You Can Spend Your Way Out of a Recession [View article]
Free people spending their money in ways that create the most value for them in properly functioning markets can indeed spend their way out of a recession. This kind of spending,at the expense of aggregate household and business savings, is a bridge between a current compression and a future expansion because, for a season, this sending has a strongly positive multiplier. Hence cuts in taxes, regulations and social overhead that allow citizens to keep more of their income and wealth and allocate them based on honest and prompt price signals can propel an economy out of a recession.
In sad contrast, coerced spending by Big Govt, in deliberately twisted and distorted markets accompanied by rising taxes, onerous regulations and rising social overhead has a negative multiplier. This kind of spending will both prolong and deepen a recession.
Who does the spending matters profoundly.
The Regime and its camp followers always choose the latter kind of spending because it increases their income and status at the expense of ordinary people. Ordinary American choose the former kind of spending because by logic, intuition and experience they know it works. The more the Regime controls resource allocation the worse it is for income, job and wealth creation for ordinary Americans.
1. The simulated "dispute" between WashDc and Wall St is merely an internal conversation within the Regime about the division of plunder. It is mostly propaganda, manufactured to divert the attention of Americans from the inescapable fact that Big Govt, Big Money and Big Media are a vast, malignant, seamless web of greed and depravity.
2. We are not a "Union". We are now a Plantation, where the material economy booms for the Plantation owners, stagnates in the swamps and fens of transfer payments and physical and digital addictions for the Lower Class and compresses by the week for the herded and cowed plantation workers, the Middle Class
3.We may again become a Union if the plantation workers rise and expel the occupiers and free the lower class from its pathologies.
How Bloomberg Fabricates U.S. Housing Numbers [View article]
You will recall that in Orwell's "1984" the absolute tyranny continually rewrote history so that the past would conform to the ideology and barbarities of the present. This is a defining trope of all corrupt, collectivist and depraved Regimes. The facts are what the Regime says they are; the truth is whatever glorifies the Regime; success is what most benefits the Regime.
Power, wealth, fame :all up for the WashDc-Wall St- MSM reigning Troika. This is called a great recovery made possible by the ever vigilant and tireless Regime laboring ceaselessly for The People.
Incomes, net worth, employment: all down for the Middle Class , which is as it should be and are the very substance of a recovery, since the middle class is made up of the very social deviants and enemies of The People the Regime so tirelessly warns us about.
There is a Recovery. The Regime has the statistics to prove it and every day ,in its indefatigable search for facts and in its unparalleled love for truth, it discover more, better and bigger statistics. Only the statistics are real. Everything else is false: unpaid bills, foreclosures, small business bankruptcies, credit curtailments and denials...All fabrications of the remnant that clings to its primitive superstitionsof free markets, free speech, free elections and that biggest superstition of all: the Constitution.
Is the U.S. Dollar Headed for a Mighty Crash? Part I [View article]
It is an article of faith amongst currency and govt. debt analysts that China , Russia , others, will not risk the loss of prinicipal by refusing to buy further US govt debt much less selling some existing holdings. However, suppose in a couple of years China, Russia ,some others after accumulating hundreds of billions of dollars in commodities(ores, industrial and precious metals, uranium, coal, oil , even soy beans and grain depending on the country involved) decide to start selling US debt, creating a a formidable bear market in Treasuries and agency debt. Would they not make the calculation that a bear market in US /Agencydebt would mean spiking yields and inflation, leading to a huge and almost frantic global flight to commodities. The resulting surge in commodity prices would result in spectacular inventory gains for these countries which would mitigate even if not completly offset the capital loss on their US govt debt. The relatively small net loss may be a price worth paying. The truly dangerous time for the US, i think, is not 2009, but a couple of years out when China et. al have put in place the coomodity reserve basis for a strategic exit from US govt debt. This is just a scenario but one that should not be dismissed without some reflection. Sadly ,even if we in the USA knew with high assurance that this "strategic switch" was being contemplated by China et. al there is nothing we would do to prevent it. Such is the tragedy of debt addiction and loss of national will. Instant gratification and denial have now become the walls and bars of self made prison.
Let us hope the Chinese, et. al lack the analytical sophistication and execution capacity to successfully engineer the strategic switch.
We're Rolling Over Even With the Fed Openly Juicing the Markets? [View article]
Given that Big Govt and Big Money are a seamless web of kleptocracy and WashDc and Wall St are the Janus faces of plunder, it is more correct to say that the $340 billion was a mere shifting of fake dollars from one Regime account to another......its THEIR currency, its their "market", its their plantation; its all theirs to do what they wish, when they wish, as often as the urge to feast and frolic overcomes them.
After all, they still let you participate in THEIR real estate, credit and equity markets; read their "research", parse their "statistics", live on their plantation; dont they?
You seem nostalgic for the age when America was a Republic , when the Constitution was our sword and our shield , when ordinary people had enforceable personal and property rights, when illegal aliens did not get precedence over citizens and when the expression "We, the People" was not considered comically archaic.
Here It Comes: Consider Yourself Warned [View article]
In 2009 we depleted the stock of liberty, integrity and honor, both at home and abroad, at a rate never before witnessed in the history of America. The Nation enters 2010 strategically much weaker than a year ago: 1. National wealth creating capacity: down markedly 2. American real net worth: notably reduced 3. The productive middle class: manifestly compressed 4. The geo-strategic stature of America and its global competitiveness: much diminished 5.Equitable alignment of risk and reward: grotesquely perverted 6. Allocation of national resources: darkly distorted 7 American Constitution: deeply dishonored
Each of these is a result of the willed choices and policy preferences of the US Regime.
In 2010, there will either be a great reversal of these choices or there will be a great reckoning ....the laws of economics, nature and truth cannot be repealed. The status quo will not stand. No one can honestly and credibly predict what 2010 will bring.
Dollar's Purchasing Power Annihilated - The Chart They Don't Want You to See [View article]
The debasement of the dollar is the most pernicious, universal and regressive tax that can be imposed. It is also invisible. Hence, it is highly favored by the political and social elites. It harms the most vulnerable and least skilled Americans the most. These people, lulled into believing they are being cared for because they pay no income taxes and receive welfare, are the very Americans who have the least personal pricing power to offset inflation because they have the least value added abilities and make the most substitutible and fungible contributions to society. The bottom 50% of Americans, over a period of decades, suffer more cruelly from this tax via inflation than the top half. The top 5% actually benefit because they have the personal pricing power( differentiated skill set), poiltical control ( hence resource allocation power)and investment/asset mix to expand real income and wealth. Hence income, wealth and power continue to flow up(the Rising Sap effect?) from 95% of Americans to the corrupt governing elites. For these elites, your chart is affirmative evidence of how well their strategies for accumulating money, power and status have succeeded over the decades. The power to debase is the power to tax is the power to rule.
6 Reasons Why a Dollar Crisis Is Imminent [View article]
Either the US occupation Regime is first challenged, then checked, then forced to retreat and finally defeated by the a decade long middle class rebellion OR the Occupation proceeds to its logical conclusion: the extinction of personal and property rights for the vast majority of Americans and the enslavement of the productive middle class.
If there is convincing evidence that a credible rebellion has been initiated then the dollar will hold; if not then not all the propaganda, intimidation and fraud will not prevent its implosion. Great truths can be denied and delayed for a long time but they eventually do emerge. The longer they are delayed the more cathartic and transformative their manifestation.
Why the Disconnect Between Stocks and the Real Economy May Widen [View article]
The decoupling is driven by 4 factors:
1. The biggest companies are redeploying capital, technology, talent and market development efforts away from the stagnant West and into the growth economies and sectors of the world so that these companies can grow earnings and even revenues at rates much higher than the negligible growth in the West; who needs the US?
2. Multinational companies can shed workers and professionals in the US and partly replace them in the Global South or Eastern Europe thus reducing their total workforce,aggregate compensation costs per unit of revenue and increasing reported profits in at least the near term but perhaps also in the mid term; who needs the US?
3. Accounting deceits and Big Govt encouraged financial misrepresentations, financial manipulation and other tools of opacity and dishonesty can conjure up profits despite fundamentally weak business positions, corrupt and incompetent managements and moribund corporate strategies....The Regime coddles and enriches its own.
4. Big Money can massively and effortlessly arbitrage their access to almost free, unlimited credit against the scarce and expensive credit confronting most households, small, new and start up businesses. Borrow at 1% and lend at 20% , economy wide, with all risk underwritten by taxpayers is a sure prescription for financial brigandage and looting on an epic scale. Of course, profits are going to soar. Exertion and theft with no risk of retaliation and no fear of punishment is very lucrative indeed. Wall St, Russian Mafia, State sponsored Narco-crime .....Same business model ; same tremendous profits.
The Stimulus Law(its a law, not a bill once its been enacted) is succeeding very well in all its covert objectives, which are : 1. Rapidly collectivize the economy 2. Further concentrate wealth, income and power 3. Compress the Middle Class, which may be aroused to open rebellion against the subversion of the Constitution----- unless it is swiftly and decisively intimidated and demoralized 4. Squeeze and bankrupt small and medium enterprises: the locus of the opposition to collectivization and the principal obstacle to the concentration of income and wealth 5. Totally co-opt the incompetent, deceitful and avaricious top executives and Boards of the biggest financial and industrial companies in the US 6. Transform the MSM into the subservient propaganda arm of the State 7. Instigate and institutionalize class warfare by expanding the lower class at the expense of the middle class via coerced downward social mobility 8. Discourage useful innovation because innovation can bypass bad Government; thwart real talent because real talent can be a threat to entrenched Bosses ; exile risk capital because risk capital leverages innovation and talent
No its not time to panic. It is time for the middle classes in all Western Nations to rise up in rebellion against the malign Regimes that now occupy all major and most other Western nations and expel them.
It is not time to panic: it is time to restore personal and property rights; to bring back the rule of law and honestly free, fair and flexible markets.
Only if there is no successful middle class rebellion, starting this year, will it be time to panic for ordinary people and a time for jubilation for the Regimes.
The "excess" people refer to is hubris based on very short term performance(eg real estate prices over an aberrant 3 to 4 year period) and credit based on fraud and fantasy. This excess is being and must be excised becuse it was malignant, not healthy, growth. Surgery is followed by pain, often great pain, and then and only then come recovery and restoration. Unfortunately for America, the political and moneyed elites have decided to replace private hubris by much greater public hubris and false private credit by even more dishonest public credit. A large private excess has been replaced by a truly monumental public excess, which is presented as the "cure". Very sadly the cure is an even greater malignancy. In turn, this malignancy must and will be excised. The pain that will follow this inevitable major surgery will be excrutiating indeed and recovery will be long and slow. The alternative to the needed surgery(ie, the alternative to great pain) is continued political denial and deceit leading to not a miracle cure but an unavoidable and agonizing systemic collapse.
1. Deficits are how the present mocks the past and steals from the future. But...the future always arrives and if it has been enervated by deficits it arrives pessimistic, hungry and unforgiving. In 2010, the future has arrived.
2. Big Govt spending on economic projects, income transfer schemes and bribes to inflate current consumption ALWAYS cannibalize , misallocate resources from the productive to the parasitic economy and cripple the long term capacity of the economy to create true wealth
3. Fake, fiat currency to finance spending and deficits results merely in vast bad debt, which invariably kills growth while creating the cancer of money illusion, which is simultaneously leveraged and obscured by false "Official Statistics"
4. The combination of deficits, Big Govt spending, fiat currency and false statistics are economic terrorism and finacial war on a continental scale. Of course, the result is a dark economic depression for the middle class.
Is America's Middle Class Going the Way of China? [View article]
1. ALL totalitarian Regimes, whether, Communist, Fascist , Venezuelan, Iranian or the US Occupation Regime despise and fear the middle class. They despise because the middle class is both the repository of national memory and atavistically clings to faith, family and freedom. They fear because the middle class is the source of entrepreneurship and genuine innovation: both of which are profound threat to the stasis and status quo that corrupt, greedy, vain , collectivist and entrenched Regimes so prize.
2. It is the explicit policy of the US Occupation Regime to design and implement a social, political and economic model where a tiny elite lives in imperial and unquestioned splendor; an expanding ignorant, brutal and addicted lower class is bribed, deluded and intimidated into herding, coercing and tormenting a shrinking and demoralized middle class which can be systematically exploited and enslaved by the tiny upper class.
3. In 2008 this country was still, after a fashion a Republic. In 2009, it became a Soviet. In 2010 it is on a trajectory to becoming a Gulag.
The U.S.: Land of the Free and Home of a Nearly Failed Treasury Auction of Its Own [View article]
Fake buyers acquiring the fraudulent debt of a morally and intellectually bankrupt Regime , using false dollars?
When vapors are used to consume delusions a polity is surely at a cusp. Either a descent into the totalitarian abyss or a recoiling from the dark depths and a reversal of direction. This year is dispositive. The Regime must decisively complete its occupation or America will rise in rebellion to reclaim its heritage and liberties.
You Can Spend Your Way Out of a Recession [View article]
In sad contrast, coerced spending by Big Govt, in deliberately twisted and distorted markets accompanied by rising taxes, onerous regulations and rising social overhead has a negative multiplier. This kind of spending will both prolong and deepen a recession.
Who does the spending matters profoundly.
The Regime and its camp followers always choose the latter kind of spending because it increases their income and status at the expense of ordinary people.
Ordinary American choose the former kind of spending because by logic, intuition and experience they know it works.
The more the Regime controls resource allocation the worse it is for income, job and wealth creation for ordinary Americans.
The Precarious State of Our Union [View article]
2. We are not a "Union".
We are now a Plantation, where the material economy booms for the Plantation owners, stagnates in the swamps and fens of transfer payments and physical and digital addictions for the Lower Class and compresses by the week for the herded and cowed plantation workers, the Middle Class
3.We may again become a Union if the plantation workers rise and expel the occupiers and free the lower class from its pathologies.
How Bloomberg Fabricates U.S. Housing Numbers [View article]
The facts are what the Regime says they are; the truth is whatever glorifies the Regime; success is what most benefits the Regime.
Power, wealth, fame :all up for the WashDc-Wall St- MSM reigning Troika. This is called a great recovery made possible by the ever vigilant and tireless Regime laboring ceaselessly for The People.
Incomes, net worth, employment: all down for the Middle Class , which is as it should be and are the very substance of a recovery, since the middle class is made up of the very social deviants and enemies of The People the Regime so tirelessly warns us about.
There is a Recovery. The Regime has the statistics to prove it and every day ,in its indefatigable search for facts and in its unparalleled love for truth, it discover more, better and bigger statistics.
Only the statistics are real. Everything else is false: unpaid bills, foreclosures, small business bankruptcies, credit curtailments and denials...All fabrications of the remnant that clings to its primitive superstitionsof free markets, free speech, free elections and that biggest superstition of all: the Constitution.
Is the U.S. Dollar Headed for a Mighty Crash? Part I [View article]
However, suppose in a couple of years China, Russia ,some others after accumulating hundreds of billions of dollars in commodities(ores, industrial and precious metals, uranium, coal, oil , even soy beans and grain depending on the country involved) decide to start selling US debt, creating a a formidable bear market in Treasuries and agency debt. Would they not make the calculation that a bear market in US /Agencydebt would mean spiking yields and inflation, leading to a huge and almost frantic global flight to commodities. The resulting surge in commodity prices would result in spectacular inventory gains for these countries which would mitigate even if not completly offset the capital loss on their US govt debt. The relatively small net loss may be a price worth paying.
The truly dangerous time for the US, i think, is not 2009, but a couple of years out when China et. al have put in place the coomodity reserve basis for a strategic exit from US govt debt. This is just a scenario but one that should not be dismissed without some reflection.
Sadly ,even if we in the USA knew with high assurance that this "strategic switch" was being contemplated by China et. al there is nothing we would do to prevent it. Such is the tragedy of debt addiction and loss of national will. Instant gratification and denial have now become the walls and bars of self made prison.
Let us hope the Chinese, et. al lack the analytical sophistication and execution capacity to successfully engineer the strategic switch.
We're Rolling Over Even With the Fed Openly Juicing the Markets? [View article]
After all, they still let you participate in THEIR real estate, credit and equity markets; read their "research", parse their "statistics", live on their plantation; dont they?
You seem nostalgic for the age when America was a Republic , when the Constitution was our sword and our shield , when ordinary people had enforceable personal and property rights, when illegal aliens did not get precedence over citizens and when the expression "We, the People" was not considered comically archaic.
Here It Comes: Consider Yourself Warned [View article]
The Nation enters 2010 strategically much weaker than a year ago:
1. National wealth creating capacity: down markedly
2. American real net worth: notably reduced
3. The productive middle class: manifestly compressed
4. The geo-strategic stature of America and its global competitiveness: much diminished
5.Equitable alignment of risk and reward: grotesquely perverted
6. Allocation of national resources: darkly distorted
7 American Constitution: deeply dishonored
Each of these is a result of the willed choices and policy preferences of the US Regime.
In 2010, there will either be a great reversal of these choices or there will be a great reckoning ....the laws of economics, nature and truth cannot be repealed. The status quo will not stand.
No one can honestly and credibly predict what 2010 will bring.
Dollar's Purchasing Power Annihilated - The Chart They Don't Want You to See [View article]
The top 5% actually benefit because they have the personal pricing power( differentiated skill set), poiltical control ( hence resource allocation power)and investment/asset mix to expand real income and wealth. Hence income, wealth and power continue to flow up(the Rising Sap effect?) from 95% of Americans to the corrupt governing elites.
For these elites, your chart is affirmative evidence of how well their strategies for accumulating money, power and status have succeeded over the decades. The power to debase is the power to tax is the power to rule.
6 Reasons Why a Dollar Crisis Is Imminent [View article]
the US occupation Regime is first challenged, then checked, then forced to retreat and finally defeated by the a decade long middle class rebellion
OR
the Occupation proceeds to its logical conclusion: the extinction of personal and property rights for the vast majority of Americans and the enslavement of the productive middle class.
If there is convincing evidence that a credible rebellion has been initiated then the dollar will hold; if not then not all the propaganda, intimidation and fraud will not prevent its implosion. Great truths can be denied and delayed for a long time but they eventually do emerge. The longer they are delayed the more cathartic and transformative their manifestation.
Why the Disconnect Between Stocks and the Real Economy May Widen [View article]
1. The biggest companies are redeploying capital, technology, talent and market development efforts away from the stagnant West and into the growth economies and sectors of the world so that these companies can grow earnings and even revenues at rates much higher than the negligible growth in the West; who needs the US?
2. Multinational companies can shed workers and professionals in the US and partly replace them in the Global South or Eastern Europe thus reducing their total workforce,aggregate compensation costs per unit of revenue and increasing reported profits in at least the near term but perhaps also in the mid term; who needs the US?
3. Accounting deceits and Big Govt encouraged financial misrepresentations, financial manipulation and other tools of opacity and dishonesty can conjure up profits despite fundamentally weak business positions, corrupt and incompetent managements and moribund corporate strategies....The Regime coddles and enriches its own.
4. Big Money can massively and effortlessly arbitrage their access to almost free, unlimited credit against the scarce and expensive credit confronting most households, small, new and start up businesses. Borrow at 1% and lend at 20% , economy wide, with all risk underwritten by taxpayers is a sure prescription for financial brigandage and looting on an epic scale. Of course, profits are going to soar. Exertion and theft with no risk of retaliation and no fear of punishment is very lucrative indeed. Wall St, Russian Mafia, State sponsored Narco-crime .....Same business model ; same tremendous profits.
The Non-Stimulating Stimulus Bill [View article]
1. Rapidly collectivize the economy
2. Further concentrate wealth, income and power
3. Compress the Middle Class, which may be aroused to open rebellion against the subversion of the Constitution----- unless it is swiftly and decisively intimidated and demoralized
4. Squeeze and bankrupt small and medium enterprises: the locus of the opposition to collectivization and the principal obstacle to the concentration of income and wealth
5. Totally co-opt the incompetent, deceitful and avaricious top executives and Boards of the biggest financial and industrial companies in the US
6. Transform the MSM into the subservient propaganda arm of the State
7. Instigate and institutionalize class warfare by expanding the lower class at the expense of the middle class via coerced downward social mobility
8. Discourage useful innovation because innovation can bypass bad Government; thwart real talent because real talent can be a threat to entrenched Bosses ; exile risk capital because risk capital leverages innovation and talent
Is It Time to Panic? [View article]
It is not time to panic: it is time to restore personal and property rights; to bring back the rule of law and honestly free, fair and flexible markets.
Only if there is no successful middle class rebellion, starting this year, will it be time to panic for ordinary people and a time for jubilation for the Regimes.
The Next Major Financial Crisis [View article]
Unfortunately for America, the political and moneyed elites have decided to replace private hubris by much greater public hubris and false private credit by even more dishonest public credit. A large private excess has been replaced by a truly monumental public excess, which is presented as the "cure". Very sadly the cure is an even greater malignancy. In turn, this malignancy must and will be excised. The pain that will follow this inevitable major surgery will be excrutiating indeed and recovery will be long and slow.
The alternative to the needed surgery(ie, the alternative to great pain) is continued political denial and deceit leading to not a miracle cure but an unavoidable and agonizing systemic collapse.
The Dark Side of Deficits [View article]
2. Big Govt spending on economic projects, income transfer schemes and bribes to inflate current consumption ALWAYS cannibalize , misallocate resources from the productive to the parasitic economy and cripple the long term capacity of the economy to create true wealth
3. Fake, fiat currency to finance spending and deficits results merely in vast bad debt, which invariably kills growth while creating the cancer of money illusion, which is simultaneously leveraged and obscured by false "Official Statistics"
4. The combination of deficits, Big Govt spending, fiat currency and false statistics are economic terrorism and finacial war on a continental scale. Of course, the result is a dark economic depression for the middle class.
Is America's Middle Class Going the Way of China? [View article]
They fear because the middle class is the source of entrepreneurship and genuine innovation: both of which are profound threat to the stasis and status quo that corrupt, greedy, vain , collectivist and entrenched Regimes so prize.
2. It is the explicit policy of the US Occupation Regime to design and implement a social, political and economic model where a tiny elite lives in imperial and unquestioned splendor; an expanding ignorant, brutal and addicted lower class is bribed, deluded and intimidated into herding, coercing and tormenting a shrinking and demoralized middle class which can be systematically exploited and enslaved by the tiny upper class.
3. In 2008 this country was still, after a fashion a Republic. In 2009, it became a Soviet. In 2010 it is on a trajectory to becoming a Gulag.
The U.S.: Land of the Free and Home of a Nearly Failed Treasury Auction of Its Own [View article]
When vapors are used to consume delusions a polity is surely at a cusp. Either a descent into the totalitarian abyss or a recoiling from the dark depths and a reversal of direction.
This year is dispositive. The Regime must decisively complete its occupation or America will rise in rebellion to reclaim its heritage and liberties.