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K Smith

K Smith
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  • Why the Fed Should Raise Rates to Get Banks Lending Again [View article]
    Who is John Galt?
    Jan 26, 2011. 04:43 AM | Likes Like |Link to Comment
  • Four Financial Farces That Will End in Disaster [View article]
    richjoy403 - According to the most recent report by the Bureau of Labor Statistics dated January 7, 2011, our labor force participation rate is 64.3%. This means only 643 out of every 1000 people of working age are participating in the labor force. With a December 2010 unemployment rate of 9.4% this means only 54.9% of our labor force actually has a job, or 549 out of every 1000 people.

    This is 1 out of every 2 people.

    The really scary number is the number of people who are dropping out of the labor force every month, those who have given up even trying to find a job. This number continues to rise every month. This number is not included in the unemployment calculation.

    Things are much, much worse than we have all been led to believe.
    Jan 21, 2011. 02:47 AM | 2 Likes Like |Link to Comment
  • Four Financial Farces That Will End in Disaster [View article]
    richjoy403 - TVs, computers, homes, and cars are not necessities. People can live for decades without ever buying another one of these things. The streets of Havana are full of cars that were built 50 years ago.

    People cannot live without food.

    It is not true that there is no way to measure national changes in home prices. Private outfits measure these changes every day. It is the BLS that seems to have such a hard time of it. Lots of people who live in the real world saw the housing bubble. I did. So did many, many of my friends and acquaintances - none of whom have undergraduate degrees in economics, let alone PhDs.

    The inflation of the 1970s was caused by OPEC. The inflation we are experiencing now is caused by our own Fed. It has not saved us from collapse. All it has done is kick the can farther down the road.

    The tightrope walk you describe is not possible. There is someone at the other end slicing thru the rope, which will cause Mr. Bernake to fall. He is working with no net. After we save the euro from collapse with QE3 there will be no bailout for the dollar.

    Mr. Bernanke has more to worry about than the tightrope you describe. More and more of America is waking up to the fact that what our government tells us, things like manipulated employment numbers and manipulated inflation numbers, is unreliable at best, and intentionally deceptive at worst. More and more of America is learning the truth about fiat money, fractional reserve banking, and how central bankers inflate away the value of the money earned by those who create wealth thru work.

    Your definition of an improved economy is different from mine. If companies are making money and millions are experiencing declining living standards, this is not an improved economy.

    Only 1 of every 2 working age Americans has a job. Over half the population is dependent upon government either for their job or their survival. A record number of Americans - over 40 million - now receive food stamps. Since the beginning of the downturn, 55% of the labor force has experienced either unemployment, a pay decrease, a reduction in hours, or an involuntary move to part-time work. Not included in this statistic are those whose employers have eliminated employer 401K matches, employer provided health insurance, and other non-salary benefits.

    There are 18,000 parking lot attendants and 317,000 waiters and waitresses in our naiton with college degrees. Of all those who graduated from college this past summer, 85% planned to move back in with mom and dad. Tent cities are a growing phenomenon in major metropolitan areas across the US. Hundreds live in flood tunnels under the city of Las Vegas. Community food banks are reporting the greatest demand they have ever experienced.

    In order for employment to return to pre-recession levels by 2016, the economy has to create over 235,000 jobs every month. Those sectors of the economy that are projected to add jobs are dominated by low wage service positions. Add to this the massive tax increases in our new healthcare law and things are not looking too rosy.

    Inflation does not make the value of things go up. Inflation causes PRICES to rise, not value. Paying off our massive debt with cheaper dollars will not make those to whom we owe the dollars - China - very happy. Today a prominent business leader called for a trade war with China. Paying off debt with cheaper dollars leads to real war.

    And it continues to steal the wealth of those who create wealth thru work.

    When people are living at subsistence levels, and their kids are hungry, and Cheerios are $7 a box, and peanut butter is $3 a jar, they do not care how cheap TVs are.
    Jan 19, 2011. 12:29 AM | 2 Likes Like |Link to Comment
  • Four Financial Farces That Will End in Disaster [View article]
    Karen Consumer is correct.

    One nationwide price survey shows a more than 34% increase in the price of toilet paper in the four weeks ended December 14, 2010. The price of both condensed and ready-to-eat soups was up over 30% for the same period. This is one of the most popular purchases for budget-minded consumers.

    The same period saw a 25% increase in the price of potatoes, and a 17% increase in the price of oatmeal. As the price of necessities like food, gas, and home heating oil continues to rise, there will be less and less left over for everything else. We will continue to see consolidation of households and declining purchases of non-essentials.

    bob adamson, about a year ago you suggested here that concern for personal safely in troubled times be met with a "call for the appropriate strengthening of the forces of public order and a demand that they serve the public better." I responded that when you dial 911 and no one answers you will be on your own.

    This is happening now in several communities. Entire EMS units have quit because local communities can no long pay the salaries to which they have become accustomed.

    Times are indeed tough. They will continue to get tougher.
    Jan 17, 2011. 12:35 AM | 2 Likes Like |Link to Comment
  • The Causes of Unemployment [View article]
    Reduce the nominal exchange rate by 8%? Oh sure, my morale will be sky high until I stop by the gas station on my way home from work and gag on the price of gas, and then swing by the grocery and use what is left of my paycheck after buying gas to buy food for my family.

    Mr. DeLong, do you really think people won't notice prices will have gone thru the roof?

    Oh, pardon me - how could I have been so dense? If price increases are not reflected in core inflation, inflation does not exist!

    There's a signpost up ahead...next stop, The Twilight Zone!
    Jan 14, 2011. 03:19 AM | 3 Likes Like |Link to Comment
  • The Conundrum of Central Bankers [View article]
    The real conundrum of central bankers -

    As more and more of the public continues to learn the truth about

    * fiat money
    * fractional reserve banking
    * manipulated employment numbers
    * manipulated inflation numbers
    * how central bankers inflate away the value of the money earned by those who create wealth thru work

    How will central bankers fool people into allowing them to continue to operate?
    Jan 13, 2011. 02:34 AM | 1 Like Like |Link to Comment
  • Don't Be Fooled by Bernanke's Psychological War on Gold and Silver [View article]
    bshirley - I'm praying for cold fusion.
    Jan 5, 2011. 10:26 AM | 1 Like Like |Link to Comment
  • FOMC: QE2 Is Working [View article]
    You don't need to see his identification.

    These aren't the droids your looking for.

    He can go about his business.

    Move along.
    Jan 5, 2011. 10:16 AM | 1 Like Like |Link to Comment
  • Open Letter to Incoming Congress: Fix It Now [View article]
    I've popped the popcorn.

    I'm settling back for what promises to be a spectacle the likes of which we will not see again for another hundred years.
    Jan 5, 2011. 09:36 AM | 4 Likes Like |Link to Comment
  • Uptick in U.S. Employment [View article]
    Shining the spotlight on supposedly declining jobless claims is an attempt to distract all of us from seeing the massive carnage that lies all around us.

    Here's a real goat choking number for ya - in order to reach pre-crash employment levels, our economy has to create over 235,000 new jobs every month from now until 2016.

    I'm not holding my breath.
    Jan 1, 2011. 09:55 PM | Likes Like |Link to Comment
  • First Recession Since End of WWI Where Government Help Isn't Trickling Down to the American People - Christopher Whalen [View article]
    In the video Mr. Whalen says he wants to change expectations. I find it interesting that the last question he asks is, "What comes after real estate?"

    They've already shown their hand. They've already hit public pension funds. The trustees of state pension funds have been convinced to "invest in"" junky government debt.

    Our 401Ks and IRAs are next.
    Dec 17, 2010. 03:14 PM | 1 Like Like |Link to Comment
  • Bonds: It's OK to Panic, But Take Your Time [View article]
    Inflation Trader, you are making a circular argument.

    Price inflation has nothing at all to do with living conditions. Price inflation is a measure of changes in consumer prices.

    Rising consumer prices are not a matter of opinion. It is a fact that consumer prices have been rising steadily over the past 2 years. They are now rising every week. You don't have to be a statistician at the Bureau of Labor Statistics to know this. Anybody who shops for groceries and puts gas in the family car knows this.

    But since you have brought up living conditions, you may wish to ponder these facts -

    * Over the next few months 2 million Americans will stop receiving unemployment checks.

    * There are 18,000 parking lot attendants and 317,000 waiters and waitresses with college degrees.

    * Of all those who graduated from college this past summer, 85% moved back in with mom and dad.

    * Since the beginning of the downturn, 55% of the labor force has experienced either unemployment, a pay decrease, a reduction in hours, or an involuntary move to part-time work. Not included in this statistic are those whose employers have eliminated employer 401K matches, employer provided health insurance, and other non-salary benefits.

    * Only 1 of every 2 working age Americans has a job.

    * Over half the population is dependent upon government either for their job or their survival. A record number of Americans - over 40 million - now receive food stamps.

    * Tent cities are growing in major metropolitan areas across the US. Hundreds live in flood tunnels under the city of Las Vegas. Community food banks are reporting the greatest demand they have ever experienced.

    * In order for the unemployment rate to return to pre-recession levels by 2016, the economy has to create over 235,000 jobs every month.

    * Those sectors of the economy that are projected to add jobs are dominated by low wage service positions.

    Living conditions have indeed declined, and they will continue to do so for the foreseeable future.
    Dec 9, 2010. 05:47 AM | 8 Likes Like |Link to Comment
  • Bernanke on '60 Minutes': Pants on Fire [View article]
    When the thief is escaping in the getaway car from one hit and is on his way to another hit, replacing the driver with a new one does not prevent the continued theft from taking place.

    That is what we have. We have a system that is set up to steal from the pockets of those who create wealth thru work. More and more of those who create wealth thru work are learning the truth, and they do not like what they see.

    Ben went on TV because of this - a cartoon explanation of quantitative easing that's been up for less than a month and already has over 3 million hits.

    www.youtube.com/watch?...

    Replacing Ben will not solve our problems. We will have the same system - the same getaway car, but just a different driver. The only way to fix what ails us is to scrap the system - End The Fed.
    Dec 8, 2010. 03:16 PM | 3 Likes Like |Link to Comment
  • U.S. Yields Not Reflecting Risk [View article]
    The compromise is not a done deal. There are both Democrats and Republicans who think the deal stinks, for different reasons. Senators on both sides of the aisle are making noises about a filibuster.

    Don't count your chickens before they're hatched.
    Dec 8, 2010. 02:32 PM | Likes Like |Link to Comment
  • Bernanke Turns Obfuscatory [View article]
    Ben obfuscates on "60 Minutes" but tells the truth on YouTube, with little help from his pals Hank and Timmy.

    P.R.I.N.T. Money

    www.youtube.com/watch?...
    Dec 7, 2010. 01:51 AM | Likes Like |Link to Comment
COMMENTS STATS
206 Comments
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