MONEY: One slug is as good as another

Thursday, July 29, 2010

http://www.impactlab.com/2010/07/27/record-number-of-counterfeit-one-pound-coins-could-force-britain-to-reissue-entire-denomination/

*** begin quote ***

Their warning came as new figures indicated there were £41 million fake £1 coins in Britain – one in every 36 in circulation. This is a record level and suggests that the proportion of counterfeit coins had tripled in the last decade. The situation has worsened since last year, when one in 40 £1 coins were fake. Experts and MPs said the level of fakes were so high there was now a serious risk that consumer confidence in Britain’s most popular coin was becoming compromised.

*** end quote ***

There has to be something “funny” — funny peculiar; not funny hah — at the bureaucrats calling out that fake coins might undermine confidence in their fiat currency. <Just shaking my head in disbelief> What is the intrinsic value of their “real” fiat coin. It’s worth what someone is willing to give you for it. If it’s a fake, it’s still worth what someone will give you for it. So this should point out that there is no difference between the “Real” and “Fake” ones. Isn’t that “funny”? Like the stories of countries printing high quality fake $100 bills. Who cares? There’s nothing to be “faked” out of. When coins were gold, or even silver, there was something of value that you could be “faked out” of. Now one slug is as good as another. No?

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MONEY: The Pope should lead the way to “honest money”

Tuesday, July 27, 2010

http://www.catholicnewsagency.com/news/vatican-coin-now-in-circulation/

Vatican coin now in circulation

*** begin quote ***

Vatican City, Jul 23, 2010 / 05:02 pm (CNA/EWTN News).- Coins bearing the image of Pope Benedict XVI are now in open circulation within Vatican walls. As of this month, Vatican visitors will find that 50 cent pieces are being given as change at places such as the gas station, pharmacy and post office.

*** end quote ***

Imagine the impact on the world if the Pope led the way to “honest money”?

Hard to imagine.

Gooferments, around the world, steal the people’s wealth by inflation. They claim the “King’s right”, the “Soverign’s duty”, or the “Tyrant’s Treasure Chest” to produce “honest coins” or “money”. (Like the marketplace could not figure out what “money” was “honest” on its own. Gresham’s Law http://en.wikipedia.org/wiki/Gresham%27s_law would demonstrate whats good and what’s not, without any “inspectors”. The Gooferment steals the wealth by printing more paper money, called “fiat currency”. Fiat because it has value because the Gooferment says it has value. No conflict of interest there.

Now here’s why the Pope should care. Inflation, the printing of “extra” money, impoverishes the poor, middle class, savers, and old age pensioners. That’s why he should care.

Inflation results in higher prices in the marketplace. Wages lag inflation. If they rise at all, it won’t be proportional. Investment, similarly, never “catch up”. So pensioners get hit with a triple whammy: their pensions are usually fixed and so don’t go as far as they used to, their savings are eroded, and prices go up.

So that’s why the Pope should act.

The Church has always been the traditional refuge for the serf from the abuses of the King. (I’ve seen enough Robin Hood and Zorro movies to know that.) It’s time for that to happen again.

Imagine if the Pope ordered all Vatican coinage to be in gold or silver?

First impact, that they’d be selling like hot cakes to the tourists. Then would come the folks overseas. As an example of “honest money”. The Vatican could even show a profit; much more than what they rip off coin collectors for meaningless proof sets.

And the little people would have money that could not be stolen silently by the King’s printing press.

Even the most illiterate dumber-than-a-rock parishioner could see the benefit of using the Pope’s money for savings.

It would be the ultimate control on the power of the King — the Gooferment.

IMHO one of the reasons, or possibly THE reason that Old Sadam got knocked off his horse was NOT wmd; the tyrant had the audacity to suggest that he wanted to be paid for his oil in gold. Rumor was that he was months away from starting an oil exchange denominated in gold. Remember the “Gold Dinar”? Not that he had a religious bone in his tuckus, he was pushing the religious aspect too. Hey, he realized that the FED was going to “tax” him on his dollar holdings. Silently. With no muss ‘n’ fuss, as the printing presses kept rolling out dollars.

So, Holy Father, the little people of the world would like you to end the tyranny of the King, who steals their little bit of wealth, give us honest money. If you truly believe in the workman being worth his wage, then make sure he get it in something that is worth something. Honest money is Godly money. And, slapping on a few saint’s pictures on the coins wouldn’t hurt morality either.

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MONEY: Kickbacks in your 401k

Friday, July 23, 2010

http://www.boston.com/business/personalfinance/articles/2010/07/21/investor_lawsuits_forcing_companies_to_disclose_401k_fees/

Investor lawsuits forcing companies to disclose 401(k) fees
By David Pitt
Associated Press / July 21, 2010

*** begin quote ***

DES MOINES — Workers protesting fees paid out of their 401(k) accounts want to know what the money is used for, who gets it, and proof that the charges are justified. And they’re going to court to get the answers.

*** end quote ***

This “fee” and kickback nonsense has been going on for decades. Let’s get the Gooferment out of retirement savings completely. Repeal the 401k / IRA laws. Then, either forget about the problem (Communist China has NO welfare or social security scams in case you are wondering why they save so much.) or require a tax for anyone, who has NOT purchased a inflation-adjusted retirement annuity equal to the poverty level for their zip code from a reputable insurance company, and buy one for them. Or be like the dreaded Chinese Communists, and just ignore the problem.

If we end the warfare / welfare state, then we’ll have growing thriving society with plenty of voluntary charity for the needy and “market discipline” for the lazy.

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MONEY: The Gooferment’s Long Term Care Insurance in Obamacare

Friday, July 23, 2010

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=1432

*** begin quote ***

Comparing CLASS to private sector LTC coverage. We’re pleased that the government is attempting to offer long-term care insurance, but CLASS doesn’t eliminate the need for you to buy a policy from private health insurers. First, CLASS’s daily benefit of $50 or $75 is woefully insufficient, considering that the average daily cost of a nursing home is $206, according to the 2010 Genworth Cost of Care survey, and that licensed in-home health aides today cost an average of $19/hour. Making these figures even worse is the fact that they are projected to be $268 and $21, respectively, when CLASS benefits become available in 2016. And unlike long-term care insurance you purchase, the government’s program is not a contract; benefits and costs can change.

*** and ***

In the meantime, do not let the notion of the CLASS program cause you to delay getting your own LTC insurance if your planner has recommended it for you. It’s unlikely that CLASS will meet all your LTC insurance needs, but even if it does, you should buy LTC insurance today to get the protection you need; you can always cancel the policy later, after you sign up for CLASS.

*** end quote ***

IMHO, getting old sucks. Pattie wiped out her little bit of lifetime savings in under a year. My Mom was forking out 10k$/month for “help” as she struggled to stay in her apartment. Anyone listening should have sufficient appropriate insurance.

It’s a funny peculiar calculation. If you have nothing, you need nothing; you get Medicaid. If you have 10M$, you need nothing; you’ll self-insure. Anything in the middle, you HAVE to have insurance. Where the middle starts and ends is arts not science. Argh!  

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MONEY: Pensions are a promise that will be reneged on

Monday, July 12, 2010

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=1397

Is Your Pension Threatened?
For Immediate Release
July 09, 2010

*** begin quote ***

WASHINGTON D.C., July 8, 2010 — Controversy hit The Ric Edelman Show this week, when award-winning talk show host Ric Edelman ignited a debate on the future of public pensions in America.

A caller to Edelman’s nationally syndicated radio program sparked the debate. Mary Ellen, a 51-year-old, has little money in savings. But because she works for a city government, she can retire immediately thanks to a pension that will pay her $46,000 for life annually plus provide full health care benefits for the rest of her life. While she wondered if she could afford to retire, many of the show’s listeners wondered how our society could pay for her and millions of other public employees like her.

*** end quote ***

Interesting?

I’m more concerned about the trial balloon that urges the Gooferment to “save” old people from poor returns in the Stock Market by seizing all IRA / 401Ks from the custodians in exchange for an as yet undetermined “enhanced Social Security benefit”!

Wish Ric would opine on that.

We can all be in the same boat as the poor people in Zimbabwe!

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MONEY: Too Big to Fail, Too Big to Bail Out, Too Big to Exist

Thursday, July 8, 2010

http://www.cnbc.com/id/38102194

Banks Too Big to Fail, Too Big to Bail Out: Roubini
Published: Tuesday, 6 Jul 2010 | 8:26 AM ET
By: CNBC.com

*** begin quote ***

“Banks at this point are too big to fail, but also too big to be bailed, especially in Europe where the sovereigns are in trouble and therefore the ability to backstop the financial system is not there,” Roubini said

*** end quote ***

Too big too exist!

We need to update our thinking as evidenced by our “litanies”.

Repeat after me: “Too Big to Fail, Too Big to Bail Out, Too Big to Exist”!

Wonder what the fat cat executives will do when they lose their cushy jobs?

Bet it never comes to that.

That’s the flaw in “Too Big To Fail”. Let a few fail and those with vested interests will figure how how not to fail in the first place.

Argh!

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MONEY: Benefit are a big loser for employees

Friday, July 2, 2010

Home » 2010 » 07 » 01 »

COLUMN: Can we put an end to corporate socialism already?
Thursday, July 1, 2010 | 12:49 p.m. CDT; updated 3:04 p.m. CDT, Thursday, July 1, 2010
BY George Kennedy

*** begin quote ***

New state employees, most of whom will earn less than $25,000 a year, will have to start contributing 4 percent of their salaries to their pension program, which has long been one of the benefits that compensate for low-paid careers.

*** end quote ***

Why do you have a Gooferment pension plan? Isn’t that socialism as well? Aren’t you in effect saying that people aren’t capable of managing their own money?

Maybe that 4% is more important to pay for something the individual values more than a “pension” sometime in the future.

Let’s not overlook that there are some “interesting” unintended consequences.

(1) What happens if the new employee doesn’t do the five years to get vested? Guess that poor slob made a bad bet.

(2) What happens if the Gooferment decides to pull the rug out from under them and changes the “law” so there’s no pension?

(3) What happens if the pension plan is underfunded? (Here in NJ the gooferment hasn’t funded the state pension plan in a decade and no one really knows what that means.)

(4) What happens if like CALPERS that investments don’t keep up with obligations?

(5) What happens if the poor slob dies the day before he retires? Day after? Like Social Security, it’s probably a bad bet.

(6) What happens if we have inflation? And our poor slob is retired on fixed income. Bad bet? (If he or she had a their OWN diversified investment portfolio, then they’d be capable of making some adjustment. In theory, portfolio income would go up to in some way compensate. The defined benefit of a pension plan means they are screwed.)

(7) What if when the poor slob retires, he wants his money to make a big purchase? A vacation home for cash. Buy into an assisted living. Or anything. What’s he do, go to JGWENTWORTH to sell his pension at a discount?

SO I think what you have is socialism at the expense of the low wage person. (Poor slob is intended to engender sympathy for some one who just has to shut up and take it.)

Along time ago, I talk to an AT&T pension actuary who explained how benefits were a huge win for the employer and a big loser for the employee. It’s never changed.

And don’t get me started on the Social Security Ponzi-like Fraud.

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Upon reflection, the Employer could, as a condition of employment, negotiate that a suitable third party pension plan must be taken by all employees. So that no one retires on welfare. Wonder what the CEO and CFO would say? TO that I say, what’s good for the goose is good for the gander.

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MONEY: Wikipedia’s explanation of “malinvestment” is sparse

Wednesday, June 30, 2010

A OPEN EMAIL TO LEW ROCKWELL, A CHAMPION OF AUSTRIAN ECONOMICS

Dear Mister Lew:

Re: http://en.wikipedia.org/wiki/Malinvestment

Perhaps you could (if you are so moved), or one of your bright interns (you exploiter of the youth), could write an appropriate text for Wikipedia that truly reflect such an important word.

I’d do it, but I’m just a fat old white guy injineer. Remember the sources of my education: I’m just a fat old white guy injineer with: Law “degree” from watching Judge Judy, Medical “degree” from watching Doctor Phil, Building “degree” from watching “Holmes on Homes”, and Investing “degree” from reading about Bernie Made-off.

To which I’ll probably add ekenomicks from reading Mises and Rockwell. Yes, in college, (manhattan college manhattan dot edu), in my economics course, “Human Action” was on the supplemental reading list. And I read it then. Didn’t understand most of it. Surprised? Don’t be; in theology, we had to read a translation of Luther’s Ninety-Five Theses, Bhagavad Gita, and “Essays in Zen Budhism”. I hated that class; the Professor had a thing for “God and the Ways of Knowing” by Jean Danielou. Even four decades later, I can remember him babbling on about good old Danny Lou. But, those were the days. When Universities were truly about imparting wisdom regardless of the source. Not like today when it’s ersatz “whizdumb”.

In any event, I commend the link for your attention.

fjohn aka alibertarianin08824
behind enemy lines in Pepuls Republik of Nu Jerzee

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MONEY: Keep rotating incumbents OUT!

Sunday, June 13, 2010

http://biggovernment.com/jboehner/2010/06/12/washington-democrats-out-of-control-spending-spree-needs-to-stop-now/

Washington Democrats’ Out-of-Control Spending Spree Needs to Stop. Now
by Rep. John Boehner (R-OH)

*** begin quote ***

“Waiting and hoping for the best is no longer an option, not when 43 cents of every dollar we spend this year is borrowed from our kids and grandkids. Our posterity shouldn’t have to foot the bill because Washington Democrats can’t do what they were elected to do or summon the courage to say no to special interests with their hands out.”

— Rep. John Boehner (R-OH) R response 6/11/10

*** end quote ***

Not that the R’s are any better than the D’s.

Our only defense is to start the carousel. Keep rotating incumbents OUT!

A marginal nutcase is better than these corrupt politicians.

Sorry, but, if we cant have NO government, then we have to have a lot less of it.

1. End the personal and corporate dole;

2. Dismiss gooferment public education;

3. Stop the various wars — foreign and domestic;

4. Repatriate the troops home;

5. Downsize ALL gooferments;

6. Eliminate all taxes but tariffs and excise.

and

7. Prosecute the “retired” and current politicians for “treason and sedition” against the Constitution. Make them pay off the debt that they ran up on our “credit card”.

Argh!

Lest you think I don’t have a solution, I do.

Get off fiat money. Go back to the Constitutional gold / silver standard. Payoff the debt by a federal “yard sale” of assets. Issue 30, 40, 50, and 100 year bonds to “paper the debt”.

No more “unfunded liabilities”.

A moral promise was made in Social Security and to a certain extent it has to be fulfilled. BUTT (there’s always a big but) it may not be paid off at 100¢ on the dollar. Especially if your name is Donald Trump. We may have to do a means test on those who have been unjustly enriched by the prior political class decisions.

Unwinding this mess is going to be ugly, but we don’t have a lot of choice.

If they can do it in Chile, we can do it here!

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MONEY: Social Security is like a Ponzi scheme

Monday, June 7, 2010

http://www.doughroller.net/personal-finance/what-is-social-security

What is Social Security? by Michael on June 7, 2010

>Have you ever wondered how Social Security works?

The Gooferment, using its gun power, has stolen and continues to steal from the workers taxes under the guise of “insurance”.

Like a Ponzi scheme, it uses what it steals from current workers to pay off older workers. Unlike a Ponzi scheme, it’s almost impossible to avoid this theft.

In practical terms, this program transfers money from poor minority men to rich white women.

It’s intergenerational theft!

And, as an “investment”, it’s the rough equivalent a negative rate of return estimated between 2 and 5%.

>President Franklin D. Roosevelt wanted to assist the elderly

While we’ll never know what he wanted, but we do know he was a “progressive” who admired socialism.

It was asserted that “social security” was a big step on the road to socialism. Huge societal changes were initiated by this action. In effect, he put the old on the dole.

>impact on Americans by the Depression

A Depression that was caused by the Congress in passing the Smoot Hawley tariff and exacerbated by the (unconstitutional and monopolistic) Federal Reserve Bank. So, the answer is, of course, “more gooferment”!

>Before Social Security, care and monetary funding for these individuals

Was their own responsibility. And that of their family. Multi-generation family farms were common BEFORE social security.

>

And, don’t overlook the fact that Congress changes the rules as it sees fit. Try doing that if you were an insurance company.

Social Security is a disaster. And, as such, everyone should be VERY careful in including it in their financial plans.

And, bear in mind that the Gooferment needs money, and the IRA / 401ks are held by “Custodians”. So everyone should be worried that they will have their IRA and or 401k when they need it to retire.

Lest you think “it can’t happen here”, then think back on the Bank Holiday, the Gold Seizure, and the Japanese Internment.

“Government is not reason; it is not eloquence; it is force! Like fire, it is a dangerous servant, and a fearful master.” George Washington

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