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Michael Clark

Michael Clark
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  • On the Brink: Paulson's Book Is a Must Read, But Is It Credible? [View article]
    Feb 10, 2010. 01:22 AM | Likes Like |Link to Comment
  • On the Brink: Paulson's Book Is a Must Read, But Is It Credible? [View article]
    "Due for another disruption..."

    A disruption every 4-5 years. How convenient. I guess high-level theft is so lucrative now that our bankers...just can't wait. I'm sure they just can't wait for the next one too, especially when it includes wholesale theft from the public treasury.

    This financial crisis won't be complete until Mr. Paulson is in jail with his friends, and he is getting the Madoff treatment in prison.
    Feb 10, 2010. 01:21 AM | 1 Like Like |Link to Comment
  • A Thousand points of Blight [View instapost]
    Thank you, Jasper M. Love your thoughts: especially that last paragraph. All this from hubris....yes. All this destruction because of hubris, greed, and stupidity. Wait until the wars start. More tragedy to come.
    Feb 9, 2010. 08:51 AM | 1 Like Like |Link to Comment
  • The Coming Pan-European Sovereign Debt Crisis [View article]
    Great article, Reggie. i look forward to this continued analysis.
    Feb 9, 2010. 07:09 AM | Likes Like |Link to Comment
  • Bad Momentum, Bad Fundamentals and 10,000 in the Rearview Mirror [View article]
    I like your first article -- I am now a follower -- it is well-written, smart and informative. Welcome to 'Seeking Alpha'. Look forward to more reports from you.
    Feb 9, 2010. 07:00 AM | 1 Like Like |Link to Comment
  • The U.S. is at "zero hour," says Marc Faber, where extra debt growth won't add anything to GDP growth - and he says Treasurys should be "junk-rated." (video, 5:34)  [View news story]
    Econdoc lists these 'advantages' of America:

    Why? Think about it. The list of advantages relative to all comers is a long one..... Effective Rule of Law, Strong Property Rights, Unsurpassed Military, Dynamic and growing economy, Good demographics, Everyone wants to live here, Widest and deepest capital markets, Strong infrastructure - don't believe the hype, Unsurpassed Higher Education System, it goes on and on...

    I agree with some of this.

    But things change. A decade of depression is going to change a lot. Colorado Springs is already turning out street lights, dropping firemen and policemen off the city budget, cutting bus lines at night and on the weekends. This is just the beginning; and it will happen everywhere in America.

    Actually, we have NOT had a vital and growing economy since the 1950's. In the 1980's we began turning the economy over to the financial overlords....and investment services, insurance, and banking grew magnificent profits -- as did health care, as the result of the health cartel price fixing crimes that are only now beginning to be understood -- housing, also, thanks to bubble economics -- but the rest of the American economy has been shrinking for half a century. The problem with the focus on the financial sector as a growth locomotive is that this resulted in the consumer's debt-slavery.

    The result of this Reagan economic revolution (freedom to the bankers, destruction for labor) was that we are now sinking into a modern feudalism, in which the bankers and financial overlords own everything -- and everyone else lives for the banks, funneling payments each month into the bankers' treasury. Wages are lower, jobs are gone. Your idea that we are a 'dynamic and growing economy' appears to be a fantasy.

    The 'everyone wants to live here' conjecture will not last when there are no jobs here and people are living in tents, instead of mega-mansions developers tricked the new debt-junkies into buying, which subsequently broke their backs financially.

    Millions of empty rotting houses in America, Spain, China, Ireland, Eastern Europe...that tells us something about the big blow-off of the last stage in the business cycle, doesn't it? There will be no more significant economic growth for in America for another decade or two.
    Feb 9, 2010. 01:48 AM | 4 Likes Like |Link to Comment
  • The U.S. is at "zero hour," says Marc Faber, where extra debt growth won't add anything to GDP growth - and he says Treasurys should be "junk-rated." (video, 5:34)  [View news story]
    Treasuries are junk-bonds. That may change again -- but we have not been able to sell our treasuries over the last year, had not Ben Bernanke been buying every last bond at auction that no one else wanted. Without Bernanke's using our grandchildren's earnings to buy TBonds today, yields would have gone through the sky, and become, essentially, junk bonds. If Bernanke had let the 'markets' determine the TBond yield (instead of the heavy hand of his ideology of inflation) TBonds WOULD be junk-bonds.

    The future? Who knows? Europeans are now running scared of the Euro and their own future. They may come back to the treasury markets.

    The odd thing is we NEED interest rates to go up. We need to confront our debt, to default, to go bankrupt. We need higher rates to encourage saving instead of borrowing. But the rulers of the universe (Bernanke et al, in all countries, not just the US) don't want to lose all that they have fought for, and stole, and killed for -- they don't want to become bankrupt themselves (even though they ARE bankrupt, in the moral sense) -- so they cling to this notion of 'just one more bubble' to get us through the hard times...

    Moral bankruptcy comes first; financial bankruptcy follows. And we've been morally bankrupt for quite some time. ('We' being all societies driven by the love of money above all other standards, which is clearly a false god.)
    Feb 9, 2010. 01:16 AM | 3 Likes Like |Link to Comment
  • The U.S. is at "zero hour," says Marc Faber, where extra debt growth won't add anything to GDP growth - and he says Treasurys should be "junk-rated." (video, 5:34)  [View news story]
    I'll remind you that Japan became an 'empire' (of the Sun) in the 1930's because they had no real oil of their own. It is not just the American military that will play 'grab the resources' over the next decade, it will be every military on the globe, if they can afford to make a play.

    There is nothing inherently evil about America or even the American military that is not also shared by every country in the world, and every country's military, so long as they are stronger than their neighbor they are considering for a 'hostile take-over'.

    America has arranged the 'Pax Americana' over the last half-century because it is good for business. As America sinks back into relative financial weakness, more aggression in the world is very likely, more open theft of resources. Those who cheer America's decline will discover another side to their hopes, another return to the good old days when war was a common tool of capital enterprise (and not just the threat of war, as has been during the Paw Americana).
    Feb 9, 2010. 01:02 AM | 1 Like Like |Link to Comment
  • The U.S. is at "zero hour," says Marc Faber, where extra debt growth won't add anything to GDP growth - and he says Treasurys should be "junk-rated." (video, 5:34)  [View news story]
    I agree, there are a lot of perma-antiAmericans who want to see America fall. America has brought much of this on herself, through arrogance and chest-beating. Also, no one roots for Goliath.

    Markets and the economy are NOT related. Interesting but true. Part of the reason for this is that Big Money has been manipulating the markets for a long time. The stock market was designed as a funding instrument for capital investment. But Big Money found out long-ago that the Stock Market was the original Las Vegas. As long as Big Money controlled the trading, they could make money no matter what direction the economy was going. And if they could get the Small Money to follow, they could trap small money in their rallies and get away with almost anything.

    Sound like a 'conspiracy theory'? Yes. Of course, believing Big Money does not cheat and steal in the stock market ignores how big money got their money in the first place -- by cheating and stealing in business. Naivety is not a form of virtue in terms of understanding how human nature works.

    I think Marc Faber has a fundamental understanding: your cannot spend more than you make indefinitely. That is the path to bankruptcy. That is the path the whole world has been following over the last two decades. Pyramid money into one loan on top of another; as the asset values grow, borrow more and pyramid it again, ad infinitum. This works until the asset structure collapses. Then, suddenly, the assets are worth less than what one owes on them. And, suddenly, instead of being filthy rich one is filty poor.

    This is why we have a depression (or stagflation) every 18 years. The government has poured billions or trillions into the economy to try to re-start it. Those of you who argue that we are recovering must admit that we are getting a tiny return on our investment (government stimulus). How long can we afford to get a tiny tick up in employment at the cost of billions in government loans? The economy 'stabilizes' and the deficits grow? Governments appraoch bankruptcy in order to 'stabilize' the economy. Sounds like a bad investment to me.

    And where is private enterprise? It's trying like hell to pay down debts, reduce costs, laying off is not GROWING, it's declining, it's retreating, it is circling the wagons. And this is even before the real protectionism has begun. What happens when Americans are elected for promising to slap an excess tariff on all non-US made automobiles and Japan and Germany and Korea and Sweden respond by making American goods no longer welcome in their countries.

    We are still in the denial stage of death. I speak not just of the US, but of the global economy. The global economy is dying. This will bring all kinds of changes.

    America is still young, still with many resources, still separated by huge oceans from much of the world. America will fall; but America will also rise again. There is a moral lesson in all of this: never forget, when things are good, that they will NOT remain good for ever. When you are rich, remember poverty; when you are poor, remember wealth.
    Feb 9, 2010. 12:49 AM | 2 Likes Like |Link to Comment
  • Fed's Exit Plan Just Another Secret Gift to Wall Street [View article]
    Scum rises to the top.
    Feb 8, 2010. 11:06 AM | 1 Like Like |Link to Comment
  • Report from Europe: Club Med Spooks Stocks [View article]
    '...nearly spawned a Greater Depression'...?

    Keep watching. We've only just begin this story.
    Feb 6, 2010. 08:05 AM | Likes Like |Link to Comment
    Yes, there is a justice at work, isn't there.
    Feb 6, 2010. 01:32 AM | Likes Like |Link to Comment
  • On the Brink: Paulson's Memoir of the Financial Crisis [View article]
    Paulson was speaking publicly about his intent to rescue Fanny and Freddie for shareholders while he was planning to kill shareholders for the benefit of other parties -- Chinese bondholders?

    Is that legal?
    Feb 5, 2010. 12:36 PM | 1 Like Like |Link to Comment
  • Credit Deflation...The more things change, the more they remain the same!  [View instapost]
    Deflation is a journey into the Underworld. You can't make this journey by pretending it isn't happening, or by renaming 'despair' 'optimism' in the hope that 'positive thinking' will make the nightmare melt away.

    The only way to journey through the Underworld is to confront the truth, admit to yourself you have made mistakes (sinned) and make reparations for your sins...raise rates, wipes out debts, suffer through bankruptcies and defaults, convert your society from a soft, consumer, debt-riddled society to a hard, producer, savings-inflated society.

    It is not easy. The journey through the Underworld is built-in to the story of life as a 'rod' to remake one and one's society. It is a process of emptying out. It is not supposed to be easy. But it brings one and one's nation back to its roots, its purpose, and its better nature.
    Feb 5, 2010. 12:28 PM | 1 Like Like |Link to Comment
  • Unemployment: The Government's Scary Projections [View article]
    I agree, Martin. Emotion tells us we are on one side or another; and it tells us that the world is a war between two sides -- and one is either on the right side or the wrong side.

    In fact, the Day and the Night work together. Day is active; Night is for rest. Crops can't grow all year long: they have an active phase; and then they rest, while seeds germinate. Winter is a time for resting, dreaming, gestating. Human society is also like this. Men and women work together (and also against one another) to make life on earth better for all, ultimately. Republicans and Democrats (capitalists and socialists) also work together, although you have to get above the action to see how this plan works, how the adversary is really your own shadow, the parts of yourself you hate and want to execute or send into exile. We all like to be right. We feel good being on the right side. It's a paradox. The two forces are always at war and are always not at war at the same time, competing and cooperating, betraying and recreating.

    The capitalists are afraid of -- hate, for hate is a manifestation of fear -- the socialists because they are afraid of losing their power to the women in their society (afraid of being powerless in the face of a primordial competition), afraid of being swallowed up by their mothers; and the socialists are afraid of -- hate -- the capitalists, because they fear their father and want to tear their father down because they know they will never be able to live up to their father's image as a builder of empires, cities, and civilization.

    We all have all of these parts (every human, every society, every nation). This is the metaphysical motor that turns myth into history, and turns history back into myth.
    Feb 5, 2010. 12:00 PM | Likes Like |Link to Comment