China continues to ramp up production, storage and anything raw materials and oil despite the downturn in prices. They being the long term thinkers understand that acting for only short term profits will destroy a country. When any young Chinese people ask why do we think so long term they must immediately point out America and say "Look, do you want to be a stupid fat American?"
I have come to have new respect for the Chinese. Despite their totalitarian government. They are planners and thinkers. We need to be investing in oil no matter the price because its running out and we need the stuff to get renewable s online, unfortunately we are bitching about Obama's "stimulus".
http://www.reuters.com/article/marketsNews/idUSPEK20974820090206?rpc=401&
Friday, February 6, 2009
Wednesday, February 4, 2009
Things coming into focus....
Mish has some interesting points in his blog today including
http://globaleconomicanalysis.blogspot.com/2009/02/triage-for-troubled-assets.html
His comments on the US guarantees....
My Comment: The centerpiece is insanity. The Government has already guaranteed $400 billion in bad debts of Citigroup and Bank of America. Now Geithner wants more. Note that the market cap of Citigroup (C) is roughly $19 billion and Bank of America (BAC) is roughly $27 billion. The treasury is guaranteeing $400 billion of debt on companies that would be worthless without those guarantees. Does this make sense?
Now watch this video - Who Owns America
http://youtube.com/watch?v=LWgAzgP5fko
Did it click?
From the video we know that the wealth of the country has been concentrated in the banks and the main owners of just about every major stock are in fact banks. The very same banks that have failed, that needed over 5 trillion in loans and guarantees to survive. I understand that they need to keep credit going, but more importantly what would happen if one more major banks failed?
First they would begin selling off their assets which include a lot of stock positions in companies like GE, GM etc. Lets say for example that GE was the first target and they had their stock pushed down 2 bucks. If 20 banks owned a combined 100 million shares that's a 1 billion dollar loss, instantly. The forced liquidation of say 1000 stocks in one major banks portfolio at 2 bucks a stock...now we are starting to look at some real money. If just one major one goes that could trigger the implosion of all of them and the complete collapse of our financial system. ATM's would stop working etc. Credit is an issue, but its the distraction issue. The real issue is the stock market because it ties directly to the pension market. This is the real implosion that they are desperately trying to avoid. Eventually the FED will lend to everybody to pay for stuff like farming etc. But the day of reckoning for the banks is coming soon.
I have a feeling the implications of DOW 6K are horrible. What does DOW 6000 mean? Pension and retirement funds have lost 40-50% of their value in 8 months. Tack on an additional 20% in losses and you will bankrupt most of them. That means no retirement for anybody. The commercial real estate bubble is coming and its going to cause a lot of banks to fail. The fed can guarantee as much worthless debt as they want the question is what happens when banks are forced to exit the stock market?
Unfortunately, I have to look back and say that Bush and TARP was right. They had to do it or we would be living Mad Max style these days. The system would have gone into a death spiral and the banks would have been forced to sell off their stock positions to raise what little capital they could and destroyed every bit of wealth in America. We are up to our eyeballs in debt now and the only asset left is the stock market. If it begins a march down the system could be finished and the nightmares real.
Gold
I think i am becoming more bullish everyday. People don't want to be in the stock market, they don't trust it anymore. Treasuries are not going to be trusted...what little money is left...where is it going to have to go.
GOLD, that's. Only perceived safe place.
http://globaleconomicanalysis.blogspot.com/2009/02/triage-for-troubled-assets.html
His comments on the US guarantees....
My Comment: The centerpiece is insanity. The Government has already guaranteed $400 billion in bad debts of Citigroup and Bank of America. Now Geithner wants more. Note that the market cap of Citigroup (C) is roughly $19 billion and Bank of America (BAC) is roughly $27 billion. The treasury is guaranteeing $400 billion of debt on companies that would be worthless without those guarantees. Does this make sense?
Now watch this video - Who Owns America
http://youtube.com/watch?v=LWgAzgP5fko
Did it click?
From the video we know that the wealth of the country has been concentrated in the banks and the main owners of just about every major stock are in fact banks. The very same banks that have failed, that needed over 5 trillion in loans and guarantees to survive. I understand that they need to keep credit going, but more importantly what would happen if one more major banks failed?
First they would begin selling off their assets which include a lot of stock positions in companies like GE, GM etc. Lets say for example that GE was the first target and they had their stock pushed down 2 bucks. If 20 banks owned a combined 100 million shares that's a 1 billion dollar loss, instantly. The forced liquidation of say 1000 stocks in one major banks portfolio at 2 bucks a stock...now we are starting to look at some real money. If just one major one goes that could trigger the implosion of all of them and the complete collapse of our financial system. ATM's would stop working etc. Credit is an issue, but its the distraction issue. The real issue is the stock market because it ties directly to the pension market. This is the real implosion that they are desperately trying to avoid. Eventually the FED will lend to everybody to pay for stuff like farming etc. But the day of reckoning for the banks is coming soon.
I have a feeling the implications of DOW 6K are horrible. What does DOW 6000 mean? Pension and retirement funds have lost 40-50% of their value in 8 months. Tack on an additional 20% in losses and you will bankrupt most of them. That means no retirement for anybody. The commercial real estate bubble is coming and its going to cause a lot of banks to fail. The fed can guarantee as much worthless debt as they want the question is what happens when banks are forced to exit the stock market?
Unfortunately, I have to look back and say that Bush and TARP was right. They had to do it or we would be living Mad Max style these days. The system would have gone into a death spiral and the banks would have been forced to sell off their stock positions to raise what little capital they could and destroyed every bit of wealth in America. We are up to our eyeballs in debt now and the only asset left is the stock market. If it begins a march down the system could be finished and the nightmares real.
Gold
I think i am becoming more bullish everyday. People don't want to be in the stock market, they don't trust it anymore. Treasuries are not going to be trusted...what little money is left...where is it going to have to go.
GOLD, that's. Only perceived safe place.
Tuesday, February 3, 2009
Obama is Failure (and Corrupt) cont...
http://www.politico.com/news/stories/0109/18128.html
Daschle OUT – tax dodger 120K
Richardson OUT – campaign criminal up to $1 million
Meckler OUT – tax dodger (unknown)
Geitner IN – tax dodger 34K
Lobbyists
Eric Holder, attorney general nominee, was registered to lobby until 2004 on behalf of clients including Global Crossing, a bankrupt telecommunications firm.
Tom Vilsack, secretary of agriculture nominee, was registered to lobby as recently as last year on behalf of the National Education Association.
William Lynn, deputy defense secretary nominee, was registered to lobby as recently as last year for defense contractor Raytheon, where he was a top executive.
William Corr, deputy health and human services secretary nominee, was registered to lobby until last year for the Campaign for Tobacco-Free Kids, a non-profit that pushes to limit tobacco use.
David Hayes, deputy interior secretary nominee, was registered to lobby until 2006 for clients, including the regional utility San Diego Gas & Electric.
Mark Patterson, chief of staff to Treasury Secretary Timothy Geithner, was registered to lobby as recently as last year for financial giant Goldman Sachs.
Ron Klain, chief of staff to Vice President Joe Biden, was registered to lobby until 2005 for clients, including the Coalition for Asbestos Resolution, U.S. Airways, Airborne Express and drug-maker ImClone.
Mona Sutphen, deputy White House chief of staff, was registered to lobby for clients, including Angliss International in 2003.
Melody Barnes, domestic policy council director, lobbied in 2003 and 2004 for liberal advocacy groups, including the American Civil Liberties Union, the Leadership Conference on Civil Rights, the American Constitution Society and the Center for Reproductive Rights.
Cecilia Munoz, White House director of intergovernmental affairs, was a lobbyist as recently as last year for the National Council of La Raza, a Hispanic advocacy group.
Patrick Gaspard, White House political affairs director, was a lobbyist for the Service Employees International Union.
Michael Strautmanis, chief of staff to the president’s assistant for intergovernmental relations, lobbied for the American Association of Justice from 2001 until 2005.
Daschle OUT – tax dodger 120K
Richardson OUT – campaign criminal up to $1 million
Meckler OUT – tax dodger (unknown)
Geitner IN – tax dodger 34K
Lobbyists
Eric Holder, attorney general nominee, was registered to lobby until 2004 on behalf of clients including Global Crossing, a bankrupt telecommunications firm.
Tom Vilsack, secretary of agriculture nominee, was registered to lobby as recently as last year on behalf of the National Education Association.
William Lynn, deputy defense secretary nominee, was registered to lobby as recently as last year for defense contractor Raytheon, where he was a top executive.
William Corr, deputy health and human services secretary nominee, was registered to lobby until last year for the Campaign for Tobacco-Free Kids, a non-profit that pushes to limit tobacco use.
David Hayes, deputy interior secretary nominee, was registered to lobby until 2006 for clients, including the regional utility San Diego Gas & Electric.
Mark Patterson, chief of staff to Treasury Secretary Timothy Geithner, was registered to lobby as recently as last year for financial giant Goldman Sachs.
Ron Klain, chief of staff to Vice President Joe Biden, was registered to lobby until 2005 for clients, including the Coalition for Asbestos Resolution, U.S. Airways, Airborne Express and drug-maker ImClone.
Mona Sutphen, deputy White House chief of staff, was registered to lobby for clients, including Angliss International in 2003.
Melody Barnes, domestic policy council director, lobbied in 2003 and 2004 for liberal advocacy groups, including the American Civil Liberties Union, the Leadership Conference on Civil Rights, the American Constitution Society and the Center for Reproductive Rights.
Cecilia Munoz, White House director of intergovernmental affairs, was a lobbyist as recently as last year for the National Council of La Raza, a Hispanic advocacy group.
Patrick Gaspard, White House political affairs director, was a lobbyist for the Service Employees International Union.
Michael Strautmanis, chief of staff to the president’s assistant for intergovernmental relations, lobbied for the American Association of Justice from 2001 until 2005.
Sunday, February 1, 2009
Why we are SCREWED
The Obama stimulus plan is bad, very bad. The problem with our country is that we have forgotten what a victory is for America and only know what a political victory is anymore. The dems want to be the repubs, the repubs want to beat the dems etc. We have lost our way.
Proof you want? Proof you get…
www.roadtoavalon.blogspot.com
Government Is not to be believed. It is corrupt. Only the most childish among us would argue differently. We need real leadership going forward and Obama has offered anything but. We need to invest in renewable energy because oil is running out.
Peak oil. I don’t think that many people can understand this because it’s not super obvious in their own lives. The amount of oil being produced is falling. It is falling at an alarming rate and most experts agree that the decline began in July of 2008. So much of our daily lives depend on crude oil and its derivatives. Plastics, food, fertilizer, rubber etc. Solar and wind are our only substitutes and they basically suck. I hope the Road to Avalon peeps wake up in a hurry. Peak Oil is the single greatest threat we will ever see in our lifetimes, yet they seem content to relish the very latest political victory of the day that dooms our country to death.
WAKE UP.
Proof you want? Proof you get…
www.roadtoavalon.blogspot.com
Government Is not to be believed. It is corrupt. Only the most childish among us would argue differently. We need real leadership going forward and Obama has offered anything but. We need to invest in renewable energy because oil is running out.
Peak oil. I don’t think that many people can understand this because it’s not super obvious in their own lives. The amount of oil being produced is falling. It is falling at an alarming rate and most experts agree that the decline began in July of 2008. So much of our daily lives depend on crude oil and its derivatives. Plastics, food, fertilizer, rubber etc. Solar and wind are our only substitutes and they basically suck. I hope the Road to Avalon peeps wake up in a hurry. Peak Oil is the single greatest threat we will ever see in our lifetimes, yet they seem content to relish the very latest political victory of the day that dooms our country to death.
WAKE UP.
Saturday, January 31, 2009
The Future
Sarah McLachlan has one of the most beautiful voices I have ever heard. I am listening to her live performance of Angel. Its so sad, it brings tears no matter how often I listen. It makes me think about my future and the future of my country.
I have come to understand the credit crisis and its origin. The basics are that the entire country is insolvent. That our government is preparing for civil unrest and the world is slipping into a dark age. My house was not perfect, nor were my parents. My house was home, and I still look forward to its comforts every holiday. I have a horrible feeling. A feeling I may never go home again. I pray to God that I am wrong.
I have come to understand the credit crisis and its origin. The basics are that the entire country is insolvent. That our government is preparing for civil unrest and the world is slipping into a dark age. My house was not perfect, nor were my parents. My house was home, and I still look forward to its comforts every holiday. I have a horrible feeling. A feeling I may never go home again. I pray to God that I am wrong.
Phelps smokes pot! Big Deal.
Looks like Phelps is in deep shit for smoking pot. Really doesn't matter. Guy had DUI issue and then won 8 golds nobody cared. I mean seriously...like a every single MLB guys uses roids, along with NFL. Who cares?
The world is insolvent and pretty soon nobody will care, food will be a lot more important. Phelps is living it up, good for him. There will be no 2012 Olympics anyway. there's no money.
My two cents.
The world is insolvent and pretty soon nobody will care, food will be a lot more important. Phelps is living it up, good for him. There will be no 2012 Olympics anyway. there's no money.
My two cents.
Thursday, January 29, 2009
Student Loans...Really?
I was listening to Micheal Savage on the way home tonight and he had a guest on that was talking about he biggest loan scam in the US. Many might wonder...subprime, Alt A...derivatives...WHAT IS IT!!!!
Student Loans. That one got me. Apparently they are not protected by anything. If you go into default they can garner your wages, social security benefits whatever WITHOUT a court order. The government is apparently complicit in this as they need the tax revenue. People who default could end up paying 3 or 4 times what they actually owed.
This is just further proof that college is a scam. Check out the book!
http://www.amazon.com/Student-Loan-Scam-Oppressive-History/dp/0807042293/ref=sr_1_1?ie=UTF8&s=books&qid=1233288617&sr=1-1
Student Loans. That one got me. Apparently they are not protected by anything. If you go into default they can garner your wages, social security benefits whatever WITHOUT a court order. The government is apparently complicit in this as they need the tax revenue. People who default could end up paying 3 or 4 times what they actually owed.
This is just further proof that college is a scam. Check out the book!
http://www.amazon.com/Student-Loan-Scam-Oppressive-History/dp/0807042293/ref=sr_1_1?ie=UTF8&s=books&qid=1233288617&sr=1-1
Subscribe to:
Posts (Atom)