ECONOMICS: No safe store of wealth

Sunday, April 7, 2013

http://www.deviantinvestor.com/3506/3506/

A Tipping Point In The Financial System
Posted by Deviant Investor on April 4th, 2013

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In my opinion, the sign that a tipping point has occurred in the financial system is the real story:

* The veil of banker honesty has been lifted. The EU/IMF/ECB will do whatever is necessary to support the banks, even if it means they will confiscate (tax, steal, bail-in) customer deposits.

* Customer deposits are NOT assets held in the bank for safe-keeping, but are liabilities of the bank and are not guaranteed to be made whole.

* Billions of dollars were removed prior to the Cyprus freeze, so insiders clearly knew in advance of the ordinary depositors (see below). There is no “level playing field” when billions of dollars/euros are in play.

* According to Jeroen Dijsselbloem, Dutch finance minister and Euro Group President, this is “the template for any future bank bailouts.” In other words, your deposits are considerably less safe than you thought. Your bank could fail, and your deposits might be used to compensate for derivative losses or other losses that the bank incurred.

* The FDIC in the US, as well as England, Canada, and New Zealand, has announced similar policies, agreements, and plans to confiscate deposits in the case of an emergency. Is this a sign that an emergency is not only possible but probable and imminent?

* Confidence in the banking and financial system has been seriously damaged, perhaps irreversibly.

*** end quote ***

So a new definition of “counterparty risk” has appeared.

There is no safe store of wealth.

(There really never was, but there was an illusion.)

One has to think very carefully about keeping balances in banks.

imho

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MONEY: Pensions in the bulls eye

Sunday, March 31, 2013

http://www.wnd.com/2013/03/poverty-hits-the-suburbs/

WND EXCLUSIVE
Poverty hits the suburbs
Disturbing stats show dangers overlooked as Wall Street bulls run wild

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He calls “the great 401k experiment of the past 30 years” a “disaster,” and says the actual average 401(k) balance for 65 year olds is closer to $25,000 than the $100,000 claimed by the retirement industry. Siedle predicts, “a catastrophic outcome for at least a significant percentage of our elderly population is inevitable.”

He is just as pessimistic about pensions, warning, “Americans today are aware that corporate pensions have been virtually eliminated and that the few remaining private, as well as the nation’s public pensions, are in jeopardy. Even if you are among the lucky few that have a pension, you cannot rest assured that it will be there for all the years you’ll need it. Whether you know it or not, someone is busy trying to figure how to screw you out of your pension.”

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Obviously, the individual will have to save for themselves.

And, it’s in things that will retain value.

Not numbers on a bank statement.

Productive assets.

Bullion.

Bullets, bandaids, beans!

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QUOTE: Not enough to cover the giant web of obligations

Thursday, March 28, 2013

“What remains are games of musical chairs, Ponzi schemes, frauds, swindles, stonewalls, ruses, ploys, scams, dodges, bluffs, subterfuges, QE martingales, interventions, rehypothecations, pretenses and other modes of evading or disguising reality. The reality is that there is not enough real wealth to go around, certainly not enough to cover the giant web of obligations that masquerades as ‘money.'” – James Howard Kunstler in an essay titled The Cyprus Fiasco Is A Metaphor For The Entire Global Financial System

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PRODUCTIVITY: Intergenerational war

Wednesday, January 9, 2013

http://changethis.com/34.05.Generational

http://changethis.com/pdf/34.05.Generational.pdf

Turning the Generational Dial: A Plea to Boomers, Gen X and Gen Y By Carol Orsborn, PhD

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Carol Orsborn argues that instead of participating in a complicated generational tug-of-war of who is more relevant, Gen X and Gen Y must learn from Boomers because these following generations will also face the same elongated lifespans and increased vitality…and buying power.

*** end quote ***

Interesting that today’s Gooferment fiscal stupidity is a direct assault on the future generations’ pocketbooks and wallets.

And they don’t see it.

Or they don’t understand.

Argh!

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GOVEROTRAGEOUS: Just a calibration problem; baloney!

Tuesday, October 30, 2012

http://myfox8.com/2012/10/23/guilford-county-voters-say-they-voted-for-the-wrong-candidate/

Guilford County voters say they voted for the wrong candidate

Posted on: 8:14 pm, October 23, 2012, by Brandon Jones

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On Monday, several voters complained that their electronic ballot machine cast the wrong vote. All the complaints were made by people who voted at the Bur-Mil Park polling location.

One of the voters, Sher Coromalis, says she cast her ballot for Governor Mitt Romney, but every time she entered her vote it defaulted to President Obama.

“I was so upset that this could happen,” said Coromalis.

Guilford County Board of Elections Director George Gilbert says the problem arises every election. It can be resolved after the machine is re-calibrated by poll workers.

“It’s not a conspiracy it’s just a machine that needs to be corrected,” Gilbert said.

*** end quote ***

Wasn’t it Stalin who just wanted to count the votes?

Convenient that they error favors the D.

Sounds like “barbara streisand” to me!

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GOLD: Fort Knox; a national joke on the taxpayers

Saturday, October 27, 2012

http://www.bloomberg.com/news/2012-10-16/fort-knox-an-impregnable-monument-to-security-theater.html

Fort Knox, an Impregnable Monument to Security Theater
By Michael O’Malley Oct 16, 2012 1:04 PM ET

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President Franklin D. Roosevelt used a similar trick when he authorized the construction of the U.S. Bullion Depository at Fort Knox, Kentucky.

Roosevelt took the U.S. off the domestic gold standard in 1934. Although the nation remained on the standard in international exchange, the Gold Reserve Act made it illegal for private citizens to hold “monetary gold” — that is, coins or bullion. Banks had to transfer to the U.S. government any title to gold reserves they held, in return for dollars. Individuals could still own gold jewelry and keep their gold dental fillings, but anyone owning monetary gold had to sell it to the government.
Psychic Compensation

In speeches explaining the change, Roosevelt paradoxically stressed the importance of gold reserves.“By making clear that we are establishing permanent metallic reserves in the possession and ownership of the federal government,” he told Congress in 1934, “we can organize a currency system which is both sound and adequate.” But the U.S. already had “metallic reserves” — the act had actually eliminated that gold’s legal function.

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So what’s in there? And, who owns it?

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GOVEROTRAGEOUS: Suppressing the military vote

Wednesday, October 24, 2012

http://formerspook.blogspot.com/2012/10/running-out-military-voting-clock.html

WEDNESDAY, OCTOBER 17, 2012

Running Out the Military Voting Clock

Defense Secretary Leon Panetta wants to know if the military’s voter assistance offices are working–and he’s asking for an immediate answer. More from Air Force Times:

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Defense Secretary Leon Panetta has directed military officials to provide him a report by Oct. 19 verifying that each of the 221 installation voting assistance offices is appropriately staffed to meet the needs of troops.

He gave officials three days to get it done; the memo was issued Oct. 16 to the service secretaries, the chairman of the Joint Chiefs, undersecretary of defense for personnel and readiness, and chiefs of the combatant commands.

“We must do all we can to ensure that service members know the steps necessary to vote, particularly those service members deployed or based away from home. This issue must be addressed immediately,” he wrote.

Mr. Panetta issued his directive after the DoD Inspector General reported it could not reach about half of the voting assistance offices by phone, despite repeated attempts. Members of Congress have expressed similar concerns.

At first blush, the SecDef’s actions seem to be a model of bureaucratic urgency and concern. A three-day suspense for this sort of survey is virtually unheard of along the E-ring. So, a lot of action officers will be burning the midnight oil for the next few days to give Secretary Panetta the information he requested.

But in reality, Mr. Panetta’s demand is little more than a farce. The IG report was issued in late August–almost two months ago. Why did the Defense Secretary wait so long to issue that last-minute tasker?

*** end quote ***

Sorry, but this is “cheating”. All’s fair in love ‘n’ war.

At least in Heinlein’s Starship Troopers, soldiers couldn’t vote until they became a vet.

As a vet, I find this disgusting.

Argh!

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