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Hot Richard

Hot Richard
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  • 1 in 6 Americans Live in Poverty [View article]
    Conspicuous "the poor."

    The following is NOT make believe:
    1. Constantly on cell phone
    2. Hours and hours on the latest gaming consoles
    3. Large TV
    4. Rims! Used to be spinny-rims.
    5. Shoes...good lord the shoes.
    6. 10K Gold necklaces
    7. $75/month on iTunes account
    8. Fast food every day
    9. Steady job (even a low-paying one) results in debt: buy a motorcycle, car, boat, etc...
    10. Officially Licensed Merchandi$$e by the NFL, MLB, etc.
    11. Internet's a right after all. Just file under "Large Cable Bill"
    12. Dentist or beer? BEER!
    13. Cigarettes. Cartons and cartons of cigarettes.

    Every dollar is spent on the above, but few get all 13 items.

    On the "plus" side:
    1. Most don't have cars...use public transportation.
    2. Little or no furniture.
    3. Live with parents/grands or roommates
    4. Work for unreported/untaxed cash
    5. Easy to buy presents for (as GreenRiver points out)
    6. $0 spent on education

    Poor decisions create a cycle of poverty...buying stuff that doesn't matter. I'm one of the few people who will admit (mostly because of my background) to not liking "the poor". That's right, I don't like them. I got my reasons.

    If you are making $14K a year, you aren't paying for car insurance, gas, electric, heat, water, or rent. You're free-riding as much as you can and spending the couple dollars you get as soon as you get it...on items 1-13.
    Jan 10, 2011. 11:30 AM | 2 Likes Like |Link to Comment
  • Numismatic Coins Are Fool's Gold [View article]
    I hope that Postmaster General will be getting a visit from an IRS agent. That stamp must be appraised and taxes must be paid on the value.

    yes, i'm sure this will happen quickly.
    Jan 10, 2011. 11:05 AM | Likes Like |Link to Comment
  • Numismatic Coins Are Fool's Gold [View article]
    "That crash, the one I have been warning about for a decade, is a collapse of the international dollar standard."

    In 2008 I put this event in 2012. Nothing has made me change my mind. 4-6 years is the estimate I had for a couple rounds of wealth transfer by the connected, politically elite to get their funds into assets safe for the collapse of the dollar. Yes, I'm an extremist...I know. And I'll be extreme in 2013 when I convert gold into an all-China portfolio at steep discounts.

    However; the connected aren't betting QE will work. They are using it to move assets...sell their floodplain sitting houses to rubes and secure their wealth.

    We're past the event horizon and that gravity well is pulling at the atoms of our feet. But, I still think the USG will do something to crimp individuals holding gold. Great Zeus and Apollo, the USG hates it when private citizens make money.
    Jan 10, 2011. 11:04 AM | 1 Like Like |Link to Comment
  • World Food Prices Rise: Get Ready for the Riots? [View article]
    Hot Richard: reads free economics articles online.

    Ben Bernanke: Harvard and MIT (places I've driven past).

    Luckily, I am skinny, don't eat much, and have bet that every move by Ben would be a failure*.

    One must define "failure" I suppose because Ben is certainly "Man of the Decade" at Goldman.

    Hey! It's 1Q2011!!!!!!
    Jan 10, 2011. 10:52 AM | 1 Like Like |Link to Comment
  • Markets Are Overbought, But On With the Party [View article]
    tunaman, you are a man after my own heart. No need to go down with the ship. It is easy to predict that a man punching holes in his boat will sink. Invest accordingly.

    At least Mark used his quatation marks correctly. The last time I saw a free market capitalist he was riding a unicorn.
    Dec 16, 2010. 10:35 AM | 3 Likes Like |Link to Comment
  • What's so wrong with tax cuts for the wealthy, Caroline Baum wonders - after all, most Americans aspire to being rich. It's "voodoo economics revisited," Simon Johnson says - "childishly reckless" fiscal policy that digs the U.S. into a deeper debt hole.  [View news story]
    Math! How does it work?!
    Dec 16, 2010. 10:26 AM | 1 Like Like |Link to Comment
  • What's so wrong with tax cuts for the wealthy, Caroline Baum wonders - after all, most Americans aspire to being rich. It's "voodoo economics revisited," Simon Johnson says - "childishly reckless" fiscal policy that digs the U.S. into a deeper debt hole.  [View news story]
    Partly right, greenzulu.

    The last US election was all about the debt. SO...the first thing (THE FIRST THING) that Congress does is extend tax breaks while also extending unemployment benefits.

    That equation looks like this "Take in less tax revenue" while also "spending more". Can someone with addition/subtraction experience explain?

    It sure looks like continuing to dig.

    My premise remains the same: There is neither the appetite nor leadership to deal with the US debt.

    Short the US economy at every opportunity.
    Dec 16, 2010. 10:16 AM | 1 Like Like |Link to Comment
  • More Stimulus Means Fewer Jobs [View article]
    The incredible perpetual motion machine that is QE. If only it were real.
    Dec 14, 2010. 11:52 PM | 1 Like Like |Link to Comment
  • Washington Orders Another Free Lunch [View article]
    Ok then, sell me your gold.
    Dec 14, 2010. 11:43 PM | 2 Likes Like |Link to Comment
  • What Are the 'Old GM' Bonds Worth? [View article]
    The GM bailout has shown the USGov a new racket that transfers billions from taxpayers. This is not a good thing as it is bound to be repeated. I fear that the USGov has figured out how to win in a crashing economy...which hastens the crash.

    On the plus side...statist corporations usually do extremely well in a protected, socialist economy. This bodes well for the GM IPO. Maybe they can get legislation passed that cuts you a $10K check for every GM car you buy. Just kidding! They don't need to pass legislation to cut checks!!
    Nov 29, 2010. 11:12 AM | 1 Like Like |Link to Comment
  • How to Protect Yourself From the Crash of 2011 [View article]
    I think you are right on the money with #2. At this point in time, I would be looking at statist corporations (banks) even though the risk* still doesn't have me pulling the trigger. They remind me of my Haliburton war play. I needed to take a lot of hot showers, but had to play the game.

    *I am currently investing with a "economy will crash" mentality.
    Nov 16, 2010. 02:39 PM | Likes Like |Link to Comment
  • Anti-Poverty Programs Greater Than the Cost of Medicare [View article]
    If the US got out of subsidizing the poor to the huge extent that they do, we'd see a tremendous drop in superfluous toys such as motorcycles, jet skis, boats, booze, cigs, fast food, TVs, cable TV, game consoles, Nike and craptacular clothes that they now buy.

    And that's not even going into diet. Go to a supermarket with a fair amount of "poor". You'll see the most unhealthy items (which also have the highest cost) in shopping carts. TV dinners, red meat, sugary snacks, soda, etc.

    Could go on and on and on, but it ain't going to change. I wish people would use a bit of caution before buying into all this talk about how much help "poor" people in America need.
    Nov 16, 2010. 02:22 PM | 2 Likes Like |Link to Comment
  • Ten Problems With Free Trade [View article]
    I'll take your question as legit. Yes, wealth redistribution flows TO some of the wealthy. This doesn't mean it doesn't also flow to some of the "poor". In a very real sense all wealth is redistributed to different degrees by the government. This is the racket and the government has several mechanisms it uses.

    I'm going to assume you know how wealth is redistributed to the wealthy...and also assume you understand how it is redistributed to the poor. Of course the managers of this redistribution (politicians, public service unions, and statist corporations) skim a healthy amount for themselves...which of course is what a racket is all about.

    None of this has anything to do with free markets. Which, like unicorns, exist only in our dreams and on posters in our bedrooms. I may have revealed too much there.
    Nov 12, 2010. 09:59 AM | Likes Like |Link to Comment
  • U.S. Government Debt and Deficit Update [View article]
    "There has been no backing off on the "borrow and spend" game in Washington."

    Why should there be? They continue to get paid in the game and "we the people" continue to pay the price. Voters still refuse to change the game. Voting out 60 Dems and replacing them with 60 Republicans seems pretty useless when viewed with 2000-2008 eyes.

    The only change is that a Republican House will try to "borrow and spend...and collect slightly less in taxes from a few in our party".

    Again, there is no reason Congress should change their game. Congress is doing very well for Congress, thank you. You? Oh, you're hosed.
    Nov 10, 2010. 11:18 AM | 1 Like Like |Link to Comment
  • Anti-Poverty Programs Greater Than the Cost of Medicare [View article]
    Who is this "we" you keep talking about? Are you sure you don't mean "TripleG"?

    Jesus? I refuse to take a stand on entitlement programs until I hear "What Would Loki Do?"

    If there is a person who supports entitlement programs because government's job is to reduce suffering, they need to FIRST support ending the war on drugs, abolish the IRS, and fire 90% of the folks at the DOJ. That's where a lot of suffering originates.
    Nov 10, 2010. 11:12 AM | 2 Likes Like |Link to Comment