Television star and frequent debt scofflaw, The Donald, is talking about running the country because his richness qualifies him to do so.
Don't get me wrong, I like most rich people, especially when they give me money to do stuff, and I think democrats are freaking out over the thought of a "populist" television star taking on their failing socialist encumbant, but this guy is right out of Hayek's Road to Serfdom. Here's what this fascist clown espouses:
1. Trump's gonna teach those sneaky Orientals a lesson by slapping a 25% tariff on Chinese imports. Don't fall for Trump's anti-Chinese, Smoot Hawley jingoism. China does us a great favor by giving us lot's of stuff in exchange for green pieces of paper. That is a relationship that should be encouraged, not denigrated.
2. Trump's going to make OPEC sell us cheap oil. Don't fall for Trump's anti-Arab jingoism. The price of oil is rising because WE ARE DEVALUING OUR MONEY. We, or more appropriately, Ben Bernanke, is doing it to us. Stop printing money to bail out Wall Street thieves and the value of the dollar will stop falling.
3. Trump will not cut $1 from the military spending. Don't fall for Trump's corporate welfare pledge. We spend more on bombs and bullets than the rest of the world put together and it is a waste. There is no threat to our sovereignty. An invasion of America would be, in the late Admiral Yamamoto's estimation, a suicide mission, considering we have a 2nd Amendment (in addition to 5000 nukes).
Do not fall for Trump's populism. He is a fraud and no conservative in any traditional sense. He's an opportunist who will morph into a Mahattan Mussolini if elected. Let him stick to television.
On the other hand, Trump has filed multiple bankruptcies which may make him an ideal candidate for CEO of Amerika.
Wednesday, April 20, 2011
Tuesday, March 16, 2010
S&P 500 Is A Paper Bull!
I think the graph below speaks for itself. But in case it's not clear, the graph compares the "Monetary Base" which is the narrowest definition of money supply vs the S&P 500 weekly closes since 1/1/09. The conclusion I draw is that the "recovery", at least as it is defined by the stock market, is illusory and 83% a function of the PRINTING PRESS!
Krugman and his Phlogistonomics
Peter Schiff drills the Keynesian...
http://www.youtube.com/watch?v=11WlFlO_mDg&feature=player_embedded
Keynesianomics explained:
consumption creates profit
profit creates production
production creates income
income creates consumption
Any physicist would instantly recognize this goofy-ass theory as "perpetual motion machine" nonsense
The real way economics works...
CONSUMPTION comes from CAPITAL
CAPITAL comes from INVESTMENT
INVESTMENT comes from SAVINGS
SAVINGS comes from DEFERRED CONSUMPTION
Try this on the next Keynesian clown you come across and watch them flop around trying to make sense of it.
http://www.youtube.com/watch?v=11WlFlO_mDg&feature=player_embedded
Keynesianomics explained:
consumption creates profit
profit creates production
production creates income
income creates consumption
Any physicist would instantly recognize this goofy-ass theory as "perpetual motion machine" nonsense
The real way economics works...
CONSUMPTION comes from CAPITAL
CAPITAL comes from INVESTMENT
INVESTMENT comes from SAVINGS
SAVINGS comes from DEFERRED CONSUMPTION
Try this on the next Keynesian clown you come across and watch them flop around trying to make sense of it.
Saturday, February 27, 2010
Response to Neocon Denver Post Harsanyi's Smear Piece on Ron Paul
Re: Article Discussion: Harsanyi: The Ron Paul delusion
by troyjgrice on February 24th, 2010, 11:18 pm
Harsanyi = Neocon
Typical Anti Ron Paul Arguments:
1) Smear Ron Paul as anti-semetic because he wants to end welfare for the Israeli apartheid state
2) Smear Ron Paul as hating the troops because he wants to bring the troops home
3) Smear Ron Paul as an isolationist because he wants to end "nation building"
4) Smear Ron Paul as a nut because he wants to end the Federal Reserve and fiat money which funds the welfare/warfare state, enables endless deficits, and impoverishes the middle class
5) Smear Ron Paul as a kook because he believes we should respect and follow the Constitution as it is the only check on the expansion if Federal tyranny
6) Smear Ron Paul as an idiot because he PREDICTED THE GREAT RECESSION AND THE KEYNESIAN ERRORS THAT ARE BEING MADE IN THE NAME OF FIXING IT.
The problem is that Ron Paul is RIGHT. We are bankrupt. Our empire is ending. Our dollar will crash. No one will lend us money anymore so we have to print it. Our deficits are unsolvable and will lead to punishing budget cuts. Our institutions are rotten, corrupt and collapsing. Our welfare state is unsustainable. We cannot afford to babysit Germany, Japan, South Korea, and the Middle East. The Empire is FINISHED.
Neocons like Harsanyi offer nothing, no solutions except more war, more deficits, more welfare, more erosion of civil liberties, and more dropping bombs on little brown people.
Irving Kristol's disciples are fools.
The GOP is rotten. Republicans are frauds. They are NOT conservatives. They are progressives. They seek only more power to kill and loot control and care nothing for liberty and individualism.
by troyjgrice on February 24th, 2010, 11:18 pm
Harsanyi = Neocon
Typical Anti Ron Paul Arguments:
1) Smear Ron Paul as anti-semetic because he wants to end welfare for the Israeli apartheid state
2) Smear Ron Paul as hating the troops because he wants to bring the troops home
3) Smear Ron Paul as an isolationist because he wants to end "nation building"
4) Smear Ron Paul as a nut because he wants to end the Federal Reserve and fiat money which funds the welfare/warfare state, enables endless deficits, and impoverishes the middle class
5) Smear Ron Paul as a kook because he believes we should respect and follow the Constitution as it is the only check on the expansion if Federal tyranny
6) Smear Ron Paul as an idiot because he PREDICTED THE GREAT RECESSION AND THE KEYNESIAN ERRORS THAT ARE BEING MADE IN THE NAME OF FIXING IT.
The problem is that Ron Paul is RIGHT. We are bankrupt. Our empire is ending. Our dollar will crash. No one will lend us money anymore so we have to print it. Our deficits are unsolvable and will lead to punishing budget cuts. Our institutions are rotten, corrupt and collapsing. Our welfare state is unsustainable. We cannot afford to babysit Germany, Japan, South Korea, and the Middle East. The Empire is FINISHED.
Neocons like Harsanyi offer nothing, no solutions except more war, more deficits, more welfare, more erosion of civil liberties, and more dropping bombs on little brown people.
Irving Kristol's disciples are fools.
The GOP is rotten. Republicans are frauds. They are NOT conservatives. They are progressives. They seek only more power to kill and loot control and care nothing for liberty and individualism.
Thursday, February 4, 2010
The Purity Test For Republicans
1. Do ‘terrists’ hate our freedoms? (T/F)
2. Is waterboarding really torture or just an enhanced, bathing technique? (torture/bathing)
3. Would we still have freedom without Dick Cheney?” (Y/N)
4. The Bill Of Rights are actually a Bill of Suggestions? (T/F)
5. Is it true that inside every little third world brown person is an American yearning to be free? (T/F)
6. Explain the difference between evil Keynesian fiscal stimulus and enlightened supply-side economic stimulus.
7. Should refusal to say the pledge be grounds for caning in public schools?
8. Was John McCain a great fighter pilot (5 crashes aside)?
9. If the USA was in a full scale nuclear war with the rest of the world, who would win?
10. What can we make illegal so as to justify incarcerating the other 80% of black males in America?
11. How many times should one invoke “Reagan” during a political speech?
12. On a scale of 1-10, how nutty is that Ronpaul guy?
13. Which of the Bill of Rights would you suspend in order to protect us from the underpants/firecracker bomber?
14. Can you recite the words to Lee Greenwood’s “Proud to be an American”?
2. Is waterboarding really torture or just an enhanced, bathing technique? (torture/bathing)
3. Would we still have freedom without Dick Cheney?” (Y/N)
4. The Bill Of Rights are actually a Bill of Suggestions? (T/F)
5. Is it true that inside every little third world brown person is an American yearning to be free? (T/F)
6. Explain the difference between evil Keynesian fiscal stimulus and enlightened supply-side economic stimulus.
7. Should refusal to say the pledge be grounds for caning in public schools?
8. Was John McCain a great fighter pilot (5 crashes aside)?
9. If the USA was in a full scale nuclear war with the rest of the world, who would win?
10. What can we make illegal so as to justify incarcerating the other 80% of black males in America?
11. How many times should one invoke “Reagan” during a political speech?
12. On a scale of 1-10, how nutty is that Ronpaul guy?
13. Which of the Bill of Rights would you suspend in order to protect us from the underpants/firecracker bomber?
14. Can you recite the words to Lee Greenwood’s “Proud to be an American”?
Sunday, January 24, 2010
Saturday, January 23, 2010
TSA Scanner Fails Test
Funny, it takes German tv to teach Amerikans about thw false choice between liberty and security.
http://www.youtube.com/watch?v=nrKvweNugnQ
http://www.youtube.com/watch?v=nrKvweNugnQ
Friday, January 22, 2010
Comment on Denver Post Blog About Obama and Deficit
Delusion runs rampant here.
"Working together" is exactly how they got to a $56Trillion debt. Democrats increased government spending 8% per year and republicans raised it 5%. They are the same party.
There is no political will in EITHER party to balance the budget. There never will be. If they tell you they want to do it they are lying. If you believe them you are hopelessly naive.
A balanced budget requires Republicans ending their pointless, exorbitant international wars, occupations and winding down the US corporate welfare state. A balanced budget requires Democrats to surrender their entitlement and welfare programs that they use to mobilize their serf voters.
It is impossible to pay off the debt. They know it and have no intention of doing it.
The Federal Reserve enabled this looming insolvency by keeping borrowing costs low with the monetary printing press. That racket is coming to an end.
$1 Trillion in newly printed money sits on deposit with the Fed. Heres the Fed's own site. Check out the "Monetary base". That is the money that they printed. Look at Oct 2008. That should startle you.
http://www.federalreserve.gov/releases/ ... 3hist1.txt
Obama wants banks to lend it? If they did, gasoline would be $7 a gallon.
We are heading for a train wreck of a magnitude never experienced in US history. IT will change America more than the Great Depression. A collapse in Treasuries will result in parabolic interest rates and will bankrupt the government. An interest rate like Volcker's 21% would add $2.5Trillion to the ANNUAL DEFICIT. But printing money will lead to hyperinflation and destruction of the economy.
Japan is the lynch pin of this coming calamity. They are teetering on the brink and they hold $750B in US Treasuries that will be liquidated at firesale prices.
http://www.telegraph.co.uk/finance/comm ... ieces.html
Republocrats did this. They were asleep at the wheel for the past 4 deacdes. This bed was made by NIXON, REAGAN, BUSH, CLINTON, W. AND OBAMA and all the Ted Kennedys and John McCains, too with their profligate spending and accounting tricks. They kicked the debt can down the road for 37 years. Now they are kicking it into a wall.
There is still time to avert a hyperinflationary catastrophe or a USSR style breakup but deep, DEEP cuts need to be made. Federal spending needs to be reduced by half and those parasitical government functions cannot just be pushed onto the states. The states need to slim down as well. You will not close the budget gap by taxing and sucking every last drop of blood out of the middle class. Tax hikes will scuttle a recovery and further deplete tax revenues. You will not close the gap by "nationalizing" everyone's 401k.
It is going to be a wild ride. Get ready for inflation. It is the easiest political way out but it won't work. I myself do not have any "hope" and do not expect any "change" from our Washington plutarchs, and media enablers. The serfs like their welfare too much and the Lee Greenwood crowd enjoys their illusory wars, dropping bombs and getting strip-searched at airports.
If you want to see what America will look like in 25 years, read my book.
http://goldsteinrepublic.com/
"Working together" is exactly how they got to a $56Trillion debt. Democrats increased government spending 8% per year and republicans raised it 5%. They are the same party.
There is no political will in EITHER party to balance the budget. There never will be. If they tell you they want to do it they are lying. If you believe them you are hopelessly naive.
A balanced budget requires Republicans ending their pointless, exorbitant international wars, occupations and winding down the US corporate welfare state. A balanced budget requires Democrats to surrender their entitlement and welfare programs that they use to mobilize their serf voters.
It is impossible to pay off the debt. They know it and have no intention of doing it.
The Federal Reserve enabled this looming insolvency by keeping borrowing costs low with the monetary printing press. That racket is coming to an end.
$1 Trillion in newly printed money sits on deposit with the Fed. Heres the Fed's own site. Check out the "Monetary base". That is the money that they printed. Look at Oct 2008. That should startle you.
http://www.federalreserve.gov/releases/ ... 3hist1.txt
Obama wants banks to lend it? If they did, gasoline would be $7 a gallon.
We are heading for a train wreck of a magnitude never experienced in US history. IT will change America more than the Great Depression. A collapse in Treasuries will result in parabolic interest rates and will bankrupt the government. An interest rate like Volcker's 21% would add $2.5Trillion to the ANNUAL DEFICIT. But printing money will lead to hyperinflation and destruction of the economy.
Japan is the lynch pin of this coming calamity. They are teetering on the brink and they hold $750B in US Treasuries that will be liquidated at firesale prices.
http://www.telegraph.co.uk/finance/comm ... ieces.html
Republocrats did this. They were asleep at the wheel for the past 4 deacdes. This bed was made by NIXON, REAGAN, BUSH, CLINTON, W. AND OBAMA and all the Ted Kennedys and John McCains, too with their profligate spending and accounting tricks. They kicked the debt can down the road for 37 years. Now they are kicking it into a wall.
There is still time to avert a hyperinflationary catastrophe or a USSR style breakup but deep, DEEP cuts need to be made. Federal spending needs to be reduced by half and those parasitical government functions cannot just be pushed onto the states. The states need to slim down as well. You will not close the budget gap by taxing and sucking every last drop of blood out of the middle class. Tax hikes will scuttle a recovery and further deplete tax revenues. You will not close the gap by "nationalizing" everyone's 401k.
It is going to be a wild ride. Get ready for inflation. It is the easiest political way out but it won't work. I myself do not have any "hope" and do not expect any "change" from our Washington plutarchs, and media enablers. The serfs like their welfare too much and the Lee Greenwood crowd enjoys their illusory wars, dropping bombs and getting strip-searched at airports.
If you want to see what America will look like in 25 years, read my book.
http://goldsteinrepublic.com/
Tuesday, January 12, 2010
Deflation? Don't Be Ridiculous.
Not in any significant sense. There will be inflation. Why?
1) The Dollar is a bill of credit- a debt instrument. It is a note paying 0% interest, collateralized mostly by Treasuries. To the Fed, an FRN (a dollar) is a liability backed on the accounting ledger by Treasury "assets". Treasuries are going down. This is a certainty. It may be slowly over 5 years or it may be rapidly over 5 hours. I'm guessing sooner rather than later. As dollars are backed by Treasuries, as Treasuries go, so will go the dollar. It will start with Japan selling off.
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/...
2) Inflation is a function of M1 growth or Monetary Base (less reserves on deposit) growth. It has not grown recently, hence, no inflation. Freshly printed dollars have been deposited with the Fed (for now). They will leak out. The Fed will have to raise rates to keep those dollars out of the economy. A special "Fed Deposit Rate" higher than the market rate and only for Wall Street Banks may be tried. It will fail. It is politically untenable.
http://www.lewrockwell.com/north/north798.html
"Reverse Repos" are the new Fed scam...er....tool to remove excess liquidity. It goes like this: The Fed prints $1 Trillion, gives it to Citi for mortgages at $1 for $1 even thought the mortgages are worth $.67. Then Citi turns around and uses those dollars to buy Treasuries back from the Fed with a guarantee byt the Fed to buy them back at a higher rate (thus guaranteeing a higher interest rate). It's just a shell game and addresses corpulent money supply by obfuscating a rate hike.
3) The Fed is the banker's bank. They will not let all the big banks fail. They will print $50 Quadrillion dollars if necessary. If the Fed tries to tighten aka Volcker, they will bankrupt the US Government. A 21% interest rate = $2.4 Trillion interest expense ALONE for big Brother. There will be no Volcker 2.0 because a 21% interest rate = the government takes over the Central Bank and revs up the digital analogues (printing presses).
3.1) If the Fed raises rates any significant amount they will scuttle the recent "carry trade" stock market rally. Stocks are priced today as net future cash flows discounted to present value by (1+cost of capital)^n. Cost of capital ~ 0% for banks today making even the puniest of dividends valuable. Jack that cost of capital rate to 4% and the NPV sinks like a stone. The Fed cannot raise rates without scuttling the market. The S&P is priced at something like 75Xs trailing earnings. 80% of Goldman Sach's income comes from this 0% carry trade. Raising rates will destroy this income stream. The Banks own the Fed. They will not like this.
4) The US owes $75 Trillion. Will they tax it? Impossible. Will they borrow it? Impossible. There are only 2 solutions: 1) monetize it and 2) repudiate it. Repudiation is politically impossible but practically likely. Monetizing it is a disaster but politically practical.
Past Deflations:
But what about the 1930s you ask?
What about them? The US had a gold standard then. It took 5 years to double the monetary base. It took Bernanke 5 months! Ponzi-banks were allowed to collapse in the 1930s taking their fractionally multiplied Madoff dollars down to the never-after with them. That will not happen today. We have FDIC and Helicopter Ben with an infinite supply of dollars to ride in to save them.
But what about Japan in the 1990s?
There was no serious deflation in consumer prices in Japan. One must not confuse a collapse of a speculative bubble in real estate (or tech stocks, or South Sea Trading Companies or tulip bulbs) with skyrocketing consumer staples prices.
http://www.safehaven.com/article-15478.htm
We are going into mass-inflation. You can try to play technical trades, consult astrologers, and read goat entrails all you like. Time your "key reversals" and consult your trailing 100 day moving averages and your "Bollinger Bands" as well. Good luck. There may even be some merit in reading tarot cards...er...uh...technical charts. But I am prepping for the next decade, not the next week.
Finance yourself with fixed rate debt, wind down cash positions, invest in tangible things, stay away from bonds, liquidate (take a loan) on you 401k before Obama nationalizes it.
http://www.sharedprosperity.org/bp204/bp204.pdf
Hold on tight. It's gonna be a wild ride.
1) The Dollar is a bill of credit- a debt instrument. It is a note paying 0% interest, collateralized mostly by Treasuries. To the Fed, an FRN (a dollar) is a liability backed on the accounting ledger by Treasury "assets". Treasuries are going down. This is a certainty. It may be slowly over 5 years or it may be rapidly over 5 hours. I'm guessing sooner rather than later. As dollars are backed by Treasuries, as Treasuries go, so will go the dollar. It will start with Japan selling off.
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/...
2) Inflation is a function of M1 growth or Monetary Base (less reserves on deposit) growth. It has not grown recently, hence, no inflation. Freshly printed dollars have been deposited with the Fed (for now). They will leak out. The Fed will have to raise rates to keep those dollars out of the economy. A special "Fed Deposit Rate" higher than the market rate and only for Wall Street Banks may be tried. It will fail. It is politically untenable.
http://www.lewrockwell.com/north/north798.html
"Reverse Repos" are the new Fed scam...er....tool to remove excess liquidity. It goes like this: The Fed prints $1 Trillion, gives it to Citi for mortgages at $1 for $1 even thought the mortgages are worth $.67. Then Citi turns around and uses those dollars to buy Treasuries back from the Fed with a guarantee byt the Fed to buy them back at a higher rate (thus guaranteeing a higher interest rate). It's just a shell game and addresses corpulent money supply by obfuscating a rate hike.
3) The Fed is the banker's bank. They will not let all the big banks fail. They will print $50 Quadrillion dollars if necessary. If the Fed tries to tighten aka Volcker, they will bankrupt the US Government. A 21% interest rate = $2.4 Trillion interest expense ALONE for big Brother. There will be no Volcker 2.0 because a 21% interest rate = the government takes over the Central Bank and revs up the digital analogues (printing presses).
3.1) If the Fed raises rates any significant amount they will scuttle the recent "carry trade" stock market rally. Stocks are priced today as net future cash flows discounted to present value by (1+cost of capital)^n. Cost of capital ~ 0% for banks today making even the puniest of dividends valuable. Jack that cost of capital rate to 4% and the NPV sinks like a stone. The Fed cannot raise rates without scuttling the market. The S&P is priced at something like 75Xs trailing earnings. 80% of Goldman Sach's income comes from this 0% carry trade. Raising rates will destroy this income stream. The Banks own the Fed. They will not like this.
4) The US owes $75 Trillion. Will they tax it? Impossible. Will they borrow it? Impossible. There are only 2 solutions: 1) monetize it and 2) repudiate it. Repudiation is politically impossible but practically likely. Monetizing it is a disaster but politically practical.
Past Deflations:
But what about the 1930s you ask?
What about them? The US had a gold standard then. It took 5 years to double the monetary base. It took Bernanke 5 months! Ponzi-banks were allowed to collapse in the 1930s taking their fractionally multiplied Madoff dollars down to the never-after with them. That will not happen today. We have FDIC and Helicopter Ben with an infinite supply of dollars to ride in to save them.
But what about Japan in the 1990s?
There was no serious deflation in consumer prices in Japan. One must not confuse a collapse of a speculative bubble in real estate (or tech stocks, or South Sea Trading Companies or tulip bulbs) with skyrocketing consumer staples prices.
http://www.safehaven.com/article-15478.htm
We are going into mass-inflation. You can try to play technical trades, consult astrologers, and read goat entrails all you like. Time your "key reversals" and consult your trailing 100 day moving averages and your "Bollinger Bands" as well. Good luck. There may even be some merit in reading tarot cards...er...uh...technical charts. But I am prepping for the next decade, not the next week.
Finance yourself with fixed rate debt, wind down cash positions, invest in tangible things, stay away from bonds, liquidate (take a loan) on you 401k before Obama nationalizes it.
http://www.sharedprosperity.org/bp204/bp204.pdf
Hold on tight. It's gonna be a wild ride.
Saturday, January 9, 2010
"Papers Please"
Posted on Denver Post Website
I find it odd that democrats, who were (many decades ago) pro-civil liberties, support these invasive, demeaning, and pointless strip searches at airports. The grainy pictures TSA shows you are the over-exposed versions. The REAL pictures show you utterly unclothed in full detail for TSA goons to peruse.
If one thinks about it, the options for a suicide hijacker are already very limited. The vigilance of a Dutch passenger, AND NOT POLICE STATE MEASURES, thwarted the recent attack.
I think the bottom line is Americans are being sold an illusion- the illusion is "security". The notion that we must give up liberty and $40B for security is a false choice. In this exchange, we merely enrich politically connected corps that build strip search machines, bureaucrats who can look like they are "doing something", and create a welfare-jobs program for 40,000 unskilled TSA agents. AND YET, THE UNDERPANTS BOMBER STILL GOT THROUGH!
Wake up sheeple. The USA is becoming a police state.
I find it odd that democrats, who were (many decades ago) pro-civil liberties, support these invasive, demeaning, and pointless strip searches at airports. The grainy pictures TSA shows you are the over-exposed versions. The REAL pictures show you utterly unclothed in full detail for TSA goons to peruse.
If one thinks about it, the options for a suicide hijacker are already very limited. The vigilance of a Dutch passenger, AND NOT POLICE STATE MEASURES, thwarted the recent attack.
I think the bottom line is Americans are being sold an illusion- the illusion is "security". The notion that we must give up liberty and $40B for security is a false choice. In this exchange, we merely enrich politically connected corps that build strip search machines, bureaucrats who can look like they are "doing something", and create a welfare-jobs program for 40,000 unskilled TSA agents. AND YET, THE UNDERPANTS BOMBER STILL GOT THROUGH!
Wake up sheeple. The USA is becoming a police state.
Monday, December 7, 2009
What is a Dollar Worth?
The dollar is a "note". In other words, it is a "debt" owed by the Fed. It pays 0.00% interest.
Accounting 101: From the perspective of the Federal Reserve (which issues these "Reserve Notes") the dollar is a liability (debts owed are liabilities). In order for the Fed's balance sheet ot balance, Assets less Equity Must = Liabilities.
The Fed's "Assets" are: US Treasuries (notes to be paid by the Treasury), bank reserves, some foreign currency, some commerical paper, and a small amount of gold.
Treasuries are debts owed by the government.
SO IN OTHER WORDS, THE DOLLAR IS A DEBT WHICH IS BACKED BY A DEBT.
When the Fed "prints money" they keystroke "Federal Reserve Notes" (dollars) which become liabilities on the Fed's balance sheet. They then use these "notes" to buy "assets" which are just the debts of the government (or GM and the banksters).
There is no "money" in any classical sense beyond the the hard assets the Fed holds. All that exists is the debt of the left hand backed by the debt of the right.
The purchasing power of Federal Reserve 'Notes' hinges on the value of the ASSETS that back them. That value is determined by the PERCEPTION of the government's ability to convert labor into dollars (via taxes) that can then be used to pay the interest on the debt they owe (Treasuries).
It is a system only CPAs, Ken Lay and Bernard Madhoff could be proud of.
Accounting 101: From the perspective of the Federal Reserve (which issues these "Reserve Notes") the dollar is a liability (debts owed are liabilities). In order for the Fed's balance sheet ot balance, Assets less Equity Must = Liabilities.
The Fed's "Assets" are: US Treasuries (notes to be paid by the Treasury), bank reserves, some foreign currency, some commerical paper, and a small amount of gold.
Treasuries are debts owed by the government.
SO IN OTHER WORDS, THE DOLLAR IS A DEBT WHICH IS BACKED BY A DEBT.
When the Fed "prints money" they keystroke "Federal Reserve Notes" (dollars) which become liabilities on the Fed's balance sheet. They then use these "notes" to buy "assets" which are just the debts of the government (or GM and the banksters).
There is no "money" in any classical sense beyond the the hard assets the Fed holds. All that exists is the debt of the left hand backed by the debt of the right.
The purchasing power of Federal Reserve 'Notes' hinges on the value of the ASSETS that back them. That value is determined by the PERCEPTION of the government's ability to convert labor into dollars (via taxes) that can then be used to pay the interest on the debt they owe (Treasuries).
It is a system only CPAs, Ken Lay and Bernard Madhoff could be proud of.
Sunday, November 29, 2009
Did Bernanke save us from another Great Depression?
Athens, Ga. - The recession is probably over. So said Ben Bernanke this week. His timing is exquisite. President Obama has reappointed him to be Fed chairman, and he can now head into his Senate confirmation hearings this fall with the reputation that he nipped another Great Depression in the bud.
But did he?
Read More...
http://www.csmonitor.com/2009/0917/p09s01-coop.html
But did he?
Read More...
http://www.csmonitor.com/2009/0917/p09s01-coop.html
Saturday, November 21, 2009
The Fed Does NOT Stabilize The Economy
You may well wonder where he got that idea, since there are no official estimates of gross domestic product (GDP) for years before 1929. In the early 1960s, however, John Kendrick and Simon Kuznets bravely attempted to construct such estimates for gross national product (GNP). That would be close enough to modern GDP data were it not for the primitive statistics and technology they had to work with.
Read More...
http://www.cato-at-liberty.org/2009/09/09/no-the-fed-did-not-stabilize-the-economy/
Read More...
http://www.cato-at-liberty.org/2009/09/09/no-the-fed-did-not-stabilize-the-economy/
Global Warming- A Conspiracy of Lies
If you own any shares in alternative energy companies I should start dumping them NOW. The conspiracy behind the Anthropogenic Global Warming myth (aka AGW; aka ManBearPig) has been suddenly, brutally and quite deliciously exposed after a hacker broke into the computers at the University of East Anglia’s Climate Research Unit (aka Hadley CRU) and released 61 megabites of confidential files onto the internet. (Hat tip: Watts Up With That)
When you read some of those files – including 1079 emails and 72 documents – you realise just why the boffins at Hadley CRU might have preferred to keep them confidential. As Andrew Bolt puts it, this scandal could well be “the greatest in modern science”.
Read More...
http://blogs.telegraph.co.uk/news/jamesdelingpole/100017393/climategate-the-final-nail-in-the-coffin-of-anthropogenic-global-warming/
When you read some of those files – including 1079 emails and 72 documents – you realise just why the boffins at Hadley CRU might have preferred to keep them confidential. As Andrew Bolt puts it, this scandal could well be “the greatest in modern science”.
Read More...
http://blogs.telegraph.co.uk/news/jamesdelingpole/100017393/climategate-the-final-nail-in-the-coffin-of-anthropogenic-global-warming/
The Truth Behind China's Currency Peg
During President Obama's high-profile visit to China this week, the most frequently discussed, yet least understood, topic was how currency valuations are affecting the economic relationship between the United States and China. The focal problem is the Chinese government's policy of fixing the value of the renminbi against the U.S. dollar. While many correctly perceive that this 'peg' has contributed greatly to the current global imbalances, few fully comprehend the ramifications should that peg be discarded.
The common understanding is both incomplete and naïve.
Read more...
http://www.lewrockwell.com/schiff/schiff59.1.html
The common understanding is both incomplete and naïve.
Read more...
http://www.lewrockwell.com/schiff/schiff59.1.html
Friday, November 20, 2009
Société Générale tells clients how to prepare for potential 'global collapse'
In a report entitled "Worst-case debt scenario", the bank's asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign shoulders, creating a fresh set of problems.
Overall debt is still far too high in almost all rich economies as a share of GDP (350pc in the US), whether public or private. It must be reduced by the hard slog of "deleveraging", for years.
Related Articles
'Debt levels risk another crisis'
"As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse," said the 68-page report, headed by asset chief Daniel Fermon. It is an exploration of the dangers, not a forecast.
Read the rest...http://www.telegraph.co.uk/finance/economics/6599281/Societe-Generale-tells-clients-how-to-prepare-for-global-collapse.html
Overall debt is still far too high in almost all rich economies as a share of GDP (350pc in the US), whether public or private. It must be reduced by the hard slog of "deleveraging", for years.
Related Articles
'Debt levels risk another crisis'
"As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse," said the 68-page report, headed by asset chief Daniel Fermon. It is an exploration of the dangers, not a forecast.
Read the rest...http://www.telegraph.co.uk/finance/economics/6599281/Societe-Generale-tells-clients-how-to-prepare-for-global-collapse.html
Tuesday, November 3, 2009
Deflation or Inflation
"Deflation" this time around will not result in falling consumer prices.
When the big deflation comes in US Treaasuries, which will be triggered by Japan selling off to fund their looming fiscal crunch, the Fed will monetize (inflate FRNs) to keep interest rates down. If they don't, the US government will go bankrupt as most of the US debt rolls over every 5 years and rapidly rising rates will devour the budget. If the Fed does not inflate FRNs to soak up crashing Treasuries, then Congress will take over the Fed and 2010 republicans will hyperinflate by decree.
There will be no deflation in consumer prices. Sorry. The mass-inflation is already here. The stock market/real estate market is being reflated by TARP/GSE cash infusions and Fed outright purchases. 2 of 3 automakers are utterly insolvent yet still have $Bs in market cap. Oil, gold, silver are on a rocket.
Mass inflation is here. We are in it. Next stop, $4.00 gas.
When the big deflation comes in US Treaasuries, which will be triggered by Japan selling off to fund their looming fiscal crunch, the Fed will monetize (inflate FRNs) to keep interest rates down. If they don't, the US government will go bankrupt as most of the US debt rolls over every 5 years and rapidly rising rates will devour the budget. If the Fed does not inflate FRNs to soak up crashing Treasuries, then Congress will take over the Fed and 2010 republicans will hyperinflate by decree.
There will be no deflation in consumer prices. Sorry. The mass-inflation is already here. The stock market/real estate market is being reflated by TARP/GSE cash infusions and Fed outright purchases. 2 of 3 automakers are utterly insolvent yet still have $Bs in market cap. Oil, gold, silver are on a rocket.
Mass inflation is here. We are in it. Next stop, $4.00 gas.
Wednesday, October 21, 2009
More Predictions
10/20...
This latest market runup is nothing more than a reflation fueled by 0.00% money, levered up twenty times by banksters like Government Sachs.
90% of the bankster earnings are from the "carry trade" so to speak. They swap their bad assets (MBS) for Federal Reserve Notes which are used to shore up their margin accounts.
The Fed has "bought" close to $300 Billion in MBS since July 1 (check their H3 and H4 reports).
The speculative bubble is only possible with 0%, short term loans. The dollar crumbles daily and the Fed will be soon forced to act. But hiking rates will reveal the scheme as unsustainable and collapse the equity markets.
This latest market runup is nothing more than a reflation fueled by 0.00% money, levered up twenty times by banksters like Government Sachs.
90% of the bankster earnings are from the "carry trade" so to speak. They swap their bad assets (MBS) for Federal Reserve Notes which are used to shore up their margin accounts.
The Fed has "bought" close to $300 Billion in MBS since July 1 (check their H3 and H4 reports).
The speculative bubble is only possible with 0%, short term loans. The dollar crumbles daily and the Fed will be soon forced to act. But hiking rates will reveal the scheme as unsustainable and collapse the equity markets.
Sunday, September 13, 2009
Public Option = Babies Left to Die (in UK)
'Doctors told me it was against the rules to save my premature baby'
By Vanessa Allen and Andrew LevyLast updated at 8:53 AM on 10th September 2009
Doctors left a premature baby to die because he was born two days too early, his devastated mother claimed yesterday.
Sarah Capewell begged them to save her tiny son, who was born just 21 weeks and five days into her pregnancy - almost four months early.
They ignored her pleas and allegedly told her they were following national guidelines that babies born before 22 weeks should not be given medical treatment. Read more: http://www.dailymail.co.uk/news/article-1211950/Premature-baby-left-die-doctors-mother-gives-birth-just-days-22-week-care-limit.html#ixzz0R0VRCvMh
By Vanessa Allen and Andrew LevyLast updated at 8:53 AM on 10th September 2009
Doctors left a premature baby to die because he was born two days too early, his devastated mother claimed yesterday.
Sarah Capewell begged them to save her tiny son, who was born just 21 weeks and five days into her pregnancy - almost four months early.
They ignored her pleas and allegedly told her they were following national guidelines that babies born before 22 weeks should not be given medical treatment. Read more: http://www.dailymail.co.uk/news/article-1211950/Premature-baby-left-die-doctors-mother-gives-birth-just-days-22-week-care-limit.html#ixzz0R0VRCvMh
A Track Record of Lies
A MINORITY VIEW
BY WALTER WILLIAMS
RELEASE: WEDNESDAY, SEPTEMBER 2, 2009
Washington's Lies
President Obama and congressional supporters estimate that his health care plan will cost between $50 and $65 billion a year. Such cost estimates are lies whether they come from a Democratic president and Congress, or a Republican president and Congress. You say, "Williams, you don't show much trust in the White House and Congress." Let's check out their past dishonesty.
Read the rest...http://economics.gmu.edu/wew/articles/09/Washington%27sLies.htm
BY WALTER WILLIAMS
RELEASE: WEDNESDAY, SEPTEMBER 2, 2009
Washington's Lies
President Obama and congressional supporters estimate that his health care plan will cost between $50 and $65 billion a year. Such cost estimates are lies whether they come from a Democratic president and Congress, or a Republican president and Congress. You say, "Williams, you don't show much trust in the White House and Congress." Let's check out their past dishonesty.
Read the rest...http://economics.gmu.edu/wew/articles/09/Washington%27sLies.htm
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