What is in store for the markets over the next few days/weeks before the election?
First, it is clear that nothing is stabilizing the markets since all the rallies have been used for more selling as hedge funds and private investors continue to withdraw their monies from these investment vehicles in unprecedented amounts requiring selling without regards for fundamentals. These redemptions are what is keeping a cap on the rallies of late.
Second, as it becomes more and more clear that a BHO/SMDC is going to be elected on Nov. 4th, the markets are going to realize 2 things:
1. Taxes of all forms are going to go up on all taxable entities
2. Regulation of all forms is going to be increased on all financial entities
This will cause the markets to take pre-emptive action of selling more stocks while the cap gains rate is still low and the regulations are not as restrictive or invasive.
Third, the Federal Open Market Committee (FOMC) is going to cut the Discount Rate and Fed Funds Rate by 25 bp on their Oct. 29th meeting next week. This will produce a small pop in the markets, but will fizzle on Thursday/Friday before the election.
Fourth, depending on the size of the BHO/SMDC mandate on Nov. 4th, the market will sell-off accordingly; however, due to the fact that the election uncertainty is over, the market may pop on the Nov 5th and then sell-off the 6th and 7th. Watch the futures on the evening of Nov. 4th.
Fifth, if a BHO and SMDC is indeed elected in a landslide expect the markets to begin rebalancing from Nov. 4th to Jan. 20th, 2009 when the SMDC come back to work and begin their new work in earnest. With a SMDC, the counter-balance of an opposition party will be eliminated, and the liberals will be in total control of the government with the ability to enact any type or level of invasive legislation they so desire. It will be 2 years before the American voters will get a chance to undo what they stupidly and impulsively will do on Nov. 4th.
Wow! that's a lot to understand, but keep reading and learning.
Wednesday, October 22, 2008
What American will get on Jan 20, 2009.
The American electorate is so mad about the financial crisis and how Washington has handled it that they are going to put the Democrats in power in all three branches as a way to try and overcome the pain. However, the only thing that is going to happen is that the BHO White House and SMDC are going to put the economy into a "depression" style tailspin.
Here is why... (its simple economics)
1. The players in Congress are going to balloon the deficit to over a $1 Trillion dollars and blame it on the current administration. The Republicans are going to be the scapegoats for the first BHO term.
2. The SMDC is going to then start the "patriotic" tax increases to "spread the wealth" around so that everyone gets a shot at the American dream.
These tax increases will come in the form of the following format:
A. Remove the income limit cap on FICA (social security taxes) wages effectively putting an additional 6.2% tax hike on small businesses.
B. Increase the capital gains tax rate thereby reducing investment & increasing volatility
C. Increase the corporate tax rate driving capital overseas along with job creation
D. Increase upper tax bracket to 40% reducing incentive to increase production
E. Impose a windfall profits tax on energy producing companies thereby reducing energy alternatives and current production.
3. The BHO/SMDC is going to increase regulation on the financial systems just as FDR did in 1932 driving capital overseas even faster than it did in 1932 since today we have electronic data networks that can move monies around with the speed of light.
4. The BHO/SMDC complex is going to yank the troops out of Iraq in 2009 creating a vacuum into which Al Qaeda and Iran will enter thereby destabilizing the region requiring a bigger, more direct intervention (the dems way of dealing with a depression). This pull-out is going to put large numbers of military back into the job market without opportunities thereby ballooning the unemployment rate to over 10% by BHO 2nd year in office.
5. BHO is going to sponsor huge government employment programs, ala FDR's New Deal, to deal with the rising unemployment to complete the necessary steps.
These steps will push the economy over the edge and no amount of stimulus will bring it back since it is fear and lack of confidence that keeps an economy in recession, and there you have the BHO/SMDC economic plan.
Here is why... (its simple economics)
1. The players in Congress are going to balloon the deficit to over a $1 Trillion dollars and blame it on the current administration. The Republicans are going to be the scapegoats for the first BHO term.
2. The SMDC is going to then start the "patriotic" tax increases to "spread the wealth" around so that everyone gets a shot at the American dream.
These tax increases will come in the form of the following format:
A. Remove the income limit cap on FICA (social security taxes) wages effectively putting an additional 6.2% tax hike on small businesses.
B. Increase the capital gains tax rate thereby reducing investment & increasing volatility
C. Increase the corporate tax rate driving capital overseas along with job creation
D. Increase upper tax bracket to 40% reducing incentive to increase production
E. Impose a windfall profits tax on energy producing companies thereby reducing energy alternatives and current production.
3. The BHO/SMDC is going to increase regulation on the financial systems just as FDR did in 1932 driving capital overseas even faster than it did in 1932 since today we have electronic data networks that can move monies around with the speed of light.
4. The BHO/SMDC complex is going to yank the troops out of Iraq in 2009 creating a vacuum into which Al Qaeda and Iran will enter thereby destabilizing the region requiring a bigger, more direct intervention (the dems way of dealing with a depression). This pull-out is going to put large numbers of military back into the job market without opportunities thereby ballooning the unemployment rate to over 10% by BHO 2nd year in office.
5. BHO is going to sponsor huge government employment programs, ala FDR's New Deal, to deal with the rising unemployment to complete the necessary steps.
These steps will push the economy over the edge and no amount of stimulus will bring it back since it is fear and lack of confidence that keeps an economy in recession, and there you have the BHO/SMDC economic plan.
Tuesday, October 21, 2008
BHO going to be tested as was JFK
One thing Joe Biden understands is that just like JFK's test by Nikita S. Khrushchev's Cuban missile contest to see if the new, very young and untested President would stand up to the pressure. Had Nixon been elected instead of JFK it is likely that the Cuban missile crisis would not have happened since Khrushchev already knew how Nixon would have reacted.
Remember, JFK came away from the Cuban missile crisis a much weaker President.
Biden is probably correct when BHO takes office in Jan 2009 that someone will see if the new man has the "cajones" to take on the world's bad guys especially since he wants to sit down and talk "nicey nicey" with these guys.
Hard to see why we would want to see if someone is going to yank our chain just to see if BHO will stand up to the bully, but since BHO has never stated what he would say to these guys once he sits down with them, it's not hard to see why they want to see if they can push him around.
One question that BHO has never answered, and everyone has let him off the hook on is simply this:
"What you say to Iran's President, Mahmoud Ahmadinejad (mah mood Ah ma din a jod) who has said that he wants to wipe Israel off the face of the earth?"
BHO has never answered that question, and because he can't, and so the test will come.
Remember, JFK came away from the Cuban missile crisis a much weaker President.
Biden is probably correct when BHO takes office in Jan 2009 that someone will see if the new man has the "cajones" to take on the world's bad guys especially since he wants to sit down and talk "nicey nicey" with these guys.
Hard to see why we would want to see if someone is going to yank our chain just to see if BHO will stand up to the bully, but since BHO has never stated what he would say to these guys once he sits down with them, it's not hard to see why they want to see if they can push him around.
One question that BHO has never answered, and everyone has let him off the hook on is simply this:
"What you say to Iran's President, Mahmoud Ahmadinejad (mah mood Ah ma din a jod) who has said that he wants to wipe Israel off the face of the earth?"
BHO has never answered that question, and because he can't, and so the test will come.
BHO proposing the New New Deal
BHO is now proposing a work force of 2 million Americans to fix the infrastructure of this country because "if we can spend $10 Billion a month in Iraq, we can spend some of that money here in the US.."
This is exactly what FDR proposed in his 1933 "New Deal" where he put the out-of-work American workers into gangs that worked on public works projects. Now it appears that BHO is walking right down the road that was plowed by FDR.
What many people don't remember, of course not since it's history and we don't teach history in schools today, is that in the late 1920's the US went through a big housing bubble just like we went through over the past 3-5 years.
Google the Florida housing bubble in 1925 for details.
Now we have some protections in place to help prevent a protracted Depression, but if you think that housing which caused this problem (actually it was the government intervention in the lending standards, but we have discussed that already) is not going to be solution, you don't understand economics. Housing will have correct itself before this financial crisis is over, and it will just take time.
BHO wants to help with government employment, additional hand-outs, and welfare tendencies. This is exactly what FDR did to elongate the 1929 stock market crash into the Great Depression.
This is exactly what FDR proposed in his 1933 "New Deal" where he put the out-of-work American workers into gangs that worked on public works projects. Now it appears that BHO is walking right down the road that was plowed by FDR.
What many people don't remember, of course not since it's history and we don't teach history in schools today, is that in the late 1920's the US went through a big housing bubble just like we went through over the past 3-5 years.
Google the Florida housing bubble in 1925 for details.
Now we have some protections in place to help prevent a protracted Depression, but if you think that housing which caused this problem (actually it was the government intervention in the lending standards, but we have discussed that already) is not going to be solution, you don't understand economics. Housing will have correct itself before this financial crisis is over, and it will just take time.
BHO wants to help with government employment, additional hand-outs, and welfare tendencies. This is exactly what FDR did to elongate the 1929 stock market crash into the Great Depression.
Another Bail-out LOUC to understand
If the previous post of how your hard-earned money is going to pay Wall Street bonuses to the tune of $70 Billion USD didn't get you mad, how about the monies that the ESA 2008 is paying out to the banks supposedly to fix the credit problem is now going to used without "guard rails."
What this means is that the Treasury decided NOT to tell the recipients of the ESA monies how to spend the money! WHAT!!!!!! That's right, Hank Paulson, current Treasury Secretary and formed Wall Street banker (hard to understand his thinking, eh) says that he would be too tough to restrict how the monies should be used.
So the financial institutions that are getting the bail-out funds are now heard of using the monies to buy out their competition that didn't get the bail-out funds.
Whoa! That means that the institutions being favored can now put the "whup up" on those that did not get this favored treatment. Forget about easing the credit crunch, let's buy out the competition with taxpayers monies.
Now that's a good idea don't you think? The Government is now an active player in the financial systems by helping to support or kill particular players. So much for free-enterprise, eh, here's come socialism.
What this means is that the Treasury decided NOT to tell the recipients of the ESA monies how to spend the money! WHAT!!!!!! That's right, Hank Paulson, current Treasury Secretary and formed Wall Street banker (hard to understand his thinking, eh) says that he would be too tough to restrict how the monies should be used.
So the financial institutions that are getting the bail-out funds are now heard of using the monies to buy out their competition that didn't get the bail-out funds.
Whoa! That means that the institutions being favored can now put the "whup up" on those that did not get this favored treatment. Forget about easing the credit crunch, let's buy out the competition with taxpayers monies.
Now that's a good idea don't you think? The Government is now an active player in the financial systems by helping to support or kill particular players. So much for free-enterprise, eh, here's come socialism.
Wall Street paying out over $70 Billion in bonuses!
It's now just come to light that from the $700 Billion USD of the ESA 2008, some $70 Billion USD, a full 10%, is going to go to pay Wall Street bonuses!!!!!!
YESSSSSSSSSSSSSSSSS, you heard it here. They have tried to hide this unbelievable action from coming to light, but before the bail-out the Wall Street players were going to have to forego their annual bonuses, but since YOU the US taxpayer has given them over $700 Billion USD, they are now flush with cash and can now pay out these bonuses.
This is the LOUC in prime form. You, the US taxpayer, deserve this since you allowed your Representatives to vote for the ESA 2008 the 2nd time. Hope you like that your hard earned monies taken from you in taxes and paid out to Wall Street types for their bonuses.
Don't make you mad? Oh well, I am glad you like working for the government until June-July now.
Suckers!
YESSSSSSSSSSSSSSSSS, you heard it here. They have tried to hide this unbelievable action from coming to light, but before the bail-out the Wall Street players were going to have to forego their annual bonuses, but since YOU the US taxpayer has given them over $700 Billion USD, they are now flush with cash and can now pay out these bonuses.
This is the LOUC in prime form. You, the US taxpayer, deserve this since you allowed your Representatives to vote for the ESA 2008 the 2nd time. Hope you like that your hard earned monies taken from you in taxes and paid out to Wall Street types for their bonuses.
Don't make you mad? Oh well, I am glad you like working for the government until June-July now.
Suckers!
BHO political pay-offs explain endorsements
It's fairly simple to conjecture as to why the Clintons are agreeing to campaign for BHO when of all political operatives, the Clintons are the most sophisticated and cagey. What is going on behind the scenes with these two as to why they are so "on board" with the man that stole the nomination from Hillary?
Let's see if we can guess. First, the Clintons are nothing but politicians first and foremost. What does this tell us about their motives? Remember, politicians do what is in their own self-interest, so what is in the best interests of the Clintons if BHO obtains the White House?
1. The current UN Secretary-General, Ban ki-Moon, has talked about not seeking another term which opens the way for the appointment by huge global approval of none other than, yes, Bill Clinton! It has been so secret that he wants to aspire to this position and needs a Democratic, well-like US President to support his appointment in 2010 to begin serving in Jan 2011. Until that time, I think that Bill will be offered the now vacant US Ambassadorship to the UN to prepare him for the 2010 appointment. Ahhhhh, you say, now it makes sense.
2. Hillary Clinton has been offered either the AG (Attorneys-General) or Secretary of State cabinet position in a BHO White House. This would set her up to take the VP when Biden refuses to run again in 2012 so she can be the assumed nominee in 2016. Ahhhhh, you say, now it makes sense. Also, don't worry about HC moving from the Senate to the Cabinet since the current Democratic Governor of NY will appoint a Democratic replacement until an election can be mounted. This would preserve the SMDC.
3. Colin Powell has been offered the Secretary of Defense position so that he can be the spearhead to withdraw the troops from Iraq just before he has to put them back in when Iran overruns Iraq.
4. Kerry and Edwards will also be given prominent positions in the BHO White House.
So now you can understand why certain people say and do certain things. It's pure politics.
Let's see if we can guess. First, the Clintons are nothing but politicians first and foremost. What does this tell us about their motives? Remember, politicians do what is in their own self-interest, so what is in the best interests of the Clintons if BHO obtains the White House?
1. The current UN Secretary-General, Ban ki-Moon, has talked about not seeking another term which opens the way for the appointment by huge global approval of none other than, yes, Bill Clinton! It has been so secret that he wants to aspire to this position and needs a Democratic, well-like US President to support his appointment in 2010 to begin serving in Jan 2011. Until that time, I think that Bill will be offered the now vacant US Ambassadorship to the UN to prepare him for the 2010 appointment. Ahhhhh, you say, now it makes sense.
2. Hillary Clinton has been offered either the AG (Attorneys-General) or Secretary of State cabinet position in a BHO White House. This would set her up to take the VP when Biden refuses to run again in 2012 so she can be the assumed nominee in 2016. Ahhhhh, you say, now it makes sense. Also, don't worry about HC moving from the Senate to the Cabinet since the current Democratic Governor of NY will appoint a Democratic replacement until an election can be mounted. This would preserve the SMDC.
3. Colin Powell has been offered the Secretary of Defense position so that he can be the spearhead to withdraw the troops from Iraq just before he has to put them back in when Iran overruns Iraq.
4. Kerry and Edwards will also be given prominent positions in the BHO White House.
So now you can understand why certain people say and do certain things. It's pure politics.
Powell's Endorsement was a political calculation
Upon hearing Secretary Powell's endorsement of BHO I didn't react much since I didn't care much for Powell as either the Chairman of the Joint Chiefs or the Secretary of State. As a veteran myself, I do honor his service to the country, but I don't like his ideas or way in which he handled the Iraqi war intelligence.
That being said, I think that Sec. Powell is endorsing BHO this late in the election cycle to be purely political and to ensure that he chose the winning side since he was straddling both campaigns. I have a real problem with that style of politics. Make up your mind and put your foot in and go hog wild with your choice.
Here's my guess about why he did it. It makes sense that he wanted to wait for the winning party to rise since he wants another cabinet level job, and if he went with the wrong side, he would be outside looking in.
My bigger guess as to why he chose the Democratic side even though he was given his position and stature in the political world by Republicans (another vetting problem for the Bush 43 guys) is that when he was thinking of running for President in 2000, but was snubbed by some conservatives. The manner in which the conservatives nailed him by threatening his wife's medical condition never really left his mind, and he has been bidding his time waiting for a chance to get his revenge.
What better way then to endorse the most liberal, socialistic candidate for President. A candidate that said the Surge was wrong (and he was wrong) and is willing to talk with dictators without pre-conditions just to make the USA more palatable to European-stye socialists. What an endorsement?
A retired general, ex-Sec of State endorsing a man that has no experience in either the military or diplomacy. The endorsement smacks of extreme politics.
That being said, I think that Sec. Powell is endorsing BHO this late in the election cycle to be purely political and to ensure that he chose the winning side since he was straddling both campaigns. I have a real problem with that style of politics. Make up your mind and put your foot in and go hog wild with your choice.
Here's my guess about why he did it. It makes sense that he wanted to wait for the winning party to rise since he wants another cabinet level job, and if he went with the wrong side, he would be outside looking in.
My bigger guess as to why he chose the Democratic side even though he was given his position and stature in the political world by Republicans (another vetting problem for the Bush 43 guys) is that when he was thinking of running for President in 2000, but was snubbed by some conservatives. The manner in which the conservatives nailed him by threatening his wife's medical condition never really left his mind, and he has been bidding his time waiting for a chance to get his revenge.
What better way then to endorse the most liberal, socialistic candidate for President. A candidate that said the Surge was wrong (and he was wrong) and is willing to talk with dictators without pre-conditions just to make the USA more palatable to European-stye socialists. What an endorsement?
A retired general, ex-Sec of State endorsing a man that has no experience in either the military or diplomacy. The endorsement smacks of extreme politics.
Democrats begin showing their hand, or history repeats itself!
It amazes me that Democrats are so confident that they are going to gain the White House and a super-majority Democratic Congress (SMDC) that they are already talking about huge tax hikes on the very rich ($100,000 or more), and forget deficit spending.
WOW! they are not even waiting for the election to be completed, they are coming out with these statements before the voting even begins! Unbelievable.
Congressman Barney Frank (D,MA) has come out and stated "frankly" that he believes that we should forget about deficit fear, and that there are a lot of "very rich people" that we can tax to recover some of this money. They can't even wait until the election puts them in power. They are already showing their hands.
I told you this was going to happen, and if/when the BHO and SMDC are elected in Nov, these spending increases are going to explode and taxes are going to go up in sync.
What will this do to the weak economy already on the ropes? It will do the same thing that FDR did in 1932 when he took over from Herbert Hoover in a stunning turn of events that almost parallel the 2004 to 2008 elections. In 1928, Herbert Hoover won over 444 electoral votes as the "good times rolled" with all but 8 states going Red. Four years later after the financial crisis of 1929-1930, FDR won over 472 electoral votes with all but 6 states going blue. The beginning of the Great Depression was 1933, not 1929 that most people believe it was the stock market crash that caused the GD. Sorry, the stock market has already come back over 60% by the end of 1930; it was the policies of FDR that started and elongated the Great Depression (do your homework).
History is likely to repeat itself in 2008 with BHO winning a huge electoral vote margin and bringing with him a SMDC that will enact this large spending and tax increases. This will do the same thing that FDR did in 1932.
Stand by for a repeating history slide into a much deeper depression as Rep. Frank and Speaker Pelosi get their hands on your pocketbooks.
WOW! they are not even waiting for the election to be completed, they are coming out with these statements before the voting even begins! Unbelievable.
Congressman Barney Frank (D,MA) has come out and stated "frankly" that he believes that we should forget about deficit fear, and that there are a lot of "very rich people" that we can tax to recover some of this money. They can't even wait until the election puts them in power. They are already showing their hands.
I told you this was going to happen, and if/when the BHO and SMDC are elected in Nov, these spending increases are going to explode and taxes are going to go up in sync.
What will this do to the weak economy already on the ropes? It will do the same thing that FDR did in 1932 when he took over from Herbert Hoover in a stunning turn of events that almost parallel the 2004 to 2008 elections. In 1928, Herbert Hoover won over 444 electoral votes as the "good times rolled" with all but 8 states going Red. Four years later after the financial crisis of 1929-1930, FDR won over 472 electoral votes with all but 6 states going blue. The beginning of the Great Depression was 1933, not 1929 that most people believe it was the stock market crash that caused the GD. Sorry, the stock market has already come back over 60% by the end of 1930; it was the policies of FDR that started and elongated the Great Depression (do your homework).
History is likely to repeat itself in 2008 with BHO winning a huge electoral vote margin and bringing with him a SMDC that will enact this large spending and tax increases. This will do the same thing that FDR did in 1932.
Stand by for a repeating history slide into a much deeper depression as Rep. Frank and Speaker Pelosi get their hands on your pocketbooks.
Analogy for different forms of government
Many people have asked me how is socialism different from capitalism from communism and fascism? Being an ex-professor and teacher, I will use a classroom analogy to help us understand the differences since it will be a major issue on who is elected on Nov. 4, 2008 in the USA.
First, the setting:
a classroom of students and teaching staff
In a capitalistic classroom, the teacher determines what will be studied each day and provides the necessary learning environment for these concepts. The students are not forced to learn, not forced to do their homework, and when tests and grades are given and handed out, each student reaps the consequences of their own work. Students getting good grades have more opportunities and those that did not study or work hard receive poorer grades and their opportunities are more limited. Those that wish additional help to improve their performances are given this additional assistance due to the kindness and charity of the teaching staff. Those that want to goof off are allowed to do so and thus receive their just rewards. In short, you have right to succeed and the opportunity to fail based on your effort.
In a socialistic classroom, the students get together into a collective and tell the teaching staff what they will study. Everyone is encouraged to study and attend class, but when tests and grades are given and received, those that get good grades have to share their good grades (wealth) with those that did not get good grades so everyone feels good about themselves. This causes the hard working students to quit their efforts because it does not generate the benefits they thought. In the end, everyone gets a C and the state via the school determines the students opportunities by allowing some students to go on to further education.
In a communistic classroom, the students are told what to learn, that they must learn, and that they must show up for class every day or they will be sent to work in the factories without education. Students that show promise are removed from the normal classroom and sent to the "Children of Revolution" schools where their particular sensitivities are developed and exploited for the good of the state. Most students get the medium-level of education and then are sent out to work in jobs not of their choosing but for the betterment of society as determined by central planning. Students in the communists classroom drudge through each day with life being dull, boring and spent standing in lines.
In a fascist classroom, only the students that have certain state-determined characteristics are given education (right gender, right eye color, right heritage, you name it) and the rest are sent to work in menial jobs that must be done for the "enlightened few" to produce the real output of society. The state control everything and the state is everything. The elite control the state so they determine how education is handed out. Grades in a fascist classroom are meaningless since you are assumed to a good student if you possess the favored characteristics. Favored students are enthused through parades, speeches and fanfare.
Hopefully this will help you understand the difference between these forms of government.
First, the setting:
a classroom of students and teaching staff
In a capitalistic classroom, the teacher determines what will be studied each day and provides the necessary learning environment for these concepts. The students are not forced to learn, not forced to do their homework, and when tests and grades are given and handed out, each student reaps the consequences of their own work. Students getting good grades have more opportunities and those that did not study or work hard receive poorer grades and their opportunities are more limited. Those that wish additional help to improve their performances are given this additional assistance due to the kindness and charity of the teaching staff. Those that want to goof off are allowed to do so and thus receive their just rewards. In short, you have right to succeed and the opportunity to fail based on your effort.
In a socialistic classroom, the students get together into a collective and tell the teaching staff what they will study. Everyone is encouraged to study and attend class, but when tests and grades are given and received, those that get good grades have to share their good grades (wealth) with those that did not get good grades so everyone feels good about themselves. This causes the hard working students to quit their efforts because it does not generate the benefits they thought. In the end, everyone gets a C and the state via the school determines the students opportunities by allowing some students to go on to further education.
In a communistic classroom, the students are told what to learn, that they must learn, and that they must show up for class every day or they will be sent to work in the factories without education. Students that show promise are removed from the normal classroom and sent to the "Children of Revolution" schools where their particular sensitivities are developed and exploited for the good of the state. Most students get the medium-level of education and then are sent out to work in jobs not of their choosing but for the betterment of society as determined by central planning. Students in the communists classroom drudge through each day with life being dull, boring and spent standing in lines.
In a fascist classroom, only the students that have certain state-determined characteristics are given education (right gender, right eye color, right heritage, you name it) and the rest are sent to work in menial jobs that must be done for the "enlightened few" to produce the real output of society. The state control everything and the state is everything. The elite control the state so they determine how education is handed out. Grades in a fascist classroom are meaningless since you are assumed to a good student if you possess the favored characteristics. Favored students are enthused through parades, speeches and fanfare.
Hopefully this will help you understand the difference between these forms of government.
Security vs Freedom comes in many flavors
When Ben Franklin penned one of his immortal quips about the trade-off of freedom and security (See Wikiquote for the full story) he had physical freedom and security in mind; however, in this coming election, the citizens of the USA are going to make a choice that may impact their freedom of speech: one for dearest rights secured to us by the Founding Fathers as part of our inalienable rights from the Creator.
In November, once the BHO and SMDC are elected, this warning from Dr. Franklin will be tested as one of the first issues to be taken up will be the "Fairness Doctrine" (See Wikipedia on history of the FD). Both Pelosi, and Senator Reid have said that they will revisit the Fairness Doctrine after the 2008 elections. I am sure they are both hoping for the BHO administration and SMDC installation.
After Jan. 20, 2009, with all parts of the government in tight control of the Democrats, the FCC's new Chairman, a political appointment, will quickly move to reinstate the components of the FD without Congressional action, and when the impotent Republicans raise a ruckus, the SMDC will move to codify the FD into Federal Law.
The legal challenges will begin immediately, but the cases will be hear at the lower levels by very liberal District Judges and then appealed to liberal Appeals Court justices. The only saving force may be a SCOTUS (Supreme Court of the United States) hearing with a 5-4 decision; however, that is very tenuous at best.
This is how freedoms are eroded, like hone: slow and sweet; however, in the end, the string of the caretakers will be felt. We are moving towards the nanny state. How can anyone be against that?
In November, once the BHO and SMDC are elected, this warning from Dr. Franklin will be tested as one of the first issues to be taken up will be the "Fairness Doctrine" (See Wikipedia on history of the FD). Both Pelosi, and Senator Reid have said that they will revisit the Fairness Doctrine after the 2008 elections. I am sure they are both hoping for the BHO administration and SMDC installation.
After Jan. 20, 2009, with all parts of the government in tight control of the Democrats, the FCC's new Chairman, a political appointment, will quickly move to reinstate the components of the FD without Congressional action, and when the impotent Republicans raise a ruckus, the SMDC will move to codify the FD into Federal Law.
The legal challenges will begin immediately, but the cases will be hear at the lower levels by very liberal District Judges and then appealed to liberal Appeals Court justices. The only saving force may be a SCOTUS (Supreme Court of the United States) hearing with a 5-4 decision; however, that is very tenuous at best.
This is how freedoms are eroded, like hone: slow and sweet; however, in the end, the string of the caretakers will be felt. We are moving towards the nanny state. How can anyone be against that?
The Games Begin
Before the Democrats have even won the Nov 2008 election they (Pelosi and Reid) are already talking about reviving the "Fairness Doctrine." On NBC and CNN, the pair were discussing how the airwaves have become increasingly "virulent" code words for "they are saying things against us..."
If you go back to my post, "The USSA Begins Today," and see item #7, you will see that one of the issues that will be taken up by the BHO administration and SMDC (super-majority Democratic Congress) is the reviving of the "Fairness Doctrine." They will ensure that it is put into place to balance the "hate rhetoric" coming from talk radio, Fox, and certain conservative newspapers. It will demand that a government bureaucrat will listen, read, and watch these entities and then tell them how much "balancing content" they have to put on based on his/her determination of the unbalanced conservative content.
This will be too much for most media entities and they will simply choose to change their format to music since they can't make money with liberal content (witness the demise of Air America) and since they will be besieged by liberal community organizations saying that they are not "fair and balanced" (interesting use of FNC's byline) and that their license should not be renewed.
Now what will be the LOUC (law of unintended consequences) of this action? Since the Internet and cable are outside the "Fairness Doctrine" control as it stands since they are effectively private (that may change soon enough), the public airwaves will be abandoned to the liberals and conservatives and anti-governmental content providers will move to these less impacted media modes. The revenues of the liberal media outlets will drop and they will go the way of Air America.
Remember, the sword cuts both ways. However, the big 3 will probably become the big 2 as NBC fails first and is merged into CBS (the strongest). Every action has an equal and opposite reaction. The talk radio will move to Talk Internet due to large amount of bandwidth being made available.
The alternative for the liberals will be to alter the Fairness Doctrine to include all public discourse: the first step towards "socialization of free speech" for the good of society. It is always done in the public good, but lost of freedoms come so wrapped in pretty security packages.
Remember Ben Franklin's warning:
"Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety."
So true as the citizens of this country contemplate a radical turn to the left. I am not against this since it is democracy in action, but I just want those that vote for it to be willing to take the responsibility for their actions.
If you go back to my post, "The USSA Begins Today," and see item #7, you will see that one of the issues that will be taken up by the BHO administration and SMDC (super-majority Democratic Congress) is the reviving of the "Fairness Doctrine." They will ensure that it is put into place to balance the "hate rhetoric" coming from talk radio, Fox, and certain conservative newspapers. It will demand that a government bureaucrat will listen, read, and watch these entities and then tell them how much "balancing content" they have to put on based on his/her determination of the unbalanced conservative content.
This will be too much for most media entities and they will simply choose to change their format to music since they can't make money with liberal content (witness the demise of Air America) and since they will be besieged by liberal community organizations saying that they are not "fair and balanced" (interesting use of FNC's byline) and that their license should not be renewed.
Now what will be the LOUC (law of unintended consequences) of this action? Since the Internet and cable are outside the "Fairness Doctrine" control as it stands since they are effectively private (that may change soon enough), the public airwaves will be abandoned to the liberals and conservatives and anti-governmental content providers will move to these less impacted media modes. The revenues of the liberal media outlets will drop and they will go the way of Air America.
Remember, the sword cuts both ways. However, the big 3 will probably become the big 2 as NBC fails first and is merged into CBS (the strongest). Every action has an equal and opposite reaction. The talk radio will move to Talk Internet due to large amount of bandwidth being made available.
The alternative for the liberals will be to alter the Fairness Doctrine to include all public discourse: the first step towards "socialization of free speech" for the good of society. It is always done in the public good, but lost of freedoms come so wrapped in pretty security packages.
Remember Ben Franklin's warning:
"Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety."
So true as the citizens of this country contemplate a radical turn to the left. I am not against this since it is democracy in action, but I just want those that vote for it to be willing to take the responsibility for their actions.
Monday, October 20, 2008
Campaign Financing LOUC, McCain
The LOUC of all laws passed by the US Government is going to help decide this election in the form of the Campaign Finance Reform legislation of McCain-Feingold (Bipartisan Campaign Reform Act 2002) which has done nothing to reform campaigns.
The BCRA 2002 redefined and has allowed huge amounts of money (called soft money) to flow into PACs, and what are called 527 organizations due to the IRA code that regulates them as tax-exempt political organizations. Also, by accepting government money and getting BHO to agree before he disagreed after getting McCain to accept (again showing how McCain shot himself in the foot with the BCRA.
The LOUC in action, McCain. Now you have only 37 million to spend until Nov 4th while BHO has raised over $150 million in a single month showing you the trend on just how large BHO is going to win on Nov. 4th. If the amount of money that BHO is raising doesn't prove you how big he is going to win on Nov. 4th, then just listen to the endorsements he now picking up.
Colin Powell, waiting until the last 15 days before announcing his endorsement, and then using some very lame excuse about "how negative the Republican attack ads are..." to make up his mind. It then comes out that he has been advising the BHO team for months, and BHO has publicly offered him a place in his administration.
Powell's endorsement was purely racial since how many other inexperienced, liberal politicians has he endorsed? Powell like other so-called Republicans will hand BHO this election and rightly so. Don't get me wrong, I am not against what Powell has done, but be man-enough to give us the real reason, not the PC-reason.
So in short, McCain gets hamstrung by his own legislation that BHO said he would support and then went back on his word. That should tell what he thinks about his word being his bond. He will do the same thing on:
Taxing < $250,000
Raising taxes on small business
Raising the capital gains tax
Raising the upper tax brackets to drive capital out of the country
Spreading the wealth is not socialistic, its just being patriotic.
BHO will do the exact same things that caused FDR to extend the 1929 Market Crash past 1932 into the Great Depression. Democrats just don't understand economics.
* If you tax something you prohibit its growth. Pure and simple. It is economics 101.
Long live the LOUC!
The BCRA 2002 redefined and has allowed huge amounts of money (called soft money) to flow into PACs, and what are called 527 organizations due to the IRA code that regulates them as tax-exempt political organizations. Also, by accepting government money and getting BHO to agree before he disagreed after getting McCain to accept (again showing how McCain shot himself in the foot with the BCRA.
The LOUC in action, McCain. Now you have only 37 million to spend until Nov 4th while BHO has raised over $150 million in a single month showing you the trend on just how large BHO is going to win on Nov. 4th. If the amount of money that BHO is raising doesn't prove you how big he is going to win on Nov. 4th, then just listen to the endorsements he now picking up.
Colin Powell, waiting until the last 15 days before announcing his endorsement, and then using some very lame excuse about "how negative the Republican attack ads are..." to make up his mind. It then comes out that he has been advising the BHO team for months, and BHO has publicly offered him a place in his administration.
Powell's endorsement was purely racial since how many other inexperienced, liberal politicians has he endorsed? Powell like other so-called Republicans will hand BHO this election and rightly so. Don't get me wrong, I am not against what Powell has done, but be man-enough to give us the real reason, not the PC-reason.
So in short, McCain gets hamstrung by his own legislation that BHO said he would support and then went back on his word. That should tell what he thinks about his word being his bond. He will do the same thing on:
Taxing < $250,000
Raising taxes on small business
Raising the capital gains tax
Raising the upper tax brackets to drive capital out of the country
Spreading the wealth is not socialistic, its just being patriotic.
BHO will do the exact same things that caused FDR to extend the 1929 Market Crash past 1932 into the Great Depression. Democrats just don't understand economics.
* If you tax something you prohibit its growth. Pure and simple. It is economics 101.
Long live the LOUC!
Election of BHO will NOT prove USA is tolerant!
Many whites (look at the polls and discussion groups: Google Rasmussen and Yahoo) say that by electing BHO as the first mulatto President, it will prove that USA has atoned for its racist past and we can announce that we are no longer racist.
Ugh! Ding! Thanks for playing!
That's not going to happen. Why? Those that believe that America is racist are not going to let the honkies off the hook that easily. Why give up the advantage once you gain it? As BHO said in a speech to ACORN at their 2007 national convention: "You will be there to help me shape my administration and its issues..." "You will be apart of the discussion that will determine my administration's perspectives..."
Now if you clearly think that BHO has nothing to do with ACORN has his new "sanitized" web site wants you to believe, then all you have to do is listen to his speech-making. He is telling you what he will do once elected to the White House.
BTW (by the way), if blacks can use the "nigger" word (there own words) to describe themselves with impunity, then a white blogger can use the "honky" word under the same conditions, no? YES!
OK, there, we have the discourse on the table. I believe that it is necessary and useful for BHO to be elected to the Presidency. It is the only way that people may, I say may, come alive and get involved as they see the USA taken from a capitalist representative democracy to a socialistic representative democracy.
I still believe that we still be able to "vote" for our representatives, but the government will have become so intrusive and invasive that only left-leaning candidates will rise to the elections.
BHO as President even with a SMDC (super-majority Democratic Congress) doesn't bother me. I believe that events unfold for a purpose and this is what is necessary for the USA at this time. The USA needs to be reduced to a 3rd world, European-style socialistic country for the future of the planet to work out as it should.
Ugh! Ding! Thanks for playing!
That's not going to happen. Why? Those that believe that America is racist are not going to let the honkies off the hook that easily. Why give up the advantage once you gain it? As BHO said in a speech to ACORN at their 2007 national convention: "You will be there to help me shape my administration and its issues..." "You will be apart of the discussion that will determine my administration's perspectives..."
Now if you clearly think that BHO has nothing to do with ACORN has his new "sanitized" web site wants you to believe, then all you have to do is listen to his speech-making. He is telling you what he will do once elected to the White House.
BTW (by the way), if blacks can use the "nigger" word (there own words) to describe themselves with impunity, then a white blogger can use the "honky" word under the same conditions, no? YES!
OK, there, we have the discourse on the table. I believe that it is necessary and useful for BHO to be elected to the Presidency. It is the only way that people may, I say may, come alive and get involved as they see the USA taken from a capitalist representative democracy to a socialistic representative democracy.
I still believe that we still be able to "vote" for our representatives, but the government will have become so intrusive and invasive that only left-leaning candidates will rise to the elections.
BHO as President even with a SMDC (super-majority Democratic Congress) doesn't bother me. I believe that events unfold for a purpose and this is what is necessary for the USA at this time. The USA needs to be reduced to a 3rd world, European-style socialistic country for the future of the planet to work out as it should.
BHO continues march towards #44
The race tightens due to BHO's comment about "spreading the wealth," and the new Rasmussen poll about the comments show that there is a class warfare split right along the lines of have and have nots. This is the danger that such statements bring.
BHO is clearly playing to the voters that will put him in power, but these people don't give money to campaigns, so BHO has to keep the ones that give money (those that have the money and are potential targets of the socialistic comments and policies of BHO) happy and giving.
However, once BHO gets into office in Jan 2009, all bets are off. He will move quickly and decisively within the first 100 days (assuming he gets his super-majority Democratic Congress) to enact his "reforms" that will change the USA into the USSA.
During the first 100 days, BHO and his Congress are going to beside the hearings to convict the Bush 43 administration of all kinds of things:
1. Ratify the Kyoto Protocol on AGW (do your homework) that the Clinton administration and Republican Congress did not ratify.
2. He will setup the removal of the Bush tax cuts
3. He will do a 2nd stimulus package going farther into the deficit spending mode
4. Begin the discussions of nationalized health care and retirement
5. Set a time table to remove soldiers from Iraq and and a big increase of violence will erupt forcing him to renege on that promise
6. Begin direct bail-out of low income mortgagors directly behind the scenes by ACORN
These will show some of the socialistic policies that BHO will begin putting into place within his first 100 days. Now remember what the very inexperienced JFK almost got the world into? Don't know and will not do your homework?
Google: Bay of Pigs and Cuban Missile Crisis
We can look forward to a Pakistani Crisis if the inexperienced BHO goes the same way as JFK.
BHO is clearly playing to the voters that will put him in power, but these people don't give money to campaigns, so BHO has to keep the ones that give money (those that have the money and are potential targets of the socialistic comments and policies of BHO) happy and giving.
However, once BHO gets into office in Jan 2009, all bets are off. He will move quickly and decisively within the first 100 days (assuming he gets his super-majority Democratic Congress) to enact his "reforms" that will change the USA into the USSA.
During the first 100 days, BHO and his Congress are going to beside the hearings to convict the Bush 43 administration of all kinds of things:
1. Ratify the Kyoto Protocol on AGW (do your homework) that the Clinton administration and Republican Congress did not ratify.
2. He will setup the removal of the Bush tax cuts
3. He will do a 2nd stimulus package going farther into the deficit spending mode
4. Begin the discussions of nationalized health care and retirement
5. Set a time table to remove soldiers from Iraq and and a big increase of violence will erupt forcing him to renege on that promise
6. Begin direct bail-out of low income mortgagors directly behind the scenes by ACORN
These will show some of the socialistic policies that BHO will begin putting into place within his first 100 days. Now remember what the very inexperienced JFK almost got the world into? Don't know and will not do your homework?
Google: Bay of Pigs and Cuban Missile Crisis
We can look forward to a Pakistani Crisis if the inexperienced BHO goes the same way as JFK.
Friday, October 17, 2008
BHO is the new JFK
What happened when my generation elected a young, good-looking, fairly untried and inexperienced Senator from Massachusetts called JFK over the more experienced, older VP, Richard Nixon? It began the 1960 cultural revolution that completely pissed-off my parent's generation (call the Great Generation for winning the WWII), but changed the landscape both politically and culturally forever.
This time it will be the election of young, good-looking, fairly untried and inexperienced Senator from Illinois call BHO that will be catalyst for the changes that will happen over the next 8-10 years. Many people had no idea how the JFK-JBJ Presidencies would change the USA.
Now it will be the BHO and next Democratic President (Hillary, maybe) that will do the changing. The changes will be just a dramatic, shocking, and altering. The USA will not be the same country after the next 10-12 years have taken place.
Here are the changes I believe will take place over the next 10-12 years of BHO and subsequent President:
1. Nationalized health care
2. Nationalized housing
3. Nationalized banking - financial systems
4. Nationalized energy - transportation systems
5. Nationalized education systems
6. Socialized welfare
7. Globalized military under UN control - no national arsenal or weapons
In other words, the USA will be a European-style socialistic country and no longer a world power.
This time it will be the election of young, good-looking, fairly untried and inexperienced Senator from Illinois call BHO that will be catalyst for the changes that will happen over the next 8-10 years. Many people had no idea how the JFK-JBJ Presidencies would change the USA.
Now it will be the BHO and next Democratic President (Hillary, maybe) that will do the changing. The changes will be just a dramatic, shocking, and altering. The USA will not be the same country after the next 10-12 years have taken place.
Here are the changes I believe will take place over the next 10-12 years of BHO and subsequent President:
1. Nationalized health care
2. Nationalized housing
3. Nationalized banking - financial systems
4. Nationalized energy - transportation systems
5. Nationalized education systems
6. Socialized welfare
7. Globalized military under UN control - no national arsenal or weapons
In other words, the USA will be a European-style socialistic country and no longer a world power.
The Bail-Out LOUC already happening!
As I told you in previous posts about the LOUC (law of unintended consequences), it is already beginning to setup with the bail-out implementation.
One of the news channels through which I was flipping was interviewing some people that didn't want to give their names or locations that said since their neighbors were going to get bailed out since they had not been paying their mortgages lately, these people being interviewed said that they stopped paying their mortgages as well since they wanted the same treatment.
These home-owners being interviewed said they were putting the money into accounts under names of their relatives so that when the regulators do the credit checks they will not find the liquid assets. So, what is happening? The LOUC is taking place already before the monies are even being dispersed.
There are going to be tons of LOUC events given the amount of money, the ineffectiveness of the US Government, and the complete control of the government (all 3 branches) by one ideology. See you were forgetting about the judiciary. Most of the judges are liberal/activist-type jurists and they will lock-step with their counterparts in the Executive and Legislative branches to totally change the USA as it is known today.
Many readers said they didn't think that it changes I have been talking about will take place in the amount of time I have suggested. Well, history is the place to find the answers. See the following post for how this will take place.
One of the news channels through which I was flipping was interviewing some people that didn't want to give their names or locations that said since their neighbors were going to get bailed out since they had not been paying their mortgages lately, these people being interviewed said that they stopped paying their mortgages as well since they wanted the same treatment.
These home-owners being interviewed said they were putting the money into accounts under names of their relatives so that when the regulators do the credit checks they will not find the liquid assets. So, what is happening? The LOUC is taking place already before the monies are even being dispersed.
There are going to be tons of LOUC events given the amount of money, the ineffectiveness of the US Government, and the complete control of the government (all 3 branches) by one ideology. See you were forgetting about the judiciary. Most of the judges are liberal/activist-type jurists and they will lock-step with their counterparts in the Executive and Legislative branches to totally change the USA as it is known today.
Many readers said they didn't think that it changes I have been talking about will take place in the amount of time I have suggested. Well, history is the place to find the answers. See the following post for how this will take place.
BHO will be elected in a landslide!
OK, its official at least for me. BHO will be elected in a landslide along with a supermajority Democratic Senate and veto proof House. The Republican Congress people can simply stay home since they will be totally ignored by Commandant Pelosi and Comrade Reid. The GOP will be completely decimated in the coming election due to their total lack of ethics, character, and conservative leanings. The biggest of these buffoons is the current Republican President Bush 43.
Bush 43 has done more to wreck, ruin, destroy, and/or otherwise reduce to irrelevance the Republican Party. It will be a very long time if at all before the GOP will come back to have any hand in operation of the US Government.
Now what does this mean? Well, given the fact that it was Republican administration and Congress that moved us into this condition where a few Democrats could force them to allow the 1990-2004 government intervention via the CRA, support for ACORN, Fannie Mae, Freddie Mac non-supervision to push this financial crisis upon us.
So do I think that the Republicans should be allowed to remain in power? Hell, no! They have shown that they can't and don't understand fiscal responsibility, ethics, nor how to govern correctly. They squandered their huge power take-over beginning in 1994 by becoming as bad or worse than the liberal/Democrats to the point where you don't have 2 parties in this country -- you have only 1 large moderate, very stupid, very ineffectual political class.
The response to this financial crisis will be complete rout of the Republican Party in the Fall 2008 election. I am guessing that it will be hard, bloody, and ugly. BHO will not even have to worry about ACORN's fraudulent registrations in battle ground states since he will handily capture PA, OH, MI, FL, NV, and MO. I am guessing that unless BHO does something very stupid which I think if highly unlikely since he is a very smooth, smart politician, BHO will care the election in very heavy numbers (53-47 or worse) while carrying along a very smartly Democratic Congress.
As a fiscal conservative, personal responsibility advocate, I really don't care who wins in November, I just want those that are stupid to be spanked (the Republicans) and the voters to get what they deserve: BHO and his Democratic Congress and all that brings.
I will have a lot of fun after Nov 4, 2008 once BHO makes his real agenda evident along with the Congress to allow him to implement it. It will be FDR, LBJ, and Jimmy Carter all rolled into one.
We will the New Great Deal Society with hyper-inflation and elongated depressive economics which will allow the BHO government to power grab even more in the name of saving us all from ourselves.
Wow! It should be a great 8 years.
Bush 43 has done more to wreck, ruin, destroy, and/or otherwise reduce to irrelevance the Republican Party. It will be a very long time if at all before the GOP will come back to have any hand in operation of the US Government.
Now what does this mean? Well, given the fact that it was Republican administration and Congress that moved us into this condition where a few Democrats could force them to allow the 1990-2004 government intervention via the CRA, support for ACORN, Fannie Mae, Freddie Mac non-supervision to push this financial crisis upon us.
So do I think that the Republicans should be allowed to remain in power? Hell, no! They have shown that they can't and don't understand fiscal responsibility, ethics, nor how to govern correctly. They squandered their huge power take-over beginning in 1994 by becoming as bad or worse than the liberal/Democrats to the point where you don't have 2 parties in this country -- you have only 1 large moderate, very stupid, very ineffectual political class.
The response to this financial crisis will be complete rout of the Republican Party in the Fall 2008 election. I am guessing that it will be hard, bloody, and ugly. BHO will not even have to worry about ACORN's fraudulent registrations in battle ground states since he will handily capture PA, OH, MI, FL, NV, and MO. I am guessing that unless BHO does something very stupid which I think if highly unlikely since he is a very smooth, smart politician, BHO will care the election in very heavy numbers (53-47 or worse) while carrying along a very smartly Democratic Congress.
As a fiscal conservative, personal responsibility advocate, I really don't care who wins in November, I just want those that are stupid to be spanked (the Republicans) and the voters to get what they deserve: BHO and his Democratic Congress and all that brings.
I will have a lot of fun after Nov 4, 2008 once BHO makes his real agenda evident along with the Congress to allow him to implement it. It will be FDR, LBJ, and Jimmy Carter all rolled into one.
We will the New Great Deal Society with hyper-inflation and elongated depressive economics which will allow the BHO government to power grab even more in the name of saving us all from ourselves.
Wow! It should be a great 8 years.
Why an Moderated Comments Blog?
I have asked several times why I require that comments to this blog be moderated. Its very simple:
1. The Blog spammers have gotten very sophisticated and their "unrelated, irrelevant" comments take away from the idea of a blog.
2. This is my blog, not yours, not theirs, not the governments (yet).
Make your comments, and as long as the language is appropriate, the facts are checked, your comments regardless of the perspective will be published. I don't care about your opinion or beliefs, I do care that you substantiate your comments with facts or at least some attempt at fact-basing.
Comment all you want; just get a google account since they are supporting this fine exercise in free-speech, I should at least support them that way.
Take care,
Nanouk
1. The Blog spammers have gotten very sophisticated and their "unrelated, irrelevant" comments take away from the idea of a blog.
2. This is my blog, not yours, not theirs, not the governments (yet).
Make your comments, and as long as the language is appropriate, the facts are checked, your comments regardless of the perspective will be published. I don't care about your opinion or beliefs, I do care that you substantiate your comments with facts or at least some attempt at fact-basing.
Comment all you want; just get a google account since they are supporting this fine exercise in free-speech, I should at least support them that way.
Take care,
Nanouk
My Bias in this Election
I have been asked for my bias in this election, others have slammed me for hammering BHO, while still others have said I am too hard on McCain/Palin. Well there you have it. People read what they see through their own "colored glasses." All these emails have, I assume, been reading the same blog.
Anyway, I have no preference as to the winner of the election since I am and have been apolitical. I simply believe in 3 things when it comes to politics and government:
1. All politicians act in their own self interest
2. Government intervention always comes with the price of the law of unintended consequences
3. Governments and politicians can not force self-reliance or self-responsibility of its citizenry
Now these 3 items explain why I blast both sides since we have reached a point in this country where it is on the down hill slide. No representative democracy has lasted as long as the USA has, and the component parts that has made the country strong, resilient, and innovative are not being taught to the younger generations. The NEA, UUP, and other very liberal educational unions are making sure that children are taught non-essentials to become "low maintenance" citizens. They are ensuring that strong teachers are eliminated from the system and that teachers today are weak, liberal-minded baby sitters.
Gone are the days where students were required to do homework, learn science, math, and hard sciences. Now the schools are only teaching so that the students can pass the "NCLB - no child left behind" standards. This is a prime example of the LOUC of the NCLB that was passed by, yes, a Republican President that we wish would all just drift from memory. OK, its was Bush 43 in alliance with Sen. Ted Kennedy.
What do I care about?
I care about character;
I care about work-ethic;
I care about discipline;
I care about self-responsibility;
I care about self-reliance.
Sadly, none of these are being taught by the school system or by most parents, and parents that do are being branded as "intolerant" of others. This is why --
AMERICA CAN'T BE FIXED!
You can't fix something where the basic components are not there any longer. Children today want to have it given to them, no work-ethic, or if they do work its to only get what they can by scamming the system. Witness the financial meltdown on Wall Street. Most of this was orchestrated by young lawyers, MBAs, etc that only want their windfall now so they can retire and live the "good-life." What happens to the rest of America is not important. They are citizens of the world.
Well, didn't mean to go off that far, but there it is. The USA is doomed simply because we, for the most part, have not taught our children how to hold the gift of freedom scared. Therefore, during the next 8 years of BHO's tenure we will pay the high price of the loss of many of those freedoms.
Anyway, I have no preference as to the winner of the election since I am and have been apolitical. I simply believe in 3 things when it comes to politics and government:
1. All politicians act in their own self interest
2. Government intervention always comes with the price of the law of unintended consequences
3. Governments and politicians can not force self-reliance or self-responsibility of its citizenry
Now these 3 items explain why I blast both sides since we have reached a point in this country where it is on the down hill slide. No representative democracy has lasted as long as the USA has, and the component parts that has made the country strong, resilient, and innovative are not being taught to the younger generations. The NEA, UUP, and other very liberal educational unions are making sure that children are taught non-essentials to become "low maintenance" citizens. They are ensuring that strong teachers are eliminated from the system and that teachers today are weak, liberal-minded baby sitters.
Gone are the days where students were required to do homework, learn science, math, and hard sciences. Now the schools are only teaching so that the students can pass the "NCLB - no child left behind" standards. This is a prime example of the LOUC of the NCLB that was passed by, yes, a Republican President that we wish would all just drift from memory. OK, its was Bush 43 in alliance with Sen. Ted Kennedy.
What do I care about?
I care about character;
I care about work-ethic;
I care about discipline;
I care about self-responsibility;
I care about self-reliance.
Sadly, none of these are being taught by the school system or by most parents, and parents that do are being branded as "intolerant" of others. This is why --
AMERICA CAN'T BE FIXED!
You can't fix something where the basic components are not there any longer. Children today want to have it given to them, no work-ethic, or if they do work its to only get what they can by scamming the system. Witness the financial meltdown on Wall Street. Most of this was orchestrated by young lawyers, MBAs, etc that only want their windfall now so they can retire and live the "good-life." What happens to the rest of America is not important. They are citizens of the world.
Well, didn't mean to go off that far, but there it is. The USA is doomed simply because we, for the most part, have not taught our children how to hold the gift of freedom scared. Therefore, during the next 8 years of BHO's tenure we will pay the high price of the loss of many of those freedoms.
Thursday, October 16, 2008
BHO announces "Spread the Wealth!"
Now if you didn't believe me before, you can now understand how BHO and his Democratic Congress after Nov. 4th is going to act. He blatantly stated during the Oct. 15, 2008 Presidential Debate on Long Island that he thought that the "wealth should be spread around."
If that is not code speak for income redistribution: a primary tenant of socialism, I don't know what is. All freedom loving Americans should hear that and understand what it means to have a BHO Presidency especially one with a super-majority Democratic Congress.
You may be saying that it can't happen here in the USA, but I am sure they said that in Germany before Hitler took over, in Russia before Stalin took power, and in China before Mao took over the respective governments. In all those examples, there were different circumstances, different conditions, and different political goals. However, in all cases, the results were the same - the complete elimination of personal freedom in favor of the state.
Folks it is coming to the USA as the election draws nigh. One of the first things that will happen will be the imposition of the "Fairness Doctrine" that will be used to shut down blogging sites like this since no one will be able to determine a "fair mixture" of thoughts. Next it will be the talk radio shows and media outlets that don't have enough "liberal" bias on board. Finally, it will be deemed "intolerant" to have anything that criticises anyone or anything since that is passing judgment, and that we can't have in an enlightened society.
It will be done all nice and neat in a very acceptable manner so that no one can object, but mark my word, folks, its coming, and its coming fast.
The liberals are going to support it at first until the same guns are turned on them, and then it will be too late. It happened such in Nazi Germany, Socialist Russia, and Communist China. Once the silly thinking liberals have served their purpose, their voices will be silenced along with the dissidents they so loudly condemned at first.
"Spread the wealth around..." and so the USA's destruction comes quietly and softly, but none less surely.
If that is not code speak for income redistribution: a primary tenant of socialism, I don't know what is. All freedom loving Americans should hear that and understand what it means to have a BHO Presidency especially one with a super-majority Democratic Congress.
You may be saying that it can't happen here in the USA, but I am sure they said that in Germany before Hitler took over, in Russia before Stalin took power, and in China before Mao took over the respective governments. In all those examples, there were different circumstances, different conditions, and different political goals. However, in all cases, the results were the same - the complete elimination of personal freedom in favor of the state.
Folks it is coming to the USA as the election draws nigh. One of the first things that will happen will be the imposition of the "Fairness Doctrine" that will be used to shut down blogging sites like this since no one will be able to determine a "fair mixture" of thoughts. Next it will be the talk radio shows and media outlets that don't have enough "liberal" bias on board. Finally, it will be deemed "intolerant" to have anything that criticises anyone or anything since that is passing judgment, and that we can't have in an enlightened society.
It will be done all nice and neat in a very acceptable manner so that no one can object, but mark my word, folks, its coming, and its coming fast.
The liberals are going to support it at first until the same guns are turned on them, and then it will be too late. It happened such in Nazi Germany, Socialist Russia, and Communist China. Once the silly thinking liberals have served their purpose, their voices will be silenced along with the dissidents they so loudly condemned at first.
"Spread the wealth around..." and so the USA's destruction comes quietly and softly, but none less surely.
Death of the 14th Amendment!
With the McCain proposal to use $300 Billion USD of the ESA 2008 to bail out mortgagors directly is proof that the USA has moved from a capitalistic, free-market formation to a socialistic, risk-coverage formation. As I mentioned in "Socialism takes away my right to fail," the big problem with the way the USA is going is that capitalism has two sides to it full implementation:
The right to succeed, and the right to fail.
One is not possible without the other. This is the most important thing that voters must understand about the results of the Nov election. With the election of BHO and a big Democratic sided Congress, the USA will become the USSA by the time BHO's 8 years tick by. It may not be possible to undue the damage that will be done to the formation structure of the USA. This will all be predicated on the legal use of the 14th Amendment.
Fairly soon some smart lawyer is going to realize that the US Government is violating the 14th Amendment's "Equal treatment under the law..." clause when it bails out some companies and let's others fail. If I was Lehman Brother's stock holder, I would be looking to sue the Government big time. The basis for this concept is that the 14th Amendment's "equal protection" clause has been used to restrict/enforce all kinds of anti-bias, anti-civil legislation from collegiate women's sports to civil rights to the ADA (Americans with Disabilities Act - if you couldn't ferret that one out). Why not assume that the 14th could be used to prove the Government is not providing "equal protection" of default when it chooses which companies to bail out and which not. I see a flood of lawsuits a coming ;-) .
Now, since this is a democracy, the majority will determine the manner in which the USA is operated, but I believe that since the younger generation has never been taught discipline, character-building, or work-ethic (unless to know my children) this fact will slip by as they elect the most liberal and likely first socialist President of the USA: BHO.
In my next post I talk about his slip in last night's Presidential debate when he exposed his real purpose in becoming President: "spread the wealth around" (his words). I can imagine that his handlers just about cried when he said that since it is now in the open that BHO is a socialist. Those words, to "spread the wealth around" is the key socialistic keyword for income redistribution.
Make no mistake folks, if you vote for BHO, you are voting to have your wealth taken from you and redistributed to others under the most benign of circumstances, of course. Remember, the $250,000 income level is just the beginning... Does anyone remember when the 13th Amendment installed the first US income tax at what beginning rate?
The right to succeed, and the right to fail.
One is not possible without the other. This is the most important thing that voters must understand about the results of the Nov election. With the election of BHO and a big Democratic sided Congress, the USA will become the USSA by the time BHO's 8 years tick by. It may not be possible to undue the damage that will be done to the formation structure of the USA. This will all be predicated on the legal use of the 14th Amendment.
Fairly soon some smart lawyer is going to realize that the US Government is violating the 14th Amendment's "Equal treatment under the law..." clause when it bails out some companies and let's others fail. If I was Lehman Brother's stock holder, I would be looking to sue the Government big time. The basis for this concept is that the 14th Amendment's "equal protection" clause has been used to restrict/enforce all kinds of anti-bias, anti-civil legislation from collegiate women's sports to civil rights to the ADA (Americans with Disabilities Act - if you couldn't ferret that one out). Why not assume that the 14th could be used to prove the Government is not providing "equal protection" of default when it chooses which companies to bail out and which not. I see a flood of lawsuits a coming ;-) .
Now, since this is a democracy, the majority will determine the manner in which the USA is operated, but I believe that since the younger generation has never been taught discipline, character-building, or work-ethic (unless to know my children) this fact will slip by as they elect the most liberal and likely first socialist President of the USA: BHO.
In my next post I talk about his slip in last night's Presidential debate when he exposed his real purpose in becoming President: "spread the wealth around" (his words). I can imagine that his handlers just about cried when he said that since it is now in the open that BHO is a socialist. Those words, to "spread the wealth around" is the key socialistic keyword for income redistribution.
Make no mistake folks, if you vote for BHO, you are voting to have your wealth taken from you and redistributed to others under the most benign of circumstances, of course. Remember, the $250,000 income level is just the beginning... Does anyone remember when the 13th Amendment installed the first US income tax at what beginning rate?
Oil < $70, gas still over $3.20/gallon
I usually don't like to talk about unscrupulous companies since I believe the market place takes care of them eventually, but I think its time for everyone to question their suppliers of oil, gas, propane, and electricity. It is the only way to ensure that they know they are being watched.
Oil has now dropped over 55% from the $147 high in July, but gas prices on average have come down only about 25%. They are very quick to rise, but oh so slow to come down. Soooo....
Question you gas supplier. Tell them that you are going to take your business elsewhere unless they begin to start "getting with the program" and lowering their prices. If enough people do this, then the free-markets take over and the prices will come down.
Call you electricity and propane suppliers. Hint that you are going to start shopping around for other suppliers if they don't begin to get back inline with current oil prices.
I believe that the free-market works, you just have to be willing to use your consuming power to get it done. Start a phone campaign just amongst your friends. Get them involved. I know that this works since I have done it in my neck of the woods, and we have seen prices come down a lot faster.
Get a web site and start posting prices of current suppliers on the web site. Have people take on one or two suppliers and get their daily prices and then email you so you can update the prices. It doesn't have to be national in scope, just in your own neighborhood.
Free-markets are wonderful, powerful mechanisms, and the Internet can make it even easier to make them work correctly. Players that want to take advantage of the market inefficiencies can only do so if their actions are NOT made transparent, and this is where the Internet comes in.
Exercise some consumer power.
Oil has now dropped over 55% from the $147 high in July, but gas prices on average have come down only about 25%. They are very quick to rise, but oh so slow to come down. Soooo....
Question you gas supplier. Tell them that you are going to take your business elsewhere unless they begin to start "getting with the program" and lowering their prices. If enough people do this, then the free-markets take over and the prices will come down.
Call you electricity and propane suppliers. Hint that you are going to start shopping around for other suppliers if they don't begin to get back inline with current oil prices.
I believe that the free-market works, you just have to be willing to use your consuming power to get it done. Start a phone campaign just amongst your friends. Get them involved. I know that this works since I have done it in my neck of the woods, and we have seen prices come down a lot faster.
Get a web site and start posting prices of current suppliers on the web site. Have people take on one or two suppliers and get their daily prices and then email you so you can update the prices. It doesn't have to be national in scope, just in your own neighborhood.
Free-markets are wonderful, powerful mechanisms, and the Internet can make it even easier to make them work correctly. Players that want to take advantage of the market inefficiencies can only do so if their actions are NOT made transparent, and this is where the Internet comes in.
Exercise some consumer power.
Racism label already being thrown at non-BHO voters
It has already started as I said it would. Voters in Western Pennsylvania have been warned that they are racist and not voting for BHO will confirm it. This warning comes from Congressman John Murtha. As the election gets closer into the final days, the liberals/dems are going to use every trick in their toolkit to get their man BHO elected to the Presidency.
Now don't get me wrong, I think its necessary that BHO gets elected along with a heavily populated Democratic Congress so that everything from now on can be blamed on their action or inaction. They will try and blame it on the Bush 43 administration since they "started it all." They will be supported by the liberal media who will try and hide the problems just as they tried to highlight for the past 8 years how bad things were even though we went through a very big economic expansion.
By the way (BTW), for white America don't think that electing BHO is going to erase the "racist" epitaph since that would reduce the power of the liberals over conservatives. If America doesn't elect BHO stand by for the world being told that it proves that the USA is still racist, but even if he is elected, USA will still be called racist since everyone didn't vote for him. Watch Nov 5 for the the labels to fly.
Juan Williams on FBN can't even see the issue. He made a big deal about how 20% of white voters in a poll said that they would not vote for a black man, but he did not say anything about the same poll (AP-Yahoo News) said that 87% of blacks were going to vote for BHO because he was black.
Now how can one perspective be racist and the other not? Can blacks not be racist? In fact, in my world dealings, I have been labeled a "honky" by blacks on airplanes, airports, hotels, etc just because I have chosen to confront blacks on these issues.
Racism knows no race, color, or creed, but lets understand what racism is:
From Webster: racism is a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race
Now even the United Nations doesn't define racism, only racial discrimination. So using the UN as an example racism is not the problem, racial discrimination is meaning that what a person is does not matter, it is only when those beliefs are put into action is where the offense occurs.
This is the basis for all Western Common Law until the advent of the very stupid "hate-based crimes." We are going to begin analyzing people's thoughts after BHO is elected President since this will be the only way that some people can be "outed" since what they think and do are separate activities.
My next post will discuss this march to the "thought police."
Now don't get me wrong, I think its necessary that BHO gets elected along with a heavily populated Democratic Congress so that everything from now on can be blamed on their action or inaction. They will try and blame it on the Bush 43 administration since they "started it all." They will be supported by the liberal media who will try and hide the problems just as they tried to highlight for the past 8 years how bad things were even though we went through a very big economic expansion.
By the way (BTW), for white America don't think that electing BHO is going to erase the "racist" epitaph since that would reduce the power of the liberals over conservatives. If America doesn't elect BHO stand by for the world being told that it proves that the USA is still racist, but even if he is elected, USA will still be called racist since everyone didn't vote for him. Watch Nov 5 for the the labels to fly.
Juan Williams on FBN can't even see the issue. He made a big deal about how 20% of white voters in a poll said that they would not vote for a black man, but he did not say anything about the same poll (AP-Yahoo News) said that 87% of blacks were going to vote for BHO because he was black.
Now how can one perspective be racist and the other not? Can blacks not be racist? In fact, in my world dealings, I have been labeled a "honky" by blacks on airplanes, airports, hotels, etc just because I have chosen to confront blacks on these issues.
Racism knows no race, color, or creed, but lets understand what racism is:
From Webster: racism is a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race
Now even the United Nations doesn't define racism, only racial discrimination. So using the UN as an example racism is not the problem, racial discrimination is meaning that what a person is does not matter, it is only when those beliefs are put into action is where the offense occurs.
This is the basis for all Western Common Law until the advent of the very stupid "hate-based crimes." We are going to begin analyzing people's thoughts after BHO is elected President since this will be the only way that some people can be "outed" since what they think and do are separate activities.
My next post will discuss this march to the "thought police."
Wednesday, October 15, 2008
Hypocrisy of the Liberals & Media
Listening to Bob Beckel on FBN that rant and rave about everything is against the Obama's and he has nothing to say about the vicious attacks on Gov. Palin and her family. Now what Mr. Beckel is not realizing by supporting all this brutal verbiage about the Republicans is he setting the ground level for future nasty comments about his people because his comments will be brought back to be thrown into his face.
This country has become, as Atty. Philip K. Howard said in his excellent book "The Death of Common Sense", a "nation of enemies." We don't want to listen or even talk with people that don't agree with us. We want to expel huge amounts of virulence at anyone that we think doesn't think or believe like we do.
The big difference is that the liberals are the quickest to cry foul whenever anyone speaks out about their people, programs, or profiles, but remain mute when their side does exactly the same to those they don't like. All I can say is that this sword is going to cut both ways after BHO and the hugely Democratic Congress is elected in November which I truly hope happens. Conservatives are less likely to get in your face which is why they will lose in November, and lose big.
You may say, Whoa! Nanouk wants BHO and a Democratic Congress elected in spades? By all means! I want the US Government to be so liberal/democratic that they can not blame anyone for the mess they are going to create with their programs. When they destroy this country over the next 8 years, when the USA becomes the USSA (United Socialist States of America) under the BHO administration, when the government becomes the single most controlling entity in your lives, the only way that this country will be saved with be another revolution.
Yes, I believe that another revolution is coming and it will probably take the form of a civil war between the blue and red states when the blue states subvert the rights of the red states through liberal judicial activism, socialistic programs and controls, income redistribution, etc.
All of this will take place under the guise of "helping the poor, the under-represented, the disenfranchised." What the BHO/Dems don't understand is the following:
1. I was never given a job by a poor person
2. I was never given a credit card by a poor person
3. I was never given a hand-out (transfer payment) by a poor person
So when you take from those that produce to ensure that those who don't are on an equal footing, those that used to produce become those that don't and will need the government to take over the entire process of production and organizing and, wha la, you have the USSA!
It's coming and you had better prepare for it. American Can't Be Fixed Now! Whoa, where did I hear that?
This country has become, as Atty. Philip K. Howard said in his excellent book "The Death of Common Sense", a "nation of enemies." We don't want to listen or even talk with people that don't agree with us. We want to expel huge amounts of virulence at anyone that we think doesn't think or believe like we do.
The big difference is that the liberals are the quickest to cry foul whenever anyone speaks out about their people, programs, or profiles, but remain mute when their side does exactly the same to those they don't like. All I can say is that this sword is going to cut both ways after BHO and the hugely Democratic Congress is elected in November which I truly hope happens. Conservatives are less likely to get in your face which is why they will lose in November, and lose big.
You may say, Whoa! Nanouk wants BHO and a Democratic Congress elected in spades? By all means! I want the US Government to be so liberal/democratic that they can not blame anyone for the mess they are going to create with their programs. When they destroy this country over the next 8 years, when the USA becomes the USSA (United Socialist States of America) under the BHO administration, when the government becomes the single most controlling entity in your lives, the only way that this country will be saved with be another revolution.
Yes, I believe that another revolution is coming and it will probably take the form of a civil war between the blue and red states when the blue states subvert the rights of the red states through liberal judicial activism, socialistic programs and controls, income redistribution, etc.
All of this will take place under the guise of "helping the poor, the under-represented, the disenfranchised." What the BHO/Dems don't understand is the following:
1. I was never given a job by a poor person
2. I was never given a credit card by a poor person
3. I was never given a hand-out (transfer payment) by a poor person
So when you take from those that produce to ensure that those who don't are on an equal footing, those that used to produce become those that don't and will need the government to take over the entire process of production and organizing and, wha la, you have the USSA!
It's coming and you had better prepare for it. American Can't Be Fixed Now! Whoa, where did I hear that?
Boy were the talking heads wrong!
Since I don't watch live TV any longer (sorry, Madison Avenue, I haven't watch a commercial in over 6 years), I was watching the back episodes of some of the talking heads and I am almost laughing myself into a coma. Everyone on Monday were saying: "Yea, the bull is back," "here we go!" "get on board!"
Then we have Bill O'Reilly saying he was going to put some money back into the market after the big rally and then I can't wait to see what he says on Tuesday and Wednesday. ;-) What a dupe! That's the problem with most rich people: long on dollars (good for him), but short on intelligence when it comes to investing.
When you already have money, the first rule of thumb to stay wealthy is:
"Protect the piggy bank!"
Bill, a multi-millionaire, should have been holding high interest rate bonds so that when the interest rates went down, his bonds would have exploded in value. Remember, bond values are inversely proportional to interest rates. If you have high interest rate bonds, and interest rates go down, your bonds are worth more.
When interest rates bottomed out at 1%, Bill should have sold every bond he owned and put his money into high interest rate foreign bonds since the dollar's fall would have helped him and the rising interest rates would have eroded his bond value.
Oh well, Bill, I am sure you are going to swearing tonight if the Presidential Debate didn't pre-empt you.
It's really funny how many people go "buy", "sell", "buy", "sell", "die!" ;-)
Then we have Bill O'Reilly saying he was going to put some money back into the market after the big rally and then I can't wait to see what he says on Tuesday and Wednesday. ;-) What a dupe! That's the problem with most rich people: long on dollars (good for him), but short on intelligence when it comes to investing.
When you already have money, the first rule of thumb to stay wealthy is:
"Protect the piggy bank!"
Bill, a multi-millionaire, should have been holding high interest rate bonds so that when the interest rates went down, his bonds would have exploded in value. Remember, bond values are inversely proportional to interest rates. If you have high interest rate bonds, and interest rates go down, your bonds are worth more.
When interest rates bottomed out at 1%, Bill should have sold every bond he owned and put his money into high interest rate foreign bonds since the dollar's fall would have helped him and the rising interest rates would have eroded his bond value.
Oh well, Bill, I am sure you are going to swearing tonight if the Presidential Debate didn't pre-empt you.
It's really funny how many people go "buy", "sell", "buy", "sell", "die!" ;-)
Damn! The sucker's rally played out!
The sucker's rally fully played out today as the DOW tanked over 730pts today, along with yesterday's loss of about 200pts almost point for point completely erased Monday big sucker's rally that ran over all the people that thought the bottom had been reached with the SP 500 reaching 837 on Friday.
Well, what did you learn here? I told you on Saturday that there would be a sucker's rally to around 1050, and we got to 1067 (missed by 17pts), and so we dumped back to 903 and once the talking heads play this out on TV tonight, most of the people that didn't get out on Friday, held through the sucker's rally on Monday hoping they had weathered the worst.
I told you that you should be selling into the rally on Sunday so if you didn't then you got caught twice! We are going to head lower now that the rally didn't hold and the true capitulation is going to set in tonight and tomorrow's opening with a push down towards the 837 and below over the next 2 day. We could very well end up on Friday around SP 500 800, and at or below DOW 8000!
Remember, everyone can't call the bottom or it wouldn't be the bottom, duh!
OK. Remember where you heard about it and tell your friends to read along with you. The market's are completely confused and disillusioned with all the crap that the government intervention. It is going to take some time before investors get the nerve to rejoin the market since Main Street now firmly believes that the markets are rigged. This is bad for Wall Street.
More later after I have a time to analyze what happened today, but hold on to you shorts, we could go lower.
Well, what did you learn here? I told you on Saturday that there would be a sucker's rally to around 1050, and we got to 1067 (missed by 17pts), and so we dumped back to 903 and once the talking heads play this out on TV tonight, most of the people that didn't get out on Friday, held through the sucker's rally on Monday hoping they had weathered the worst.
I told you that you should be selling into the rally on Sunday so if you didn't then you got caught twice! We are going to head lower now that the rally didn't hold and the true capitulation is going to set in tonight and tomorrow's opening with a push down towards the 837 and below over the next 2 day. We could very well end up on Friday around SP 500 800, and at or below DOW 8000!
Remember, everyone can't call the bottom or it wouldn't be the bottom, duh!
OK. Remember where you heard about it and tell your friends to read along with you. The market's are completely confused and disillusioned with all the crap that the government intervention. It is going to take some time before investors get the nerve to rejoin the market since Main Street now firmly believes that the markets are rigged. This is bad for Wall Street.
More later after I have a time to analyze what happened today, but hold on to you shorts, we could go lower.
Tuesday, October 14, 2008
Financial talking heads spinning the dump
It will be interesting to listen to the financial talking heads on CNBC, CNN, and FBN spin this 300pts dump in the markets ;-) The explanations should be very robust and involves lots of hand waving. I will report back to you tomorrow what they all try to say that its only a 1 day pull back.
The Dow would be down over 500 pts if the Dow financial stocks were not being bolstered up by the Fed/Treasury action of buying equity positions in the banks and directly adding liquidity to their balance sheets. Something the government was surely empowered to do by the Constitution (satire, folks, satire).
I believe that both Hamilton and Jefferson would agree on this government action - pure crap!
Paulson and Bush just spoke on the Treasury $250 Billion USD direct infusion of monies and the market did a little pop, but the volume is very light. If it lasts it will be thin.
Bush 43 said, "It will be a very short term proposal, only 3-4 years." Well by then, the government intervention will be so normal that it will be considered the typical governmental purpose. So now the Constitution is violated via the soothing refrain of, "Trust us, it will only be for a short time."
The Dow would be down over 500 pts if the Dow financial stocks were not being bolstered up by the Fed/Treasury action of buying equity positions in the banks and directly adding liquidity to their balance sheets. Something the government was surely empowered to do by the Constitution (satire, folks, satire).
I believe that both Hamilton and Jefferson would agree on this government action - pure crap!
Paulson and Bush just spoke on the Treasury $250 Billion USD direct infusion of monies and the market did a little pop, but the volume is very light. If it lasts it will be thin.
Bush 43 said, "It will be a very short term proposal, only 3-4 years." Well by then, the government intervention will be so normal that it will be considered the typical governmental purpose. So now the Constitution is violated via the soothing refrain of, "Trust us, it will only be for a short time."
The LOUC of Treasury Action
The LOUC (law of unintended consequences) is really based in science. According to Sir Isaac Newton:
"Every action produces an equal, but opposite reaction."
This means that every time the US Government does something to the US financial markets, there is a equal, but opposite reaction set up like the shock waves of an explosion. While I am sure the politicians and financial types believe that they are doing what is right, no scratch that... they give a d*mn! Never mind.
Just understand that the LOUC in this case is going to be big, but largely hidden until its too late just as the imposition of the CRA in 1977 by then President Carter (a whole other kettle of fish) produced this financial crisis along with help from Bush 41, Clinton, Bush 43 and both Republican and Democrat Congresses.
What will the LOUC be by this large governmental intervention:
1. By buying equities of 9 of the largest banks, an unlevel playing field is created by giving these companies an unfair advantage over those institutions not allowed to participate. If you had a choice between a bank that was getting Federal support (implied backup and support) or a regional/small bank without it, most may choose the supported bank. This creates a diminutive effect on small, local banks to where you may have a rash of regional/small bank failures.
2. The taxpayer will never see a dime of their equity position may, I say may, bring since the monies will flow to the Treasury and used for more governmental spending done in your name, of course. The profits, it there are any, will be touted to support more and more governmental interventions which will move the country into the arms of socialism.
3. Other capital may not want to compete with the US Government since they will not be on a level-playing field like when competing with Warren Buffet since he is able to get much more preferential treatment thereby angering private capital. This could produce the opposite effect of the government intervention by driving out private capital forcing more and more government intervention to maintain their initial stake.
Keep an eye out, folks, there may be many more unintended consequences that we may not see for years, but that's the LOUC for you. It took over 30 years for the CRA to reach this level of impact.
"Every action produces an equal, but opposite reaction."
This means that every time the US Government does something to the US financial markets, there is a equal, but opposite reaction set up like the shock waves of an explosion. While I am sure the politicians and financial types believe that they are doing what is right, no scratch that... they give a d*mn! Never mind.
Just understand that the LOUC in this case is going to be big, but largely hidden until its too late just as the imposition of the CRA in 1977 by then President Carter (a whole other kettle of fish) produced this financial crisis along with help from Bush 41, Clinton, Bush 43 and both Republican and Democrat Congresses.
What will the LOUC be by this large governmental intervention:
1. By buying equities of 9 of the largest banks, an unlevel playing field is created by giving these companies an unfair advantage over those institutions not allowed to participate. If you had a choice between a bank that was getting Federal support (implied backup and support) or a regional/small bank without it, most may choose the supported bank. This creates a diminutive effect on small, local banks to where you may have a rash of regional/small bank failures.
2. The taxpayer will never see a dime of their equity position may, I say may, bring since the monies will flow to the Treasury and used for more governmental spending done in your name, of course. The profits, it there are any, will be touted to support more and more governmental interventions which will move the country into the arms of socialism.
3. Other capital may not want to compete with the US Government since they will not be on a level-playing field like when competing with Warren Buffet since he is able to get much more preferential treatment thereby angering private capital. This could produce the opposite effect of the government intervention by driving out private capital forcing more and more government intervention to maintain their initial stake.
Keep an eye out, folks, there may be many more unintended consequences that we may not see for years, but that's the LOUC for you. It took over 30 years for the CRA to reach this level of impact.
May you live in interesting times!
Having watched how the US Government has moved quickly from bail-out to take-over of private financial institutions, I can see that we are indeed living the purported (but unverified) Chinese proverb:
"May you live in interesting times!"
What most people don't realize is that is maintained that this saying, while not really verified to be from the Chinese, was a much a curse as it was a proverbial blessing. I think we can determine which it is in this case.
With wild swings in the market of over 100pts per day, most people are simply bewildered. Many of the "talking heads" are confused, and many, like Bill O'Reilly, are mad because they believe the markets are rigged. Funny, rigged? Interesting point, Bill, but highly unlikely since the total future contract activity of just the ES market yesterday represented over $250 Billion USD in asset value. Now even Mr. Buffet would have a hard time impacting that amount of activity, but Mr. O'Reilly is welcome to his opinion even if its a bit, shall we say, uninformed.
The markets are reacting to the uncertainty that government intervention has brought. Market's dumped when the government said it was going to become a big player, and when they said they were going to directly inject hundreds of billion dollars of taxpayer money into the banks by taking an equity position, the markets rallied. The US Treasury, on authority granted it by the EERA 2008 (HR 1424) passed a week ago last Friday, is going to make the US taxpayer an equity owner in several of the 9 largest banks.
Can you spell LOUC (law of unintended consequences)?
"May you live in interesting times!"
What most people don't realize is that is maintained that this saying, while not really verified to be from the Chinese, was a much a curse as it was a proverbial blessing. I think we can determine which it is in this case.
With wild swings in the market of over 100pts per day, most people are simply bewildered. Many of the "talking heads" are confused, and many, like Bill O'Reilly, are mad because they believe the markets are rigged. Funny, rigged? Interesting point, Bill, but highly unlikely since the total future contract activity of just the ES market yesterday represented over $250 Billion USD in asset value. Now even Mr. Buffet would have a hard time impacting that amount of activity, but Mr. O'Reilly is welcome to his opinion even if its a bit, shall we say, uninformed.
The markets are reacting to the uncertainty that government intervention has brought. Market's dumped when the government said it was going to become a big player, and when they said they were going to directly inject hundreds of billion dollars of taxpayer money into the banks by taking an equity position, the markets rallied. The US Treasury, on authority granted it by the EERA 2008 (HR 1424) passed a week ago last Friday, is going to make the US taxpayer an equity owner in several of the 9 largest banks.
Can you spell LOUC (law of unintended consequences)?
Monday, October 13, 2008
BHO tax plan in real language
Remember, BHO is still going to be the 44st President, and he is going to raise taxes on everyone via the payroll and corporate tax hikes. Also, if you have read my previous posts, you will know that corporations DON'T pay taxes! They just pass them on to the consumers, so for BHO to say he is not going to raise taxes, but then raise taxes on anyone making > $250,000 (read that to be small businesses) and corporations, he IS going to raise taxes on everyone!
He is also going to raise the capital gains tax since it mostly hits the rich people (so Dems say), and he is going to raise the cap on Social Security to UNLIMITED! For you small biz people that should scare the sh*t out of you! Think about it, a tax that goes up to 1,2 or even 5 million dollars that equal to 12.4%, but...
"It's your patriotic duty to pay taxes!" (J. Biden, US Senator, during one of his famous brain farts)
WOW!,it's my patriotic duty to pay taxes, I wonder what the founding fathers would say if they heard that one. Well, it doesn't matter since the USA is becoming the USSA it will be your duty to pay higher taxes and, "Ja Voll, you will like it!"
Where is this country headed? You know where...
Finally, how do you know a politician is lying? "His/her lips are moving"
He is also going to raise the capital gains tax since it mostly hits the rich people (so Dems say), and he is going to raise the cap on Social Security to UNLIMITED! For you small biz people that should scare the sh*t out of you! Think about it, a tax that goes up to 1,2 or even 5 million dollars that equal to 12.4%, but...
"It's your patriotic duty to pay taxes!" (J. Biden, US Senator, during one of his famous brain farts)
WOW!,it's my patriotic duty to pay taxes, I wonder what the founding fathers would say if they heard that one. Well, it doesn't matter since the USA is becoming the USSA it will be your duty to pay higher taxes and, "Ja Voll, you will like it!"
Where is this country headed? You know where...
Finally, how do you know a politician is lying? "His/her lips are moving"
Everyone is being told to sell this rally!
I have been listening to several money managers that are telling their clients to "sell this rally, sell this rally!"
Now since most people are wrong, this could sustain itself for another 75pts to 1050 tomorrow and then sell-off after everyone sold into it and watch it keep going today and tomorrow. Remember, nothing has changed in the economy over this last weekend except that some people think the market was over sold and so we are getting a return to sanity.
Listen to all the financial talking heads tell us that the market is coming back and we are going to get the "good ole days" back soon.
Let's all sing "Kum bai Ya!"
OK, back to your regularly scheduled personal insanity.
Now since most people are wrong, this could sustain itself for another 75pts to 1050 tomorrow and then sell-off after everyone sold into it and watch it keep going today and tomorrow. Remember, nothing has changed in the economy over this last weekend except that some people think the market was over sold and so we are getting a return to sanity.
Listen to all the financial talking heads tell us that the market is coming back and we are going to get the "good ole days" back soon.
Let's all sing "Kum bai Ya!"
OK, back to your regularly scheduled personal insanity.
It's over for McCain, Long Live BHO!
As I have posted before, I am predicting that due to this economic crises and the Palin "Troopergate" scandal, the McCain ticket is fatally faulted with even some pundits saying that McCain should "re-start" his campaign. If that alone is such an indication that McCain is done I don't know what is?
How does you re-start a Presidential campaign just 3 weeks before the election? It really shows that you are weak, and one thing that America hates is weak candidates. They love a winner, and right now, the winner is BHO. He has the polls the momentum and now has the Palin Troopergate scandal to use to bludgeon the Republican VP nomination over the head.
I still believe t hat Gov. Palin should publicly resign her nomination and allow McCain to pick someone like Huckabee. That would energize the conservative base of the Republican party and may get him close to even with BHO, but even that will not be enough.
The only thing that can stop BHO now is a complete implosion during the last debate (unlikely) or some hard evidence about his beliefs about education, health care, financial markets, in other words, something that would have his fingerprints on it that shows him to be a socialist.
Why do you think the Democrats don't want his Harvard years being investigated and do everything they can to block it? It is really unheard of for a Presidential candidate to prevent his law school writing from being made public. If they were, in his own hand writing, his socialistic beliefs would be substantiated.
It will only be after he is elected the 44st President of the USA that all this will come to light, but it will be too late to stop the USA from sliding into the USSA.
McCain is done, long live BHO!
How does you re-start a Presidential campaign just 3 weeks before the election? It really shows that you are weak, and one thing that America hates is weak candidates. They love a winner, and right now, the winner is BHO. He has the polls the momentum and now has the Palin Troopergate scandal to use to bludgeon the Republican VP nomination over the head.
I still believe t hat Gov. Palin should publicly resign her nomination and allow McCain to pick someone like Huckabee. That would energize the conservative base of the Republican party and may get him close to even with BHO, but even that will not be enough.
The only thing that can stop BHO now is a complete implosion during the last debate (unlikely) or some hard evidence about his beliefs about education, health care, financial markets, in other words, something that would have his fingerprints on it that shows him to be a socialist.
Why do you think the Democrats don't want his Harvard years being investigated and do everything they can to block it? It is really unheard of for a Presidential candidate to prevent his law school writing from being made public. If they were, in his own hand writing, his socialistic beliefs would be substantiated.
It will only be after he is elected the 44st President of the USA that all this will come to light, but it will be too late to stop the USA from sliding into the USSA.
McCain is done, long live BHO!
What is a sucker's rally?
A sucker's rally, otherwise known as a DCB (dead cat bounce) is a pattern that usually begins with a very large oversold condition (see Friday's action) and then you get "bottom feeders" quickly come into the market to buy what they believe are values that have been thrown away like the remains of dead fish on which the bottom feeders exist. This lasts for a few days and when those that trade have their fill, the buying ends because those that can provide a sustainable rally (the public) have been recently burned, and they aren't going to put their money in after just taking a licking.
When this sucker's rally will run out of steam is anyone's guess, but I predict that it may get back to around 1050 on the SP 500 index before finding out the emperor has no clothes. Then its back down to get near the previous LOY (837) before finding some support, but this time everyone is throwing in the towel since the sucker's rally did not continue.
This will be the true bottom when the professionals don't even want to catch the falling knife this time. It is all in the market psychology that has played out many times before this dump in the market.
The only thing that can change it is if the government continues to intervene which shocks the rules (no short selling, government taking equity positions in financial stocks, bail-out funds being delayed, the election of BHO who will really change the rules if he gets a very Democrats Congress) and doesn't let players get time to get used to the new ones before the Government tries something else entirely.
When this sucker's rally will run out of steam is anyone's guess, but I predict that it may get back to around 1050 on the SP 500 index before finding out the emperor has no clothes. Then its back down to get near the previous LOY (837) before finding some support, but this time everyone is throwing in the towel since the sucker's rally did not continue.
This will be the true bottom when the professionals don't even want to catch the falling knife this time. It is all in the market psychology that has played out many times before this dump in the market.
The only thing that can change it is if the government continues to intervene which shocks the rules (no short selling, government taking equity positions in financial stocks, bail-out funds being delayed, the election of BHO who will really change the rules if he gets a very Democrats Congress) and doesn't let players get time to get used to the new ones before the Government tries something else entirely.
Everytime Gov opens mouth, market tank
It seems that now every time some from the US Government opens their mouth, the US futures tank. I was watching the futures when Mr. Kashkari, the new US Financial Markets Stability Czar, speak about what is needed, and the futures began a 10pts pull back. Amazing.
The propensity for the US Government to try everything and often is becoming more a joke then something that is calming the markets. All the markets hear is more regulation, more intervention, and that is not playing well with the players in the financial systems.
Well, what do you expect? You cried, "Save us, Save us!" and now that the Government is coming to your rescue, and says,
"OK, but the price for this rescue is going to be Government ownership and heavy intervention!"
The markets are going, "Wait a minute! We wanted rescue not take over!"
As I have said before, "Be careful what you scream for..."
You may get it in spades and its not always in the form that you would want to take it in. Medicine can be bitter, and boy, is this pill going to be bitter for the markets.
If history is any judge, the bear market is going to be lengthened, the financial crisis exacerbated, and the recession deeper. It is always the way of things when "control by group political think" (my definition of government) is imposed on a free acting mechanism like the once capitalistic free-markets in the US.
The propensity for the US Government to try everything and often is becoming more a joke then something that is calming the markets. All the markets hear is more regulation, more intervention, and that is not playing well with the players in the financial systems.
Well, what do you expect? You cried, "Save us, Save us!" and now that the Government is coming to your rescue, and says,
"OK, but the price for this rescue is going to be Government ownership and heavy intervention!"
The markets are going, "Wait a minute! We wanted rescue not take over!"
As I have said before, "Be careful what you scream for..."
You may get it in spades and its not always in the form that you would want to take it in. Medicine can be bitter, and boy, is this pill going to be bitter for the markets.
If history is any judge, the bear market is going to be lengthened, the financial crisis exacerbated, and the recession deeper. It is always the way of things when "control by group political think" (my definition of government) is imposed on a free acting mechanism like the once capitalistic free-markets in the US.
Saturday, October 11, 2008
Socialism takes away my right to fail
I have discussed why socialism is coming to the USA, but I now have to tell you why socialism is so insidious as a socio-economic organization structure:
Socialism takes away my right to fail!
I know that it may sound crazy, but think about it. How does socialism come to be the political formation of choice?
First, people are shocked out of their lethargy due to either a geophysical, geopolitical, or geofinancial crisis. They are told that they suffering by those in charge and that they need to allow the government to take care of them. Sound familiar? Sound current?
Second, the government offers to solve the current crisis and thus elevate their suffering, but they will have put up with an increased amount of government intervention/regulation/oversight in order to make sure the crisis will never happen again. Ah, again, sound familiar?
Third, once the government has gained control and the crisis has run its course, the now more powerful government and politico-class now bloated with new bureaucrats and underlings, the now newly-socialized are told that they must accept the new government intervention since doing otherwise would return them to the chaos of the recently-solved (or so they say it was solved by governmental action) crisis.
Finally, socialism becomes the "comfy slippers" while it does not allow for the ability of its governed to excel, it also does its best to prevent anyone from failing since failing points out that "we are not all created equal." The government helps those in trouble with their mortgages, bank deposits, jobs, housing...
Beginning to get the idea here?
Socialism takes away my right to fail and this is bad since we humans learn so much more from failure than we do by living in mediocrity which is the hallmark of a socialistic country. Don't believe me? Look around the world at the socialized countries: they are all 3rd world countries that many used to thriving, democracies.
I want my right to fail!
Socialism takes away my right to fail!
I know that it may sound crazy, but think about it. How does socialism come to be the political formation of choice?
First, people are shocked out of their lethargy due to either a geophysical, geopolitical, or geofinancial crisis. They are told that they suffering by those in charge and that they need to allow the government to take care of them. Sound familiar? Sound current?
Second, the government offers to solve the current crisis and thus elevate their suffering, but they will have put up with an increased amount of government intervention/regulation/oversight in order to make sure the crisis will never happen again. Ah, again, sound familiar?
Third, once the government has gained control and the crisis has run its course, the now more powerful government and politico-class now bloated with new bureaucrats and underlings, the now newly-socialized are told that they must accept the new government intervention since doing otherwise would return them to the chaos of the recently-solved (or so they say it was solved by governmental action) crisis.
Finally, socialism becomes the "comfy slippers" while it does not allow for the ability of its governed to excel, it also does its best to prevent anyone from failing since failing points out that "we are not all created equal." The government helps those in trouble with their mortgages, bank deposits, jobs, housing...
Beginning to get the idea here?
Socialism takes away my right to fail and this is bad since we humans learn so much more from failure than we do by living in mediocrity which is the hallmark of a socialistic country. Don't believe me? Look around the world at the socialized countries: they are all 3rd world countries that many used to thriving, democracies.
I want my right to fail!
Market Capitulation and the Sucker's Rally
Counting the number of financial talking heads this weekend saying that we have "hit bottom" would take a statistician of formidable skills. One thing I have found in living through more than my share of market turmoils (6 that I can remember) is that very few "smart people" call the bear market right when the reversal takes place. Bear markets usually reverse when everyone is so bearish that they only think they can see if "the sky is falling, the sky is falling."
Since everyone is talking about this being the bottom, I think we are likely going to get a "sucker's rally" to take the market back to the Dow 10,000 level and then it will move back down to lower levels we are at right now, Dow 8300. During the sucker's rally, everyone will be talking about how the bear is over and we can all get back into the market with assurance that we will all make money. When the earnings and fundamentals don't pan out due to the fact the the public has stopped consuming, the market tanks and moves back down to the same or lower level that previous pullback occurred.
Be aware that there are some things that are very different with this financial turmoil:
1. It is global in nature since the USA exported much of the toxic paper to other countries
2. The global Internet allows rich people to move money between locales with the touch of a button, this is what I call the "monetary speed of relocalization". This concept has never been easier or faster.
3. It is real estate based and financial turmoils based on real estate devaluation problems usually take much longer to resolve themselves: see 1929-1336. Non-real estate devaluation crashes such as 1969, 1973, and 1980 all corrected with 12-18 months.
This correction is asset-valuation based and so could take longer to pull out. So be careful.
Since everyone is talking about this being the bottom, I think we are likely going to get a "sucker's rally" to take the market back to the Dow 10,000 level and then it will move back down to lower levels we are at right now, Dow 8300. During the sucker's rally, everyone will be talking about how the bear is over and we can all get back into the market with assurance that we will all make money. When the earnings and fundamentals don't pan out due to the fact the the public has stopped consuming, the market tanks and moves back down to the same or lower level that previous pullback occurred.
Be aware that there are some things that are very different with this financial turmoil:
1. It is global in nature since the USA exported much of the toxic paper to other countries
2. The global Internet allows rich people to move money between locales with the touch of a button, this is what I call the "monetary speed of relocalization". This concept has never been easier or faster.
3. It is real estate based and financial turmoils based on real estate devaluation problems usually take much longer to resolve themselves: see 1929-1336. Non-real estate devaluation crashes such as 1969, 1973, and 1980 all corrected with 12-18 months.
This correction is asset-valuation based and so could take longer to pull out. So be careful.
Gov. Sarah Palin should resign nomination
Well, I have seen everything! The Republican-led Alaskan Legislature has released their findings and their wording has all be sunk both Gov. Palin and Senator McCain's chances to win the White House. These Republican political skunks used enough wording to damage Palin by saying she "abuse her power", but did nothing illegal.
That wording could not have been more politically charged and stated just right to do the most damage without causing them legal problems in over-charging Gov. Palin. What a group of schmucks! They are so mad at Gov. Palin for outing them and their corrupt politics that they are willing to sink the McCain/Palin ticket thereby giving the election to BHO. It is a new low for Republicans. Even the morally corrupt Democrats don't eat their own.
So, why should Palin resign the nomination? First, it is the ethical thing to do; however, she needs to bring attention to the fact that Senator Biden should also resign over his plagiarism during his previous run for the Presidency in 1987. First, the Alaskan investigative panel stated clearly that while they feel that Gov. Palin abused her powers to get an Alaskan State Trooper fired, she did nothing illegal. In Biden's case, not only did the Senator plagiarize papers during his law school tenure, during a 1987 Presidential campaign stump speech in Iowa, Senator Biden used material from the then British Labor Party leader Neil Kinnock without giving Kinnock the nod.
Now all US colleges, universities, and most high schools take plagiarism very seriously as do most reporters and journalists. Plagiarism while not illegal is considered "cheating" and/or "intellectual dishonesty." The reason academics take plagiarism so seriously is that most academicians are afraid that its their work that will be plagiarized.
So while Senator Biden cheated in law school and was intellectually dishonest during his 1987 Presidential run, he did nothing illegal. Sound familiar??
However, Gov. Palin should do the right thing and resign and call for Biden to do the same.
That wording could not have been more politically charged and stated just right to do the most damage without causing them legal problems in over-charging Gov. Palin. What a group of schmucks! They are so mad at Gov. Palin for outing them and their corrupt politics that they are willing to sink the McCain/Palin ticket thereby giving the election to BHO. It is a new low for Republicans. Even the morally corrupt Democrats don't eat their own.
So, why should Palin resign the nomination? First, it is the ethical thing to do; however, she needs to bring attention to the fact that Senator Biden should also resign over his plagiarism during his previous run for the Presidency in 1987. First, the Alaskan investigative panel stated clearly that while they feel that Gov. Palin abused her powers to get an Alaskan State Trooper fired, she did nothing illegal. In Biden's case, not only did the Senator plagiarize papers during his law school tenure, during a 1987 Presidential campaign stump speech in Iowa, Senator Biden used material from the then British Labor Party leader Neil Kinnock without giving Kinnock the nod.
Now all US colleges, universities, and most high schools take plagiarism very seriously as do most reporters and journalists. Plagiarism while not illegal is considered "cheating" and/or "intellectual dishonesty." The reason academics take plagiarism so seriously is that most academicians are afraid that its their work that will be plagiarized.
So while Senator Biden cheated in law school and was intellectually dishonest during his 1987 Presidential run, he did nothing illegal. Sound familiar??
However, Gov. Palin should do the right thing and resign and call for Biden to do the same.
Bush 43 administration is totally inept!
This administration is just about inept dealing with these financial problems as was the Carter Administration was during the later 1970's. The LOUC is going to play out regardless of what the US Government does, and unfortunately they continue to jar the markets every day with something new.
They can't believe that if they would just leave the market alone, it would finally right itself and in the right way. If they were to undue some of the dumb regulations or de-regulations the markets would figure it all out; however, I believe that this may not happen this time due to the huge amount of US Government intervention.
Can't wait for January 20, 2009 when the Bush family is banished from Washington forever. I am glad that Jeb Bush will never get a chance to run for President since Dad Bush, Brother Bush, and Mother Bush has so trashed the Bush name, he would be laughed out of any fund raiser's office before he got the words out that he wanted to try and run for President.
Bush Family: please go back to Maine and Texas and let us clean up the messes you guys have caused.
They can't believe that if they would just leave the market alone, it would finally right itself and in the right way. If they were to undue some of the dumb regulations or de-regulations the markets would figure it all out; however, I believe that this may not happen this time due to the huge amount of US Government intervention.
Can't wait for January 20, 2009 when the Bush family is banished from Washington forever. I am glad that Jeb Bush will never get a chance to run for President since Dad Bush, Brother Bush, and Mother Bush has so trashed the Bush name, he would be laughed out of any fund raiser's office before he got the words out that he wanted to try and run for President.
Bush Family: please go back to Maine and Texas and let us clean up the messes you guys have caused.
Bush 43 Saturday Financial Radio Address
It is so laughable to listen to Bush 43 and how he says that his administration know what is going on and they are moving towards solving the market turmoil.
1. He said that there is a "lack of liquidity" - wrong!
2. There is a lack of confidence in the financial markets - wrong!
3. Declining real estate values is the cause - wrong!
4. The EERA 2008 ($700 Billion bail-out package) will solve the problem - wrong!
5. The economic turmoil is not just with the US - wrong!
6. The US has the largest and most resilient economy in the world - wrong!
7. The world is coming together to solve this problem - wrong!
Let's talk about each one in order listed.
Bottom line: all these financial problems are caused by the USA (Government, Wall Street, and Main Street), and it will not be solved easily, quickly, or with what has been proposed so far. I have some solutions that will work without socialism or intervention.
1. He said that there is a "lack of liquidity" - wrong!
2. There is a lack of confidence in the financial markets - wrong!
3. Declining real estate values is the cause - wrong!
4. The EERA 2008 ($700 Billion bail-out package) will solve the problem - wrong!
5. The economic turmoil is not just with the US - wrong!
6. The US has the largest and most resilient economy in the world - wrong!
7. The world is coming together to solve this problem - wrong!
Let's talk about each one in order listed.
Bottom line: all these financial problems are caused by the USA (Government, Wall Street, and Main Street), and it will not be solved easily, quickly, or with what has been proposed so far. I have some solutions that will work without socialism or intervention.
USA is the cause, world got infected.
The last 3 issues from Bush 43's Saturday morning speech are related and so are discussed in this post.
The economic turmoil is not just with the US: this turmoil is because of and from the USA directly. The reason the rest of the world is sharing in these financial woes is because they bought these MBS, CDO protected by CDS. In other words, we infected the entire world. It stared with US and it will have to end with US.
The USA is the largest and most resilient economy in the world: this may have been before the EERA 2008, but now that the US Government has begun the process of nationalizing its free-markets, the USA will see its GDP and productivity drop like Europe, Japan, and Russia as they began to nationalize their markets.
The world is coming together to solve this problem: well, all you have to do is see how the current G8 financial meeting in Washington DC is dissolving into in-fighting and disagreement. Ireland can't agree with the EU is not doing, Germany blasts Ireland and then does exactly the same thing, France tells the USA to "pack sand", and Italy is just clueless.
The economic turmoil is not just with the US: this turmoil is because of and from the USA directly. The reason the rest of the world is sharing in these financial woes is because they bought these MBS, CDO protected by CDS. In other words, we infected the entire world. It stared with US and it will have to end with US.
The USA is the largest and most resilient economy in the world: this may have been before the EERA 2008, but now that the US Government has begun the process of nationalizing its free-markets, the USA will see its GDP and productivity drop like Europe, Japan, and Russia as they began to nationalize their markets.
The world is coming together to solve this problem: well, all you have to do is see how the current G8 financial meeting in Washington DC is dissolving into in-fighting and disagreement. Ireland can't agree with the EU is not doing, Germany blasts Ireland and then does exactly the same thing, France tells the USA to "pack sand", and Italy is just clueless.
The EERA 2008 will solve it - NOT!
The EERA 2008 (the $700 Bill bail-out bill) was/is the first step towards nationalization of the US financial markets. See my previous posts about what this very bad piece of legislation is going to do the USA. This bill and its LOUC is going to do exactly the opposite of what Washington DC says its going to do. It will drive investment out of the USA since the last bastion of capitalism is now moving towards financial socialism.
When you begin to change the rules so dramatically as with the EERA 2008, the big investors are going to stay away or stay in cash since the LOUC impact of these rules changes are not well understood, and the first rule of investing big is to ensure that you know the rules before you play.
When you begin to change the rules so dramatically as with the EERA 2008, the big investors are going to stay away or stay in cash since the LOUC impact of these rules changes are not well understood, and the first rule of investing big is to ensure that you know the rules before you play.
Declining real estate values caused this - NOT!
Declining real estate values is the cause: the cause was not real estate valuation, but the loan creation process that used low interest rates put in place by Alan Greenspan and the Clinton Administration mucking around with the CRA (ACORN action exacerbated this intervention).
When the interest rates were manipulated after 911 to hang around 1% for almost 18 months, it was the unsupervised (by states the biggest culprit) loan underwriting process (CRA, Fannie Mae, Freddie Mac, mortgage backed securitization, roll-up to CDO, and writing CDS to raise acceptance of these investment vehicles to the entire world). Real estate values went up as the interest rates went down: direct cause and effect.
My previous posts have discussed these financial technical concepts.
When the interest rates were manipulated after 911 to hang around 1% for almost 18 months, it was the unsupervised (by states the biggest culprit) loan underwriting process (CRA, Fannie Mae, Freddie Mac, mortgage backed securitization, roll-up to CDO, and writing CDS to raise acceptance of these investment vehicles to the entire world). Real estate values went up as the interest rates went down: direct cause and effect.
My previous posts have discussed these financial technical concepts.
Lack of Liquidity & Confidence
I deal with these 2 issues from Bush 43's speech since they are two sides of the same coin.
Lack of Liquidity: the system is flush with money and liquidity to the tune of about $400 Billion is direct liquidity injections from the US Treasury alone not counting what other countries are injecting. It is not a liquidity problem but a confidence in the government! Let me say it again...
This is a credit problem caused by institutions now not knowing what the rules are with the huge amount of government intervention. These rules changes cause investors to stop and go to cash since they investments may be end up becoming into competition with the nationalization process under way by the US Government.
Lack of confidence in financial markets: see the above discussion about lack of liquidity. This lack of confidence is in the US Government as it turned almost 90 degrees from free-markets to socialism. This is keeping big players out of the US markets and those that are in are leaving in droves. Why invest in US financial markets when the US Government is nationalizing these assets.
There is lack of confidence in the US Government, not liquidity.
Lack of Liquidity: the system is flush with money and liquidity to the tune of about $400 Billion is direct liquidity injections from the US Treasury alone not counting what other countries are injecting. It is not a liquidity problem but a confidence in the government! Let me say it again...
This is a credit problem caused by institutions now not knowing what the rules are with the huge amount of government intervention. These rules changes cause investors to stop and go to cash since they investments may be end up becoming into competition with the nationalization process under way by the US Government.
Lack of confidence in financial markets: see the above discussion about lack of liquidity. This lack of confidence is in the US Government as it turned almost 90 degrees from free-markets to socialism. This is keeping big players out of the US markets and those that are in are leaving in droves. Why invest in US financial markets when the US Government is nationalizing these assets.
There is lack of confidence in the US Government, not liquidity.
Friday, October 10, 2008
Future topics coming this weekend
Sorry, couldn't blog much today due to the wild market swings and having to take care of some personal issues; however, I will be blogging quite a bit over the weekend. Here are some of the topics which I will turn my posts to over the next few days:
1. Market capitulation and the "sucker's rally"
2. Socialism: taking away my right to fail
3. Republicans and socialism
4. Next week's likely scenarios
5. An open letter to my children
Lot's of stuff to read and make you laugh, cry and throw things. Read often, and tell others. You want them to have the same fun as you, eh?
Is fun still allowed in a socialist country? Will have to ponder that one.
1. Market capitulation and the "sucker's rally"
2. Socialism: taking away my right to fail
3. Republicans and socialism
4. Next week's likely scenarios
5. An open letter to my children
Lot's of stuff to read and make you laugh, cry and throw things. Read often, and tell others. You want them to have the same fun as you, eh?
Is fun still allowed in a socialist country? Will have to ponder that one.
Markets understanding what they asked for!
Market runs another 400-500 pts to the downside as they are showing their little tantrums that now they don't like the way the government is nationalizing both the risk and reward side of the free markets.
With Hank Paulson's announcement that the Treasury would not be demanding an equity stake in financial institutions that they bail out, the market is now seeing the the old adage:
"Be careful what you wish for..."
In this case, it is more like, "Be careful what you lobby for..."
With the socialization of risk, I told you in "Fed Buying up Banks" that once the risk was nationalized, the government, in order protect the poor taxpayer, would want to start taking up some of the profit or reward side. Well, the markets are just now beginning to understand what Paulson and his crew (Dept of Treasury or Goldman Sachs DC office, as I like to call it) are about to do.
It will take many years if at all to untangle the government's intervention into the financial markets, and with the BHO presidency only 4 months away (Jan 20, 2009) and with a Democratic Congress, that entanglement may never go away. The markets are just beginning to understand what they cried "wolf" for and what's it is going to get them.
The Republicans started this under the guise of saving the financial markets, but the Democrats are going to keep it to ensure "that this never happens again." That, my friend, is how socialism quietly walks through the door. Like a "Nas Veratue" or for those not versed in horror films: the living dead, you must ask the Vampire to come into your house since he/she is not allowed to enter unwelcomed. They have weird union rules, I guess.
Anyway, socialism will come to the USA (now the USSA) now by armed revolution, but by the smile and helping hand of the government there to help the many people whose 401K, IRAs, and jobs are on the line. The government gives with one hand and takes with the other.
With Hank Paulson's announcement that the Treasury would not be demanding an equity stake in financial institutions that they bail out, the market is now seeing the the old adage:
"Be careful what you wish for..."
In this case, it is more like, "Be careful what you lobby for..."
With the socialization of risk, I told you in "Fed Buying up Banks" that once the risk was nationalized, the government, in order protect the poor taxpayer, would want to start taking up some of the profit or reward side. Well, the markets are just now beginning to understand what Paulson and his crew (Dept of Treasury or Goldman Sachs DC office, as I like to call it) are about to do.
It will take many years if at all to untangle the government's intervention into the financial markets, and with the BHO presidency only 4 months away (Jan 20, 2009) and with a Democratic Congress, that entanglement may never go away. The markets are just beginning to understand what they cried "wolf" for and what's it is going to get them.
The Republicans started this under the guise of saving the financial markets, but the Democrats are going to keep it to ensure "that this never happens again." That, my friend, is how socialism quietly walks through the door. Like a "Nas Veratue" or for those not versed in horror films: the living dead, you must ask the Vampire to come into your house since he/she is not allowed to enter unwelcomed. They have weird union rules, I guess.
Anyway, socialism will come to the USA (now the USSA) now by armed revolution, but by the smile and helping hand of the government there to help the many people whose 401K, IRAs, and jobs are on the line. The government gives with one hand and takes with the other.
Thursday, October 9, 2008
Don't get angry, get educated!
I have had several readers get upset with my USA assessment with the sinking ship analogy. They say that we have gone through things like this before, we have weathered war, cultural upheavals, and terror attacks. However, they are forgetting one question that they don't want to ask:
How is this time different from those before they used as examples of times the USA recovered?
Here is a partial list of the differences between then and now:
1. The Internet allows anyone, crack pot or level-headed, to spew their acrimony thus keeping people divided and talking about things that in the past weren't even discussed.
2. The complete break-down of the normal family infrastructure in favor of the "nuclear family" format this leads to children lacking discipline, character, and work-ethic
3. The huge explosion of the lottery-mentality where by people want to make it not by hard work, but by hitting it big on the lottery, legal lottery (malpractice and class-action suits), credit card lottery, stock market lottery, real estate lottery, etc.
4. The rising ratio of lawyers to citizens thereby guaranteeing a fresh crop of legal lottery practitioners.
5. The lowering standards of public education due to the involvement of the major teacher unions (UUP, AFT, and the wonderful NEA) that force lower and lower standards from both teachers and students. No wonder the USA student is getting whipped in the market place: Japan has 6 day school weeks, and Indian schools require math and science from all students regardless of gender, and China is, well you get the idea.
6. The capture of the mainstream media outlets by very liberal, socialistic mindsets thereby forcing most of the discussion to be skewed in favor of the above topics.
7. The movement of the 2 political parties towards the center-left leaving true conservatives and far-left out in the cold thereby forcing them to use the Internet to spew their ideas reaching a far larger audience than what would be normal.
8. The advancement of being PCness (political correctness) that prevents normal folks from calling a "spade a spade."
9. The control of the US government by big money via PACs and lobbyists.
10. Concluding, dwindling respect for personal responsibility and accountability. This in and of itself could sink this great country all by itself.
Feel better now? ;-)
How is this time different from those before they used as examples of times the USA recovered?
Here is a partial list of the differences between then and now:
1. The Internet allows anyone, crack pot or level-headed, to spew their acrimony thus keeping people divided and talking about things that in the past weren't even discussed.
2. The complete break-down of the normal family infrastructure in favor of the "nuclear family" format this leads to children lacking discipline, character, and work-ethic
3. The huge explosion of the lottery-mentality where by people want to make it not by hard work, but by hitting it big on the lottery, legal lottery (malpractice and class-action suits), credit card lottery, stock market lottery, real estate lottery, etc.
4. The rising ratio of lawyers to citizens thereby guaranteeing a fresh crop of legal lottery practitioners.
5. The lowering standards of public education due to the involvement of the major teacher unions (UUP, AFT, and the wonderful NEA) that force lower and lower standards from both teachers and students. No wonder the USA student is getting whipped in the market place: Japan has 6 day school weeks, and Indian schools require math and science from all students regardless of gender, and China is, well you get the idea.
6. The capture of the mainstream media outlets by very liberal, socialistic mindsets thereby forcing most of the discussion to be skewed in favor of the above topics.
7. The movement of the 2 political parties towards the center-left leaving true conservatives and far-left out in the cold thereby forcing them to use the Internet to spew their ideas reaching a far larger audience than what would be normal.
8. The advancement of being PCness (political correctness) that prevents normal folks from calling a "spade a spade."
9. The control of the US government by big money via PACs and lobbyists.
10. Concluding, dwindling respect for personal responsibility and accountability. This in and of itself could sink this great country all by itself.
Feel better now? ;-)
Markets crash another 700pts!
As indicated back in October 03, "Too Bad, Congress! Markets TANKS!" the markets are going to move much lower and since October 3rd, the markets have shed almost 2200 points in the DOW in less than a week! That means that shareholders have lost over 2.2 TRILLION ($2,200,000,000,000 USD) in value. All this since the US Government began its big time intervention.
Note that Congress passed the EERA 2008 on Friday, Oct 3, 2008, and then left town. I hope they are getting more than ear full from their constituents over this debacle.
Also, this pretty much means the BHO and a Democratic Congress will be the result on Nov 4th. The public has been duped since it was the Democrats that blocked most of the reforms on Fannie and Freddie (GSE) back in 2001-2004, and we are going to send these people back to Washington DC with a mandate.
What a crock!
USA you will get what you deserve from those actions on Nov. 4th. I am glad that I have passports from several countries where I can move leaving the liberals and democrats to try and fund their programs with a socialized economy and no innovations since all those with brains are leaving this sinking ship.
Bye, bye, USA!
Note that Congress passed the EERA 2008 on Friday, Oct 3, 2008, and then left town. I hope they are getting more than ear full from their constituents over this debacle.
Also, this pretty much means the BHO and a Democratic Congress will be the result on Nov 4th. The public has been duped since it was the Democrats that blocked most of the reforms on Fannie and Freddie (GSE) back in 2001-2004, and we are going to send these people back to Washington DC with a mandate.
What a crock!
USA you will get what you deserve from those actions on Nov. 4th. I am glad that I have passports from several countries where I can move leaving the liberals and democrats to try and fund their programs with a socialized economy and no innovations since all those with brains are leaving this sinking ship.
Bye, bye, USA!
Private Capital is the Right Way!
Again, the LOUC has come to bear on the current financial crisis in the form of the BHCA of 1956 (Bank Holding Company Act) which says that if a private equity fund buys a bank, it must divest itself of all non-financial assets and never purchase any more while it is holding the bank assets.
Well, this sounds all nice and good for the problem that it was suppose to cure back in 1956, but it has kept private equity money from helping out in this credit crisis since no one wants to become just a bank under the thumb of the US Government. So, while there is plenty of private money that would love to come in and buy up this banking assets to keep them from becoming a problem on the government's balance sheet, the LOUC by the US Government's own actions prevents that from happening.
This means that only the Government can help out and this is exactly where it wants to be especially with a socialistic mindset coming to Washington in the fall. This will give them the perfect opportunity to say, and I have already heard it from Pelosi, Frank, and Reid,
"well, the free-markets aren't doing a good job of monitoring or regulating themselves, the government (read that US) has to do the job..."
These people are sneaky like a fox, eh? Make the regulations that cause the problems, and take over the private property (dumping almost $500 Billion in stock equity) if that isn't government socialization of the financial markets, I don't know what is!
By taking over companies like Fannie, Freddie, AIG, etc, these companies shareholders lost everything. I know that it is the risk involved with stock ownership, but when the government does the actions that cause the equities to go to 0, and then step in and take them over, its a rigged system.
In a socialized political system, the government controls the means of production (read that credit markets) in the USA and "to protect the taxpayer..." the US Government is moving head long towards a socialist format.
Well, this sounds all nice and good for the problem that it was suppose to cure back in 1956, but it has kept private equity money from helping out in this credit crisis since no one wants to become just a bank under the thumb of the US Government. So, while there is plenty of private money that would love to come in and buy up this banking assets to keep them from becoming a problem on the government's balance sheet, the LOUC by the US Government's own actions prevents that from happening.
This means that only the Government can help out and this is exactly where it wants to be especially with a socialistic mindset coming to Washington in the fall. This will give them the perfect opportunity to say, and I have already heard it from Pelosi, Frank, and Reid,
"well, the free-markets aren't doing a good job of monitoring or regulating themselves, the government (read that US) has to do the job..."
These people are sneaky like a fox, eh? Make the regulations that cause the problems, and take over the private property (dumping almost $500 Billion in stock equity) if that isn't government socialization of the financial markets, I don't know what is!
By taking over companies like Fannie, Freddie, AIG, etc, these companies shareholders lost everything. I know that it is the risk involved with stock ownership, but when the government does the actions that cause the equities to go to 0, and then step in and take them over, its a rigged system.
In a socialized political system, the government controls the means of production (read that credit markets) in the USA and "to protect the taxpayer..." the US Government is moving head long towards a socialist format.
Markets continues to sell off!
Regardless of what the Fed, FDIC, Treasury, the White House or the Congress do, stocks continue to shed more and more of their value. Banking stocks are taking it in the shorts, the DOW is down over 170pts again and is approaching the 9000 level. Remember, just a a year ago, the DOW was approaching the 14000 level!
So from 14000 to 9000 in 12 months, the DOW has lost 5000 points or 35% in one year. That is very typical of a bear market so its not that we haven't seen this before, its just that it happens so quickly. Remember the reason for the faster slides in DOW than the slower rises: that's right - "fear trumps greed."
This should show you that the markets need to find their own levels of "resolution" before they will turn around. The most important thing to understand is that unless "THEY CHANGE THE RULES" which is a real possibility this time, the markets, like a sailboat with a center weight, will right themselves if left on their own.
However, the year more than any other, the US Government due to the 2008 election has decided to intervene most heavily into the US free-markets. The big question I will deal with over the next few days will be:
Will we ever get back to a true, free-market financial infrastructure?
So from 14000 to 9000 in 12 months, the DOW has lost 5000 points or 35% in one year. That is very typical of a bear market so its not that we haven't seen this before, its just that it happens so quickly. Remember the reason for the faster slides in DOW than the slower rises: that's right - "fear trumps greed."
This should show you that the markets need to find their own levels of "resolution" before they will turn around. The most important thing to understand is that unless "THEY CHANGE THE RULES" which is a real possibility this time, the markets, like a sailboat with a center weight, will right themselves if left on their own.
However, the year more than any other, the US Government due to the 2008 election has decided to intervene most heavily into the US free-markets. The big question I will deal with over the next few days will be:
Will we ever get back to a true, free-market financial infrastructure?
The new USA after Jan 20, 2008
You may be laughing now, but when BHO is elected in a mandate election taking over 300 electoral votes and 38-40 states, he and his Congress will begin the reformatting of the USA. Here's some of events you can look forward to seeing in an BHO administration:
* ACORN will be the official voter registration organization getting millions of your tax dollars through back door appropriation bills and riders.
* The CRA will be expanded and given more sweeping powers to put those who can't afford places they don't deserve, but will be paid for by tax dollars.
* States will ask for and receive with strings more and more Federal dollars thereby increasing Washington's control over local politics.
* Banks will simply give up and turn their assets over the US Government since they will not be able lend without so much intervention from the Feds.
* Small businesses will dry up as their owners figure out they can't make a go of it as the taxes and regulations strangle their capital and innovative capabilities. Owners will flee the USA in droves.
* Large, government sponsored entities like the now big 3 banks (Citi Group, BOA, and Chase) will squeeze out the rest of their competition since they will receive favorable treatment for doing the government's business.
* Private ownership of real property will be frowned on since its the landlords that keep the underclass in poverty (socialistic views), and so the government will socialize housing for the public good.
* Gay marriage will be federally recognized and taught in all schools; homosexual practices will be openly promulgated and charges of intolerance will be leveled against those that don't support such life styles.
* More and more liberal, activist judges will be appointed and quickly approved by BHO and the now filibuster-proof US Senate.
* The "Keoto Threaty" or something even more like will be quickly passed within the first 100 days of the new Congress and signed into law in a very big PR event at the White House.
* William Ayers will be given some job at the Dept. of Education, quietly at first and than later more prominently.
I could go on and on, but these should help you realize how the USA is going to change into the USSA before your very eyes, and most people are just going to quietly accept it. BAAAAAAAAA, BAAAAAAAAAA ;-)
* ACORN will be the official voter registration organization getting millions of your tax dollars through back door appropriation bills and riders.
* The CRA will be expanded and given more sweeping powers to put those who can't afford places they don't deserve, but will be paid for by tax dollars.
* States will ask for and receive with strings more and more Federal dollars thereby increasing Washington's control over local politics.
* Banks will simply give up and turn their assets over the US Government since they will not be able lend without so much intervention from the Feds.
* Small businesses will dry up as their owners figure out they can't make a go of it as the taxes and regulations strangle their capital and innovative capabilities. Owners will flee the USA in droves.
* Large, government sponsored entities like the now big 3 banks (Citi Group, BOA, and Chase) will squeeze out the rest of their competition since they will receive favorable treatment for doing the government's business.
* Private ownership of real property will be frowned on since its the landlords that keep the underclass in poverty (socialistic views), and so the government will socialize housing for the public good.
* Gay marriage will be federally recognized and taught in all schools; homosexual practices will be openly promulgated and charges of intolerance will be leveled against those that don't support such life styles.
* More and more liberal, activist judges will be appointed and quickly approved by BHO and the now filibuster-proof US Senate.
* The "Keoto Threaty" or something even more like will be quickly passed within the first 100 days of the new Congress and signed into law in a very big PR event at the White House.
* William Ayers will be given some job at the Dept. of Education, quietly at first and than later more prominently.
I could go on and on, but these should help you realize how the USA is going to change into the USSA before your very eyes, and most people are just going to quietly accept it. BAAAAAAAAA, BAAAAAAAAAA ;-)
The Fed is Buying up Banks
What did I tell you? The Federal Reserve is now buying up banks that their regulators are saying are not doing well. What a SCAM!
The US Government regulates the banks
The US Government decides when a bank is OK
The US Government via the Treasury buys up these banks
The US Government is now taking private property
The US Government is socialist (See definition of socialism (http://en.wikipedia.org/wiki/Socialism) on Wikipedia)
Definition (courtesy of Wikipedia):
Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society.
I put the definition here, but DYH and read the entire article on socialism by following the above link. It is necessary for your own safety and education since you will soon be living in a socialist country after Jan 20, 2008 when BHO and his Democratic, hell socialistic, Congress take complete control of the US Government.
The US Government regulates the banks
The US Government decides when a bank is OK
The US Government via the Treasury buys up these banks
The US Government is now taking private property
The US Government is socialist (See definition of socialism (http://en.wikipedia.org/wiki/Socialism) on Wikipedia)
Definition (courtesy of Wikipedia):
Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the means of production and distribution of goods, and the creation of an egalitarian society.
I put the definition here, but DYH and read the entire article on socialism by following the above link. It is necessary for your own safety and education since you will soon be living in a socialist country after Jan 20, 2008 when BHO and his Democratic, hell socialistic, Congress take complete control of the US Government.
Musing in the early AM
It's 0340 (that's oh three forty in military time, 3:40 AM for normal folks, and the little hand is on the 3 and the big hand is on 8 for those taught in the NY public school system), and I am sitting here listening to the news about the upcoming election.
Interesting to me are 2 things:
1. The liberals/democrats are supporting behavior from their chosen ones that if had come from the conservative/republicans would have been blasted from one media outlet to another (Examples to follow)
2. How a candidate, McCain, can implode so close to the election by doing things against his entire career and supposed principles.
Examples of Item #1:
A. The investigation of ACORN in over 11 states with the Nevada State ACORN offices having recently been raided on huge assertions of voter fraud, and no one in the media is covering except Fox. Be careful what you support, people. It always comes back to bite you.
B. The complete pass that BHO receives for previous behavior that from a conservative/republican would have gotten and has gotten them fired or forced to retire. The list of examples is huge:
Pastor Wright
Bill Aries
Support for writings and views of Saul Alinsky
Association with anti-Jewish groups in Chicago neighborhood (Palestinian)
ACORN legal support
ACORN training and organization support
ACORN financial support from CURRENT campaign
Explanation of how he got support for Harvard Law School acceptance
Non-release of Harvard Law School papers and writings
OK, enough... the list could be many times longer, but you get my point. Now what does this mean, if anything? It usually means that BHO is the darling of the media with the exception of the Fox Network which by the way is growing faster than all the other networks almost combined. Also, it means that we no longer have an unbiased media in this country, and that's the scariest point to me. Most US citizens don't use critical thinking when listening to normal media or Fox.
Back to our regularly scheduled programming...
Interesting to me are 2 things:
1. The liberals/democrats are supporting behavior from their chosen ones that if had come from the conservative/republicans would have been blasted from one media outlet to another (Examples to follow)
2. How a candidate, McCain, can implode so close to the election by doing things against his entire career and supposed principles.
Examples of Item #1:
A. The investigation of ACORN in over 11 states with the Nevada State ACORN offices having recently been raided on huge assertions of voter fraud, and no one in the media is covering except Fox. Be careful what you support, people. It always comes back to bite you.
B. The complete pass that BHO receives for previous behavior that from a conservative/republican would have gotten and has gotten them fired or forced to retire. The list of examples is huge:
Pastor Wright
Bill Aries
Support for writings and views of Saul Alinsky
Association with anti-Jewish groups in Chicago neighborhood (Palestinian)
ACORN legal support
ACORN training and organization support
ACORN financial support from CURRENT campaign
Explanation of how he got support for Harvard Law School acceptance
Non-release of Harvard Law School papers and writings
OK, enough... the list could be many times longer, but you get my point. Now what does this mean, if anything? It usually means that BHO is the darling of the media with the exception of the Fox Network which by the way is growing faster than all the other networks almost combined. Also, it means that we no longer have an unbiased media in this country, and that's the scariest point to me. Most US citizens don't use critical thinking when listening to normal media or Fox.
Back to our regularly scheduled programming...
Wednesday, October 8, 2008
How the Dems will solve financial crises
I told you I would tell you how the Dems, if they capture both the White House and Congress in 2008, will get us out of the coming slow down that is coming to the USA and world.
They will find a conflict and escalate it into a war so that the economy will have to go into war production. HA! Don't believe me? You need to do your homework. Let me help you...
Here are the facts beginning from 1900:
World War I: began under the first Democratic President of the 20th century, President Woodrow Wilson
World War II: began under the iron fist of FDR, the great democratic President that brought you the Great Depression (See "The beginning of the Crash of 2008" for more details on FDR and the Great Depression).
Korean War: started when Truman, another democrat, decided not to negotiate, but escalate an already tense situation in the Korean Peninsula, but ended by a Republican, IKE.
Vietnam War: started and escalated by JFK and LBJ, but ended by a Republican.
The Iraq War: started by Bush 43, a democrat in republicans clothing ;-)
So you can see that the democrats have an 80% track record of starting wars to end unstable financial times. So with those odds, I would beat the BHO will find someone to attack before too long. He has already said that he would invade Pakistan if he thought he could get OBL (Osama Bin Laden), or Iran if he thought they were going to use the bomb. I am sure he will be able to find someone to attack and ramp up the US war machine to end the financial instability.
BHO may even find that the UN may take over the USA's military operations thus freeing up a ton of money for his social programs, eh? He can always find an aspirin factory or two that needs flattening as well.
They will find a conflict and escalate it into a war so that the economy will have to go into war production. HA! Don't believe me? You need to do your homework. Let me help you...
Here are the facts beginning from 1900:
World War I: began under the first Democratic President of the 20th century, President Woodrow Wilson
World War II: began under the iron fist of FDR, the great democratic President that brought you the Great Depression (See "The beginning of the Crash of 2008" for more details on FDR and the Great Depression).
Korean War: started when Truman, another democrat, decided not to negotiate, but escalate an already tense situation in the Korean Peninsula, but ended by a Republican, IKE.
Vietnam War: started and escalated by JFK and LBJ, but ended by a Republican.
The Iraq War: started by Bush 43, a democrat in republicans clothing ;-)
So you can see that the democrats have an 80% track record of starting wars to end unstable financial times. So with those odds, I would beat the BHO will find someone to attack before too long. He has already said that he would invade Pakistan if he thought he could get OBL (Osama Bin Laden), or Iran if he thought they were going to use the bomb. I am sure he will be able to find someone to attack and ramp up the US war machine to end the financial instability.
BHO may even find that the UN may take over the USA's military operations thus freeing up a ton of money for his social programs, eh? He can always find an aspirin factory or two that needs flattening as well.
Different and yet the same
Many people are pointing out the similarities to this current financial crisis to the one in 1929 and then make the leap that this could lead to another Depression. While I believe that we are experiencing a nice sized CRASH in the markets, we will not enter a depression, but simply a very long, protracted time of slow to no growth.
Have you seen that oil is < $90/barrel, down from $147/barrel? and the stock market continues to dump. Why? Before when oil went up, the markets went down, and when oil went down, the markets went up. Now the markets and oil are moving together? Very confusing, eh?
Well, not really if you understand 2 things:
1. Oil is sold and denominated in USD (US dollars) and it is going up, so commodities denominated in USD go down
2. The global market crash is indicating that people are going to spending less, transporting less, and therefore energy demand, worldwide, will probably pull-back and therefore, there is an over supply of oil, and therefore the price of oil goes down.
What does all of this mean? Well, you need to do 2 things to protect yourself in times of financial chaos.
First, don't panic since those that keep their heads while everyone else is losing theirs will probably end up doing much better. You probably don't need your investments tomorrow so don't sell if you haven't already. Keep dollar-cost-averaging to your 401K or IRA. As the price of investments decline, you average dollars will buy more thereby lowering your average cost of acquisition.
Second, ensure that you have at least 4-6 months of living expenses in cash or credit cards. Yes, I said unused credit card limits. You need to have emergency money in case of loss of job, interruption in cash flow due to illness, or disability.
These 2 things allow you to sleep better at night and weather pretty much anything that will come our way in the foreseeable future.
BTW (by the way), we are not going to go into a depression due to the many things that are different from 1929. The worst that can happen, and probably will is that the Democrats get hold of the White House and Congress and go on a tax increase and spending spree. This will keep a big lid on growth, but will not recreate the Great Depression. Jobless rates will probably not get much over 8-9% and that's a far cry from the 25-28% unemployment during the height of the Great Depression.
In my next post, I will tell you how the Dems will get us out of this slow growth situation. You will not believe it.
Have you seen that oil is < $90/barrel, down from $147/barrel? and the stock market continues to dump. Why? Before when oil went up, the markets went down, and when oil went down, the markets went up. Now the markets and oil are moving together? Very confusing, eh?
Well, not really if you understand 2 things:
1. Oil is sold and denominated in USD (US dollars) and it is going up, so commodities denominated in USD go down
2. The global market crash is indicating that people are going to spending less, transporting less, and therefore energy demand, worldwide, will probably pull-back and therefore, there is an over supply of oil, and therefore the price of oil goes down.
What does all of this mean? Well, you need to do 2 things to protect yourself in times of financial chaos.
First, don't panic since those that keep their heads while everyone else is losing theirs will probably end up doing much better. You probably don't need your investments tomorrow so don't sell if you haven't already. Keep dollar-cost-averaging to your 401K or IRA. As the price of investments decline, you average dollars will buy more thereby lowering your average cost of acquisition.
Second, ensure that you have at least 4-6 months of living expenses in cash or credit cards. Yes, I said unused credit card limits. You need to have emergency money in case of loss of job, interruption in cash flow due to illness, or disability.
These 2 things allow you to sleep better at night and weather pretty much anything that will come our way in the foreseeable future.
BTW (by the way), we are not going to go into a depression due to the many things that are different from 1929. The worst that can happen, and probably will is that the Democrats get hold of the White House and Congress and go on a tax increase and spending spree. This will keep a big lid on growth, but will not recreate the Great Depression. Jobless rates will probably not get much over 8-9% and that's a far cry from the 25-28% unemployment during the height of the Great Depression.
In my next post, I will tell you how the Dems will get us out of this slow growth situation. You will not believe it.
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