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wald22

wald22
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  • Crucial Facts About Energy Stocks [View article]
    The present problem with the oil price has everything to do with financialization. The logic behind financialization is simply to drive highly debt leveraged oil and gas producers into near bankruptcy to screw the shareholders, so they have to suck up to the banksters for new debt financing to pay off the old unpayable debt. Bond debt has prority over shareholder debt. Bubbles be it in home mortgages, dot.com, oil, or whatever are created to make money on the way up and then down. Same thing is happening in the cattle industry and farmland. It used to be savings were part of the money in loans, but that has changed to credit from paper gold or silver. That is why the biggest banks are sending out letters that your savings are a pile of shit that is no longer needed. Financialization is like interest that is usury except in financialization it is capital itself that is usury. Bend over and take it, for we are going back to feudalism. Oil like land with low interest loans can be driven to irrational heights and then dumped for the love of money through financialization. On the 1600 page bill that our beloved representatives agreed to, has a few words in there that says that the banksters will be bailed out on their financialization losses. In truth it means the bulls are the taxpayers, and the bears are the banksters taking from the bulls the taxpayer. But now days, there is not one taxpayer reading reading the shit our so called representatives are writing. There is no democracy in America of the FED. In debt we believe. There is no debt free money allowed to enter into the system. Thus old debt can only be paid with new debt. Absolute power corrupts absolutely.
    Dec 11, 2014. 01:13 AM | 4 Likes Like |Link to Comment
  • 1 Year Left In The Cattle Bull Market [View article]
    Costs to own, maintain, and land overhead costs per cow are increasing. We have a good grain crop. Yet the cow numbers are low. Last winter was hard on many beef cows. A good percentage of those cows that suffered through last winter never dropped a live calf because of their poor condition. Many of those cows went on grass for a few months to gain weight before getting shipped. I see the cattle market staying strong do to strong exports and lack of supply. Turnover on cattle has dramatically increased. The veal market is hot. A lot of calves are getting killed under 500 lbs.
    Nov 12, 2014. 01:21 AM | Likes Like |Link to Comment
  • October Jobs Report: Solid Improvement, Except For Discouraged Workers [View article]
    All of these so called employment reported number are all bullshit. The only good thing about the economy is that ever more people simply work in the underground economy for cash. Be it selling weed, prostitution or whatever. That part of the economy is growing. To prove my point just take a look what is being advertised on craig list. The underground economy has different words for weed or prostitution, that the above ground economy has yet to learn. Go to most midwest livestock auctions and you see something else that has not been seen for a long time. Fed goats and feeder goats getting auctioned off. Hay, straw, firewood, machinery getting auctioned off. Scrap metal for cash employs a lot of people. In Maine hemp is the biggest cash crop, yet it is not on the list of agriculture crops. Where I am right now in Texas, the stealing economy is growing fast. Living of the land and self sufficiency in rural areas is growing. The calf trade has really taken off. If you have a few milk goats and chickens that lay eggs, you can make your own milk replacer to feed out small calves from first calf heifers that bring a dollar a pound or less into something that is over 95lbs that brings up to $5 a pound. The underground is the only real economy growing in the USA. The rest is just a financialization economy based on define bullshit. Just because a company borrows a lot of money and reports the loan proceeds as derivative income to shareholders does not make a growing economy. But it does make the debt bubble grow ever bigger. In debt we believe. People's debts are considered bank assets. The only real growth in this economy is debt accounted for as assets.
    Nov 7, 2014. 02:28 PM | Likes Like |Link to Comment
  • The 'Real' Reason Gold Will See $5000 [View article]
    In our Constitution gold and silver is money. But in reality, the credit as in credit card or mortgages is money. The problem we have is that there are no Americans in America. Nobody stands for the Constitution. In debt we believe. But there is a problem. Economics 101 dictates that the supply/demand imbalances will eventually correct itself. Paper gold is much cheaper to produce, thus the physical gold can't compete. This situation has come about because most people don't give a shit about the Constitution, don't give a shit about gold. Gold has become shit because nobody believes in it as a currency. In debt we believe, until that debt enslaves us all. The dollar is not stronger because the dollar is worth more. The dollar is stronger because ever more dollar units are needed to service the debt, thus the economy prime function as we go forward is to service the debt instead of making life easier for the working man who is ever more forced to take out debt just to live. In the coming years food will be the new gold because we are on a meat complex that has to compete with the fuel complex. You can't eat gold, but most of us do eat food. Thus food will become the new gold complex.
    Nov 3, 2014. 08:29 AM | 5 Likes Like |Link to Comment
  • QE Is Dead, Now You Tell Me What You Know [View article]
    Like most governments in the world, the US provides a growing welfare and support system of one kind or another along with entitlements then it did decades ago. These promises made by the governments can not be kept unless the bond debt is allowed to increase to infinity and beyond. It is mathematically impossible in the present system. So something has to change. Japan is showing us the change to come.. Japan has brought about a national sales tax that the BOJ is now leveraging to buy into the bond and stock market. In this way the BOJ facilitates government policies. Yesterday's big end of October stimulus is just that. It is a way to extend the stimulus by leveraging the national sales tax. Will it work? Yes for a short time. Then they have to think of something new. So will our FED. QE for the richest people has failed to bring about real economic recovery. So maybe they will come up with a plan to give the poor and middle class money to spend. Start with $100 a month and increase it until the economy response to the increased spending. That is what it is going to take to have real economic recovery for a short term. To have real economic recovery we have to get rid of debt. Thus the central banksters need to get together and buy all excess debt and bury it. Have a collective funeral for the world's debt.
    Oct 31, 2014. 09:19 AM | 1 Like Like |Link to Comment
  • QE, Parallel Universes And The Problem With Economic Growth [View article]
    QE should be used to bail out the poorest people who got screwed by the richest people. The FED's job should be to create the biggest possible economic pie for the poor and middle class instead of the richest. Elected officials should decide on how to split up the wealth from the economic pie, so the poor and middle class can enjoy the fruits of their labor that made it all possible. There is a need for the poor and middle class to be able to create their own credit to make loans available to themselves and be able to make the payments to themselves. How can an economy grow if ever more banksters borrow money to bet against it? Banks hurt the economy by facilitating in house bets and big client bets that bet against the economy with borrowed money.
    Oct 29, 2014. 10:41 AM | Likes Like |Link to Comment
  • How Falling Volatility Is Driving Stocks Higher [View article]
    What I don't get is how corporate profits can be so strong when they borrow money to buy back their shares and report the money borrowed as income. The strong profits exist only as accounting statistics only. If I borrowed money from a bank, put it in my checking account and claimed the borrowed funds as income am I really better off. Why all of a sudden bank and energy ETF's having large outflows of money, and why has the short interest in those ETF's increased so dramatically lately. There is something fishy here. Why all of a sudden are the biggest banksters facilitating in house bets and big client bets against the economy. I think we are topping out.
    Oct 29, 2014. 04:42 AM | Likes Like |Link to Comment
  • Gold And Silver: More Short-Term Pain? [View article]
    Calling GLD and SLV to represent physical gold when they are manipulated paper gold to manipulate the gold price is wrong. Saying that there is no inflation is wrong also. There is massive inflation in the pipeline. Just look at what is happening to livestock prices. But the biggest thing to come that will change the cost basis of just about everything produced, with the exception of paper money.
    Jun 10, 2014. 10:52 AM | 3 Likes Like |Link to Comment
  • 1 Year Left In The Cattle Bull Market [View article]
    The costs to maintain a cow/calf operations are increasing dramatically. It is those costs that will limit beef and milk production in the future. The cost increases are related to weather, crop growing conditions and soil fertility. A lot of cattle last winter actually lost weight instead of gaining due to the animals having to spend more feed to keep their bodies warm. The nutritional content of our feed supply is down more than 50% from 50 years ago, and that will continue. I do not beleive we in the US can increase our beef production to a higher level, because the cost to do so is going to go so high that at some point the consumer will be forced to become vegetarians. Yes cattle prices are higher right now. But I believe they will go higher next spring for the very same reasons they went so high this year. It is because the lower feed quality and colder winters lower the ability for animals to gain weight. I think that problem is here to stay.
    May 31, 2014. 05:12 PM | Likes Like |Link to Comment
  • The Inconvenient Marriage Of Yuan And Gold [View article]
    The FED can grow the financial GDP with QE but it can not produce beef or plant food. It has always been that nature credits, man debits. In our quest for cheap energy, we let escape massive volumes of methane gas that dries out moisture that rises from the ground to fall again. Without rain, nature can not credit what man wants to debit. Thus mankind has to irrigate, which increases the cost of plant food production. Right now we are increasing natural gas production that gets piped to processing plants where that piped gas form the wells gets stripped down into different energy products that have higher value. One of the side products is methane gas. Since we place little value on methane gas it is mainly allowed to escape into the open air. Even if we could increase the human and animal population a thousand fold, the methane gas production from that would be at least a 1000 less then the methane presently allowed to escape into the open air from the production of oil and natural gas. We need to capture this gas and use it, or live with a constant decrease in rainfall. Water begets water as in rainfall. If the water is gone, it can't rise and come down again. Thus the circle of life comes to an end. FED QE can help the value of debt, which over a long period of time can only damage the economy, but it can not fix our methane allowed to escape problem that is changing the circle of life.
    Apr 16, 2014. 05:33 AM | 1 Like Like |Link to Comment
  • Why Investing In Chesapeake Energy Is Not A Good Idea [View article]
    The problem CHK has is the same many other corporations have. On the left side of the ledger nothing is right and on the right side of the ledger nothing is left. Billions in asset sales; billions from JV partners, billions in revenue, year after year and yet no meaningful debt reduction. Actually debt has increased if one ads the off balance sheet debt. Also it is now getting sued big time for drilling under land it has no lease on. That is the unseen part of horizontal drilling. Al CHK can do is keep rolling it's problem into the future, just like the US Treasury has to keep rolling it's growing debt into the future. Selling the oil service business looks good on paper but not on the ground. If it can't do it inhouse cheaper then by contracting out, then there is something wrong with manegment. The problem they have like so many others like them have is that they can't drill fast enough to keep up with depletion. Also they can't hook the new drilling due to lack of connections. If I was CHK I would keep the oil service business and form a seperate entity to hold the leases they simply can't afford to drill to hold by production. Set it up so others can drill them via the option route, yet keep enough interest in the play to, if there is one to be, that it can profit from it.
    Mar 26, 2014. 01:16 PM | 2 Likes Like |Link to Comment
  • 4 Reasons Businesses Could Begin Spending Again Soon [View article]
    There is an unseen financial and economic aspects of the Ukrainian crisis. A helpless West facing a serious risk of a Ukrainian default. Either the west gives them the money to pay the debt or ??????. I believe there will be a wake up call soon as Russia takes eastern Ukraine and at the same time defaults on its debt it owes the west. What better way is there to default by calling it a trade sanction. Russia's TIT for TAT. The west sanctions on Russia are going to back fire. Putin is smart. He figured out that the whole point of derivatives used in commodity trading is to suppress commodity prices. He is going to use it against us. He also knows the US Fed is destroying the future of America. The money creation via credit creation = debt creation. All of this debt is the rope that hangs the US economy. It is going to have to create a lot more debt to bail out western Ukraine. I have this feeling that neither the USA or Europe will bail out Ukraine. That is the signal Putin will use to go into eastern Ukraine. The more I look at this I see a desperate president trying to fix the US economy by starting a war. That is why the US financed the skin heads now in control in Ukraine. For the skinheads to win an election, there had better be some real economic progress in that country, or the Russians will be invited in like it happened in Crimea. I think Obama wants to start a war to help the US economy. For a short time it may just work. War brings in outside demand. I beleive there will be a bang, and I believe the world will not end.
    Mar 22, 2014. 05:44 PM | Likes Like |Link to Comment
  • 4 Reasons Businesses Could Begin Spending Again Soon [View article]
    I agree with snoopy above with one exception. And that is war. To start with
    debt is an obligation laid upon the future by the past. The larger it gets, the harder it is for the future to happen. There is a correlation high levels of public debt and low economic growth. High levels of debt-to-GDP have been historically associated with low levels of economic growth. That is what has been happening in Japan for the last 23 years and in Europe and the US for the last seven. These economies are still fighting deleveraging, resisting debt deflation and pretending that they can continue to add debt forever. And that added debt somehow will get them out of their debt trap. Dream on. They are doomed. Without growth they can’t pay the debt. With so much debt, they can’t grow. Nature unlike bankers credits interest free what man debits. But in a war things change. Conquest becomes a way of taking assets from another without having to buy it if you are on the winning side. Russia can't grow internally. Ukraine can't pay the $35B it owns Russia. So what to do. Use force to take collateral. Basically Russia took Crimea without much bloodshed.
    Mar 22, 2014. 03:49 PM | 1 Like Like |Link to Comment
  • 4 Reasons Businesses Could Begin Spending Again Soon [View article]
    The US FED knows that debt cannot repay debt in the aggregate. That is why they have QE. Only earnings can retire debt. As for currency or money, it is true that our money system represents debt that has been monetized. The interest lug on this debt is rapidly annihilating the middle class and delivering the nation into third world status. The arrival of raw materials times price man debited, nature credited delivers earnings, which is called monetization of raw materials. Only earnings can retire debt and therefore they rate attention as a sort of negative debt. A sound money system should provide for a commodity dollar, or at least for a common denominator commodity as backing for currency. In the USA, that is now oil. In Russia it is natural gas. The bottom line is that debt cannot be paid with debt, and debt generates no aggregate income that isn't offset by more debt. It takes production times price to generate aggregate income for an economy.
    The Fed can't produce real production like pears, apples, blackberries like nature can. Thus the FED is forced to replace real production with derivatives. Our food consists mostly of 3 different crops. From those 3 different crops thousands of products are made. Derivatives are like artificial substances put into food and like derivatives are derived from mostly the 3 original crops. Most of the derivatives in the financial industry are derived from the value of the US Treasury bond market and the collateralized debt market. For the derivative market to grow, the Treasury debt market has to grow, and so does the real estate collateralized debt market. Neither can before this year is over. Debt can not grow to the sky before the rug is pulled out from underneath it. This year nature will dictate the amount of stuff we can grow. And that is why Russia has no choice but to go into eastern Ukraine to get their bread as in crop and the bread as in money to be made from Ukraine's undeveloped natural gas reserves. If they don't, we will, and that will destroy their economy for what it is, which isn't much without our help with financing and technology.
    Mar 22, 2014. 09:48 AM | Likes Like |Link to Comment
  • 4 Reasons Businesses Could Begin Spending Again Soon [View article]
    @Moon
    The US economy is changing from a physical economy to a make believe one via derivatives. Yes most companies have increased their cash positions for it is that cash position that backstops their derivative positions. But what you said about efficiency growing faster then the economy is simply not true. If we had efficiency like you claim, corporations would not be saddled with so much debt. Right now most corporations are borrowing a lot of money to buy back shares to increase earnings per share by simply reducing the amount of shares outstanding. This has nothing to do with efficiency, it has everything to do with accounting. Our problem is that on the left side of our accounting ledger nothing is right, and on the right side of the ledger nothing is left. That is why what is being reported as earnings per share comes from the left side of the ledger where nothing is right, and what is reported to the IRS is what is on the right side of the ledger where nothing is left. If we had real efficiency, companies would not be forced to keep cutting physical production in order to pay for derivative positions (production). Right now the make believe derivative economy exceeds real production at least 100 times over. A good example of this is the stock market. Right now computers make 68 trades for every trade made by a person. It is FED member banks computers that is forcing the market up so it can be SHORTED at some point. It is no secret that every 7 or so years we have a financial setback or crash. The whole idea of computer trades is to lure in as many human suckers as possible with their life savings as possible. That is how bears make money. After all, all the stock market is, is a war between bulls and bears, where one keeps trying to take from the other. That is not efficiency, it is like war, kill or be killed, except it is done in financial terms. Let's face it, if one invests in the stock market as stated in the Constitution of the FED, you are either take or get taken. That is not efficiency. The FED can take down this economy any time it wants to. But it can't rebuild it. The equation will always be that nature credits, man debits. Banksters that own the FED can not change that equation. So far this year nature has been hard on man. Before this year is over nature will bring more hardships on man for it is mankind that has changed nature. The earth is a living thing, the more man destroys it, the more earth (nature) will destroy man. The western drought is going to increase in area and the northern vortex is going to be here coming this July. And by July Russia will be forced to go into eastern Ukraine because that is where the bread is. By bread I mean as in food and money via shale gas exports. Russia can not let western corporations develope the cheap undeveloped shale gas that is there that would compete directly with their high priced shale gas, the Russian's export to Europe. Russia sold $20B+ US Treasury bonds to finance the take over of Crimea. It recently sold $100B worth of US Treasury bonds to finance the build up of its armed force along the eastern border of Ukraine. It will sell a lot more US Treasury bonds to finance the to be take over of Eastern Ukraine when they feel the time is right. They are hoping that by taking a little at a time they can get away with it. Who knows it might work. It has so far. The Russians will use the river as a natural border that splits Ukraine. It is our debt that makes all this possible. This is not efficiency. It has all to do with the FED that is actually financing Russia to do what they do. After all Russia sold our debt directly to them. Hitler never could have done what he did if the FED had not financed him. Even our own government can only do what the FED makes it possible for the government to do. Truth is, if it wasn't for the FED's QE, the government could not borrow any more. Interest rates would be 19%+ like in 1988. Before this year is over interest rates will double. Low interest rates makes possible misplaced investments in asset inflation instead of production of real things. That is not efficiency. This country is efficient in the taking of savings from other countries that makes possible our lifestyle, where we will always spend more then what we make. This is going to come to an end. And when it finally does real efficiency will finally be allowed to take place. And it is going to come at a much higher interest rate that will stop this speculation on asset inflation. After all when all is said and done, the FED will be forced to protect the US$. A farmer who borrows $1,000,000 to make a net income of $10,000 can never be as efficient as one who borrowes $100,000 to make $10,000 net. Same is true with corporations. Right now a lot of farmers are borrowing $1,000,000 in hopes a greater fool will come along and buy them out at $2,000,000. Only a larger dose of QE can make that happen.
    Mar 22, 2014. 07:18 AM | 2 Likes Like |Link to Comment
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