MONEY: The Lost Decade may be the Lost Epoch unless we act

Wednesday, May 26, 2010

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=1161

The Lost Decade – The decade has been awarded a cute name, but it’s not very accurate

For Immediate Release

May 07, 2010

*** begin quote ***

As of December 31, 2009, the Dow Jones Industrial Average, the S&P 500 Stock Index, the NASDAQ and the EAFE were all lower than they were on December 31, 1999 — a lot lower. The NASDAQ itself is 44% lower than it was 10 years ago — you know, when you were worried about Y2K.

*** and ***

Such diversification proved its worth, as gains in some asset classes were able to offset losses in others.

Surely some might have exited the last decade with a lower net worth than when they started. They are likely lamenting the fact that they’ve “lost” 10 years of wealth creation opportunity.

But the bulk of our clients, by contrast, have more money today than they did 10 years ago, thanks to the smart dual strategies of continuing to invest and diversifying.

Who says you need a rising stock market to make money?

*** end quote ***

Unfortunately, the collapse in the market is going to cost the nation greatly in it’s mind. It has demonstrated several things that, like the Great Depression scared generation of people, (1) the total failure of Wall Street; (2) the corruption of politicians; (3) the ineptitude of bureaucrats.

That will hang like a millstone around our necks forever.

We have to address the National Debt, the Federal Deficits, the unfunded liabilities of Social Security, and the out-of-control Federal Gooferment, the fiscal crisis of the States, inflation, and the rape of the public treasuries.

We have several fundamental issues to “fix”: (a) welfare; (b) warfare; and (c) confidence.

We’re not going to have a “rising stock market” until we do. So we better figure out how to make money in a down market.

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MONEY: What is it?

Sunday, May 23, 2010

Roy talked about money. “Money is a matter of functions four, a medium, a measure, a standard, a store.” He repeated that four times like poetry. “Six Characters in Money: Portable – Durable – Divisible – Uniformity – Limited Supply – Acceptability.” With a sentence about each, his passion came through. He ended with “The first golden coins in history were coined by Lydian king Croesus, around 560 BC.’Rich as Croesus’ survives to this day. It’s been all downhill since then.”

— CHURCH 10●19●62 Chaper 22 page 110 “Roy’s entertainment”

# – # – #

You asked me “What happened to the money?”

The answer is that “It’s complicated”.

Without being obnoxious, pedantic, or obtuse.

We have to establish a common vocabulary.

What is money?

Economists use “Robinson Crusoe Island” (There is a real island by that name.) as an imaginary place to perform mental experiments. It’s an isolated lab where we can set up and idealized society with limited players to illustrate a principle.

Populate the island with two castaways Tom and Dick. Tom fishes and Dick collects coconuts. Tom wants coconuts and Dick wants fish. Rather than kill each other, they barter directly. Eventually they decide that X fish is equivalent to Y coconuts. No need for money. And, all sorts of things happen. That we don’t need to study about savings and investing, Nets and climbing mechanisms.

Now introduce Harry. Harry collects potatos on the island. And, lets assume that there is a very strong union that prevents anybody but Tom from fishing and so on. How many fish are equal to how many potatos. Eventually that sorts out.

Now a raft drifts in and twenty people land. How are we going to do exchanges? Tom may want only one potato which is half a fish. So clearly we need a marketplace where everyone buys and sells. Eventually everyone finds bartering troublesome. Typically, the problem is Tom wants what Dick has, but Dick doesn’t want Tom’s fish. So Tom must find some one that has what Dick wants, trade for it, and return a trade with Dick. Very inefficient, time consuming, and ineffective.

Someone decides that seashells will be the medium of exchange. It’s beyond the scop of this how that decision happens. But eventually everything gets priced in seashells and you have money. Seashells are a problem because you can go to the beach and find them. An infinite supply. Sooner or later, there is genral agreement on somehting that is: Portable; Durable; Divisible; Uniform; Limited in Supply; and generally Acceptable. Let’s say it’s gold and silver coins. (Wampum, Cowery shells, the Great Stone Wheels, and the large totems have been money in strange places.) But eventually everyone used to settle on it.

So our market prices everything in gold and silver.

It’s: Portable – Durable – Divisible – Uniformity – Limited Supply – Acceptability. And it serves as: a medium of exchange, a measure of value, a standard of value, and a store of value.

OK so far. That goes from pre-history until the humans find paper or it’s equivalent.

Then gold smiths start acting like banks and issue receipts. Those receipts eventually turn into paper money.

Kings steal for the marketplace by adulterating the coins. Inflation!

(Go to the Smithsonian. See the Smithsonian exhibit of French Franc throughout history. From the hockey puck of gold from Louis 1 to the paper thin collar button of Louis XVII! It’s a visual of what every gooferment does with its power to define money for us.)

Fast forward to FDR in 1930 something. He takes the US off the gold standard for money. And, gives us Treasury Greenbacks, the eventually become Federal Reserve Banknotes. Redeemable in nothing.

Nixon in the Seventies completes the theft by closing the international gold window.

So now we have money that is NOT a standard of value, and a store of value. Ask anyone what is a dollar and you’ll get a blank stare.

So now you’re an expert in “money”. When the federal gooferment prints money, they can spend however they want.

The rub becomes return to Robinson Crusoe Island.

We have those people using seashells as money. And, Tom when fishing finds a lot more shells. He “spends” them in the market. Gets stuff for them. eventually prices rise to recognize the new amount of money in circulation. (Inflation!)

Producing more money doesn’t produce more goods. Wealth! The number of coconuts that Dick gathers is relatively fixed. Printing more money doesn’t produce more coconuts. It just makes them more expensive.

Now, you have to figure in savings and investment. Tom could stop fishing for a week and make a net. There has to be fish and coconuts for him to live on until the net allows him to catch more fish. There MUST be savings (delayed consumption) before there can be investment (Tom’s ability to make a new net.)

See the problem is that savings must delay consumption. When the gooferment counterfeits the money, some where some how some one must defer consumption to allow investment. All the money tricks in the world over all of man’s history can’t conceal that fact. Some one has to feed Tom while he makes that net.

The gooferment can print all the money it wants, but it can’t create wealth (i.e., food for Tom).

Right now the poor Chinese are “saving” and everyone is consuming.

What happens when the “poor” Chinese want to spend their savings?

When the money was gold, and it was relatively fixed, the gooferment had to tax or borrow, to spend. Now it can “inflate” (i.e., monetize the debt).

But it still can’t produce wealth for Tom to eat while he creates a new net.

It humorous to hear the politicians talk about “investment”! They are spending.

There is no “wealth” to allow them to spend.

The gooferment is bankrupt.

Robbed by the takers of all ilk.

All because we have forgotten what money is!

“The trouble with socialism is that you eventually run out of other people’s money.”
–Margaret Thatcher

# # # # #

We’ve run out.

And it won’t be until the American people wise up that the merry-go-round will stop. But it will stop!

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RANTING: Does America really have “poor”?

Friday, May 21, 2010

http://www.wnd.com/index.php?fa=PAGE.view&pageId=152409

Are free markets good for the poor?
Posted: May 12, 2010
Walter E. Williams
Professor of Economics at George Mason University

*** begin quote ***

The market is a friend in another unappreciated way. In poor black neighborhoods, one might see some nice clothing, some nice food, some nice cars but no nice schools. Why not at least some nice schools? Clothing, food and cars are distributed by the market mechanism, while schools are distributed by the political mechanism.

*** end quote ***

When Professor Williams writes, he usually nails it. Hits the mark here too.

A free marketplace is like an election of sorts. People vote with their “certificates of appreciation”.

It harnesses greed and enforces cooperation.

Trade makes everyone happy. Even if you can’t afford something, you get a motivating goal.

And, no force required.

It recognize and channels human nature into solving problems.

Sigh, it’s great for the poor.

Look at the “poor” here versus elsewhere. Seems to really put things in stark contrast.

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NEWJERSEY: “Public Education” is immoral

Tuesday, May 11, 2010

http://channel-surfing.blogspot.com/2010/05/voucher-hypocrisy.html

Monday, May 10, 2010

Voucher hypocrisy

*** begin quote ***

Bret Schundler jumps into the voucher hypocrisy pool, dismissing stats that contradict his claims and call into question his proposals.

*** end quote ***

Don’t you think that Gooferment-run schools propagandizing future voters is immoral?

Don’t you think that funding them by stealing wealth from unwilling victims is immoral?

Don’t you think ripping children from their families and imprisoning them for many hours a day for decades being “taught” to be good little robots is immoral?

Don’t you think allowing the Teachers’ Union to become an overpowering force in politics is immoral?

Don’t you think that “public education” in the inner cities (a failure by any measure) is immoral?

Answer those then we can chat about how it’s ineffective and inefficient.

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GOVEROTRAGEOUS: Stopping the Social Security Ponzi scheme! “Cold turkey”?

Wednesday, May 5, 2010

http://cafehayek.com/2010/05/stopping-the-social-security-ponzi-scheme.html

Stopping the social security ponzi scheme
by Russ Roberts on May 4, 2010
in Social Security

*** begin quote ***

The way to keep social security from bankrupting the country is to make it a welfare program for the elderly. But what about all the money I “contributed”? Alas, that was a lie. The money wasn’t set aside for the future. It’s like asking why don’t I collect food stamps even though I’m rich. Hey, I contributed so I should get food stamps. That’s a bizarre belief to have. That’s not the way food stamps work. That is the way social security is supposed to work, but it’s a bad idea, it was an illusion that your contributions were really yours and there isn’t enough money to keep the illusion going.

*** end quote ***

The problem is that the gooferment took the “seed corn” from everyone. They skimmed the “cream” off the top. We could have saved MORE for our own retirement, but they STOLE it early (when the savings would have had more impact) and OFTEN (by inflation eats up savings and raises costs). So everyone to now say “too bad, you’re screwed” is the perpetuation of a fraud and a theft. We didn’t get into this mess in a few years and won’t get out of it in a few years. It was decades. So, like Chile, we need time. <sub 40, recognition bond for contributions payable in 40 years; over 40 below 60, you get some choices; over 60, you get the old plan> And you work your way out.

I pitched a similar idea in the NY Tax Revolt in the 80’s. A twenty year plan to get out of gooferment education at 5% a year. Followed immediately by a twenty year plan, to get out of gooferment funded “education” completely. Forty years, like the time the Jews wandered the desert, gives you time to reeducate people and allow them to adapt to the new realities. Too bad they didn’t adopt it, we’d have been half way out by now. NJ’s education expense is crippling the State.

Paradigms and memes don’t change over night. And, folks have to be able to see the path, where it leads to, and how it can be accomplished with 960 (40 times 12) easy monthly payments of some modest amount gets them to Freedom.

# – # – #

Upon reflection, this would cause violence in the streets. Only the wealthy could survive this body blow. And, with the gooferment planning to “monetize the debt” (i.e., inflate the currency so it can pay off the debt), those on fixed incomes and retired will be slowly strangled. Think the German pre-WW2 hyperinflation that made Hitler possible.

No, we need an orderly multi-generational way to get form here to there. Peacefully. The Chile solution worked well; why not here?

One problem is they were all illiterate and could ignore the liberal media telling us the gooferment’s propaganda line. We’re too “smart” for our own good. And, the youth propaganda reeducation camps are ensuring continued stupidity!

Argh!

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MONEY: WW2 Wage and Price control were disasterous and carry through today

Tuesday, May 4, 2010

On Apr 24, 2010, at 5:58 PM, LUDDITE wrote:

http://finance.yahoo.com/focus-retirement/article/107923/8-great-companies-to-retire-from.html?mod=fidelity-changingjobs

At a time when some firms have cut back on benefits, these employers offer notably generous plans. Fortune picks some of the best.

# – # – #

Good for you. But bad for us as a society. Pensions and benefits are a result of the WW2 wage and price controls. Big companies bent the salary cap rules by giving these inducements to get good workers. This was a gooferment distortion of the employment marketplace which as usual has had disastrous side effects. I’m not a economist; nor a social scientist, but let see if I can enumerate the ones I know about.

(1) Medical insurance tied to employment had several bad effects. It locked up workers who couldn’t or wouldn’t change jobs due to losing their benefits or the “pre-existing conditions of going to a different insurer. Lose your job due to poor performance, bad economy (i.e., recession), or structural changes in the economy (i.e., rust belt) lose your benefits. It disconnected the link between the expense and the pain of paying thus inducing folks not shop around, negotiate, or even look at the bills.

(2) Pensions are in effect deferred compensation. It locks up capital in the company pension plan — with its risk in bankruptcy — from the individual. So, for example, an employee, if they had that money, could have used it as they saw fit to provide for their own retirement. In my own case, I could have had an extra X$/month to pay down my mortgage sooner and had that capital asset for my retirement. It’s about Freedom and liberty. I was FORCED to trade X$ per month at that time for a future cash flow at age 65 assuming I lived so long. If I didn’t, it was lost. Like “Social Security”!

(3) Pensions were such an expense that the Aircraft companies were firing “old” injineers just before their pensions vested to hire new graduates cheaper. (The fact that much of their work was for the military and the gooferment made it hurt even more.) Hence, having created the problem, the Gooferment gave us the solution — more gooferment — the ERISA laws. (Argh!)

(4) Pensions and benefits, due to it hidden sunken costs, makes the workforce less flexible and nimble. You had to have a much bigger opportunity in a new job in order to justify leaving the security, pension, and benefits in an old employer.

(5) Increased regulation of the workplace, such as OSHA, FALSA, and NLRB, all sprung out of that New Deal thinking. And, was as taxation and regulation, a drag on our economy.

So that’s why this is bad for us as a nation.

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RANT: A truly free market requires no license!

Thursday, April 22, 2010

http://blogs.wsj.com/economics/2010/04/22/obama-to-scold-wall-street-in-cooper-union-speech/?mod=djemalertNEWS

*** begin quote ***

“A free market was never meant to be a free license to take whatever you can get, however you can get it,” President Obama will say, according to speech excerpts.

*** end quote ***

One thing about OBH44, his speeches are a hoot!

A truly free market requires no license!

It’s a meeting of the minds of two sovereign individuals who agree to an exchange that benefits both of them. (If there was no mutual benefit, why would they do it!)

It requires no Gooferment intervention. Ever!

Force prevention (i.e., physical security) is RESPONSIBILITY of the parties involved. They will probably subcontract that responsibility to who ever rents the space for the exchange to them.

Fraud prevention (i.e., some one breaches the contract) is handled by the marketplace by reputation. Break your word and no one will do business with you.

SO why is a Gooferment bureaucrat (albeit the Head Bureaucrat) trying to mislead us into thinking that some type of “license” is required. At least the highwaymen of olden days just robbed us of our wealth, they didn’t try to confuse us as well!

Argh!

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footnote: I was so argh-ravative by this story that I broke my regular publishing schedule to bring this online. One man’s rant in the blog forest. I doubt anyone will notice. Arghhhhh!

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GOVEROTRAGEOUS: Zero-Day School Weeks

Wednesday, March 24, 2010

http://cbs2chicago.com/local/four.day.school.2.1583104.html

Mar 23, 2010 6:27 pm US/Central
4-Day School Weeks Might Be Coming In Illinois
State House Has Passed Bill Allowing School Districts To Set Up Shorter Weeks; Mayor Daley Has Doubts
SPRINGFIELD, Ill. (CBS) ―

*** begin quote ***

Add an entire school day to the chopping block. State lawmakers want to move financially struggling schools to four day weeks. They say it will save money, and it won’t affect classroom time.

*** and ***

Kids would still have to complete the same number of hours per school year, so switching to four-day school weeks would mean longer school days or shorter summer vacations.

*** end quote ***

I have an idea that will save a lot of money.

Close the youth indoctrination centers completely and forever!

It’s immoral to make people pay for things that they did not agree to pay for. Parent had ‘em. Parents feed, clothe, and shelter them. They should educate them too.

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POLITICAL: Drew Cary and Reson save Cleveland — Part 3

Saturday, March 20, 2010

http://www.youtube.com/watch?v=g9-ozphsuSk

Why not?

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POLITICAL: If this isn’t intergenerational theft, what is?

Tuesday, March 16, 2010

http://news.yahoo.com/s/ap/20100305/ap_on_go_co/us_budget_deficits_3

Congressional estimates show grim deficit picture
By ANDREW TAYLOR, Associated Press Writer Andrew Taylor, Associated Press Writer
Fri Mar 5, 6:17 pm ET

*** begin quote ***

WASHINGTON – A new congressional report released Friday says the United States’ long-term fiscal woes are even worse than predicted by President Barack Obama’s grim budget submission last month.

The nonpartisan Congressional Budget Office predicts that Obama’s budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That’s $1.2 trillion more than predicted by the administration.

*** end quote ***

Time for a serious acknowledgment. This generation was “robbed” by the last in the Social Security Ponzi scheme, as well as the continual addition to the debt. So to are we “robbing” future generations by piling on the debt and unfunded liabilities.

So what is the answer?

Well, clearly each year, the demographics change as to the intergenerational population. So there’s MUST be year to year deficit neutral budgets. Since there has to be a true up in the next financial year. So any deficit must be corrected in the following year. Since we can NOT eliminate the debt build up over 70 years in a few years, we need to have a 70 year deficit reduction plan. CLEARLY, we can’t have unfunded liabilities or off-budget expenditures.

So, it’s a giant mess.

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POLITICAL: The cost of “public educstion”

Thursday, March 11, 2010

http://centraljersey.com/articles/2010/03/04/opinions/doc4b902460b6719996011467.txt#blogcomments

EDITORIAL: Governor balancing books on students’ backs
Thursday, March 4, 2010 4:22 PM EST

*** begin quote ***

   Gov. Chris Christie has made a point of saying he plans to tackle the state’s budget crisis head on. Gone, he says, are the days of kicking the proverbial can (i.e., the state’s recurring deficit) down the road and hoping someone else will pick it up.

   But that’s exactly what he’s doing, withholding aid from school districts for this year’s budget and forcing them to make up the shortfall with money many districts had planned to use in 2010-2011.

*** end quote ***

Unfortunately, “We, The People” can’t afford “public education” anymore. A new solution will hae to be found. “Public Education” is inefficient and ineffective. Also it’s dumbing down and indoctrinating the next generation of voters to look to big gooferment as the “solution” to every problem. Sorry to be the bearer of bad news, but that the reality. Too expensive, too “one size fits all”, too corrupt.

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RANT: Obamais looking at your retirement savings

Wednesday, March 10, 2010

http://biggovernment.com/jarenas/2010/03/09/the-united-states-of-argentina-obamas-pension-grab/

The United States of Argentina: Obama’s Pension Grab
by J.C. Arenas

*** begin quote ***

As of the third quarter of 2009, Americans held a combined $8 trillion in 401(k) plans and IRAs, according to the most recent retirement market report from the Washington D.C.-based Investment Company Institute. Furthermore, his proposal for health-care reform calls for an extension of the 2.9% Medicare tax to unearned income, which means those annuities and other forms of guaranteed income streams you would receive in exchange for relinquishing the freedom you currently possess over your retirement funds, would be subject to taxation. The American people consistently lose when the government desires to be helpful.

*** end quote ***

WHERE is OBH44 going to come up with all the money to pay for all these goodies?

Trillion dollar deficits? Where do you find a loose trillion dollars?

Argh!

Your retirement funds.

That’s the target BECAUSE there is NO WHERE else for the gooferment to get that size money!

Will this be the issue that awakes the sheeple?

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INTERESTING: Chaos creates order

Friday, March 5, 2010

http://www.economics21.org/commentary/health-care-chaos-and-challenge-chickens-manhattan

Health Care, Chaos, and the Challenge of Chickens in Manhattan
John O’Leary and William D. Eggers | 02/24/2010

*** begin quote ***

The paradox is that chaos creates order, while control can result in chaos. In an effort to control outcomes, free exchange is curtailed and the essential ordering signals of price and profit are lost—leading to misallocation of resources and outcomes that nobody likes.

Few of us appreciate how mundane chaos really is and how we are essentially surrounded by it.

Consider: Who is in charge of getting the right number of chickens to Manhattan every day? After all, few chickens live there, but a lot of chickens get eaten there. The typical Manhattanite downs about sixty pounds of chicken a year, in every imaginable form, from chicken chow mein to chicken nuggets, from organic chicken to those little cubes that float in your can of chicken soup. Untold thousands of people participate in providing for Manhattan’s ever-changing chicken needs, from truck drivers to restaurant owners, from grocery store managers to Arkansas chicken farmers. Who is in charge? Who makes sure that New York City winds up with the right amount of the right kind of chicken?

The answer is: No one. The chaos of the uncontrolled buying and selling of the market produces an orderly pattern of exchanges that coordinates the activities of independent yet interdependent participants. The result, without any central planning, is an adaptable and ever-changing arrangement that generally meets the needs of Manhattan’s chicken eating public. The government provides certain oversight and context for the market. The U.S. Department of Agriculture watches over chicken farms and the city’s Board of Health licenses and inspects restaurants. Chickens are hauled over public roads and contract disputes between chicken farmers and truckers are resolved in public courts. But when it comes to the essence of the chicken delivery system—how much chicken, of what kind, at what price—it is the invisible workings of supply and demand that align the productive activities of a loose network of thousands of people (and companies) in making sure New Yorkers get their chicken potpie, chicken vindaloo, and extra-spicy buffalo chicken wings.

*** end quote ***

Interesting, no central authority using force to “enforce an orderly market”. No “market failures”. Just lots of folks seeking their own best interests as they see them. That’s called “freedom”. If the gooferment didn’t “inspect” chickens — ignore for the moment that this is a farce because they don’t do any “inspecting” — just look into what they really do! — do you think the marketplace wouldn’t figure out how to make chickens safe? Kosher, Halal, WalMart, supermarket guaranties, Consumers Reports or Underwriters’ Laboratory, consumers or buyers talking to each other.

And don’t even get me started on the “roads” argument. No roads in Disney World?

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QUOTE: Poverty — L. Neil Smith

Saturday, February 27, 2010

Poverty is a solved problem – all they have to do is abolish taxes and regulations which cripple those intelligent, capable, and responsible men and women and destroy their productive capacity, then stand back and watch the economy boom.

— L. Neil Smith  

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RANT: Freedom and the Audi commercial

Sunday, February 14, 2010

http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2010/02/14/big_brother_out_of_control/?rss_id=Boston+Globe+–+Jeff+Jacoby+columns

The Boston Globe

Big Brother out of control

By Jeff Jacoby

Globe Columnist / February 14, 2010

*** begin quote ***

Of course, the notion of an environmental police state terrorizing citizens for not being sufficiently “green’’ is just parody meant to be laughed at. Or is it? On its website, Audi USA earnestly describes its Green Police as “caricatures’’ created to “help’’ consumers “faced with a myriad of decisions in their quest to become more environmentally responsible citizens.’’ And what better way to “help’’ them than with scenes of ruthless Greenshirts handcuffing hot-tubbers whose water is too warm, or raiding the home of residents who threw a used battery into the wrong trash bin?

*** and ***

Nothing in the Constitution authorizes the federal government to take charge of “revamping the way American children eat and play.’’ It is only our passivity that makes such an encroachment possible. This used to be the land of the free. Is it still?

*** end quote ***

Jeff Jacoby hit the nail on the head. We are no longer free. Nor brave.

Why else do we let the gooferment propagandize children — future voters — in what they call schools?

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POLITICAL: Palin, Tea Party, and how to put the pig on a diet

Tuesday, February 9, 2010

http://firedoglake.com/2010/02/08/palin-drives-libertarians-out-of-tea-party/

Palin Drives Libertarians out of Tea Party
By: Jane Hamsher
Monday February 8, 2010 8:00 am

*** begin quote ***

There was a lot of pushback because of the price of the Palin tickets, and many of the rank-and-file tea party activists see her as a symbol of the establishment GOP’s attempt to co-opt their nascent movement.

Palin evidently thought she could endorse Rand Paul and they’d all throw flowers at her feet. Instead they’re having a melt down over her speech, trying to figure out how to keep the neocons out of future conventions.

Rather than navigating the gulf between the tea party activists and the GOP, Palin drove a wedge between them.

Well, at least she had the good sense not to mention her Bridge to Nowhere. But you have to wonder why they invited her there in the first place.

*** end quote ***

I correctly called Palin as McCain’s VP 3 months before the decision.

I liked Palin when she made “her” speech/

I thought that she was improperly prepared for the Katie’s ambush.

I do know that the neocons are not libertarians.

I KNOW that the Tea Party people are the “new kids” on the block.

BUT, if they succumb to EITHER party then they will just put BHO44 back in the White House. They need to pick and chose who to endorse base of track records. They need to align with some of the folks that have been fighting these battles for years! They need to back those initiatives that will cut the problems down to size (i.e., Read The Bills Act; One Subject At Time; Audit the FED; Free Competition in Currency Act)/

You have to start cutting this “pig” down to size; not putting lipstick on it.

How about a law DECREASING the debt ceiling a 100M$ every year until it’s ZERO?

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POLITICS: OBH44 and his economic illiterates

Thursday, February 4, 2010

http://kudlow.nationalreview.com/post/?q=NjU0MWQ0OWQ3OTI2OTgzMmUwMGM2NTUxMGRhMDcyYzY=

Wednesday, February 03, 2010
$2 Trillion in Tax Hikes Is Good for the Economy?   
Larry Kudlow

*** begin quote ***

Why not put more money into private pockets to spur growth — the free-market capitalist way? Why slam businesses, banks, and hedge funds to the tune of nearly $500 billion?

Once again, it takes liquidity from the private sector, reduces economic growth and the incentive effect, and gives money to the government.

Here’s the key point. All of these fat-cat, class-warfare, soak-the-(alleged)-rich tax-hike proposals actually reduce investment and capital formation so much so that jobs and wages will ultimately falter on Main Street. That’s what Team Obama is missing.

Taxing businesses and so-called “rich” people hurts ordinary working folks. That’s a fact. And that’s why this is a misbegotten policy. We’re not talking class warfare here; we’re talking growth. My way is the growth way. So far, the Team Obama way is a social policy on the left that has nothing to do with spurring jobs and economic growth.

*** end quote ***

Can’t drum it in to economic illiterates.

  • Companies don’t pay taxes; only real people do.
  • The government spends OUR money; it doesn’t EARN any. It does NOT create wealth.
  • A dollar taken by the gooferment is not available for other productive uses.
  • A dollar is not a store of value when the gooferment runs the printing press.
  • The political process is corrupt. It’s not a democracy; nor is it “representative”!

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MONEY: The debt will ensure that any freeze is a joke

Thursday, February 4, 2010

http://www.wnd.com/index.php?fa=PAGE.view&pageId=123352

Obama: The era of big government is … eternal
Posted: January 28, 2010
Larry Elder is a syndicated radio talk-show host

*** begin quote ***

What about the national debt – what we owe? According to the conservative think tank Heritage Foundation: “The public national debt – $5.8 trillion as of 2008 – is projected to double by 2012 and nearly triple by 2019. Thus, America would accumulate more government debt under President Obama than under every president in American history from George Washington to George W. Bush combined.”

The Big Entitlements – Social Security, Medicare and Medicaid – remain the incredible spending faucets set on automatic growth. Neither Obama and his party nor most “fiscally conservative” Republicans offer anything resembling a way out. Meanwhile, the band plays on.

*** end quote ***

The Socialists aka Secular Progressives, will bankrupt us sooner or later.

How does the country survive?

Tax revolt by the payers.

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POLITICAL: Energy independence; absent leadership

Monday, February 1, 2010

http://www.keywestlou.com/2010/02/sunday-is-supposedly-day-of-rest.html

My Life in Key West

Monday, February 1, 2010

*** begin quote ***

The article contained an observation that sticks with me. The United States has depended on the Middle East for years for its power supply, to wit: oil. That if the United States did not get into the manufacture of renewable energy quickly and in big time, our energy dependency in the future would move to the Far East. China!

And we would have replaced one less than friendly peoples for another in satisfying our energy needs.

All very interesting. Thought provoking. Part of Obama’s State of the Union speech.

Talk is one thing. Action another. Obama has to move us in the direction of manufacture and use of renewable energy dramatically. Now, not tomorrow. And everyone, Democrat and Republican alike, should support him in this endeavor. This is not a No issue.

*** end quote ***

(1) Unfortunately for us, OBH44 is an inexperienced “talker”; not a “do-er”. We need a “leader”; not a “community organizer”. Every politician lectures us about “energy independence”. Little gets done. If we still funded the Federal Government on tariffs and duties like the Dead Old White Guys wanted us to do, then the gooferment would be a lot smaller and less intrusive. AND, we’d have energy independence. because solutions here would be cheaper than imported oil from there. Maybe we might have a car industry too, instead of having sent allt he jobs overseas. Too late, we get smart. It might be way too late.

(2) With all the secession talk, maybe Mike and Tina can do some stuff for real. When the S hits the fan, maybe we can replace the FED’s “dollar” with a Constitutional gold and silver money. The we’d be once again the envy of the world with “honest money”. Maybe then we could get working on the national debt so that we don’t condemn the children to Haiti-like poverty. Inter-generational theft will be how we are remembered as the progeny try to pay off the Chinese.

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RANT: Media Bias – Cost the FDIC?

Sunday, January 31, 2010

http://finance.yahoo.com/news/Regulators-shut-banks-in-apf-1868747589.html?x=0&.v=2

Regulators shut down banks in 5 states
Regulators shutter banks in Calif., Fla., Ga., Minn., Wash., totaling 15 bank failures in 2010
By Marcy Gordon, AP Business Writer , On Friday January 29, 2010, 10:48 pm EST

*** begin quote ***

WASHINGTON (AP) — Regulators shut down a big bank in California on Friday, along with two banks in Georgia and one each in Florida, Minnesota and Washington. That brought to 15 the number of bank failures so far in 2010 atop the 140 shuttered last year in the punishing economic climate.

The failure of Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits, is expected to cost the federal deposit insurance fund $825.5 million.

*** end quote ***

And, where, pray tell, does the FDIC get “its” money?

Yes, the taxpayer.

Either directly or indirectly.

Neither the gooferment, nor any corporation, have ANY money that doesn’t originate from a real person.

Some of the FDIC money is extracted from the banks that it “insures”, but that is extracted by the surviving banks from its customers which are, presumably, taxpayers.

Now, with the supposed “insurance” fund broke, it gets “its” money from the Treasury which means we borrow it from China!

Argh!

Hopefully, the AP writer will learn that 825.5 comes from the poor taxpayer.

And, we wonder why we are in a depression?

Economic illiteracy!

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POLITICS: A spending freeze? Is he kidding me?

Thursday, January 28, 2010

reinkefj has left a new comment on the post “A spending freeze? Is he kidding me?”:

Amazing when the wacko left and the wacko right agree, a spending freeze is just dumb. What he needs to do is what he promised in the campaign. Sit down with the Federal budget and a red pen.

Freezing spending at current levels is just enshrining the past mistakes.

imho, for example, milk and sugar price supports. We pay money so that people have to pay higher prices?

imho, minimum wage, that puts minority youths out of work. If there is a marginal worker, he’s out as opposed to making a few bucks. And, it cost the taxpayers in all sorts of ways.

imho, military bases in 170 countries. Let have some base closings in strange places.

That’s the way to “freeze” spending.

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It merely “freezes” the increased spending of the past decade. Argh!

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MONEY: Is a Zimbabwe here preventable?

Monday, January 25, 2010

http://www.survivalblog.com/2010/01/letter_re_hyperinflation_appea.html

Letter Re: Hyperinflation Appears Certain for the US Dollar
from SurvivalBlog.com by James Wesley, Rawles

*** begin quote ***

Katrina and Haiti are examples of either predictable events or unpredictable instantaneous events as would be a single nuclear event such as a “suitcase bomb” . Each of these has a number of things in common, but the most significant is the limited geography associated with each. The biggest difference between Hurricane Katrina and the Haitian earthquake is the lack of adjacent unaffected land. In the case of Katrina there was a place to bug out to, on foot or by vehicle, without walking into hostility, and the time to do it. In Haiti, there is no warning and no place to go unless you are a long distance swimmer, but it will be remedied and controlled. There will simply be more deaths and casualties along the way. There will be survivors and they will by and large return to the way things were before the quakes.

*** end quote ***

Excellent observation. Geographic disaster zone where help can come from the outside … … eventually. The trick will be to survive until help arrives.

*** begin quote ***

Our society is so intertwined that any number of small subtle events can build up to and then spark these events. As with Katrina, those signs are out there. You are being warned, and just have to identify what they are and be on the outlook for them. I would compare Haiti to a localized small nuke; no warning, nothing to see coming, it just happens.

*** and ***

It could be a stock market crash, droughts, government failure to renew its short term debt, political upheaval, increased taxes or something as obvious as hyperinflation caused by continued Fed intervention into the economy. It is likely that all of these things and many others, in their own small way, will collectively be the straw that breaks the camel’s back. There is no way to tell which one or ones and when it is likely to happen. History tells us that it will happen.

*** and ***

I could ramble on forever about all of these things, but consider that hyperinflation is absolutely in our future. It’s caused by the Federal Reserve Bank and our government. The only way to decrease the value of what we owe is to print more money, or go to war. Printing more money simply dilutes the value of the dollar in this country. We buy oil with those dollars, and the less they are worth, the more dollars it takes to buy it. All things in our world are directly related to oil. The more it costs, the more everything else costs. Most of our goods are imported from foreign countries. The less the dollar is worth, the more dollars it costs to buy them. As the dollar decreases in value and it takes more dollars to buy the same old necessities, your paycheck never increases proportionately, and if the company you work for fails to make a profit, you’ll be unemployed. That $2 gallon of milk may soon cost $5 or even $10 dollars. As in Zimbabwe, $1,000 or more dollars. Sometimes it can’t be had at any price. Our money today has decreased dramatically in value and purchasing power since the Federal Reserve began in 1913. If you are my age, you’ll remember 15 cent per gallon gasoline. At that time minimum wage was $1.25 per hour. I could buy 8.3 gallons of gas for every hour worked. Today, using the same comparison, I could almost buy only 3 gallons for one hour worked at today’s minimum wage. This applies to all commodities. It’s only going to get worse, much worse.

*** and ***

The government is giving away more money than we provide to it. It’s generating unbelievable debt. Taxes have to be increased. This will decrease how much money you have to buy the more expensive goods and services. Watch the M2 and M3 money funds. They are the gauge of how much money the government is borrowing. Watch the roll-over or default of the short term debt at the end of this year. Where will the money come from to pay the $2 trillion in short term debt? Why would China or anyone else loan us this money when even they can se that they will not get repaid in anything other than de-valued dollars.

You will never see the truth about any of these topics reported in the MSM, and there is a dearth of connecting the dots, even on the Internet. As you read about these things, ask yourself, “what does it really mean” and how does it link the the other current happenings. I can’t list all of the inter-related subjects that have an effect on this, but can only advise you to pay attention. If you don’t, it will sneak up on you and you won’t be ready. – Tom H.

*** end quote ***

A very astute set of observations imho.

I’m not so sure now with the elections in VA, NJ, and MA, that disaster might be avoidable.

With gridlock on the horizon, we have a chance to allow the market to correct the economy on its own without “help” from the gooferment.

If the congress critters were serious people, they would recognize the terrible effect of the annual deficit and the national debt. Glenn Beck has been doing yeoman’s work in calling national focus to it.

I’d suggest that each year, we should have a national surcharge on income tax. I’m not for an income tax, property tax, or any kind of tax, but we have to save the ship. I’d rather be a passenger rather than Robinson Crusoe. So let’s start! Someone has to go thru the Federal Budget, line by line, a la that great movie “Dave”, and have a “fire sale”. Department of Education, out. Department of Agriculture, out. Price Supports, out. Foreign Aid, out. You get the idea. After we are pared down to the “bare bones”, it’s time to “fix” the tax code. Identify the poverty line in every zip code. Income minus the poverty amount. And, then take -steal – rob 10%. Then add 1% for the national debt. 1% for the last year’s deficit.

It would be a way back.

No deficit; no need for the surcharge. No debt; no need for a surcharge. That’s paying off the credit card.

Then, we have to look at all the unfunded mandates?

Maybe financial collapse is inevitable?

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INTERESTING: Fixing Haiti long-term

Saturday, January 23, 2010

http://economics.gmu.edu/wew/articles/10/Haiti%27sAvoidableDeathToll.htm

A MINORITY VIEW
BY WALTER WILLIAMS
RELEASE: WEDNESDAY, JANUARY 20, 2010

Haiti’s Avoidable Death Toll

*** begin quote ***

The way out of Haiti’s grinding poverty is not rocket science. Ranking countries according to: (1) whether they are more or less free market, (2) per capita income, and (3) ranking in International Amnesty’s human rights protection index, we would find that those nations with a larger free market sector tend also to be those with the higher income and greater human rights protections. Haitian President Rene Preval is not enthusiastic about free markets; his heroes are none other than the hemisphere’s two brutal communist tyrants: Venezuela’s Hugo Chavez and Cuba’s Fidel Castro.

*** end quote ***

We can’t fix it, but let’s keep the crooked leaders out of the USA. Persona Non Grata.

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MONEY: Negotiate rebate up front!

Friday, January 22, 2010

*** begin quote ***

Redeeming rebates for hardware and software is a pitfall-filled process, as contributing editor Scott Dunn’s Jan. 7 Top Story pointed out. But reader Walter Donavan says he’s found another way to play the rebate game:

“Scott omitted one possible method of dealing with rebates that is 100% certain — if you can negotiate it. Simply tell the vendor by phone or e-mail that you want the product and will buy it, but only with the rebate already included in the price. For example, ‘$50 after mail-in rebate of $100′ becomes ‘$50 price now.’ Never mind the risky $150 price before rebate.

“I will no longer buy a product that depends on a mail-in rebate. If the vendor won’t give me the post-rebate price up front, I hang up. It’s very satisfying.”

*** end quote ***

Sounds like a good policy for everyone all the time.

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RANT: The car dealers got screwed; us too. Enjoy it?

Friday, January 22, 2010

http://apnews.myway.com/article/20100122/D9DCJHOG1.html

About 600 car dealers try to get businesses back
Jan 22, 12:34 AM (ET)
By TOM KRISHER

*** begin quote ***

India Johnson, an arbitration association senior vice president who is in charge of the hearings, said she expects 700 to 800 dealers to seek binding arbitration before the deadline. Not all will get hearings, she said. Some filed paperwork to preserve their appeal but may not proceed, while others may settle with the automakers before hearings, she said. The hearings, which must be held in the dealership’s home state, are likely to cost both sides a lot of money. Some dealers may lack cash to pursue them because they’ve closed their businesses or aren’t making as much as they once did. Wolf said dealers who appeal are gambling the legal fees in an effort to keep franchise agreements that alone are worth $500,000 to more than $2 million. The nonprofit arbitration association will do all it can to keep costs down, Johnson said. In some cases, dealers may represent themselves without an attorney, and arbitrators in some cases may cut their hourly rates, she said.

Chrysler CEO Sergio Marchionne has said the automaker may challenge the constitutionality of the arbitration law in federal court, but spokeswoman Kathy Graham said Thursday that no decision has been made.

*** end quote ***

Disclaimer: Frau lost 5k in GM bonds while America lost its liberty!

Clearly, the “auto company bailout” was:

  1. Mis-named. It was, in fact, a bail out of the UAW.
  2. Unconstitutional seizure of the bondholder’s property.
  3. A violation of the rule of law. What happened to the bankruptcy code?
  4. Socializing the losses while allowing the fat cats in “management” and labor to escape with the profits.
  5. A Nazi-style nationalization of the car companies; just like the banks.

Obama, in the style of FDR, seized the economy. And, like fascists and socialists have always found out, it doesn’t work. The economy is in the toilet. In a large part, due to the uncertainty that the Obama administration has introduced. Tax your bonus, windfall profits tax, taxes upon taxes, cap ‘n’ tax, healthcare taxes — all scare private investment to the side lines.

Argh!

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JOBSEARCH: A relo is a test of faith?

Thursday, January 21, 2010

http://www.irishcentral.com/ent/Conan-OBrien-will-leave-Tonight-Show-81160232.html

Conan O’Brien will definitely leave ‘Tonight Show’
By ANTOINETTE KELLY
IrishCentral.com Staff Writer
Published Monday, January 11, 2010, 2:43 PM

*** begin quote ***

“Conan uprooted his family, his life and moved to Los Angeles and they have not given him enough time” the friend said. “It is outrageous what they have done to him.” O’Brien’s family is extremely upset that the massive lifestyle change they made and the new responsibility O’Brien assumed has been taken so lightly by NBC.

*** end quote ***

It certainly is a good lesson to anyone considering a corporate relo deal.

I remember one fellow getting axed as his plane was enroute from Sweden to Houston and he was so screwed.

To relo, you MUST HAVE a contract. History is replete with lessons. If they won’t give you one, how can you trust them?

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