Dear Imperial America: the lifestyle you ordered is permanently out of stock.
Our extraordinary misallocation of national treasure and political power has set a banquet of consequences that few are willing to face, much less address head-on. If we had to sum up this vast misallocation, we might start by characterizing it as the result of a multitude of elites playing Empire with money borrowed from future generations.
We can start the list of extraordinary misallocations of national treasure with the Neocon’s endless wars of choice. Ten years ago, estimates of the total cost of the Iraq misadventure were $3 trillion: Cost of Iraq War: $3 Trillion; Cost of Solar Plants to Power all 105 million U.S Households: $500 Billion (April 10, 2008) Continue reading
The only possible output of low social capital is rising inequality.
One of the themes I’ve been addressing since 2008 is the neocolonial-plantation structure of the U.S. economy. The old models of colonial exploitation that optimized plantations worked by cheap imported labor (or situated in peripheral nations with plenty of cheap labor) have, beneath the surface, been adapted to advanced capitalist democracies.
The adaptations have been so successful that not only do we not even recognize the Plantation structure–we love our servitude within it. Continue reading
Things Are Happening That Usually Never Happen Unless A New Recession Is Beginning
Is the U.S. economy about to get slammed by a major recession? According to Gallup, U.S. economic confidence has soared to the highest level ever recorded, but meanwhile, a whole host of key economic indicators are absolutely screaming that a new recession is beginning. And if the U.S. economy does officially enter recession territory in 2017, it certainly won’t be a shock, because the truth is that we are well overdue for one. Donald Trump has inherited quite an economic mess from Barack Obama, and it was probably inevitable that we were headed for a significant economic downturn no matter who won the election. Continue reading
“A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army. We must not let our rulers load us with perpetual debt.” ~ Thomas Jefferson
A common sense approach to bankruptcy is the recognition that no matter how much money you will be able to acquire you cannot possibly ever pay it back to your creditors. This is not what is required for a government regulating agency to declare a banking facility bankrupt, but it is a valid depiction of the state of our national debt and our ability to reduce it to a manageable quantity. The level of taxation that would be required to eliminate our national debt, which is climbing by astronomical numbers, would put such a strain on the fiscal ability of most Americans to survive we would instantly revert to a third world status. This is the danger we are confronted with by a free spending government unwilling to restrain its reach. Continue reading
All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation. ~ John Adams
Aside from those who don’t have much of it, money is one of those things people take for granted. People open their wallets, or purses, and pull out a couple pieces of paper/clothe and expect that they will be able to exchange it for a certain amount of goods or services. But what is that stuff you carry around and use to make purchases? Money you say? I don’t think so.
The Sixth Edition of Bouvier’s Dictionary of Law defines money as: gold, silver, and some other less precious metals. What you hold in your wallets and purses is currency; and you should at least know a basic history of how it came to replace real money. Continue reading
Don’t you find it appalling that there are people who claim they are “serving the public” yet fleece the taxpayer every chance they get?
They say they can’t afford the cost of tax cuts as if the money they are talking about is theirs. They say they are against earmarks but they fight tooth and nail to obtain them with no shame of their hypocrisy. They can’t produce a balanced budget, they have run a debt that cannot be paid and they continue to expect respect for being the equivalent of a mobster. They talk of killing a PFC who obtained some information that showed what a posh ineffectual bunch we have in the Diplomatic corps and they learn nothing when their party gets a “shellacking”. If this sounds like a tirade against just Democrats this is not the case. The Republicans learned nothing from the shellacking they got in 2008. Iowa’s own Senator Grassley pushed for continuing the ethanol subsidy (pure pork barrel earmark) and Senator Harkin was siding with Bernie Sanders in avoiding a vote on stopping the tax increase. Continue reading
Why is the Fed creating incentives for US corporations to destroy themselves? Why is the Fed pushing insurance companies and retirement funds into bankruptcy? Why is the Fed raising interest rates when inflation is still well below its 2 percent target?
Things are not always what they seem. In theory, the Fed’s low interest rates are supposed to have a positive impact on the economy by spurring a credit expansion. But it hasn’t worked out that way. Bank lending has remained stubbornly subdued throughout the post-crisis period. But what hasn’t remained subdued is corporate borrowing (via the bond market) which has exceeded all previous records increasing the probability of massive corporate defaults sometime in the next two years. Here’s a good summary of what’s going on from an article in Fortune titled “Corporate America is Drowning in Debt”: Continue reading
Another Banking Criminal Let Off The Hook
It is a verdict which we see over and over when it comes to the crimes of the Big Banks, the central banks, and their minions. These felons are caught committing serious offenses, again and again, yet receive either no punishment, or at worst some token slap on the wrist.
The banking felon to escape punishment this time is IMF criminal, Christine LaGarde . LaGarde’s criminal conviction came while she was still France’s Finance Minister. It involved a $400 million government pay-out authorized by LaGarde, against the advice of several other Finance Ministry officials, to “French tycoon” Bernard Tapie. LaGarde announced she wouldn’t appeal being let off the hook for her crime. How magnanimous. Continue reading
While economists, the administration and the Fed all trumpet “near full employment,” a stark reality intrudes: Most of the jobs created in the last decade have been temp or gig jobs, not permanent full-time work. It’s a huge problem.
From 2005 to 2015, fully 94% of the 10 million net new jobs were either temporary or contract gigs, says a new study by economists Lawrence Katz of Harvard University and Alan Krueger at Princeton University. The share of Americans — mostly Millennials — now doing what the study’s authors call “alternative work” has risen from 10.7% to 15.8%.
That wouldn’t be so bad if it was what workers wanted. But that’s not the case. Continue reading
I stopped trying to predict markets back in 2008 when the Federal Reserve, Treasury Department, Wall Street bankers, and their propaganda peddling media mouthpieces colluded to rig the markets to benefit the elite establishment players while screwing average Americans. I haven’t owned any stocks to speak of since 2006. I missed the the final blow-off, the 50% crash, and the subsequent engineered new bubble. But that doesn’t stop me from assessing our true economic situation, market valuations, and historical comparisons in order to prove the irrationality and idiocy of the current narrative.
The proof of this market being rigged and not based upon valuations, corporate earnings, discounted cash flows, or anything related to free market capitalism, was the reaction to Trump’s upset victory. The narrative was status quo Hillary was good for markets and Trump’s anti-establishment rhetoric would unnerve the markets. Continue reading
Herbert Hoover was worth $4 million in 1914 as a mining engineer and mine owner. This was before World War I, when the dollar bought 25 times more than it does today. He was good at what he did in the private sector.
He gained national fame as a World War I relief administrator: Belgian relief. The Germans let him do this because it freed up food for the German Army: no need to feed occupied Belgium. This is now how the history books tell it. This was the next phase of the legend of “Hoover the Engineer.”
Harding appointed him Secretary of Commerce. Hoover then oversaw the nationalization of the airwaves. He created the Federal Radio Commission, which became the Federal Communications Commission. Continue reading
Coming one day to Estados Unidos
When the Cold War ended 25 years ago, the Soviet Union vanished into the ash heap of history. That left the West’s “useful idiots” — Lenin’s term for the ideologues and toadies who could always be relied on to justify or praise whatever Moscow did — in search of other socialist thugs to fawn over. Many found a new heartthrob in Hugo Chavez, the anti-Yanqui rabble-rouser who was elected president of Venezuela in 1998, and in short order had transformed the country from a successful social democracy into a grim and corrupt autocracy. Continue reading
It’s not just America. Meet the White Obama!
When you consider that Big Government and its meddling leftist bureaucrats have taken control of Canada’s economy once again, it is small wonder that our great nation is becoming a non-productive, social democracy similar to European states like Sweden, Norway and Holland.
I blame my “peace and love generation” of the 60s and early 70s for adhering to and spreading the flawed leftist thinking that has piloted our country into an economic spiral from which it may never recover.
For example, in the late 60s, flower child icon Pierre Trudeau led us to believe that it was possible to “spend yourself rich.” For a purportedly intelligent man, Trudeau’s grasp of economics was, to say the least, fuzzy, and his borrowing scheme nearly bankrupted the country. Continue reading
The central planners/central banksters, who answer to no one, have completely lost their minds. What has happened, beginning in 2008, has never been tried before in the history of the world. These maniacs, who are in charge of our economies and finance, are literally making up the rules and changes as they go along. If a new plan is rolled out and it doesn’t work, try it again and keep trying until it works or try a slight “twist” to the plan and see if that works. Quantitative Easing is just such a program. These criminal maniacs had to do something as their entire criminal network was imploding.
As the money-changers were about to lose everything and wind up in the dust bin of history, governments around the world would have followed suit as the enablers of these currency schemes. Why do we see people standing up for BREXIT, Trump and noise being made in France and other nation states around Europe to take back their country from the current status quo? Continue reading
What is Money?
What is money? Really. It’s a token, receipt or an electronic note we get or give for some thing or some doing. It’s a convenient marker to interchange value.
Oh, and it’s also the most powerful WMD ever been used against us, for centuries.
A small group knows lots about money but they don’t want us to know what it is or how to use it to prosper because they are the ones who have been using it against us.
Maybe it has crossed your mind that something is wrong with money; that it’s not working right; that maybe the whole monetary system is broken; that “economics” is just being used to justify money failures; that maybe banks get richer because we get poorer. Mostly we ignore it because it’s there. Hmm? Continue reading