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sequestration - definition of sequestration by the Free Online ...

se·ques·tra·tion (s kw-str sh n, s k w-) n. 1. The act of sequestering; segregation. 2. Law a. Seizure of property. b. A writ authorizing seizure of property. 3. Chemistry ...

Sequestration Definition - Duhaime.org Law Dictionary and Legal ...

The legal definition of Sequestration is The taking of someones property, voluntarily (by deposit) or involuntarily (by seizure), by court officers or into the possession of a third …

w w w . duhaime . o r g /LegalDictionary/S/Sequestration.aspx

exempt from sequestration are congressional salaries

Thesis & Catalyst For VXX, TVIX, UVXY

moving forward; lets take a look at forward earnings;

forward earnings will trend down.

Simple deduction and reasoning as follows;

No one could believe they let Fannie Mae fail!

I saw this happening as soon as the year 2000 following market cycles.

_______________________________________

Irrational Exuberance has returned to the markets, it is time to reward savers and start stockpiling cash instead of credit...

our debt is 16 trillion

We should focus on and follow China's cash reserves footsteps which stand at 16 trillion in reserves and growing everyday simply from the exchange rate as it drops daily...

Nowadays, every time China wants or says something, it will be exactly that way. (it is do to the cash inflow we receive from them, never bite the hand that feeds you) Japan's increasing their QE is and will be the Biggest Historical Economical misstep any Country will ever make and they will never survive this!

We needed the FED to maintain controls, not be in control

There is growing Support for the end of QE and Interest rates to increase to preserve our economic future is at hand.

Valuation

why the short story? it is necessary for you to do your own do diligence so you can see the cold hard facts... America is in serious trouble now!

No one can print money from nothing to support themselves, and even worse, get the dividend that rightfully belongs to the tax payers which is never accounted for!

If I hold any positions in any markets, it is my business. not yours!

2012 Calm Before Stock Market Storm 2013

Stock-Markets / Stock Markets 2013Dec 24, 2012 - 05:48 AM

By: Gordon_T_Long

Red Sky at Night, Sailors Delight,

Red Sky in the Morning, Sailors take Warning!

We have a new era dawning in Global Monetary policy. It is a new day with the monetary skies already red.

Within 90 days the captains of monetary policy have steered the world into uncharted waters and on a course that history warns us against.

Federal Reserve: QE3 "Unlimited" and QE4 within 90 days, ECB: OMT "Uncapped", BOJ: QE 10 and the newly elected Prime Minister Abe's mandate for "Inflation at any cost" BOE: UK's newly appointed BOE Governor, Mark Carney's Monetary Evan Rule targeting.

These untested and newly commissioned captains all have PhD's from the finest Economic schools in the world, but they clearly have not studied nor grasped the key lessons of history.

Old Lessons Being Relearned

The following lessons, in the following sequence, should resonate with all who are clearly watching, listening and paying attention to what is going on around them, and not what the press 'conjures up' and the political apparatus 'spins'.

1- It starts with LIVING WITHIN OUR MEANS.

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2- The Understanding of the Critical Importance of SOUND MONEY

"It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically, it belongs in the same class with political constitutions and bills of rights."

The Theory of Money and Credit (1912), Austrian economist Ludwig von Mises

3- The Maintenance of Money as a STORE OF VALUE

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered....

The issuing power should be taken from the banks and restored to the people, to whom it properly belongs"

Thomas Jefferson

4- Being Aware of the MORAL DECAY that begins to happen when we veer from these previous tenets

"When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it"

Frederic Bastiat

5- Knowing the UNAVOIDABLE conclusions it leads to

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved"

Ludwig von Mises

6- REMEMBERING the Central Lessons of History

The problem is WITHIN OUR SOCIETY

"A great civilization is not conquered from without, until it has destroyed itself from within. The essential causes of Rome's decline lay in her people, her morals, her class struggle, her failing trade, her bureaucratic despotism, her stifling taxes, her consuming wars."

Will Durant, The Story Of Civilization III, Epilogue, 1944

INEPTOCRACY

"A system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing numbers of producers".

Unknown

7- The resulting INEVITABLE ROADMAP

Not having learned these lessons, our Monetary Captains have set us on a course of Monetary Malpractice that leads to:

• Increasing Authoritarian Control and Central Planning,
• Crony Capitalism, Corporatocracy which increasingly feeds off an ever expanding state, while stifling open competitive innovation,
• Financial Repession, Moral Hazard, Unintended Consequences and Dysfunctional Markets, and
• Statism breed through the forces of Collectivsm and Complexity.

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Doomed Middle Class

The engine of prosperity is SMALL BUSINESS and a strong MIDDLE CLASS. The economic foundation is presently under unprecedented assault. In the last 15 years, the shift from defined to contributory benefits, a housing collapse, exploding education costs, a crushing shrinkage in real dispoable income, and growing 'financial insecurity', have left the US middle class paralyzed.

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Growing Social Stress

EQUALITY & FAIRNESS has been broken.

Whether the growing hoards of frustrated and unemployed youth, worried retirees unable to garner any earnings on their life's retirement savings, the increasing ranks of "part time worker" or the squeezed employed worker with lost or reduced benefits and unmatched cost of lving increases, there is a historic disparity between the "haves and have nots". Corporate profits are at record levels against GDP, while labor against GDP continues to plummet. There is a palpable sense of inequality and unfairness?

RULE OF LAW is in jeopardy and the US Constitution is in peril.

Our transition from more-or-less free country to police state is accelerating.

1. The NSA's Utah Data Mining facility,
2. Ever-tighter restrictions on offshore accounts,
3. The Internet "Kill Switch",
4. The Patriot Act's many assaults on the Bill of Rights,
5. The Militarization of local police, (Equipment, FEMA Graduates ... the new NDAA's "indefinite detention without trial")
6. The spread of Drones for domestic surveillance (FAA planning for 30,000 by 2020)
7. The NCTC's (National Counterterrorism Center) " Disposition Matrix" - Kill Lists

... each has a role in the high-tech updating a very old idea: that the state is paramount and the individual a slave to public order and national power.

Why is this happening now, rather than in 1950? ANSWER: We're reaping the whirlwind that always accompanies fiat currency. We created a central bank in 1913 and freed it from the constraint of gold in 1971. Give the government or the large banks the power to create money out of thin air and you eventually create a dictatorship.

"Eventually" just happens to be now.

SOCIAL CONTRACT is breaking down

The Political Foundation of the status quo in America is based on a Grand Bargain of Complicity between the top 25% who pay approximately 90% of the taxes, and the bottom 50% who draw on the benefits that stem from government. James Madison, in the "Federalist Papers", outlined this complicity in the "Tyranny of the Majority". What is becoming painfully evident is that the political elite in America have falsely over-promised on the entitlements that can be delivered, which is now surfacing in the political turmoil of the Fiscal Cliff negotiations and has the potential to quickly lead towards a constitutional crisis.

This Grand Bargain is now rapidly fraying as 75 million baly boomers begin retirement and find that the promises made to everyone cannot possibly be met. As the Fiscal Cliff crisis is highlighting, for those who can read between the carefully crafted lines, funding for Social Security, Medicare/Medicaid, National Security and Interest on the debt is consuming more than can be realistically raised through taxation.

To collect enough tax revenue to avoid deeper debt levels would require over $8 trillion in tax collections annually. Expropriating the entire income of the top 25% of households that pay almost 90% of the tax and all corporate taxes would only bring in $6.7 trillion.

"The actual liabilities of the federal government -- including Social Security, Medicare, and federal employees' future retirement benefits -- already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion".

Chris Cox and Bill Archer, Former Congressmen - WSJ 11-26-12

Claims on welfare and disability programs are skyrocketing at the same time that the demographics of an aging populace are causing 10,000 people a day to enter Social Security and Medicare, the two costliest government programs. Meanwhile, the upper-middle class that pays most of the taxes has been slammed with lower income and a devastating drop in their housing-based net worth. Compounding this is the fact that the disillusioned wealthy have slowed dramatically their invested CAPEX (Capital Expenditures) in productive assets in the US.

The 2008 Financial Crisis which quickly morphed into a Global Economic crisis is now entering the Political instability phase, where the broken grand bargain and social contract is going to greatly impact the attempts by the global Captains of Monetary, Fiscal and Public Policy to steer a safe course.

FINANCIAL > ECONOMIC > POLITICAL = SOCIAL CONTRACT

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Ungovernable Democracies

As a larger percentage of the public becomes dependent on government entitlements, transfer payments and employment, the helm will be pulled from the Policy Captains' hands.

Austerity only works conceptually and as long as it doesn't impact anyone directly. Obviously, this cannot be the case. UK's Prime Minsiter Cameron was elected on a platform of austerity. When it came to implementation, it became quite a different matter. He is not alone.

The Democratic system becomes ungovernable when unsound money is sustained for any period of time. It is the virus that silently cripples it.

The Looming Adjustment

To any sane person, who has a grasp of what is presently occurring, it is obvious that the current state of affairs is unsustainable. The question is how long can the Monetary Captains' misguided policies keep us off the shoals of our economic destruction. How long can policies of "Extend and Pretend", Kick the Can Down the Road" or "Fake it Until You Make It" continue? The answer is likely unknowable, the certainty of it ending badly is not.

The Globalization Catalyst: FRAGILITY AND COMPLEXITY

The financialization, securitization and rehtpothecation of almost all our systems, the explosion of an unregulated, offshore, off balance sheet, off exchange and opaque $639 Trillion SWAPS markets, along with a $67 Trillion Sahdow Banking System on a $70 Trillion global conomy should beg some questions.

The complexity of the interwined and interdependent global Financial systems gives us a clue to what lies ahead.

All these systems are fragile and not robust. They have never been stress tested. They were never designed, but rather evolved in Darwinian fashion. Minor set backs and adjustments simply allowed for more layers of complexity to be rapidly and randomly added. So far, there has not been a catastrophic collapse. The probability of this not occurring is diminishing exponentially.

It will occur. It is only a matter of time. The internet and potential cyber attacks almost guarantee a triggering event.

Market Signals Are "Bright Red"

STORM FORECAST

2012: Calm Before the Storm

2013-2015: A Market Clearing Event

2016: Sorting through the Debris

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The charts are clear about what lies ahead based on our current path. Eventually, all this will end badly.

(click to enlarge)

History is very clear that when something is UNSUSTAINABLE it is INEVITABLE that it will end.

TIME is the only unknown.

It is better to be way too early than one minute too late!

Sign Up for our FREE 2013 Thesis Report. To read more, go to GordonTLong.com

Gordon T Long Publisher & Editor general@GordonTLong.com

Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that you are encouraged to confirm the facts on your own before making important investment commitments. © Copyright 2012 Gordon T Long. The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or suggestions you receive from him.

Disclosure: I am long TECS, RSW.

December 27th, 2012

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Michael Snyder: America is rapidly becoming a nation of takers. An increasing number of Americans expect the government to take care of them from the cradle to the grave, and they expect the government to dig into the pockets of others in order to pay for it all. This philosophy can be very seductive, but what happens when the number of takers eventually outnumbers the number of producers? In 11 different U.S. states, the number of government dependents exceeds the number of private sector workers. This list of states includes some of the biggest states in the country: California, New York, Illinois, Ohio, Maine, Kentucky, South Carolina, Mississippi, Alabama, New Mexico and Hawaii. It is interesting to note that seven of those states were won by Barack Obama on election night. In California, there are 139 "takers" for every 100 private sector workers. That is crazy! The American people have become absolutely addicted to government money, and it gets worse with each passing year. If you can believe it, entitlements accounted for 62 percent of all federal spending in fiscal year 2012. It would be one thing if we could afford all of this spending, but unfortunately we simply cannot. We are drowning in debt, and we are stealing more than a hundred million more dollars from future generations with each passing hour. No bank robber in history can match that kind of theft.

Yes, we will always need a safety net. There are many people out there that simply cannot take care of themselves. We certainly don't want to see anyone sleeping in the streets or starving to death.

But if the number of people jumping on to the safety net continues to grow at the current pace, the net will break and it will not be available for any of us.

For example, the number of Americans on food stamps grew from about 17 million in 2000 to more than 47 million today. It nearly tripled in just 12 years.

What will happen if it nearly triples again over the next 12 years?

The federal government even has a website (benefits.gov) that guides people through the process of figuring out what welfare programs they can take advantage of.

Overall, the federal government runs nearly 80 different "means-tested welfare programs" and more than 100 million Americans are already enrolled in at least one of those programs.

Yes, I realize that figure is very hard to believe. I had a hard time believing it when I first came across it.

And it is even more shocking when you realize that the figure of 100 million Americans does not even include those who only receive Social Security or Medicare.

Today, there are 56.76 million Americans on Social Security.

To support all of those Americans on Social Security, there are only about 94.75 million full-time private sector workers.

So there are just 1.67 full-time private sector workers to support each American that is on Social Security.

Medicare is also growing like crazy. As I wrote about the other day, the number of Americans on Medicare is expected to grow from 50.7 million in 2012 to 73.2 million in 2025.

How much farther can we push things before the entire system collapses?

In order to support this exploding entitlement system, we need a lot more Americans to be working good paying jobs.

Unfortunately, millions of good paying jobs continue to be shipped overseas and they aren't coming back.

We are even losing good jobs to our own prisoners. The United States has the largest prison population in the world by far, and the exploitation of that low wage labor pool has become a boom industry in America. Even Microsoft and Boeing are using prison labor now. Just check outthis video.

Meanwhile, there are millions upon millions of law-abiding Americans that cannot find jobs and that cannot take care of their families.

So poverty and dependence on the government are absolutely exploding. We have a system that is so messed up that it is hard to even put it into words. The middle class is being viciously shredded, and most Americans just continue to applaud the politicians from both parties that are doing this to us.

Our economy is being gutted at the same time that the welfare state is experiencing unprecedented growth. Instead of giving us real answers, our "leaders" just continue to borrow, spend and print more money. We are about to hit the debt limit again, and the Obama administration is saying that we should just do away with the debt limit permanently.

Most of our politicians don't seem to understand that they are systematically destroying our economy and the bright futures that our children and our grandchildren were supposed to have.

But there are some politicians out there that get it. Unfortunately, many of them live in other countries. For example, Canadian MP Pierre Poilievre seems to have a firm grasp on what debt is doing to the United States. The following are some excerpts from one of his speeches…

"By 2020, the US Government will be spending more annually on debt interest than the total combined military budgets of China, Britain, France, Russia, Japan, Germany, Saudi Arabia, India, Italy, South Korea, Brazil, Canada, Australia, Spain, Turkey, and Israel."

"Through government spending the indulgence of one is the burden of another; through government borrowing, the excess of one generation becomes the yoke of the next; through international bailouts, one nation's extravagance becomes another nation's debt"

"Everyone takes, nobody makes, work doesn't pay, indulgence doesn't cost, money is free, and money is worthless."

You can see his entire speech right here.

And if we continue down this path it is most definitely true that our money will eventually become worthless at some point. Just today I was down at the grocery store, and a can of chili that I was able to get on sale for 75 cents a couple of years ago now has a "sale price" of $1.69. If the Federal Reserve keeps recklessly printing dollars, eventually we will be fortunate to get a can of chili for 10 bucks. Things cost too much already, and the Fed seems absolutely determined to cut the legs out from under the U.S. dollar.

Unfortunately, printing money is the only way that we are going to be able to service the gigantic amounts of debt that we are accumulating.

According to Chris Cox and Bill Archer, two men who served on Bill Clinton's Bipartisan Commission on Entitlement and Tax Reform, there is no way in the world that we could raise taxes high enough to pay for all of the obligations that we are currently taking on. They say that even if we taxed all corporations and all individuals at a 100% tax rate on all income over $66,193, "it wouldn't be nearly enough to fund the over $8 trillion per year in the growth of U.S. liabilities."

Are you starting to get an idea of how much trouble we are in?

We don't have enough money to pay for all of this.

We are broke.

Our current economy is a debt-induced illusion, and we will soon be waking up to a tremendous amount of pain.

Are you ready?

Related: Direxion Daily Small Cap Bear 3X Shares ETF (NYSEARCA:TZA), Direxion Daily Financial Bear 3X Shares ETF (NYSEARCA:FAZ), ProShares UltraShort S&P500 (NYSEARCA:SDS), SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), S&P 500 Index (INDEXSP:.INX).

Written By Michael Snyder

Michael has an undergraduate degree in Commerce from the University of Virginia and a law degree from the University of Florida law school. He also has an LLM from the University of Florida law school. Michael has worked for some of the largest law firms in Washington D.C., but now is mostly focused on trying to make a difference in the world

For myself: I am long TECS and RSW

Disclosure: I am long TECS, RSW.