Tuesday, August 30, 2011

how's the Depression working out for you?.....

I'm into paying off everything again so I'll be ready to borrow again. I use credit cards as savings so if, or more than likely,when I have an emergency I have plenty of funds handy.

Saving up cash and squirreling it away in a savings account at 1% is silly. Better to have  credit cards and huge line of credit for personal loans. I can normally borrow at 3% or so from the credit union and banks because my credit score is over 740 when i pay everything down and we have no house payment.

Because of my money strategy I'll have everything i need when I put in for my Social Security and travel the country and screw off until I get bored shitless and go back into business for my self.

By the way, I sold the 5th wheel and made 4 grand profit and am thinking of getting a truck camper and boat to play fearless fisherman in Arizona and Florida a couple of years for now. 

Still toying with buying and selling mobile homes to generate cash flow but Patti refuses to live any longer in Idaho than she has to and doesn't want us to have to worry about it while I'm south for the winters.

Maybe I'll end up in Arizona or Florida and do some of it there.

keep you posted.

Monday, August 29, 2011

I'm glad I don't live on the East coast...

All those politicians patting themselves on the back because they had a bad wind storm and it didn't make them look foolish.

You would think that a small hurricane was the end of the world for these people if they hadn't been so efficient!

Of course, normally these people blow it and screw up because few of them really know what they're doing. Just look at Katrina and the response there.

Oh yeah, it was Bush's fault!!!

Saturday, August 27, 2011

The big fizzle...

Hurricane Irene!

Very slow on the TV after the Bernanke fizzle Friday. They could have called me and i could have told them that the Fed can't save this economy!

Friday, August 26, 2011

That will teach him...

There was no reason to down grade the Empire and he paid for it with his job. We can borrow, steal,print money for debts, or simply cancel them.

No one can stop us!

The First Casualty of the S&P Downgrade of the U.S. Treasury...
The First Casualty of the S&P Downgrade of the U.S. Treasury...

...is S&P President Deven Sharma.

David Gelles and John McDermott report:

Sharma to step down as S&P president: Deven Sharma is stepping down as president of Standard & Poor’s only weeks after the rating agency issued an unprecedented downgrade of the credit of the US, according to people familiar with the matter. Mr Sharma will remain as an adviser to S&P’s owner, McGraw-Hill, for four months and leave the company at the end of the year, they said. Mr Sharma will be replaced as S&P president by Douglas Peterson, chief operating officer of Citibank, the banking unit of Citigroup, they said. The downgrade of US credit on August 5 led to the worst single day fall in US equity prices since the depths of the financial crisis, and triggered weeks of global market volatility.

Thursday, August 25, 2011

This is only the beginning.....

And Washington doesn't give a shit!

I contend that we must fix the bridges that people are living under by hiring the people living under them so they won't have to live under them!

America Is Rotting - HiddenMysteries
In case you were wondering, that is not good news.

Our politicians have lied to us. Globalism is destroying our economy. We should have never merged our economy with the economies of nations such as China.

Beautiful new infrastructure is going up all over China even as U.S. infrastructure rots and decays right in front of our eyes.

America is being deindustrialized at warp speed and most Americans don't even understand what is happening.

Pretty soon, even more cities are going to end up looking like Baltimore and Detroit. The mortgage delinquency rate is starting to rise once again. As our jobs continue to be shipped out of the country, millions more Americans will lose their incomes and their homes.

If you want to see what the future of your city is going to look like, you might want to check out the really disturbing images of the decline of Detroit that you can find right here.

What has happened in Detroit and Baltimore will soon be happening to all the rest of us.

The world is changing at a very, very rapid pace. Just because America was an economic powerhouse in past decades does not mean that it will always be that way.

The truth is that America is rotting. If our leaders don't start making some very fundamental changes to the way we do things, we will continue to rot.

Very dark days are ahead for America. Enjoy all of this prosperity while you still can, because soon enough it will all be gone.

Wednesday, August 24, 2011

I guess some people don't get it...

Read this article whole and then the following will be in context:

China doesn't have many choices? Of course they do. Dump our money and quit selling all that junk to us and go back to the stone age.

Or keep buying our debt!

Or how about returning to Maoism? (that one worked out well for them, didn't it?)

If by chance they would or could dump our debt, who would they sell it to?

Again, where did China or anyone else  get all this money in the first place? Does the author really believe the world economy doesn't depend on our trade, paid in dollars, and they can willy nilly stop taking our money in trade without destroying the recipients of our dollar trade?

And real estate will recover as soon as all those bad loans are either foreclosed, forgiven, or paid off and we start buying again as new household formation lead by people with good credit and a job results in new purchases!

The caveat here is budget cuts kill jobs and that is the really something to fear as we have the 30's for our historical example.

The only point I agree with is the outsourcing our jobs overseas leaving millions of our under educated people with no hope for a middle class life style. And yes, this is where too much of our government spending is going and needs to be corrected.

But what we'll get is more "free trade" agreements and China funding our welfare system so these people don't end up sleeping in your back yard!

Fake economic recovery and the road to the Greater Depression | Washington Times Communities
Today the American government carries the greatest debt load in history. We have a fiat dollar – money that only has value because the government says it does – and the American economy is structurally unsound. We produce too little and consume too much, and we finance our consumption with debt.

This state of affairs cannot end well. No nation has ever become prosperous through unbridled consumption and borrowing. This is how nations get ruined.

Nations become wealthy when their citizens produce things and save their money.

That is exactly what Chinese are doing now. As a result, they are becoming wealthier by the day while we are becoming poorer.

The Chinese are self-reliant. They work hard and they make things. We, on the other hand, increasingly rely on government to take care of our needs. If you have any doubt about that, just look at the federal budget and see where the endless torrent of money is flowing.

The debt has both the dollar and the economy in a chokehold (National Archives)

What's worse, we cannot pay for almost half of that over-bloated budget. Our government has to borrow heavily to cover the vast shortfall. The Chinese are financing a large chunk of it.

What a twist of irony: A formerly communist country is financing a formerly free-market country. Who would have ever thought that things would get so far?

This anomaly will not last forever. The day the Chinese dump our debt will be the day the dollar collapses. We are lucky that the Chinese do not want to see this happen. They would rather see America chugging along.

Tuesday, August 23, 2011

Yea, right.......

In order to lose you have to have an opponent that has credibility. Bachman, Perry, Romney ain't got it.

However, if the economy continues to tank, one of these people  wins because pissed off people wont take "it's all Bush's fault".

Obama will lose, and it won't be close | Washington Times Communities
SALT LAKE CITY, August 16, 2011—Many on the Left claim to think that President Obama will be handily re-elected. Commentators who are reliable cheerleaders for Democrats, such as Lawrence O’Donnell and Peter Beinart, have publicly declared their faith in the president’s re-election prospects.

Hillary Clinton said a few months ago that she was “confident” of Obama’s re-election, while Nancy Pelosi guaranteed it.

Most Democrats, however, merely fall back on the standard prognostication that Obama will eke out a close election, like a coach telling his team that things aren’t that bad during halftime of a game in which they find themselves behind … big.

Obama will lose re-election, and it won’t be close.
Change is coming.

Change is coming.

First, look at the electoral map, which settled in favor of the president, 365 – 173 in 2008, an impressive win indeed.

But the map is different now. Obama will not win any state that John McCain won; it’s just not that kind of environment. Those states gained six votes in census-year reapportionment.

Then there are almost certain losses for the president—states (and their votes) he won last time that will not swing for a liberal democrat who now has a record to defend: Iowa (6), Ohio (18), Indiana (11), Virginia (13), North Carolina (15), Nevada (6), New Mexico (5), and Florida (29). Those states have 103 electoral votes between them.

Monday, August 22, 2011

It ain't over til it's over....

Remember my 20 thousand for everybody? Listen to this whole show and tell me what you think.

There is no limit on the government, who gave 20 trillion to the gangsters who got us into this mess, from sending you and I a big check.

The only stopper is the government isn't serious about correcting this mess.

P.s I expect another 3 or 4 hundred coming to keep us quiet as the Feds give trillions more to their owners who control the election process!

Crisis is Not Behind Us. You ain't seen nothing yet!

Sunday, August 21, 2011

There is no real difference between Republicans and Democrats...

Everyone in politics has someone to support. That's how you get power. Just hire out to one 'special interest' or another.

Stimulus thinking: Adventures in tea-party cognitive dissonance | The Economist
But what's amazing here, obviously, is that Mr Phillips is justifying building aircraft carriers because government spending creates jobs and stimulates the economy. And he's right about that! But it seems that there are no other things the government spends money on, apart from defence, that Mr Phillips believes can stimulate the economy. He appears to believe that while government spending on aircraft carriers leads to workers getting hired, spending their paychecks, and helping the recovery, government spending on highways, high-speed rail, education, and health care does not. Meanwhile, Mr Phillips also believes, as he argued in a Washington Post op-ed last week, that the government shouldn't borrow any more money, because that's leading us to economic ruin, like Greece. And he believes that the government shouldn't raise taxes, because that kills jobs. So where is the money supposed to come from? We're left with one possibility: Mr Phillips believes that we should build more aircraft carriers to stimulate the economy, and fund it by cutting other government spending programmes. But obviously when you cut other government spending programmes, the people who were working for those programmes lose their jobs, stop receiving paychecks, and stop spending money, which harms the recovery. And then there's the question of how many $2.6m prostitute-safe-drinking programmes you can find to cut. You need 3,500 of them to fund your $9 billion aircraft carrier.

The tea-party movement has spent the past year arguing that stimulus doesn't work and cannot, by nature, create more jobs or economic activity. The idea that a major tea-party figure can turn around and make a bog-standard argument for defence spending on Keynesian grounds testifies to a startling capacity for cognitive dissonance. I'm impressed. And just to make it clear: I believe that it is absolutely worthwhile to explore whether Chinese prostitutes would be less likely to contract HIV if they learned some techniques and habits to avoid becoming drunk in encounters with clients, and I have every confidence that the money for the programme Mr Phillips attacks was awarded in a proper merit-based fashion.

Saturday, August 20, 2011

Hey,it worked for Hoover....

Of course, he got his ass kicked for destroying the economy! Read the whole thing about balancing the the budget in'32 and you'll see the results.

Not a great plan when the economy is in the toilet!

Herbert Hoover: Statement on Efforts to Balance the Budget

"The whole of the administrative officials are cooperating with the special Economy Committee appointed by the House of Representatives in the drive to bring about further drastic economies in Federal expenditure.

"You will recollect that the budget sent to Congress represented reductions in expenditures for the next fiscal year of about $365 million below the present fiscal year. The House Appropriations Committee has reduced the amounts of bills so far reported out by about $112 million. Of this, however, between 60 and 70 million is a deferment until Congress meets next December when they will be compelled to meet positive obligations by deficiency bills. To this extent, therefore, the reductions do not help next year's expenditures.

"In order to meet the requirements of the Ways and Means Committee that expenditures must be reduced by $125 million in order to balance the budget, it is necessary that further cuts be made. There is very little room left for reductions by administrative action and the House Appropriations Committee has passed upon the major supply bills except the Army and Navy. Further economies must be brought about by authorization of Congress, either by reorganization of the Federal machinery or change in the legal requirements as to expenditure by the various services.

Friday, August 19, 2011

Want a reason for high prices?.....

Watch the price of oil! Scam artists taking advantage of Oba mama's failure of leadership and Republicans kicking his ass.

Stock market crazy? Trillions of dollars are sloshing around the globe looking for safety or profits. Bonds selling like hotcakes? The safety net for the big boys because:

The US can never go bankrupt and can pay everybody back their money!

In the mean time, Oba mama wants to raise taxes on the big boys and the Republicans want to slash government spending killing the economy!

Mike Norman Economics: Why are you paying more for gas? Speculators from Bill Gates to the Yale endowment are buying oil futures
Why are you paying more for gas? Speculators from Bill Gates to the Yale endowment are buying oil futures

What a joke. As people struggle to pay their bills and put food on their table we allow rich individuals and university endowments to buy oil futures, adding to upward price pressures. Meanwhile, nothing is done. Then, when people demand to know why this is happening, they are given bogus excuses about China and not allowing offshore drilling.

"A range of investors were in the market, too. Yale University, Singapore's government, hedge funds Brevan Howard and D.E. Shaw & Co., as well as pension funds for Texas teachers and Danish workers all held positions, according to the list.

Also featured were a handful of individuals, including Aubrey McClendon, chief executive of Chesapeake Energy Corp. (CHK - News), one of the nation's largest producers of natural gas. Cascade Investment LLC, the investment arm for Microsoft Corp. (MSFT - News) co-founder Bill Gates, appeared."

Thursday, August 18, 2011

Next time someone talks about digging holes....

And hiring people to fill them and sneers about it on some TV talk show, just ask yourself, what is this guy on your set doing that's so productive?

Think we should ask these people...You go on TV and talk to other people on TV and just what did you do for the economy?

They pay these people to do what?

My point is, if the government paid me to dig holes then paid my brother to fill them isn't that  actually the same thing as paying people to talk on TV! Except for the source of the payer, of course.

These people create nothing tangible for the economy.

Except lie and scare the Hell out of people who know nothing about how our economy works because they all went to public schools and learned all about football and cheer leading but nothing much real or tangible.

And you wonder how we end up with the clowns and gangsters in government office?

Hire somebody and get the Hell out of the way is much more productive then balancing budgets during a DEPRESSION!

Wednesday, August 17, 2011

Ain't religion wonderful.....

And I thought that you couldn't eat animals with cloven hoofs was weird.

Restaurant Can Be Sued For Serving Meat To Vegetarians
On August 10th, 2009, 16 people in Edison, NJ ordered vegetarian samosas from Moghul Express, an Indian restaurant on the town's almost-exclusively-Indian Oak Tree Road. The customers were devout Hindus. They did not eat meat for religious reasons, so they made sure to ask Moghul Express several times whether the samosas had meat in them. The person taking their order told them Moghul Express didn't even make meat samosas, according to the Star-Ledger. They ate some of the samosas, which tasted of meat. They again asked whether the samosas were vegetarian—but this time, they were told that the samosa contained meat.

They decided to sue for emotional and monetary damages. The plaintiffs claimed that eating meat had caused them serious spiritual harm, which could only be rectified by an expensive pilgrimage to the Ganges River. They asked Moghul Express to pay for the trip. At first, the courts told them that the suit was inadmissible. They appealed.

On Monday, a New Jersey Appellate Court decided to allow the suit to go forward. This does not mean that the suit will be successful. It just means that the three-person Superior Court found that the plaintiff's case met the basic prima facie qualifications for it to proceed.

The most famous such case, in which vegetarian groups sued McDonald's for including beef in its french fries, allegedly ended in a multi-million-dollar settlement.

Tuesday, August 16, 2011

It's all politics...

get rid of Oba mama and the Dems in Congress. The owners of our government have made up their minds.

Mike Norman Economics: Stop listening to all the propaganda about the debt. It's WRONG!
Thursday, August 11, 2011
Stop listening to all the propaganda about the debt. It's WRONG!

In 2008 the deficit was $450 bln and the national debt was $9 trillion. The dollar index hit a low of 70.68.

This year the deficit is forecast to hit $1.6 trillion and the national debt is $14.5 trillion. The dollar index is at 74.57. THE DOLLAR WENT UP!!!!!!!!!!!

The growth of the debt/deficit had ZERO impact on the dollar. It went UP!
Interest rates on 10 year Treasuries went from 4.0% then, to 2.1% now!

Stop listening to the propaganda about the debt. The facts above PROVE that all the hysteria is WRONG. The growth in the debt is NOT inflationary, it’s NOT debasing the dollar, it’s NOT causing interest rates to skyrocket. All of that IS bulls—t!!!!!

Monday, August 15, 2011

How are National debt is financed.....

These two  graphs are all the proof you need that the taxpayer or our grand children are not on the hook for trillions. Also, notice that foreigners own about 4 trillion and Americans own 8. (Though dated 2009, the numbers are about the same percentages in fiscal 2011.)

The most interesting thing is people are terrified that the Chinese or oil countries will quit buying or sell off their holdings.

Let's say China did. And we quit buying their junk. The Chinese people lose their jobs, starve, riot and murder all the idiots in charge of the Commie government.


Makes me wonder where all the geniuses in our country believe that anyone could live without our trade!

No trade no dollars no buy stuff from us including debt. Pretty simple. Dollars belong to the sovereign entity. The good old U.S.A

So, quit trading with foreign nations and a third of our debt disappears because these broke dicks wouldn't have an economy and are proof positive they can't live without us!

And' baby, wouldn't many of them want to!

World peace, as far as the major players are concerned, is happening making major war amongst us unlikely.

The secret was giving these countries capitalism and an economic Empire to manage the money and protect the players from assault from outsiders.

That's the rationale for "free trade." Make the world safe for democracy!

But now the system is in a mess because of politics. Politicians have to stay in power so they give money and loans to "special interests", military readiness, social engineering and,  of course,the down trodden.

But we decided to continue spending like drunken Democrats in a whorehouse during boom times and the increase of the debt scared the b' Jesus out of the fiscally prudent among us and they want it stopped!

Unfortunately, stopping during a depression is not going to help the economy because all government spending is someone's paycheck. And this income goes right back into the economy by these people paying their bills and feeding their families. That being the case, it enters the market place and many of us get our hands on it and buy U.S debt for our old age.

And I like to point out that it's our money! Every dime. We will get it back and spend it again if we still have jobs!

And, surprise, cutting paychecks in a depression is nuts!!!

Sunday, August 14, 2011

Sold the 5th wheel...

I decided it was to old for my retirement so $4500 for a camper that I got for a few bucks in repairs ain't bad!

Saturday, August 13, 2011

Just what part of SS Insurance don't you understand?....

Social Security is no more than any other insurance policy and pays for it self through our working lifetimes. If you buy life insurance and die your heirs get paid. Same with disability. But Social Security pays you for surviving and paying in for a lifetime and belongs to you.

Cutting it is a crime. Depriving the next generation of benefits would be akin to stealing someone's life insurance.

No more talk from Washington on "reforming" Social Security as it doesn't belong to Washington but to we the people.

This conservative would become a Democrat and go after anyone stealing this insurance from the working stiff as the gang in Washington already stole our decent paying jobs and sent them to China, Mexico or bum fuck Asia somewhere!

And investing in the stock market is as about doable as buying lottery tickets for the average wage earner! Who in the Hell has enough money left over to give to these gangsters, anyways.

Want to balance the budget in Washington?

Fire them all that got us into this Depression and send us the money they've been stealing to give all the ass kissers who buy their vote in Congress!

Friday, August 12, 2011

Are we having fun on Wall Street or what?

As soon as Oba mama quits blowing up the Middle East our oil supply will stabilize and so will our economy.

If there is one left, that is!

Early Warning: Note on Unemployment Claims
Calculated Risk just posted the weekly unemployment claims. I note the form of the bump up this year is entirely consistent with the view that the economy's main H1 problem was a mild oil shock beginning in about Feb/March with the sudden withdrawal of Libyan oil from the global economy. Note that the slight elevation in new claims has been declining in recent weeks - just as global oil supply has been growing again. In particular the advance figure for last week was 395,000. Thus the recent stock market declines do not seem to have led to any increase in US layoffs, at least not so far.

As long as there is no new banking crisis, I don't see why the US economy is about to enter recession.

Thursday, August 11, 2011

Our housing market is coming back....

Houses are selling. Even with 12% unemployment. Remains to be seen if it continues so I'm going to get qualified for a bargain or two. I missed a couple of repos this year because I borrowed for my truck and 5th wheel securing my retirement plans.

 May have to find a few rentals to pay the bills while I go fishing in my old age. LOL.

And I also tell anyone who will listen, you only have to watch the price of oil. It goes up the economy collapses, when the price goes down, boom coming.

Sounds incredible when your in a crash but it is inevitable as trillions of dollars have to come home and people can't wait to get their hands on it.

If we would have stimulated the demand side in the first place, (consumers), instead of the supply side, (crooked banks and Wall Street gangs,) this would have been a nasty recession instead of a depression.

I contend that it was the oil spike taking billions of dollars out of broke dicks that crashed our system just like in the seventies under clueless Jimmy Carter.

Now we are stuck with hapless but "articulate" Oba mama.

But it now looks like that even Carter could beat him next year!

Wednesday, August 10, 2011

Economist call it "Paradox of Thrift"......

If everyone contracts in spending the economy collapses. Especially when governments tightens their belts thousands lose there jobs. And if you raise interest rates millions can't qualify for loans.

Another way of saying if we all stop our spending we all go broke because we all buy and sell to each other and are interdependent. My spending is someone's pay check and vice versa. Same with government spending. That being said we can only cut back these expenditures during an economic boom slowing the resulting bubble not during economic collapses.

I like budget balancing as much as the next guy but you can't cut off your nose to spite your face.

What should the government  do now?

Send everyone on the tax rolls a big check! We are collectively broke. Trillions of household wealth has been lost and our economy is in limbo as the government is trying to stimulate the supply side of our economy by loading up the banking reserves. These fuckers got all the money now and can't pass it around because we are broke and to many people lost their credit rating and couldn't borrow it if their lives depended on it!

You need an income in our world or you live under a bridge bumming change! Currently, most people are barely getting by as we exported our middle class to the Commies and Mexicans and we no longer have a high spending middle class.

P.s the crashing stock market is telling the Fed to give them more handouts so they can continue buying politicians and paying the gangsters in charge big bonuses.

He will!

We need some leadership in Washington to put an end to it but we ain't going to get it for awhile!

Tuesday, August 09, 2011

I remember calling for a tax holiday...

Need to boost the economy? Bring the money home!  It's all locked up in corporate accounts overseas.

It looks like Oba mama is in pissing contest with the owners of the government and he ain't winning!

Pretty soon everybody will roll over and it will be business as usual.
You can't beat these guys because they have all the money. Hey, ask yourself, did any of these bastards lose a dime, their jobs  or go to prison for this mess we are in?

Need more convincing?

Monday, August 08, 2011

My post on neweconomicsperspectives.blogspot.com

The most interesting phenomena is Canadians invading the U.S and stripping the shelves of our retailers. I see a thousands pour in to Walmart 60 miles from the B.C - Idaho border and stock up on cigs, booze, breakfast cereal and anything else they can get their hands on.

I'm told the reason is that their buck is worth $1.07 and they see everything here at a big discount from what they pay at home.

Will other countries flood us tourists loaded with our money and ignite a boom?

They have to spend it somewhere!

Sunday, August 07, 2011

Just what is this defict talk all about?.....


We have to remember that the question is really about how much government do we want and who rules.

Our Congress appropriates the monies it decides we need to fund government services and then BORROWS the money to do it. This is what the "budget ceiling " controversy is all about. And they are all ready to start over.

Notice this has nothing to do with taxes other than the government has to have some to be able to borrow as no one would lend the government much if it didn't have an income.

In other words, we raise or lower taxes for political reasons (balancing the budget, save the world, punish the rich, funding green religions, discouraging socially acceptable behaviour, killing little brown people around the world, etc) not that the government needs the taxes to pay debts, as proven by almost a hundred years of deficit spending. yes, with an expanding economy we can borrow forever! Just pay the interest with new taxes that roll in. (and no, the rich are doing just fine, so screw them!)

When I point this out I'm told that we don't want our government to do all that stuff, I simply counter with that's what we voted for! And everybody needs to get paid. That's where all government spending ends up.

In pay checks!

So, my question, still unanswered, is just what good does it do for your local economy,  to lay off a teacher, a fireman,a soldier, a government lawyer, thousands government construction workers and millions of other government workers, hmm!

Still want to cut government spending during a depression?

Saturday, August 06, 2011

How do we balance the budget?...

Fire all government employees who actually do something and quit giving all those checks to old geezers and vets. Stop all world trade and find a rock to climb under.  Outlaw Walmart. Pull the plug on the "evil " Pentagon.

Hey, you have to admit it would be exciting!

Duncan Black Reminds Us That Governments Have Eliminated Half a Million Public Sector Jobs since July 2009...
Duncan Black Reminds Us That Governments Have Eliminated Half a Million Public Sector Jobs since July 2009...

Profoundly stupid. Stupid. Stupid. Stupid. Stupid. Stupid. Stupid. Stupid. STUPID!!

When financial markets are desperate for the safe financial assets created when a credit-worthy government hires people and borrows to pay them, when the unemployed are desperate for jobs, and when lots of useful things the government can make and do are left unmade and undone...

Friday, August 05, 2011

Borrowing during a Depression....

Cash is king but it doesn't have to be your cash. Get your finances in order then borrow to beat the band. Remember in the long run we are all dead!

Sounds, and is counter-intuitive, but money  is practically free right now. I'm buying used vehicles, like new, for 3.9%. House loans are under 5% if your interested. Plenty of opportunities will present themselves as soon as the Democrats takeover Congress because the Repubs threaten to destroy Social Security and Medicare and someone has to jump start the economy.

Then the jobs programs begin flooding the household economy with liquidity which is exactly what I have been bitching about:

WE are broke as a whole. Most people are not working and spending. Either you don't  have an adequate income or your credit is shot and you can't buy shit is still what's killing the economy.

Until the rest of the private debt is resolved expect more of the same. And broke dicks can't pay off debts as it is let alone borrow more.

One easy fix:

Send everyone on the FICA tax rolls a check for 20 thousand or so and we'll take care of that political problem!

P.s only one company on Wall Street is making huge money right now. Their secret they have been debt-free for almost 9 years and spend most of their money on R&D. During the boom they quit borrowing and are having no problem making money. Apple!

But the average household borrowed many times their net worth and then lost everything during the bust. Does this sound like Keynesian theory to you.

Simple econ 101. Something that the gang in Wahington has ignored at our peril!

Ms Market Offers the U.S. Government Free Money for Ten Years...
Ms Market Offers the U.S. Government Free Money for Ten Years...

The FT reports:

Global growth fears push gold to new record: "The 10-year US bond yield is down 9 basis points to an eight-month low of 2.66 per cent – the first time it has broken 2.70 per cent this year – while short-term yields are near record lows as the Federal Reserve is seen staying “lower for longer”."

If anyone were offering my family money at 2.66% nominal for ten years, I can tell you that we would be borrowing big time and investing...

Thursday, August 04, 2011

Where are the jobs?...

Why is more than one out of ten adults in this country sitting on their asses watching American Idol and not working? And why all this bull about budget deficits when everybody on the planet knows it's all a crock to keep the tea party  voting Republican!

The government brings in 175 billion a month or so and pays out 23 billion a month in interest. (These numbers are bouncing around in the ball park)

You and I should be so lucky have the governments debt problem!

We can pay our debts and still have plenty of money left over to kill plenty of  brown people who don't like Jesus.

Oh yea, Social Security. Oba mama knows better that the trust fund is financed directly by our payroll taxes and  has enough coming in to pay our checks for at 25 more years!

Not that they need to tax us for it! If taxing us for it was so necessary why not tax us directly for wars with a "war trust fund"? Hmm.

Might even get a few billion voluntary contributions from skinheads, lol!

Wednesday, August 03, 2011

Why we don't use gold as money....

Why would anyone buy gold?

Why would anyone buy a Van Gogh? Or race horse, dumpy houses, diamond,etc?

Gold is an ancient commodity that holds some value throughout history. It's advantage is that it can be converted into any sovereign currency so, like the American dollar, it "travels" well unlike most anything else used as money, except, perhaps, precious gems.

Unfortunately for many, gold is a long term investment as there are sales commissions involved in the conversion upon sale so it's conversion to a currency is at a loss.

So the caveat about using commodities as a money for our system is that it's difficult to make a short term profit on it. Which is to say, unlike a currency which can be lent out literally overnight at a profit and receiving the return of your principal, we have no way maintaining a lender of last resort to protect the system during crashes and panics....

Hell, no one even trust the U.S that it has it's gold supply on hand let alone the gangsters on Wall Street. Can you imagine giving these guys our money supply if it was in physical gold?

And best of all, when the gold miners go on strike or
run out of reserves, everybody starves or murders the "rich who have all that gold" as the economy collapses destroying the system.

So the next time Ron Paul, a great guy by the way, ask if gold is money, thank your favorite deity it isn't because during panics and crashes the government pushes a few
key strokes and we have our money back maintaining a minimum stability until the crisis subsides.

And besides, can you see all these
"corporate jet owners" and "union bosses" lugging all of that gold to bribe the gang in Washington.

Wait, on second thought, that might not be a bad idea!

Tuesday, August 02, 2011

Want to save healthcare?....

Put everyone on the Social Security list on Medicare and quit the budget deficit bull. If there's fraud in the system, round up the perpetrators and execute a couple.

Problem solved. No new bureaucracy. No new taxes just collect Medicare tax as usual. Want to soak the rich for more make all these taxes on all income, period! 

New Economic Perspectives: L. Randall Wray
From Wall Street's perspective, if government finance were truly understood, there would be little room left for the "financialization" that Goldman Sachs and others have been promoting. Securitization of mortgages and of other consumer debt is superfluous. Private pensions managed by Wall Street are unneeded--Social Security is safe and can be expanded as desired to provide decent and secure pensions. Health care insurance does not need to be reformed or expanded, instead, it needs to be eliminated and replaced by a single payer system. Government does not need to beg or bribe finance to fund efforts by entrepreneurs to create jobs because a federal job guarantee program can ensure continuous full employment. And Wall Street does not need to choose our candidates for us, as voters are perfectly capable of electing representatives of their interests. In short, it is difficult to conceive of any positive role for outsized finance to play.

Lest anyone think that I am advocating a bigger government, I want to make clear that I am actually arguing for less government intervention into the economy. The market wants to eliminate the biggest financial institutions. I think the market is correct. It wants to get rid of the riskiest financial instruments, such as credit default swaps and securitization. The market is correct on that score. The market would eliminate bonuses for Wall Street traders and CEOs—only Bernanke and Geithner stand in the way, providing government bail-outs that fund the outrageous rewards paid to the crooks and fools that created the crisis. The market would wipe out the mortgage debts of underwater homeowners—it is only the inducements provided by government that keep the mortgage servicers and first and second lien vampires afloat so that they can suck some more blood. And no rational market would have developed private employer-based pension plans or use of employment-related insurance as the dominant method of providing healthcare services. Both of these anomalies were created by partnerships of Government and Wall Street acting against the interests of the vast majority of Americans. I believe that we can have decent and rationalized retirements, health care, and jobs programs without increasing the size of government.

Monday, August 01, 2011

Trouble in Paradise?....

Am I psychic or what? No cuts no new taxes lol; Unless you count the 4 billion the first year. (read that again as it's not a typo.)

 Repeat after me: the government has been bought by the guys who got us into this mess and are taking home multimillion pay checks. All the "cuts"would come out of their pockets because that's pretty much where the money is. And they own the politicians in Washington! Ta da!

Rocket science, right?

But , as I've been trying to explain, budget cutting during a Depression is nuts! Let alone taxing me and you because rich people, unless goofy, pass taxes down by raising prices or cutting employment and we get it in the ass.

In the 80's Reagan cut out a little waste and gave everybody a tax cut and got us out of a severe recession and ran the largest budget deficits in history! Then we didn't have our middle class jobs "outsourced" overseas. Today we don't make much and there is little capacity to put all those government educated kids to work at any thing like a real wage.

Does anyone in this country believe that our high school grads, let alone drop outs, can compete with illegal Mexican labor and contribute to the economy and pay our Social security?

Don't expect the deal in Washington to do anything but prolong the disaster.

Of course, it's all Bush's fault!!!

P.s where did the 15 to 20 trillion in stimulus go? Let alone where in the Hell is your home equity disappeared to? Who got the money? And what the fuck does my Social Security check have to do with it!!!!!!!!

Demand Side Blog: L. Randall Wray asks “How long until the fall of orthodox macro?”
And, boy-oh-boy have we got a Big Bank and a Big Government! Together, the Benny and Timmy tag team have spent, lent, or guaranteed $25 trillion in the name of Uncle Sam. And that still is not enough. “It” is still happening.

The problem is that most of this was done by the Big Bank Fed, aimed at helping financial institutions—trying to prop up their worthless assets. In short, it was based on the theory that we need Money Manager capitalism and that the only hope is to generate another bubble.

It won’t work. Financialization is the problem, not a sustainable economic strategy. We need to turn instead to an updated Keynesian-Minskian New Deal based on jobs, growing wages, consumption—especially public consumption, constrained and downsized finance, and greater equality. Monetary policy also has to be downsized, while fiscal policy has to play a bigger role. Not fine-tuning but a positive and permanent presence to counter and guide and supplement the private purpose.

More importantly we’ve got to formulate theory applicable to the world in which we actually live—not one in which imaginary representative agents allocate resources along an optimal consumption path.