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Leftfield

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  • Searching For Fail, And Still Finding It [View article]
    The problem with all the theories is not only that they can be counted on to come up pathetically short in a 40x-leveraged real world crunch but mainly that the exponents bear far too little personal burden for the consequences.

    With all the taxpayer $trillions thrown on the bonfire of policymaker corruption and mistakes, personal accountability by TBTF market participants, "public servants" and other connected elites who prosper like no other time in history regardless of their collateral damage and losses they count on Uncle Sugar to back, has never been more important at the top. Unfortunately this is where it is most lacking and that is why massively leveraged financial engineering and Orwellian cults of policymaker infallibility survive and thrive in the face of long-term societal decline and the next even greater crisis they are ensuring while elites prosper as never before.
    Aug 21, 2014. 09:59 AM | Likes Like |Link to Comment
  • The Jackson Hole Spin [View article]
    The more failure our state and nominally quasi-state planners (CB's) have on their hands, the more they distance themselves from reality. As they are well into the process of routinely squandering taxpayer $trillions on their failed policies and ludicrously sending financial asset pries to the moon while Main Street remains comatose outside of growing government entitlements, there has never been a better time for them to step out of character and reflect on the data honestly.

    Sadly, the cult of these personalities and institutions that seems bent on rivaling that of the various Kim Jongs of North Korea whose economic results these Western luminaries seem bent on achieving, seems to attribute to them godlike powers of infallibility regardless of their continued and epic failure to move the economy forward even with the abundant printed and taxpayer $trillions they have seen fit to dissipate.

    Debt, grossly excessive government cost and overregulation plus growing "private" interests deemed too big to fail ARE the problem, which will not be solved by these charlatans regardless the cult of omniscience they have bestowed on themselves in their quest to rival Soviet state planners while bringing us the same awful results.
    Aug 20, 2014. 08:14 AM | 5 Likes Like |Link to Comment
  • Obama Spins Subsidies Both Ways [View article]
    "It's ironic that the Obama administration is claiming credit for liberating women from the workforce. But before 1960s, most married women already enjoyed those luxuries. But when taxes and inflation rose to pay for the roll out of the welfare state, the single income household went the way of black and white TV. In the 70's and 80's the huge influx of women into the workforce was heralded as a great boost to the economy. Oh how times have changed."

    The cost as well as the perverse incentives of the welfare state is central to understanding much of the social and economic pathology which has flourished in the US since the inception of the Great Society in the 1960's. Incentives are either to qualify for a government check by not working or to get a "job" administering part of the bs rule-creating and administering bureaucracies and "professions" that arise. Families are truly ripped apart as latchkey kids who are cared for by strangers in infancy, fend for themselves after school until both working parents arrive home in the evening. Behavioral problems have skyrocketed as a result.

    The "solution" is always more programs, rules and costs and bubbles blown and debts skyrocketing in an attempt by politicians to hide the economic damage and decline resulting from hamstrung domestic private business no longer vibrant enough to carry the burgeoning parasitic burden.

    This will have to end either via a rational, productive return to personal responsibility or in a complete statist clampdown where the result will resemble the Soviet "we pretend to work and you pretend to pay us" farce and complete ascendence of the police state road to serfdom upon which Americans are well on their way.
    Aug 19, 2014. 11:03 AM | 11 Likes Like |Link to Comment
  • eBay May Have 10.2% Upside Until Year-End [View article]
    "PayPal remains the most dominant payment platform."

    Which was once said about the Ebay marketplace before the slow growth produced by management's ever-changing but seller-unfriendly policies allowed Alibaba and Amazon to overtake it. There is no reason to assume a wisdom on the part of this company's management that will surpass it's formidable rivals once they fully develop their offerings in online payment either.
    Aug 18, 2014. 12:49 PM | 2 Likes Like |Link to Comment
  • VISUAL PROOF THAT THIS "BULL MARKET" IS A SCAM [View instapost]
    Good luck waking up the muppets. Buy the dips has worked for a very long time; how much asset-based circular lending can this house-of-cards financial paper-"backed" (debt) system continue before the emperor's new clothes are finally seen for what they are? Will we have an irreversible feudal society in place by then - if it isn't already too late?

    A serious crisis of confidence will show an even more insolvent system than 2008, and one now out of policymaker "magic bullets" to extend and pretend the ZIRP- and taxpayer-financed financial-paper tower of Babel they have constructed. The next options they choose will be determinative of whether a relatively free-market capitalism can emerge from the statist and kleptocratic mess that parasites and rentiers of all income levels who are have gained so many levers of power and control seem so determined to preserve at any and all cost.
    Aug 17, 2014. 11:29 AM | Likes Like |Link to Comment
  • The Latest Unsustainable Trend [View article]
    Somehow corporate share repurchases always peak at the same time as share prices and then crater during such times as 2009 when prices are low.

    Rather than an insightful investment timed to undervalued shares, American corporate share repurchases are a drunken orgy for top management to maximize compensation and bonuses to be obtained by any means necessary, whenever possible, good stewardship be damned.
    Aug 15, 2014. 05:12 PM | 1 Like Like |Link to Comment
  • Japan's GDP Problems, The Big Picture [View article]
    Once upon a time, pre-2008 Wall Street crash, it was not uncommon to hear and read criticism of Japan's zombie banks and interests who were not allowed to fail after their 1988 stock market debacle and recognize losses, and whose propping up by government and CB diktat and taxpayer debt and financial repression was creating bottlenecks, inefficiencies and burdens that could be clearly observed as stifling Japan's economic growth.

    Fast forward to 2014 and we find such a discussion is not considered "serious" if it even finds it's way into centralized MSM at all as a footnote, even though Japan's policies have clearly been adopted by the US and Europe with similar, horrible results. Results can be seen as horrible because describing them as "pitiful" does not do justice to their corrosive effects visited on the "land of the free" to protect the interests of Wall Street, the "citadel of capitalism" by centralizing power in Washington and the Federal Reserve to socialize the failures of the ruling kleptocracy.

    It is no stretch to point out that this road points Japan and also the US towards the same economic results as seen in Venezuela whose command and control system is of the same ilk as the former USSR whose government's effect on it's economy was correctly described as sure to produce a shortage of sand if it were in charge of the Sahara.
    Aug 15, 2014. 10:58 AM | 4 Likes Like |Link to Comment
  • Low-Rate Oasis Is A Mirage For Real Estate Stocks [View article]
    Ignored or minimized by mainstream economists, rising rates will have the disastrous effect on real estate as well as corporate and government finances, of taking money out of budgets or the value of assets from the owners while buyers do not see much improvement because increased interest payments will eat up any benefits.

    Inflationary Fed policies will commence to protect leveraged balance sheets on TBTF Wall Street and corporations from such asset destruction but they will finally meet bond vigilantes when they are in a position to demand higher interest rates which is only a matter of time. Trying to protect the level of leveraged junk financing based on inflated assets that has gone on during ZIRP will not succeed in reducing interest rates as successfully as it will cause the dollar to implode.
    Aug 14, 2014. 02:24 PM | 1 Like Like |Link to Comment
  • Wallets Remain Closed [View article]
    Another clear damning indictment of the mainstream economist, political and MSM "recovery" spin that cannot stand true scrutiny in the light of day.

    Each graph showing the last several eras of monetary bubble-blowing pumps and subsequent declines cannot help but illustrate the clearly declining efficacy of each "pump priming" binge even as those policies reach levels of excess debt and moneyprinting previously unimaginable.

    Even an imbecile can see what economists can't; what does that say of that "profession" in a time of an unparalleled world debt binge when it has never been more important for it's practitioners to contribute sanely according to professional and scientific standards?
    Aug 13, 2014. 05:04 PM | 1 Like Like |Link to Comment
  • Bini Smaghi Pleads For More Money Printing By The ECB [View article]
    "It should be obvious even to Bini Smaghi and those supporting his ideas that not even an iota of real wealth can possibly be created by increasing the money supply."

    Unfortunately that is not at all obvious to any of the elitestas in charge nor is it to many on SA who are entirely content as long as they reap the gains afforded by the policy of creating a "wealth effect" that has failed to spread into real business activity and hiring beyond levels that have always been associated with recessions in the past. In fact, monetary inflation is core to the prevailing Keynesian "logic" with longterm effects excused because "in the long run we are all dead."

    And the last quote in the article from Mises sums up how activist central planners always push the same kind of increasingly worthless fiat and financial paper as John Law did, as their schemes which are increasingly uneconomic the larger and longer they grow require ever more and greater lies to cover previous and metastasizing economic fraud.
    Aug 12, 2014. 11:30 AM | 3 Likes Like |Link to Comment
  • A Long Look At Productivity And The Stark Reality Of It [View article]
    This article shows that even fudged as they are, these official labor statistics provide perhaps the clearest condemnation yet of the mainstream "recovery" narrative and the ridiculous contortions of interrelationships that are required to suspend disbelief. Such as the extreme declining productivity that must be imputed to conjure a sufficiently if barely rising number of hours worked to maintain a continued "recovery" presupposition.

    And an excellent summation, "The absence of that wealth is as we see above, where labor suddenly stops holding its relative 'value' and the economy simply wastes resources in non-productive pursuits (like the endless churn of ledger money and credit through expansive bubbles)," which is precisely the conclusion narrowly-concentrated corporate MSM would have us avoid regarding the financialist paradise that leaves the public holding the debt bag while the Bernanke "wealth effect" that inflates financial assets, costs of living and keeps too many politically favored zombie economic interests and activities alive, continues to plague entrepreneurism and to dash true recovery on Main Street.
    Aug 11, 2014. 10:48 AM | 1 Like Like |Link to Comment
  • The Coming Market Crash And The "Trigger" [View article]
    Agreed that all points of the article are true, yet timing remains the critical point. The article doesn't explain why the picture is much different than the last article June 25 as all indicators mentioned show growing fundamental weakness in Bernanke's multi-year asset bubble built on a foundation of sand, but don't really clarify why the promised triggers are decisively more imminent now than they were 6 weeks ago.
    Aug 8, 2014. 11:25 AM | 3 Likes Like |Link to Comment
  • The Deflation Menace [View article]
    "But a mere increase/ decrease of money supply does not necessarily cause monetary inflation or deflation. It's a question of supply AND demand."

    We have a targeted inflation of financial assets via ZIRP to the politically connected to create a false sense of sufficient debt-fueled "wealth effect" that creates an appearance of national solvency and corporate profitability to "back" the recklessly increasing debt while bonuses continue to be distributed even as national capex and Main Street continue to languish.

    Cost of living is spiraling out of control for average Americans during this statistical recovery partly because their actual rise is both falsely minimized and is occurring simultaneously with drooping pay and economic opportunities.

    The other shoe has yet to drop as ZIRP policies inflating financial assets via debt issuance and massive perpetual deficit spending leaves national and corporate finances dangerously at the mercy of rising interest rates. In the next crisis once again the gaping hole of asset implosion will be met with money printing, this time even vaster, whose effects will not likely permit the dollar to appear only moderately debased and retain "safe haven" or reserve status.
    Aug 7, 2014. 12:08 PM | Likes Like |Link to Comment
  • The Deflation Menace [View article]
    Inflation helps grease the wheels of the business of banks - lending, while tending to move demand forward which gets politicians reelected. This game, now played to ad absurdum levels of $trillions of taxpayer debt backstopping the Wall Street casino, entitlement checks and in QE purchases on the Fed balance sheet, is running out of time assuming the imagination of corrupt policymakers and the credulity of voters and markets is not infinite.

    Debt cannot truly reach for the sky unless printed on fiat scrip of negligible value especially if it is used for too many worthless endeavors driving asset prices up and keeping consumer prices rising while national capex withers, as is the case in the US today.
    Aug 5, 2014. 09:27 AM | 6 Likes Like |Link to Comment
  • Cutting Through The Multicultural Nonsense [View instapost]
    Very interesting stories.

    I had an encounter with admiring the tools plus the general design and workmanship on a used Honda I bought recently while changing a tire on it today. Even the jack itself is a beautiful device!
    Aug 2, 2014. 10:37 PM | 1 Like Like |Link to Comment
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