Socialism cannot compete!

Wall Street Breakfast: Must-Know News

To all those complaining about pay ratios -- if you are that jealous of what top execs make, go become one, if you have the ability!

If you believe you can do better...that public companies are filled with bloat...start up your own company!

It's one thing to complain about salaries at those which took tax money, but don't get started capping pay at other companies. That's a very wrong road to go down. If you are an "underling" thinking you are underpaid...DO SOMETHING about it. Are you no longer free? Have no ambition? This is what drives our economy: freedom. Jealousy-induced artificial pay-capping only serves to remove one layer of freedom.

Added Debt Won't Rescue the Great American Ponzi Scheme

You seem to be asserting that becoming austere and reducing debt (instead of stimulating via massive debt increases) will lead us to an undeveloped, 3rd-world standard of living, with no remaining scientific or technical ability. How specious!


On Mar 23 11:30 AM Dirk McCoy wrote:

> Think of the economy as a large human pyramid- labor specialization,
> outsourcing, competitive advantage and free trade, economies of scale
> have created an economy with linkages everywhere. And think of that
> pyramid getting bigger, covering more of the world, lifting billions
> out of poverty, lifting millions into astronomical wealth, while
> maintaining living standards for most of the participants.
>
> Your calculation of npv was spot on. So, apply it back in 2005 when
> the Fed raised short term interest rates artificially above long
> term rates, and you can see what happened to cashflow for not only
> homeowners, but for businesses that use revolving loans. So the
> pyramid started to collapse.
>
> So, do we let is collapse? Or do we bolster it? In a world with
> 3 billion people living on $2.50 a day and billions underemployed,
> with technology on the shelf (solar, genetics, desalinization, 4G,
> smart grid), and with excess commercial real estate floorspace and
> labor, there is plenty of room for additional growth. And as long
> as dollar-denominated goods and services can grow, inflation and
> a significant fall in the dollar are unlikely.
>
> It is possible that we could establish a less risky and leveraged
> Amish or Muslim-like economy with protectionism, overregulation,
> and constrained monetary and debt policies- but we won't call them
> to deal with the killer asteroid, killer virus, major natural disasters,
> or global poverty, will we?

Added Debt Won't Rescue the Great American Ponzi Scheme

Are you serious about these assertions? There are PLENTY of countries that would LOVE to see the dollar destroyed or have no problem with trade wars or military wars.


On Mar 23 12:28 PM Vuke wrote:

> The dollar remains its status as the world's reserve currency with
> no benefit to anyone seeing that destroyed. Consequently, the world
> will go along with the current de-Ponzification process as few want
> to see a trade collapse or possible war.

Added Debt Won't Rescue the Great American Ponzi Scheme

We should all just tow the party line, eh komrade??


On Mar 23 04:44 AM PeteK wrote:

> With headlines like : "Obama's toxic assets plan greeted with skepticism"
> by The Associated Press, will only add to the confusion of the general
> public.
> This kind of headline is insane and bias.
> The press said it's dead while it's still alive.
> The press said it faied before it even starts.
> This is harmful to society and this country and it should stop.

Washington's AIG Outrage Really a Political Diversion Tactic

We should DEMAND the Obama & Dodd (and other politicians on the take) return EVERY DOLLAR they received in election contributions from AIG!!! Does this not appear slightly crooked, given what has transpired???:

www.opensecrets.org/or...

The Road to Economic Hell

The difference this time is that they aren't just benefiting themselves...they are purposefully trashing the Constitution and basis of law and order in this country.


On Mar 05 09:19 AM pockyclips 2020 wrote:

> Of course, the party in power is using crisis to benefit themselves,
> just as always.
> As long as there are Replicrats and Democans, the system will not
> change (until we go bankrupt). We didn't go into the crapper in just
> the last 6 weeks.

U.S. Debt Watch: Paths to Repudiation

Long gold, long lead-based products. ;)

On Feb 25 10:26 AM kelm wrote:

> As my readers know this forms the fundamentals of my market positions
> with trades built off of this. Short treasuries, short dollar, long
> precious metals.

U.S. Debt Watch: Paths to Repudiation

reteaparty.com

I'm in!!

Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example

"Political footnote. President Elect Obama seems to understand the above....However, we are already seeing the outlines of his focus on creating jobs. A job building roads really gets money to a needy worker and we really get a road."

B.S. -- Obama doesn't get squat. He has completely backtracked from his campaign promises on tax and overall economic policy (and I remind you, this economic crisis was *well* underway during the campaign!); and his proposed infrastructure spending of over $1 Trillion fails to address the core problem. It will create some jobs in the short term, but not for the long haul; it also is yet another instance of government growth, when what is needed is SMALLER government (government intrusion into housing is one of the big culprits in this meltdown) and drastically LOWER taxes.

You, sir, still fail to understand the main problem facing our economy: creeping socialism and excessive taxation. Our success and high standard of living were based on PRIVATE enterprise and low barriers to entrepreneurial effort. Today, our corporations are among the highest-taxed in the world, and our personal taxation is among the most onerous as well. I refer not merely to the rates, but also the types and means. Freedom and ability to innovate is lost when we are not the ones in control of our own money!! We need to abolish the government's preemptive claim on our money that is the income tax. This done, the people would have more of THEIR OWN money to spend, invest, innovate with, or pay down debt with!!

fairtax.org

Freedom and free markets are intertwined. Intervention and socialism are different names for the same beast.

Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example

Who weren't in on the Ponzi scheme??? The older generations ARE the Ponzi scheme!! They are largely the ones who refused to have kids...leading to the underfunding of Social Security and Medicare...oh wait...maybe those are just BAD pyramid scheme ideas?!!? The "greatest generation" have been the GREEDIEST GENERATION...refusing to allow the phase-out of their pyramid-scheme entitlement programs, which are HUGE burdens on younger workers. I volunteer at a local bingo facility where scores of retirees routinely blow $30 on bingo cards each week!! That's how they are spending my tax dollars!!! And the boomers are the ones who have spent into oblivion and brought us the national debt we have today...a large house was not enough...they needed a boat as well...and a vacation cottage.

Don't talk to me about poor retirees -- I watch them blow their S.S. checks...and I watch the payroll taxes disappear off the top of mine!! SOCIALISM MUST END for this type of economic failure to end!!!


On Dec 15 08:33 AM Michael B. Krause wrote:

> The baby boomers leave the young generation no choice but to (hyper)inflate.
> By reducing the boomers' debts in real terms, problem solved, banks
> suddenly are solvent. Unfortunately, the poor retirees who weren't
> in on the ponzi scheme will be kicking and screaming as their buying
> power goes to nothing. How sad.

Government's Next Lesson: Small Is Beautiful

> ALL GOOD THINGS CAN BE ABUSED IF YOU GET A PRESIDENT IN OFFICE THAT
> WANTS TO DESTROY ALL THE GOOD LAWS THAT ACTUALLY HELP PEOPLE.
>
> Like the community reinvestment act where banks were encrouaged to
> give loans in poor neighborhoods to keep the home occupied and prevent
> them from becoming clums with abandonded homes and drug infested.
>

Wrong. CRA was *itself* an abuse!! An abuse of MY taxpayer money. It interfered with free-market housing and made it unaffordable to those who pay their own way. It extended the reach of the government's tax fingers into MY pockets. It took down the economy by promoting bad loans.

We don't do ANYONE a favor by giving loans to those who CAN'T AFFORD THEM. It hurts them and us in the long run!!

> Also Socialism has been forced on most of the countries in South
> America because of the U.S. Governments support of businesses who
> were stealing their natural resources.
>
> Now Chanves is using their oil to benifit the people not a forgien
> Corporation. If Corporations had show respect for people then Socialism
> would not be an issue.

BS!!! Our oil companies are there because THEY failed to allow capitalism to do the work themselves. In Latin America in particular, capitalism never got a foothold because political turmoil disallowed it, not corporations. And the dictators used socialism to keep the money in their coffers -- not to give it back to the people, but to keep themselves in power!

Why Bailouts Are Not the Answer

It is NOT the government's job to provide jobs, homes, or income!! It is your OWN responsibility. In America, new jobs have always come from PERSONAL INITIATIVE. Propping up industries & companies that are not profitable, or where the recent growth was phony due to unwise massive leveraging, is NOT going to yield a net positive -- they just become sinkholes. Long term, more jobs & homes are saved by letting capitalism work. That means failure must be allowed!! Those who find themselves out of work will need to retool with new skills (how is that not better, long term?), or come up with a new idea or biz of their own (again, how not better long-term?).

We need to end this way of thinking that anyone, including government, is responsible for our needs, other than OURSELVES.


On Dec 02 11:04 AM Lok Sang Ho wrote:

> It is certainly correct that Americans need to keep spending within
> their means. But the immediate concern must be to save the jobs
> of Americans and the homes of those who have been working hard and
> paying their mortgages honestly. Without jobs and incomes, where
> can savings come from?
>

Why Bailouts Are Not the Answer

Peter -- thanks so much for being one of the "point men" on this!! It is clear to me that "bailouts" are simply *releveraging* and propping up failed systems (both financials *and* government) at taxpayer expense. The REAL solution (well, a big part, anyway) to this mess is a drastic cut in size and function of government, and a complete overhaul of taxation in this country, at all levels!!

IMO, the "fair tax" is a required step towards fiscal sanity -- the return of control over the earner's money, to the earner!! When *I* can decide when and even *if* I want to spend, vs. save -- then *I* am in greater control of how highly leveraged I am. Currently we each have hidden leverage under the guise of the portion of my taxes that go to paying U.S. debt and even creation of further debt. When we remove the government's preemptive right to our money...then we the people can force deleveraging on our own behalf. Add a balanced budget amendment and we than have the requirement for the government to do the same.

fairtax.org

I encourage everyone to at least read up on the "Fair Tax", and consider joining!!

What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup

You think just like "they" do -- that continuing to finance economies based on debt is a necessity and is good. It's not. We *need* to kill credit-based economics and have both individuals and businesses operating on what they have *in the coffers*!!


On Nov 26 01:36 PM Steve Pluvia wrote:

> @stoneweapon:
>
> "Why fund a leveraged wager of CDSs with taxpayers money?"
>
> I answered why we cannot let AIG fail; if we let them fail this happens:
>
>
> -- All foreign held debt insured by AIG blows up...
> -- US treasury and corporate debt immediately has zero credibility;
>
> -- US corporations and have zero borrowing power for short term trade
> and expansion.
> -- Trade grinds to a halt as foreign partners no longer honor purchase
> orders from US corporations.
> -- Run on all banks;
> -- The dollar gets crushed; and,
> -- The US has very little ability to jump start the US economy with
> spending
>
> Most do not understand Lehman, Merrill et al packaged ANYTHING with
> a revenue stream almost ANYWHERE IN THE WORLD into an asset back
> security, then created synthetic "bonds" when they found it easier
> than rounding up assets with revenue.
>
> Many of these were insured by AIG. If AIG fails within a week we
> have a worldwide meltdown. The idea of letting AIG fails demonstrates
> the author of this article has no idea what he's talking about or
> is supremely ignorant.
>
> A simpler example is this: Imagine New Orleans after Katrina --
> except we let every insurance company out of their obligation to
> pay policy holders to rebuilding homes/properties. Not only would
> New Orleans no longer be a city, the lack of confidence in all insurance
> would go down the toilet.
>
> AIG is a big bag of sh*t, no doubt about it. But letting AIG fail
> instantly makes commercial paper world wide into toilet paper.
>
>

What Obama Needs to Know about Tim Geithner, the AIG Fiasco and Citigroup

Greed is not the problem: non-transparent greed is; differing rules for how some can capitalize on their greed than others is. The small cabal of power and banking elites are protecting themselves. We end it by reforming tax code (abolish the income tax), and establishing a Balanced Budget Amendment...thereby cutting off both their tax code loopholes and money funnel to those in government to whom they "contribute" (aka, kick back).

fairtax.org



On Nov 26 08:41 AM delbmarcs wrote:

> Thanks for helping me understand what's at the bottom of this - not
> mortgages, but another financial ponzi scheme. I am putting your
> blog in my "favorites." Do you have advice about how to temper people's
> individual greed in our current system so we don't keep repeating
> these financial pyramids decade after decade?