff they are printing ain’t “money”. It’s toilet paper. And, just look at the value of the dollar over time or in international trade and you can see the result.

They will get us out of this mess by inflating the currency. It’s the only tool they have. Screw the savers, those on fixed income, and anyone holding “dollars”. Inflation rewards their friends and gives them more “money” to spend.

In actuality, the only way to get out of this mess is to do the hard work. Cut the gooferment down to a size we can afford (about 25% of what it is now). Free individuals and small biz from regulations desinged to protect the “players” (i.e., those supposedly regualted). Cut taxes.

But they won’t do that. The politicians, the congress crtiters, and the bureaucrats like things just the way they are.

Sheeple are suckers!

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RANT: Bush43 / Obama44 did the samething

Tuesday, July 7, 2009

http://apnews.myway.com/article/20090704/D997DI2G1.html

Venezuela assumes control of Spanish-owned bank

Jul 4, 12:22 AM (ET)

By FABIOLA SANCHEZ

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(AP) Venezuela’s Finance Minister Ali Rodriguez Araque, left, shakes hands with former president of…

*** begin quote ***

CARACAS, Venezuela (AP) – President Hugo Chavez’s government assumed control of Venezuela’s third-largest bank on Friday – making the state the largest player in the nation’s banking system.

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And this is different than what Bush43 / Obama44 did?

Chavez = bad communist dictator!

Bush43 / Obama44 = “good guys”.

Why because they are “ours”?

Argh!

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GOVEROTRAGEOUS: No Justice in the Government’s Courts

Sunday, July 5, 2009

*** begin quote ***

A federal judge approved the sale of G.M.’s assets to a new government-run company, removing a major hurdle to the auto maker’s plan to exit bankruptcy.

http://online.wsj.com#mod=djemalertNEWS

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As a GM bodholder getting screwed, why would I expect justice from the government’s court? THe government seized my propoerty violating the rule of law. And, the government’s court approved the government’s plan in violation of the government’s law.

Tyranny!

But not a surprise.

Who protects the serfs from the “King”?

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MONEY: ALLYBANK; corpse of GMAC

Thursday, July 2, 2009

MONEY: Banks aren’t safe

Friday, June 26, 2009

http://mises.org/story/3507

Dead Banks Walking
Mises Daily
by Doug French
Posted on 6/11/2009 12:00:00 AM

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On the other hand, if a legitimate banking system were in place, it would be based upon honoring property rights. Customers making a deposit in a bank expect the bank to guard, protect, and return their money — at a moment’s notice in the case of demand deposits. After all, that person has not traded a present good for a future good. The depositors believe the bank is warehousing the money for them and that it is available to them at any time. This deposit is not a loan — there is no fixed term, which would be required in the case of a loan — and availability hasn’t transferred.

However, we don’t have legitimate deposit banking but a fractionalized banking system that combines deposit banking with loan banking. Those that sympathize with fractionalized banking will contend that time certificate of deposit accounts are in essence loans from depositors, entitling the bankers to use the funds at their discretion for the term of the CD — just as long as the banker has the money ready when the CD matures. But if the money is lent secured by illiquid assets such as real estate, the banker is clearly not counting on those loans to satisfy expiring CDs and must count on attracting new CD money to pay off the old.

“There is no incentive for bank depositors to go to the trouble of determining a bank’s soundness if the government is going to guarantee deposits.”

Bankers, pressured to earn returns for shareholders and protected from bank runs by FDIC insurance, have over time lent not only more of their deposits but advanced the money for riskier projects. James Grant in a recent Grant’s Interest Rate Observer reminisced about National City Bank, which back in 1954 had only lent out 41 percent of its deposits, with less than one percent of the portfolio being real-estate loans.

By the end of last year, the total loan-to-deposit ratio for all US banks and thrifts was 87 percent, and 60 percent of all loans were classified as real-estate secured.

*** end quote ***

Bottom line: Don’t invest in any bank stock.

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