Discussion of Housing Bubble, US Dollar, Debt, Trade Deficit, Oil, Gold, Consumer Spending, Central Banks, Inflation, Outsourcing and the Bleak Future of the US economy
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Saturday, January 17, 2009
Open Forum
Feel free to post up your thoughts, links, etc here
If any of you were wondering where I've been for the last several days, I've been ignoring email, news, computer etc and trying to spend quality time with the family.
The Fed now acts as our private British Mercantilist bankers, and it is owned by both US and European Illuminist interests, with the European interests being the same banking families and families of Black Nobility who have been attempting to retake America since the Revolutionary War, and who will stop at nothing to make America their oyster again. For his insolence in rejecting the European bankers and their co-conspirators among the Black Nobility, President Lincoln was assassinated. On June 4, 1963, President Kennedy attempted to do the same thing as President Lincoln with his Executive Order 11110, that would have put the Fed out of business, and thus suffered a similar fate. The assassinations of President's Garfield and McKinley, as well as the attempted assassinations of Andrew Jackson, were all directly tied to their stand against private international bankers and their conspiracy to take over our financial system. Will Barack Obama also go maverick on the Fed and risk assassination to save our nation? It would be nice to think so, but we doubt it. On the other hand, if that's why he is using Lincoln's Bible, then we, of course, enthusiastically say: GO FOR IT!!!
After Obama swears on Lincoln's Bible, he will use FDR's Illuminist playbook to try to save the economy, a playbook that was an abject failure when FDR used it, and that will produce the same results this time. The objective is to spend as much money as possible, such that the elitists get paid their salaries, bonuses, dividends, stock options and golden parachutes, while the taxpayers of the US middle class get the shaft, as well as hyperinflation. We wonder which Illuminist companies will reap all the benefits from the contracts for infrastructure, and who the foreign nations are that will purchase them with their ever-diminishing dollar reserves when they are completed? It will be just like the Iraq War, with no-bid contracts, outrageous cost overruns, substandard and incomplete work, slave labor by illegal immigrants instead of US citizens, as well as bribes of, and fraudulent inspections by, government flunkies. Just the same old, same old, repackaged as infrastructure for a collapsing, dilapidated America, instead of a war-torn Iraq. Funding will come from the hyperinflationary monetization of treasuries in mass quantities since tax increases are out of the question for now. Those will come later, after the American middle class has been impoverished, as those who are lucky enough to still have jobs are taxed into oblivion, after having already been inflated into oblivion. Americans should make a point to become well acquainted with the streets of financial oblivion, as that is where the Illuminati intend to send them on a regular basis. And so it goes, ad nauseam.
Happy New Year to you and your family as well, Randy! Yes, I was anxiously awaiting a new post, but I figured you had taken a short sabbatical to spend time with the fam. Good for you!! Now it's back to work tomorrow!
Regarding your 401K question asked some time back. Certainly wish I could give you a good answer, but I'm in the same boat - should I take a 10% penalty plus the significant tax hit? Would it be worth it over the longer run to cash in now and purchase more gold/silver? A very difficult question to answer...
It's next to impossible to cash out your 401k. You need some kind of proof of financial hardship. Best thing to do is take out a 401k loan. You can borrow 50% of your vested balance. I bought some silver and gold with it.
It is called economic crisis: US, China, and the coming monetary storm by Maurizio d'Orlando.
He writes about the the debt in both countries and how China's GDP may get them through. Also, he writes about the currency values, and outcomes, as well as China's responsibility in the crisis, yet he failed to say that the G-8 allowed China to become the world's workshop.
Great articles & videos folks - read/watched all of them tonight - with the exception of Jerry's latest, which I'll try to get to before calling it a night.
I think it was Justin who posted the two pieces written by David Einhorn and Michael Lewis for the NYTs called How to Repair a Broken Financial World-2 pieces. 1-2-09.
I have finally gotten to read them and am amazed that what was written in the op-ed pieces were exactly what Denninger of Market Ticker had been writing about all of last year!!! Every solution, every reform, every change that the Fed and Congress needed to act on, but didn't, was what he had been writing about and speaking about on his Youtube pieces.
We all have been exchanging info along the same lines, and some of us have been writing about it on our own blogs.
The mainstream press has just finally woken up about the failures of the Fed, Treasury, and Congress with respect to the purposeful crime committed regarding this bail out and the Madoff Ponzi Scheme.
Nobody is listening!!!! The crime of century has been permitted to go forward. When the NYTs Op-Ed editor finally wakes up and prints these two pieces, we can only hope that more eyes become enraged.
Thanks to the person that posted those two pieces!!!
This author is a professor of European Political Economy. Heavy reading 10 pages without the charts! His point is that a stimulus package will not do the trick over the long run if it is based on Keynesian economics. He goes through the economic points about short runs and long runs. He speaks about many points to make his argument. He points out what kind of vulnerable position be are now in and how Obama might not really have it figured out. He talks about the Asian nations and their reluctance to continue to be our bankers and why they have been willing in spite of lower return rates.
This might be old news to most here but I hadn't heard about it until today.
China produces goods tainted with lead and baby formula tainted with melamine and who knows what else. Great outcry here in the U.S.A(That's new news). Rightfully so..... However check out the following MSM video and tell me whose back your congress has.
Why am I not surprised about Bayer corporation! At this point in my awareness, I am not surprised with most things. From this to the Terminator seeds, nothing is surprising. The corporate and political elite believe they are above the laws, and are willing to proceed against the well-being of the nation's citizens and the world.
Biden has come out and said that no one, not even the president is above the law and that investigations will be done if wrong doing is uncovered. Let us hope so.
Another point regarding the Fed's con job. The American people have cut back their spending the more now than anytime over the past 17 years. They are trying do with less and save some, but the Fed, and the bankstas don't like this and that is why the Fed rate has been cut to zero. They are trying to everything to resume credit borrowing by milking working America by enticing them to go into further debt. More interest payments (even if it is at 2%), means more wealth for the uber-rich bankstas.
The stimulus package planned out is only several hundred dollars to $1000 for a family. So what! That is nothing. A house payment and heat bill for one month? Come on.
The way to stimulate the economy is simple. By taxing the very rich who gotten too much wealth off the backs of working America, through unlocking the social security lock box and borrowing from it in order to get their big tax cut, and through rent and interest payments made off of working Americans and small business borrowing, as well as by paying lower taxes on dividends than working people do on their wages, as well as big corporations that have made big profits and paid little to no taxes through their accounting practices and shelters.
By shifting the wealth toward higher wages to working Americans, during a recessionary period, these cash strapped workers get a break through having extra cash to spend on their daily needs, which stimulates the economy and keeps money in circulation. The stimulus package comes off of the top of the pyramid to stimulate those closer to the bottom. From there, it begins to move upwards.
This makes the most sense as a stimulus to the economy. But to cut Federal spending, and squeeze expendable income out of people already feeling the pinch through their stagnant wages, would likely be counter-productive. The government would create an even worse recession, by printing more fiat currency which would force prices upwards, and, at the same time, ballooning the budget deficit.
The rich are already getting a wealth-based government subsidy through the bail outs. Had the $1 T bail out money gone into people's wages, letting the big financial banks go into bankruptcy, guaranteeing the saving, while supporting the local and regional banks, as needed, and then, placing a bottom on the falling home price dilemma, much of the collapse might have been softened. But no. Enhance the wealth of the already wealthy and protect their risky investment losses.
I have to agree that I am not shocked either. But still? I'm am continually taken back by what has been and is going on behind the curtain. The frustrating part is that even when the curtain is lifted a bit most witnesses refuse to believe the truth. I'm sure I've used this quote before but here it is again(To the best of my recollection hehe).
"The average man is at a distinct disadvantage when faced with a conspiracy so monstrous he cannot believe that it exists" J.E. Hoover(ugh)
Justin, you are so right! The facts are today--30% of all credit card debt, $1.6 trillion, is held by the lowest rated consumers; $8 T lost in home wealth; unemployment when factoring in all factors, has reached 12.5%; 14,000 jobs lost DAILY since September; home price devaluation has reached 20%; more than 10% of the work force works in retail; retail layoffs will likely reach 1 million; once the retail sector goes down, the ripple effect will move upward shutting down store rental fees, then mall rental fees, etc. effecting the bankstas holding the paper on the mall developments and then, more bailouts of the commercial real estate market. Once that happens, the crying insurance companies will want a bailout for the hit they are taking on abandoned and partially filled retail and commercial properties. Local municipalities will see these developers asking for property tax reductions, reducing the revenues to those local schools and municipal operations. State revenues will continue to move downward, further increasing unemployment and shrinking vital worker spending on essential life needs.
Why is China continuing to buy our Treasurys at 0% interest? They realize that the stimulus package will stimulate their economy because workers spending money will buy Wal-Mart China made stuff. But, if the consumer decides to save the stimulus or pay rent and utilities and reduce their purchases on Chinese stuff, then they will figure there is no reason to continue buying US Treasurys, or, for that matter, hold on to the ones they previously bought.
Who has Obama surrounded himself with? The very people involved in the Ponzi Scheme: Geithner, Rubin, Summers. They all supported no regulation of the derivatives. If the bailout and stimulus don't have a positive effect on the economy, then foreign investors will lose confidence and sell off stuff. And, watch more rich corporatists move their personal wealth off-shore.
One piece I read said that China holds 3400 tons of gold, and has increased it to 652.9 tons.
The US Congress has engaged in fantasy in order to pretend they still rule supreme.
"The US Congress has engaged in fantasy in order to pretend they still rule supreme."
Well stated Jerry. America's strength is an illusion. Russia and China are waiting to pounce. China has been using our money to build it's military up at breakneck speed. It's sobering that the past two administrations have let military technology slide into their hands. The Chinese have hacked into the Pentagon and shown that they can shoot down satellites. Are their intentions good? Only a naive person would think so. Chinese hacked into Pentagon
Then of course we have Russia. It's ran by Putin(NOT the window dresser Medvedev) who was not only a career KGB man but the leader thereof. There was a Soviet defector by the name of Anatoly Golitsyn whose roughly 150 predictions about Russia's grand strategy have almost all came to pass.
Russia and China have plans for America and they are not pretty. Nuclear weapons have given America a false sense of security. People need to understand that Russia and China are not afraid to sacrifice large portions of their populations in order to bring an end to America.
Chetlv is thinking the same way I am. I took out a loan against my 401k a couple years ago to put a roof on, and am paying myself back at 5%. Since I haven't dipped into equity, I still have some. Time to re-fi to the mid-4% range and cash out enough to pay off my 401k loan. Then I will take another loan (you may only have one at a time) to invest in inflation hedging, while the current payback rate to myself is 2%. Betting against tomorrow's dollars with today's.
Seems to be a lot of crashes on automated systems to call in unemployment around the country. I myself am currently drawing unemployment. I have drawn unemployment at various times during my life. My first encounter with the automated call in was back in 2006. I have never gotten a busy signal until this past December. Now when I call in I have to repeatedly hit the flash and redial in order to get through. Haven't had to do that since my younger years calling in to get concert tickets. Won't be a problem much longer because my unemployment is about to run out....UGH
Jerry, you have some very good comments here. I'd like to point out that I think the answer for a correct stimulus is to move away from the debt based monetary system and implement something similar to the Minnesota Transportation Act, which would allow states to print their own currency, debt free, to spend on infrastructure projects. I believe it is the answer to the monetary problems we all face. The current dollar system has collapsed, and in my opinion no matter what size stimulus Obama passes, or what kind of tax shifting the government imposes (taxing the rich) it will not be enough to get out of this never-ending bail-out hole.
if anyone is interested in the MTA and what kind of things I'm talking about, here is a bullet point list and the main website: http://tinyurl.com/925wb5
Next Dimensions----I believe President Lincoln issued Green Back currencies only to be used with the United States. Is that something like what you are talking about? I only know what I was once told, and that was in order to pay off the Civil War debt, Lincoln paid off the debt using these Green Backs. Can someone help me here?
Good one LOL..... You got me on that one even though I was already chuckling over the last Jim Willie link... I was sitting here scratching my head..."part 3?" what?
Josh and I watched this on The History Channel the other night. very informative! I looked for a link to watch it online, but all I found was show time schedules or TV or purchasing it on DVD. Anyway, check it out if you get a chance.
This is a good read about our projected deficits. There is a chart on here that is very sobering. Although I have no doubt there will be catastrophic changes and we'll never see the chart pan out due to the death of the dollar.
To get the economy rolling again we need money to start flowing from the institutions and the housing market to cycle inventory so that there are manufacturing demands. The government has already appropriated the money for lending, but may need to force their leverage to get it flowing.
What I propose they start for a housing stimulus is a program that would pay 2% of the interest for new mortgages (example; 5 years of 2% payments for existing home purchases / 8 years of payment for new home purchases with a $200K maximum). These mortgages could be piggybacked with a secondary loan for those qualified and interested in the jumbo market. This program would only be available for a 3 - 6 month window of opportunity. This would entice people to BUY NOW, instead of sitting on their hands, waiting on prices to continually drop. A person could sell their house as the payment term ends with no prepayment penalty, so that they could retain their equity (building wealth for investment), or they would just continue at the original rate of the loan (building more equity). Incomes should increase during the time of the payment program, which would allow a homeowner the opportunity to meet their original obligations. A program for refi (2% for 3 years?) could also be effective in helping people with a straining mortgage stay in their residence, warding off foreclosure.
One of the pros for the government is that this program would allow for pay out over 5 - 8 years as opposed to dropping a $trillion dollars in a relative short period of time.
As an example, using simple mortgage calculations; A $200K loan for 30 years at 5.25% equals a monthly P&I of $1,104.41. A $200K loan for 30 years at 3.25% equals a monthly P&I of $870.41. A person would only pay 79% of what they would normally pay for this mortgage. The government would pay $2,808.00 per calendar year. If they helped SELL one million homes in this manner, it would only equate to $2.808 Billion of bail per year. This would equate to $200 billion in residential sales, untold return in tax base revenues, the reduction of housing inventories, new construction starts and a stimulation of the manufacturing sector with the new demand for appliances, HVAC units and other housing related concerns.
Stimulation without incentive is ineffective and should also be accompanied by time constraints. You do not see Black-Friday Christmas type sales all year long. There is a reason they happen and are of such a grand economic scale, as they are limited by an event, timeframe and deadline.
Please quit using our money to pander for votes by purchasing them with a $500.00 gratis or $1000.00 tax credit.
And what is the Fed Reserve Ponzi scheme all about? Oh yeah, "money". And the root of all.............. Let's not forget that most Americans are more concerned with Big Macs, shopping, new cars, new toys, etc. than TRUTH. Granted that now we are in hard times they "seem" to be concerned. Yet they still shun the truth.
I'll take reality over fantasy any day no matter how painful.
My dad introduced me to your site - love it. Now let me share a site & book that may interest you... www.survivalblog.com and Patriots-Survive the Coming Collapse by James Wesley Rawles. Best of luck to everyone! Shawn Petree www.sovfuture.com
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."–Ludwig von Mises
As Peter Schiff has said, "we don't need more new housing." I agree with that component of his positions. We don't need more new home construction. There is a back log of existing new home unsold going back 11 or so months. The American people are already over extended on their credit, they don't need to borrow more so the Ponzi Schemers can become wealthier from the financial struggles of working Americans. Working Americans got in this situation by being enticed by low interest rates given by the financial schemers who kept wages down and stagnant forcing consumers to borrow on their credit cards and homes just to pay for things they could not afford as a result of the wage situation. The rich got richer and the workers got further into debt.
It is necessary to put a floor on the home mortgage deflation otherwise more homes will go into foreclosure as a result of current values being worth less than the mortgage payments and purchase price values.
The key component of improving this economy has nothing to do with borrowing money to buy homes and things, it has to do with working American wages, health care costs, and the trade deficit.
Jerry, regarding those Greenbacks, I believe that Lincoln issued them with only the backing of the US government, and accepted them as payment for taxes, that is all. The moneyaswealth blogspot website explains the difference being that the money issued would be backed by actual wealth, ie infrastructure projects that demand actual production. So there is something that backs the creation of the debt free money in this case, whereas the Greenbacks were just printed up and accepted for taxes. Anyone else who can chime in on this issue would be great. I know that The Money Masters touched upon both the Greenback as well as successful fiat systems. Anyway, moneyaswealth.blogspot.com is highly recommended to spend some time on. Cheers all.
Sounds like a pipe dream to me....... They will pick a couple to make an example out of. I highly doubt it goes beyond that. The powerful protect the powerful.
Next Dimensions--thanks. The more I read the more I fear for the future. Geithner and Summers are nothing more that Ponzi Promoters. They negatively affected neo-con principles throughout the world back in the 90s on into present day. Geithner's testimony before Congress saying, even as the chairman of the New York Fed, he had no idea what could have caused this meltdown, as if he did not know it from the beginning of his laissez-faire, faked free market capitalism he sold to the Russians and the Asians. He pressed the Asians to open up their economies to US corporations in the 90s strictly to sell out working American jobs.
The Treasury has increased the issuance of public debt to the Fed in secret and without transparency. The Treasury has become the Fed's shadow bank. The Treasury's reserve has increased from around $10B to nearly $850B.
Slingshot Man was such a relief to watch--thanks Justin. The bad news keeps mounting, but that was such a fun thing to watch. Since I don't own a TV, I do spend too much time in front of this screen and need Slingshot Man once in a while.
This is the best article I have read fully outlining every sector and aspect of the economy that has and will be effected by what is to come. It is written by Gary Shilling on this link:
http://www.marketoracle.co.uk/Article7805.html
Scroll down a bit til you find it. I printed it and it was 10.5 pages. A Must Read!!!!!!
I have an END the WARS online petition that I hope many will sign. Here it is and hope some will forward it.
To: the U.S. Senate, the U.S. Congress, and the Parliament of Canada
We, the people of the United States of America electorate and the people of the Canadian electorate, KNOW that our nations are spending too much on wars and foreign intervention. These endless conflicts and the billions spent on military intervention do not make the world safer for its people. Rather these military conflicts create increased suffering that leads to more wars. Furthermore the world is in an economic crisis and this continued military spending only increases the national debt for our nations which we the tax payers must pay.
We DEMAND an end to foreign intervention including financial aid that supports war, and an end to all wars. Bring our troops home.
Just a thought guys. But I would like for those interested in getting together for a conversation via "skype". It's free. The only cost is buying a headset which run as low as $9. I just think it would be really nice to talk to the regulars on here. We can discuss what we discuss on here and even some light hearted trivial things as well. I just downloaded skype yesterday. Just go to their website and check it out and let me know what you all think.
I have been reading your blog for several weeks. You have brought forward a lot of very important ideas. I have a question. What do you think about participating in the Perth Mint certificate program? Instead of buying actual physical gold, Perth Mint will hold unallocated gold for you.
“Elites can manufacture consent because the average American is like a deaf spectator in the back row at a sporting event: He does not know what is happening, why it is happening, what ought to happen.”
88 comments:
Happy New Year to all of you.
If any of you were wondering where I've been for the last several days, I've been ignoring email, news, computer etc and trying to spend quality time with the family.
Good for you, Randy! I think we all need to do this more often.
In the meantime, here is yet another report from Las Vegas
http://www.montereyherald.com/search/ci_11361742?IADID=Search-www.montereyherald.com-www.montereyherald.com
24karat
Welcome back Randy!!! Here is a surprise for everyone. U.S. Debt Expected To Soar This Year
U.S. governors seek $1 trillion federal assistance
Very sad and graphic.
We have heard the Palestinian side of the story, as you can see from the images below:
Happy New Year Randy and all the readers of this great blog.
Just wanted to share this brand new video from Ron Paul.
http://se.youtube.com/watch?v=08gTWqWrI4M&eurl=http://www.lewrockwell.com/blog/
/Anders
Excellent video Anders - here's a better link:
Ron Paul discusses the situation in Gaza, our financial delimma, weakening liberties, and the coming inflation wave
http://se.youtube.com/watch?v=08gTWqWrI4M&eurl=http://www.lewrockwell.com/blog/
Financial Ruin and War For All Who Oppose The Rulers of the Economy
The Fed now acts as our private British Mercantilist bankers, and it is owned by both US and European Illuminist interests, with the European interests being the same banking families and families of Black Nobility who have been attempting to retake America since the Revolutionary War, and who will stop at nothing to make America their oyster again. For his insolence in rejecting the European bankers and their co-conspirators among the Black Nobility, President Lincoln was assassinated. On June 4, 1963, President Kennedy attempted to do the same thing as President Lincoln with his Executive Order 11110, that would have put the Fed out of business, and thus suffered a similar fate. The assassinations of President's Garfield and McKinley, as well as the attempted assassinations of Andrew Jackson, were all directly tied to their stand against private international bankers and their conspiracy to take over our financial system. Will Barack Obama also go maverick on the Fed and risk assassination to save our nation? It would be nice to think so, but we doubt it. On the other hand, if that's why he is using Lincoln's Bible, then we, of course, enthusiastically say: GO FOR IT!!!
After Obama swears on Lincoln's Bible, he will use FDR's Illuminist playbook to try to save the economy, a playbook that was an abject failure when FDR used it, and that will produce the same results this time. The objective is to spend as much money as possible, such that the elitists get paid their salaries, bonuses, dividends, stock options and golden parachutes, while the taxpayers of the US middle class get the shaft, as well as hyperinflation. We wonder which Illuminist companies will reap all the benefits from the contracts for infrastructure, and who the foreign nations are that will purchase them with their ever-diminishing dollar reserves when they are completed? It will be just like the Iraq War, with no-bid contracts, outrageous cost overruns, substandard and incomplete work, slave labor by illegal immigrants instead of US citizens, as well as bribes of, and fraudulent inspections by, government flunkies. Just the same old, same old, repackaged as infrastructure for a collapsing, dilapidated America, instead of a war-torn Iraq. Funding will come from the hyperinflationary monetization of treasuries in mass quantities since tax increases are out of the question for now. Those will come later, after the American middle class has been impoverished, as those who are lucky enough to still have jobs are taxed into oblivion, after having already been inflated into oblivion. Americans should make a point to become well acquainted with the streets of financial oblivion, as that is where the Illuminati intend to send them on a regular basis. And so it goes, ad nauseam.
Happy New Year to you and your family as well, Randy! Yes, I was anxiously awaiting a new post, but I figured you had taken a short sabbatical to spend time with the fam. Good for you!! Now it's back to work tomorrow!
Shannon
oops...thought I was signed in under my name...it came up under my hubby's (hence the post under Josh instead of Shannon).
The utter ugliness of collateral damage.
LEAKED: graphic, uncensored video shows carnage in Gaza
Justin_n_IL
Anonymous ,what you quote there is more like a conspiracy theory to me than actual verified data.
Thanks Shannon,
Regarding your 401K question asked some time back. Certainly wish I could give you a good answer, but I'm in the same boat - should I take a 10% penalty plus the significant tax hit? Would it be worth it over the longer run to cash in now and purchase more gold/silver? A very difficult question to answer...
Great article by economist Willem Buiter entitled "Can the US economy afford a Keynesian stimulus?" His conclusion - NO!
Here is the link: http://blogs.ft.com/maverecon/2009/01/can-the-us-economy-afford-a-keynesian-stimulus/
Hi! I'm an editor for Seeking Alpha. Please contact me at your earliest convenience at acarmel@seekingalpha.com. Abby
It's next to impossible to cash out your 401k. You need some kind of proof of financial hardship. Best thing to do is take out a 401k loan. You can borrow 50% of your vested balance. I bought some silver and gold with it.
I am not sure where I originally saw this link, but have been reading it over and over. It is brilliant.
http://www.asianews.it/index.php?l=en&art=13959&size=A
It is called economic crisis: US, China, and the coming monetary storm by Maurizio d'Orlando.
He writes about the the debt in both countries and how China's GDP may get them through. Also, he writes about the currency values, and outcomes, as well as China's responsibility in the crisis, yet he failed to say that the G-8 allowed China to become the world's workshop.
humor
More humor. It's a humorous music video poking at the FED. The F word is used a lot.
FU$% the FED
Another good video. No foul language.
Money BOMB
Kathy lien's 2009 currency predictions
http://www.gftforex.com/analysis/391/2009-Currency-Market-Outlook
A good read. Looks at the major currencies.
Great articles & videos folks - read/watched all of them tonight - with the exception of Jerry's latest, which I'll try to get to before calling it a night.
My Best
Randy
I think it was Justin who posted the two pieces written by David Einhorn and Michael Lewis for the NYTs called How to Repair a Broken Financial World-2 pieces. 1-2-09.
I have finally gotten to read them and am amazed that what was written in the op-ed pieces were exactly what Denninger of Market Ticker had been writing about all of last year!!! Every solution, every reform, every change that the Fed and Congress needed to act on, but didn't, was what he had been writing about and speaking about on his Youtube pieces.
We all have been exchanging info along the same lines, and some of us have been writing about it on our own blogs.
The mainstream press has just finally woken up about the failures of the Fed, Treasury, and Congress with respect to the purposeful crime committed regarding this bail out and the Madoff Ponzi Scheme.
Nobody is listening!!!! The crime of century has been permitted to go forward. When the NYTs Op-Ed editor finally wakes up and prints these two pieces, we can only hope that more eyes become enraged.
Thanks to the person that posted those two pieces!!!
http://www.nytimes.com/2009/01/04/opinion/04lewiseinhornb.html
http://www.nytimes.com/2009/01/04/opinion/04lewiseinhorn.html
Jerr Bear,
I think Randy posted the NYT oped piece. Very good points. Mind boggling how the lie keeps churnin forward.
I will take credit for the last one you posted though from Asian Times. wink
Justin, I thought you were the culprit!! Ha, Ha.
Here is another one folks: (It's 4 am on Tuesday, and I cannot stop the obsession!)
http://blogs.ft.com/maverecon/2009/01/can-the-us-economy-afford-a-keynesian-stimulus/#more-395
This author is a professor of European Political Economy. Heavy reading 10 pages without the charts!
His point is that a stimulus package will not do the trick over the long run if it is based on Keynesian economics. He goes through the economic points about short runs and long runs. He speaks about many points to make his argument. He points out what kind of vulnerable position be are now in and how Obama might not really have it figured out. He talks about the Asian nations and their reluctance to continue to be our bankers and why they have been willing in spite of lower return rates.
China launches yuan as reserve currency!
http://new.asianews.it/index.php?l=en&art=14131&geo=14&size=A
This is an interesting read about Genetically Modified seeds, The Rockefellers, Clintons, and other scum bag powers that be.
Monsanto buys ‘Terminator’
Seeds Company
Justin, the only character missing from that crime story was Tony Soprano. Dirty rotten business.
"I am sick of the propaganda spewing talking bobble head machine. Where are the truthtellers?"
Took the words right out of my mouth Jerry.
Speaking of words.... This is the best line out of the following video concerning Eisenhower and the Military Industrial Complex.
"He(Ike) was worried that priorities are set bye what benefits corporations as opposed to what benefits the country".
That line came from the lips of all people, John McCain.
How the military-industrial complex is destroying America
This might be old news to most here but I hadn't heard about it until today.
China produces goods tainted with lead and baby formula tainted with melamine and who knows what else. Great outcry here in the U.S.A(That's new news). Rightfully so..... However check out the following MSM video and tell me whose back your congress has.
Bayer Knowingly Sold HIV-Contaminated Vaccines, Say Internal Documents
Why am I not surprised about Bayer corporation! At this point in my awareness, I am not surprised with most things. From this to the Terminator seeds, nothing is surprising. The corporate and political elite believe they are above the laws, and are willing to proceed against the well-being of the nation's citizens and the world.
Biden has come out and said that no one, not even the president is above the law and that investigations will be done if wrong doing is uncovered. Let us hope so.
Another point regarding the Fed's con job. The American people have cut back their spending the more now than anytime over the past 17 years. They are trying do with less and save some, but the Fed, and the bankstas don't like this and that is why the Fed rate has been cut to zero. They are trying to everything to resume credit borrowing by milking working America by enticing them to go into further debt. More interest payments (even if it is at 2%), means more wealth for the uber-rich bankstas.
The stimulus package planned out is only several hundred dollars to $1000 for a family. So what! That is nothing. A house payment and heat bill for one month? Come on.
The way to stimulate the economy is simple. By taxing the very rich who gotten too much wealth off the backs of working America, through unlocking the social security lock box and borrowing from it in order to get their big tax cut, and through rent and interest payments made off of working Americans and small business borrowing, as well as by paying lower taxes on dividends than working people do on their wages, as well as big corporations that have made big profits and paid little to no taxes through their accounting practices and shelters.
By shifting the wealth toward higher wages to working Americans, during a recessionary period, these cash strapped workers get a break through having extra cash to spend on their daily needs, which stimulates the economy and keeps money in circulation. The stimulus package comes off of the top of the pyramid to stimulate those closer to the bottom. From there, it begins to move upwards.
This makes the most sense as a stimulus to the economy. But to cut Federal spending, and squeeze expendable income out of people already feeling the pinch through their stagnant wages, would likely be counter-productive. The government would create an even worse recession, by printing more fiat currency which would force prices upwards, and, at the same time, ballooning the budget deficit.
The rich are already getting a wealth-based government subsidy through the bail outs. Had the $1 T bail out money gone into people's wages, letting the big financial banks go into bankruptcy, guaranteeing the saving, while supporting the local and regional banks, as needed, and then, placing a bottom on the falling home price dilemma, much of the collapse might have been softened. But no. Enhance the wealth of the already wealthy and protect their risky investment losses.
I am no economist, but this makes sense to me.
Jerry,
I have to agree that I am not shocked either. But still? I'm am continually taken back by what has been and is going on behind the curtain. The frustrating part is that even when the curtain is lifted a bit most witnesses refuse to believe the truth. I'm sure I've used this quote before but here it is again(To the best of my recollection hehe).
"The average man is at a distinct disadvantage when faced with a conspiracy so monstrous he cannot believe that it exists"
J.E. Hoover(ugh)
Justin, you are so right! The facts are today--30% of all credit card debt, $1.6 trillion, is held by the lowest rated consumers; $8 T lost in home wealth; unemployment when factoring in all factors, has reached 12.5%; 14,000 jobs lost DAILY since September; home price devaluation has reached 20%; more than 10% of the work force works in retail; retail layoffs will likely reach 1 million; once the retail sector goes down, the ripple effect will move upward shutting down store rental fees, then mall rental fees, etc. effecting the bankstas holding the paper on the mall developments and then, more bailouts of the commercial real estate market. Once that happens, the crying insurance companies will want a bailout for the hit they are taking on abandoned and partially filled retail and commercial properties. Local municipalities will see these developers asking for property tax reductions, reducing the revenues to those local schools and municipal operations. State revenues will continue to move downward, further increasing unemployment and shrinking vital worker spending on essential life needs.
Why is China continuing to buy our Treasurys at 0% interest? They realize that the stimulus package will stimulate their economy because workers spending money will buy Wal-Mart China made stuff. But, if the consumer decides to save the stimulus or pay rent and utilities and reduce their purchases on Chinese stuff, then they will figure there is no reason to continue buying US Treasurys, or, for that matter, hold on to the ones they previously bought.
Who has Obama surrounded himself with? The very people involved in the Ponzi Scheme: Geithner, Rubin, Summers. They all supported no regulation of the derivatives. If the bailout and stimulus don't have a positive effect on the economy, then foreign investors will lose confidence and sell off stuff. And, watch more rich corporatists move their personal wealth off-shore.
One piece I read said that China holds 3400 tons of gold, and has increased it to 652.9 tons.
The US Congress has engaged in fantasy in order to pretend they still rule supreme.
"The US Congress has engaged in fantasy in order to pretend they still rule supreme."
Well stated Jerry. America's strength is an illusion. Russia and China are waiting to pounce. China has been using our money to build it's military up at breakneck speed. It's sobering that the past two administrations have let military technology slide into their hands. The Chinese have hacked into the Pentagon and shown that they can shoot down satellites. Are their intentions good? Only a naive person would think so.
Chinese hacked into Pentagon
Then of course we have Russia. It's ran by Putin(NOT the window dresser Medvedev) who was not only a career KGB man but the leader thereof. There was a Soviet defector by the name of Anatoly Golitsyn whose roughly 150 predictions about Russia's grand strategy have almost all came to pass.
The Abiding Communist Threat
in its Open and Hidden Manifestations
Russia and China have plans for America and they are not pretty. Nuclear weapons have given America a false sense of security. People need to understand that Russia and China are not afraid to sacrifice large portions of their populations in order to bring an end to America.
Chetlv is thinking the same way I am. I took out a loan against my 401k a couple years ago to put a roof on, and am paying myself back at 5%. Since I haven't dipped into equity, I still have some. Time to re-fi to the mid-4% range and cash out enough to pay off my 401k loan. Then I will take another loan (you may only have one at a time) to invest in inflation hedging, while the current payback rate to myself is 2%. Betting against tomorrow's dollars with today's.
China doesn't want our debt either
China Losing Taste for Debt From U.S.
Want a good laugh?
Porn industry seeks federal bailout ($5B)
Latest from Jim Willie
Ended Dollar Dead Bounce
Correction: China held 600 tons of gold until November when they went up to 3400 tons.
Seems to be a lot of crashes on automated systems to call in unemployment around the country. I myself am currently drawing unemployment. I have drawn unemployment at various times during my life. My first encounter with the automated call in was back in 2006. I have never gotten a busy signal until this past December. Now when I call in I have to repeatedly hit the flash and redial in order to get through. Haven't had to do that since my younger years calling in to get concert tickets. Won't be a problem much longer because my unemployment is about to run out....UGH
Donations anyone? hehe JK
Jerry, you have some very good comments here. I'd like to point out that I think the answer for a correct stimulus is to move away from the debt based monetary system and implement something similar to the Minnesota Transportation Act, which would allow states to print their own currency, debt free, to spend on infrastructure projects. I believe it is the answer to the monetary problems we all face. The current dollar system has collapsed, and in my opinion no matter what size stimulus Obama passes, or what kind of tax shifting the government imposes (taxing the rich) it will not be enough to get out of this never-ending bail-out hole.
if anyone is interested in the MTA and what kind of things I'm talking about, here is a bullet point list and the main website:
http://tinyurl.com/925wb5
http://moneyaswealth.blogspot.com
China tries settling trade with yuan instead of dollar
Latest Jim Willie:
Ended Dollar Dead Bounce
Next Dimensions----I believe President Lincoln issued Green Back currencies only to be used with the United States. Is that something like what you are talking about? I only know what I was once told, and that was in order to pay off the Civil War debt, Lincoln paid off the debt using these Green Backs. Can someone help me here?
Latest by Jim Willie -
Ended Dollar Dead Bounce Part 3
Raul,
Good one LOL..... You got me on that one even though I was already chuckling over the last Jim Willie link... I was sitting here scratching my head..."part 3?" what?
http://www.history.com/genericContent.do?id=61014
Josh and I watched this on The History Channel the other night. very informative! I looked for a link to watch it online, but all I found was show time schedules or TV or purchasing it on DVD. Anyway, check it out if you get a chance.
Andrew Mellon vs. Bailout Nation
Henry C K Liu - Monetarism enters bankruptcy
Martial Law, the Financial Bailout, and War
This is a good read about our projected deficits. There is a chart on here that is very sobering. Although I have no doubt there will be catastrophic changes and we'll never see the chart pan out due to the death of the dollar.
The biggest flood of red ink the world has ever known
Peter Schiff predictions
Here is a blogger writing about the Baltic Dry Index
http://vixandmore.blogspot.com/2008/12/watch-baltic-dry-index-in-2009.html
Change you can believe in? RFLMAO.... These people make me want to vomit.
http://vlogz.wordpress.com/2009/01/09/obama-picks-defense-lobbyist-as-deputy-defense-secretary/
To get the economy rolling again we need money to start flowing from the institutions and the housing market to cycle inventory so that there are manufacturing demands. The government has already appropriated the money for lending, but may need to force their leverage to get it flowing.
What I propose they start for a housing stimulus is a program that would pay 2% of the interest for new mortgages (example; 5 years of 2% payments for existing home purchases / 8 years of payment for new home purchases with a $200K maximum). These mortgages could be piggybacked with a secondary loan for those qualified and interested in the jumbo market. This program would only be available for a 3 - 6 month window of opportunity. This would entice people to BUY NOW, instead of sitting on their hands, waiting on prices to continually drop. A person could sell their house as the payment term ends with no prepayment penalty, so that they could retain their equity (building wealth for investment), or they would just continue at the original rate of the loan (building more equity). Incomes should increase during the time of the payment program, which would allow a homeowner the opportunity to meet their original obligations. A program for refi (2% for 3 years?) could also be effective in helping people with a straining mortgage stay in their residence, warding off foreclosure.
One of the pros for the government is that this program would allow for pay out over 5 - 8 years as opposed to dropping a $trillion dollars in a relative short period of time.
As an example, using simple mortgage calculations; A $200K loan for 30 years at 5.25% equals a monthly P&I of $1,104.41. A $200K loan for 30 years at 3.25% equals a monthly P&I of $870.41. A person would only pay 79% of what they would normally pay for this mortgage. The government would pay $2,808.00 per calendar year. If they helped SELL one million homes in this manner, it would only equate to $2.808 Billion of bail per year. This would equate to $200 billion in residential sales, untold return in tax base revenues, the reduction of housing inventories, new construction starts and a stimulation of the manufacturing sector with the new demand for appliances, HVAC units and other housing related concerns.
Stimulation without incentive is ineffective and should also be accompanied by time constraints. You do not see Black-Friday Christmas type sales all year long. There is a reason they happen and are of such a grand economic scale, as they are limited by an event, timeframe and deadline.
Please quit using our money to pander for votes by purchasing them with a $500.00 gratis or $1000.00 tax credit.
The root of the problem is the PONZI scheme that is the Federal Reserve!!! Plain and Simple
And what is the Fed Reserve Ponzi scheme all about? Oh yeah, "money". And the root of all.............. Let's not forget that most Americans are more concerned with Big Macs, shopping, new cars, new toys, etc. than TRUTH. Granted that now we are in hard times they "seem" to be concerned. Yet they still shun the truth.
I'll take reality over fantasy any day no matter how painful.
Randy,
My dad introduced me to your site - love it. Now let me share a site & book that may interest you...
www.survivalblog.com and Patriots-Survive the Coming Collapse by James Wesley Rawles. Best of luck to everyone!
Shawn Petree
www.sovfuture.com
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."–Ludwig von Mises
More scary charts on Financial Ninja
Really Scary Fed Charts: Fun With Reserves
3 ideas that should scare the hell out of you
As Peter Schiff has said, "we don't need more new housing." I agree with that component of his positions. We don't need more new home construction. There is a back log of existing new home unsold going back 11 or so months. The American people are already over extended on their credit, they don't need to borrow more so the Ponzi Schemers can become wealthier from the financial struggles of working Americans. Working Americans got in this situation by being enticed by low interest rates given by the financial schemers who kept wages down and stagnant forcing consumers to borrow on their credit cards and homes just to pay for things they could not afford as a result of the wage situation. The rich got richer and the workers got further into debt.
It is necessary to put a floor on the home mortgage deflation otherwise more homes will go into foreclosure as a result of current values being worth less than the mortgage payments and purchase price values.
The key component of improving this economy has nothing to do with borrowing money to buy homes and things, it has to do with working American wages, health care costs, and the trade deficit.
Slingshot man....this is neat
Carolina Camera: The Sling Shot Man
Looks like a bank holiday could be in the near future!
Citi inches toward deal but shares off on fear of Q4 loss.
http://biz.yahoo.com/rb/090112/business_us_citigroup.html?.v=5
Citi inches toward deal but shares off on fear of Q4 loss.
FEMA calls Founding Fathers THE 1st TERRORIST ORGANIZATION IN THE USA!
http://www.financialarmageddon.com/2009/01/more-than-just-average.html#comments
article about robert shiller's position that this is no average recession but could be worse.
Now how about FEMA being the nation's foremost terrorist organization in the USA.
Jerry, regarding those Greenbacks, I believe that Lincoln issued them with only the backing of the US government, and accepted them as payment for taxes, that is all. The moneyaswealth blogspot website explains the difference being that the money issued would be backed by actual wealth, ie infrastructure projects that demand actual production. So there is something that backs the creation of the debt free money in this case, whereas the Greenbacks were just printed up and accepted for taxes. Anyone else who can chime in on this issue would be great. I know that The Money Masters touched upon both the Greenback as well as successful fiat systems. Anyway, moneyaswealth.blogspot.com is highly recommended to spend some time on. Cheers all.
Why Wall Street could go to jail
Sounds like a pipe dream to me....... They will pick a couple to make an example out of. I highly doubt it goes beyond that. The powerful protect the powerful.
Our Strange World
Next Dimensions--thanks. The more I read the more I fear for the future. Geithner and Summers are nothing more that Ponzi Promoters. They negatively affected neo-con principles throughout the world back in the 90s on into present day. Geithner's testimony before Congress saying, even as the chairman of the New York Fed, he had no idea what could have caused this meltdown, as if he did not know it from the beginning of his laissez-faire, faked free market capitalism he sold to the Russians and the Asians. He pressed the Asians to open up their economies to US corporations in the 90s strictly to sell out working American jobs.
The Treasury has increased the issuance of public debt to the Fed in secret and without transparency. The Treasury has become the Fed's shadow bank. The Treasury's reserve has increased from around $10B to nearly $850B.
Slingshot Man was such a relief to watch--thanks Justin. The bad news keeps mounting, but that was such a fun thing to watch. Since I don't own a TV, I do spend too much time in front of this screen and need Slingshot Man once in a while.
Your welcome Jerry. Get a hold of me and I'll send you something via email that I'm not able to post up here.
jut74@yahoo.com
Really Scary Fed Charts: The Master Plan
Here's a surprise!!!
Banks in Need of Even More Bailout Money
This is the best article I have read fully outlining every sector and aspect of the economy that has and will be effected by what is to come. It is written by Gary Shilling on this link:
http://www.marketoracle.co.uk/Article7805.html
Scroll down a bit til you find it. I printed it and it was 10.5 pages. A Must Read!!!!!!
http://www.lasvegassun.com/news/2009/jan/09/negative-equity-casualties/
The new wave of foreclosures in Vegas. People that actually can pay!
Thanks for the posts guys - I've been busy w/work and was out of town yesterday, so haven't had much time to check in and post.
Looks like I'll be busy checking out all those links tonight...
Again thanks
Randy
I thought this one was excellent!
http://financialsense.com/editorials/petrov/2009/0112.html
I have an END the WARS online petition that I hope many will sign. Here it is and hope some will forward it.
To: the U.S. Senate, the U.S. Congress, and the Parliament of Canada
We, the people of the United States of America electorate and the people of the Canadian electorate, KNOW that our nations are spending too much on wars and foreign intervention. These endless conflicts and the billions spent on military intervention do not make the world safer for its people. Rather these military conflicts create increased suffering that leads to more wars. Furthermore the world is in an economic crisis and this continued military spending only increases the national debt for our nations which we the tax payers must pay.
We DEMAND an end to foreign intervention including financial aid that supports war, and an end to all wars. Bring our troops home.
SIGN HERE:
http://www.petitiononline.com/bd161213/petition.html
Just a thought guys. But I would like for those interested in getting together for a conversation via "skype". It's free. The only cost is buying a headset which run as low as $9. I just think it would be really nice to talk to the regulars on here. We can discuss what we discuss on here and even some light hearted trivial things as well. I just downloaded skype yesterday. Just go to their website and check it out and let me know what you all think.
Sincerely,
Justin
Randy,
I have been reading your blog for several weeks. You have brought forward a lot of very important ideas. I have a question. What do you think about participating in the Perth Mint certificate program? Instead of buying actual physical gold, Perth Mint will hold unallocated gold for you.
Thanks.
Sorry. I forgot to include the link.
http://www.perthmint.com.au/investment_certificate.aspx
Baron David de Rothschild sees a New World Order in global banking governance
http://tinyurl.com/6neeo2
*****Hyperinflation will begin in China and it will destroy the dollar*****
Interesting Article
SILVER AND THE MINIMUM WAGE
by David Morgan
“Elites can manufacture consent because the average American is like a deaf spectator in the back row at a sporting event: He does not know what is happening, why it is happening, what ought to happen.”
Walter Lippman
Fascinating find highlighted in Turk's latest article:
The Federal Reserve’s Blueprint
for Market Intervention
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