.
I read that states are forced each year to reset unemployment taxes on business, and since unemployment funds are exhausted, these taxes in some cases will go up 10 fold. So business will now lay off even more or cut wages.
From every angle this thing is looked at, it's a Death Spiral.
Death Spirals can be halted in their tracks, but it requires the one thing that Modern Day Financial and Political Nobility will not allow to happen: Let the people off the hook.
Trillions in credit card balances, mortgage and refinance debt, consumer debt of all kinds must disappear. And as a nation, we must settle with China now for whatever terms we can get.
If the Nobility would let the people off the hook, we can clear the books and move on. But the Financial and Political Nobility are A1 sons of bitches, who have gotten fat from decades of Serfdom, and they refuse, stubbornly refuse to let the people off the hook, afraid their guts may shrink a bit.
And so we will sink.
Sunday, November 22, 2009
Wednesday, September 23, 2009
A Madness Insufferable
.
At a critical moment in history, our government could have chose to bail out the people. But instead, it chose to spend trillions of dollars in borrowed money that the American people are on the hook for, bailing out the very gangsters who got us into the mess. The very gangsters that have the American people by the throat.
And where is the President of the United States? Why he's standing before the UN, making an enemy OUT OF A GAS!
The trace element C02, which we exhale, at these levels (far less than 1% of our atmosphere) could not even cause Global Warming. Not to mention, what we're actually experiencing is GLOBAL COOLING!
Meanwhile bankruptcies and foreclosures are at record levels. Unemployment still rising. And the mainstream financial media and Wall Street economists are looking at a bunch of phony baloney government ginned up numbers and telling us happy days are here again.
We've sewn the seeds of a massive calamity. We had a chance between October 2008 and April 2009 to do what was right. That was our 6 month window. When the people are in the street tearing down this nation, it will have been that 6 month period that sewed the seeds. Our government chose the gangsters over us. And the bought-and-paid-for cheerleaders of the gangsters are telling us "move along, nothing to see here, everything hunky-dory." Meanwhile we sit on the verge of a worldwide meltdown. Nothing less than a loss of the republic is soon at hand.
Only one solution would have worked. All major banks needed to collapse in 2008, followed by massive debt forgiveness, followed by running the banksters out of town on a rail and never letting them back. Instead, we took our very future and used it to bail the sons of bitches out.
And these unbelievable asinine idiots are out there are railing AGAINST A GAS!
It is a madness insufferable. Idiots throwing away our nation on their idiocy.
At a critical moment in history, our government could have chose to bail out the people. But instead, it chose to spend trillions of dollars in borrowed money that the American people are on the hook for, bailing out the very gangsters who got us into the mess. The very gangsters that have the American people by the throat.
And where is the President of the United States? Why he's standing before the UN, making an enemy OUT OF A GAS!
The trace element C02, which we exhale, at these levels (far less than 1% of our atmosphere) could not even cause Global Warming. Not to mention, what we're actually experiencing is GLOBAL COOLING!
Meanwhile bankruptcies and foreclosures are at record levels. Unemployment still rising. And the mainstream financial media and Wall Street economists are looking at a bunch of phony baloney government ginned up numbers and telling us happy days are here again.
We've sewn the seeds of a massive calamity. We had a chance between October 2008 and April 2009 to do what was right. That was our 6 month window. When the people are in the street tearing down this nation, it will have been that 6 month period that sewed the seeds. Our government chose the gangsters over us. And the bought-and-paid-for cheerleaders of the gangsters are telling us "move along, nothing to see here, everything hunky-dory." Meanwhile we sit on the verge of a worldwide meltdown. Nothing less than a loss of the republic is soon at hand.
Only one solution would have worked. All major banks needed to collapse in 2008, followed by massive debt forgiveness, followed by running the banksters out of town on a rail and never letting them back. Instead, we took our very future and used it to bail the sons of bitches out.
And these unbelievable asinine idiots are out there are railing AGAINST A GAS!
It is a madness insufferable. Idiots throwing away our nation on their idiocy.
Sunday, September 13, 2009
The protesters were in the wrong place
.
The last thing you want to do is start a protest arms race with the left. They have the best of both worlds - on one hand they have the media, who will always accuse conservative protesters of being a bough and paid for mob, and on the other they have several bought and paid for armies of their own who will show up wherever and whenever, once the email orders hit their in-box. A Sorros, Greenpeace, Huffington, Daily Kos, ACORN, and who knows who else bought and paid for bunch conditioned over the years to show up on command.
The conservatives should have been on Wall Street. It was the banksters that walked away with 2 trillion unaccounted for dollars. It was the Fed, and the banksters who perpetrated the biggest reverse bank robbery in world history.
The protesters should have been in New York, on a weekday. Forming a symbolic human chain around Goldman and the Federal Reserve. Saying to those folks, "You're not going in there to create more bundled derivatives so the American people can get stuck with the bill when the whole thing explodes, so you can get bailed out, and then do it again." Saying to the Fed "You're not going in there to secretly create more generational ponzi schemes that bailout the biggest crooks in history with money borrowed from future generations."
The action was in New York, instead, they go the Mall, the same tired, lame, overused and ignored place that all protesters go. The advocates of single payer healthcare could flood that Mall with twice as many protesters tomorrow if they wanted. Bad move, playing on someone else's turf.
Meanwhile, a protest against the real crooks on Wall Street would have had the liberals hamstrung. What were they going to do, start a counter pro Wall Street demonstration?
You had your moment in the sun Glenn Beck, you'll probably have more, but meanwhile you opened a can of worms against people who have a lot more worms than your side does. But most importantly, they all met to conduct a protest against the vagaries of "government spending," and blew an opportunity to focus with laser-like intensity on the single most obscene and disheartening event of the last 30 years - the bailout of the very crooks who have their foot on the neck of the American people. With zero accountability, Obama has allowed these thieves to walk off with the whole store.
New York is where the action is, what in God's name were you doing in Washington DC?
The last thing you want to do is start a protest arms race with the left. They have the best of both worlds - on one hand they have the media, who will always accuse conservative protesters of being a bough and paid for mob, and on the other they have several bought and paid for armies of their own who will show up wherever and whenever, once the email orders hit their in-box. A Sorros, Greenpeace, Huffington, Daily Kos, ACORN, and who knows who else bought and paid for bunch conditioned over the years to show up on command.
The conservatives should have been on Wall Street. It was the banksters that walked away with 2 trillion unaccounted for dollars. It was the Fed, and the banksters who perpetrated the biggest reverse bank robbery in world history.
The protesters should have been in New York, on a weekday. Forming a symbolic human chain around Goldman and the Federal Reserve. Saying to those folks, "You're not going in there to create more bundled derivatives so the American people can get stuck with the bill when the whole thing explodes, so you can get bailed out, and then do it again." Saying to the Fed "You're not going in there to secretly create more generational ponzi schemes that bailout the biggest crooks in history with money borrowed from future generations."
The action was in New York, instead, they go the Mall, the same tired, lame, overused and ignored place that all protesters go. The advocates of single payer healthcare could flood that Mall with twice as many protesters tomorrow if they wanted. Bad move, playing on someone else's turf.
Meanwhile, a protest against the real crooks on Wall Street would have had the liberals hamstrung. What were they going to do, start a counter pro Wall Street demonstration?
You had your moment in the sun Glenn Beck, you'll probably have more, but meanwhile you opened a can of worms against people who have a lot more worms than your side does. But most importantly, they all met to conduct a protest against the vagaries of "government spending," and blew an opportunity to focus with laser-like intensity on the single most obscene and disheartening event of the last 30 years - the bailout of the very crooks who have their foot on the neck of the American people. With zero accountability, Obama has allowed these thieves to walk off with the whole store.
New York is where the action is, what in God's name were you doing in Washington DC?
Thursday, September 3, 2009
Yes, I too am a matzos ball eating, hook-nosed pot stirrer
.
For purpose of full disclosure, let me say first that I am full-blooded ethnically Jewish. My mother Ashkenazi and my father Sephardic (both have since passed). Religiously I am a Christian convert.
For centuries, Old Europe relegated most usurious activity to Jews. Though oddly, most admonitions against usury are found in the Old Testament, whereas in the New, Jesus mentions usury as a natural fact of doing business and nowhere does he particularly rail against it per se. Thus Christians eschewed usury and forced it to the Jews, based on admonitions found in Jewish scriptures. One of many contradictions in that long and stormy relationship.
Thus European Jews played a critical role in the capitalization of those societies that contributed greatly to their economic vitalities. And for their thanks they were paid back with Shakespeare's The Merchant of Venice - a parable about the Old Law vs. the New Faith, with Shylock as the embodiment of Jewish cruel-hearted stubborn adherence to the faithless Letter. This fiction centers around the unpleasant response of Shylock, the Jewish financier of three Christian merchant ships that met with tragedy on the seas. Never mind the hundreds of Jewish-financed ships that reality deliverd safely, to the great enrichment and betterment of European society, the public fixated on the mythical ships that fate never delivered, and the A1 SOB response that they came to belive is part of Jewish character.
But these notions are deep-rooted. The idea of "let the Jew do the financing" is ingrained deep in our European-based culture. Very often the hundreds of ships that do arrive safe will get the Jew little more than resentment for his profits, which are perceived as lecherous. But when the ship runs aground, and bankruptcy proceeding begin, the Jew gets it even worse, cast as the money-grubbing hooked-nosed vulture who loves nothing more than to take food from the poor Christian widow's mouth. The ruin of the Christian, the play tells us, is the Jew's delight.
Now fast forward to our Federal Reserve bank created in 1913. This is a horrible, secretive institution, not owned by the people (it is a private corporation paid for by the banks), not Constitutionally provisioned, that has carte blanche powers to control (or influence) our money supply and to set interest rates. And today it is running amok parking trillions of dollars to prop up failed institutions that have fleeced the American people. Indeed our mess traces directly to the Fed, that more than did it's part in making sure ridiculously cheap and never-ending credit blew up a housing bubble. They essentially blew up a housing bubble to try and mitigate the damage of the dot com bubble bursting, instead of letting the system run that crisis through, tough medicine though it would have been. Now the Fed is working overtime applying the same ponzi scheme solutions that got us into this mess - borrowing trillions from future generations to hide losses and sustain the unsustainable. The Fed is a dangerous institution, with powers that unambiguously should not exist. Article 1, section 8 of the Constitution plainly says that Congress shall have the sole authority to "Coin money and regulate the value thereof."
But Congress is more than happy to kick this political football over to the Fed, and turns a blind eye to it's secretive doings.
So where do the Jews come in? Well, most of the Chairman of the Federal Reserve have been Jewish. Most, sometimes all of it's board of governors are Jewish. But when the ships are coming in, everybody likes it this way. It gives them a sense of solidness to have that ancient race of the coin at the helm of this financial ship. But what about when the ships don't come in? Well, that's when everybody starts to "perceive" that when society is in chaos, and matters are getting all churned up, look close enough and you'll see a Jew stirring the pot.
Now my people have undeniably produced many a pot stirrer. Jesus, all his disciples, Einstein, Karl Marx, Sigmund Freud and many others. Some have stirred for good, some for bad. Whole thought systems, governances, economies, ways of life and theories of all kind have a substantial, if not total, Jewish root. But when the ships run aground, and the people take to the streets, as they may very well do soon right here in US, it won't be long until first the ugliest parts of our culture (which is already happening), then sooner or later the greater parts, start tearing themselves up searching for how we got into such a mess. And like always, standing there with a big wooden spoon will be a Jew, guilty as usual of stirring the pot.
But society delegated that role to him. Utterly abdicated it to him and loved him for it when times were good. And if a Jew has stirred the pot for the worse, how dare we forget all the times when the Jew stirred the pot for the better. And for centuries, we put the spoon in his hand, and made him do the work that Christian culture wouldn't or couldn't. Not to mention many hands are on the spoon, most not remotely Jewish.
Monday, August 31, 2009
U3 and let 'em eat cake
.
If Marie Antoinette were alive today, she'd be down with the U3 method of calculating unemployment. This method of calculation is cold-hearted, soulless and a downright infuriating insult to the American people. For it declares some of the worse off among us, those that have exhausted unemployment benefits and have given up looking as non-persons unceremoniously tossed out of numerator and denominator.
Saturday, August 29, 2009
McCain down the drain
.
How often does one find himself critically positioned to effect history for the better? When the financial crisis exploded onto our attentions in 2008, John McCain was so positioned.
Hank Paulson wanted 700 billion dollars to prop up failure. To bailout the very bankster crooks who got us into this mess. All eyes were on McCain as he suspended his Sarah-rejuvenated campaign. Now was his chance to do the very kind of thing he had done throughout his career - take the maverick position against monumental waste and unfairness. Instead, he goes to Washington, sheepishly says "aye," and so co-opened the floodgates to Bailout Nation. As we began a course of not addressing the fundamental imbalances in the economy, but trying to ponzi scheme our way out of it. This time generational in scope - robbing future generations to prop up and bailout Modern Banking Nobility. Feudal lords of our land and coin, who through decades of psychological trickery have positioned their foot upon the American neck.
Not only was a "no" the right thing to do, but politically it would have been perfect. Who cares if a legacy-panicked George Bush was for it, W was a pimple in the polls anyway by that point. And Obama's whole campaign was about gluing Bush and McCain at the hip. And yet a McCain "no" would have left Barack Obama on the side of George Bush! Defending the absolutely indefensible. And Bailout Nation would then be Obama's albatross.
But at that critical juncture, when everyone was shell-shocked, looking for leadership, looking for someone to stand up and say "no way!" to the sick raping of the American people and lavish rewards to their rapists, and McCain was uniquely positioned to be that person, he tosses it all away. He had first and ten, and chose to punt! He had his chance to turn the tables on those money-changing rapscallions, and cast them clean out of our once sound Temple. Instead he invited them over for tea.
That was your chance Senator. Thanks for nothing, and enjoy Bailout Nation.
How often does one find himself critically positioned to effect history for the better? When the financial crisis exploded onto our attentions in 2008, John McCain was so positioned.
Hank Paulson wanted 700 billion dollars to prop up failure. To bailout the very bankster crooks who got us into this mess. All eyes were on McCain as he suspended his Sarah-rejuvenated campaign. Now was his chance to do the very kind of thing he had done throughout his career - take the maverick position against monumental waste and unfairness. Instead, he goes to Washington, sheepishly says "aye," and so co-opened the floodgates to Bailout Nation. As we began a course of not addressing the fundamental imbalances in the economy, but trying to ponzi scheme our way out of it. This time generational in scope - robbing future generations to prop up and bailout Modern Banking Nobility. Feudal lords of our land and coin, who through decades of psychological trickery have positioned their foot upon the American neck.
Not only was a "no" the right thing to do, but politically it would have been perfect. Who cares if a legacy-panicked George Bush was for it, W was a pimple in the polls anyway by that point. And Obama's whole campaign was about gluing Bush and McCain at the hip. And yet a McCain "no" would have left Barack Obama on the side of George Bush! Defending the absolutely indefensible. And Bailout Nation would then be Obama's albatross.
But at that critical juncture, when everyone was shell-shocked, looking for leadership, looking for someone to stand up and say "no way!" to the sick raping of the American people and lavish rewards to their rapists, and McCain was uniquely positioned to be that person, he tosses it all away. He had first and ten, and chose to punt! He had his chance to turn the tables on those money-changing rapscallions, and cast them clean out of our once sound Temple. Instead he invited them over for tea.
That was your chance Senator. Thanks for nothing, and enjoy Bailout Nation.
Thursday, August 27, 2009
Predictions 9/1/2009 - 3/1/2010
.
I want to get these on the record now, calling them like I see them.
1. The American economy will recover nicely. The only problem though, is that the American economy is no longer here - we shipped it over to India and China. The fairytale fiasco we have left here will fall off a cliff. Bubble Blowing Ben Bernanke will ponzi around funny-money, keeping the GDP and markets puffed up for a bit, but the whole ponzinomics shell-game will fall on our heads. Look for a big stock market drop by mid-October and food riots by Christmas. Christmas sales will be the worst on record.
2. Very long, bitingly cold Winter in the East. At least 2 big Noreasters. This will make the swine flu particularly bad in the East. It will be bad nationwide, but nothing like 1918. Still, it will make the upcoming flu season about 3 times as deadly.
3. There will be no healthcare bill. We're due for a national "Oops" moment, when it falls on our heads that we're quarreling about healthcare with another Great Depression unfolding all around us. Healthcare will get put on hold.
4. The world will "decouple" from the US. A new world currency will be formed. The US, Britain will have a severe depression, Japan and Russia will a severe recession , Canada, Australia, Germany and France will have a medium-sized recessions, China and India will slow somewhat but maintain growth by expanding their domestic economies. The dollar will be in crisis, near worthless.
5. Widespread civil unrest will take place the second half of 2010 and accelerate in 2011, the next 6 months will lay the groundwork.
6. Look for a Republican "walkout" on Barack Obama at the Jan 20, 2010 State of the Union speech. This will be drummed up as racism by the media, and a cultural explosion will ensue.
I want to get these on the record now, calling them like I see them.
1. The American economy will recover nicely. The only problem though, is that the American economy is no longer here - we shipped it over to India and China. The fairytale fiasco we have left here will fall off a cliff. Bubble Blowing Ben Bernanke will ponzi around funny-money, keeping the GDP and markets puffed up for a bit, but the whole ponzinomics shell-game will fall on our heads. Look for a big stock market drop by mid-October and food riots by Christmas. Christmas sales will be the worst on record.
2. Very long, bitingly cold Winter in the East. At least 2 big Noreasters. This will make the swine flu particularly bad in the East. It will be bad nationwide, but nothing like 1918. Still, it will make the upcoming flu season about 3 times as deadly.
3. There will be no healthcare bill. We're due for a national "Oops" moment, when it falls on our heads that we're quarreling about healthcare with another Great Depression unfolding all around us. Healthcare will get put on hold.
4. The world will "decouple" from the US. A new world currency will be formed. The US, Britain will have a severe depression, Japan and Russia will a severe recession , Canada, Australia, Germany and France will have a medium-sized recessions, China and India will slow somewhat but maintain growth by expanding their domestic economies. The dollar will be in crisis, near worthless.
5. Widespread civil unrest will take place the second half of 2010 and accelerate in 2011, the next 6 months will lay the groundwork.
6. Look for a Republican "walkout" on Barack Obama at the Jan 20, 2010 State of the Union speech. This will be drummed up as racism by the media, and a cultural explosion will ensue.
Sunday, August 23, 2009
Of pubes and radio
.
When I was 15ish, me and a friend would get stoned in this room off his bedroom called "The Studio." His dad owned an advertising agency, and the room was filled with cool surplus AV equipment.
Wednesday, August 19, 2009
Oh Soviets, we hardly knew ye
.
When they were called Mujahideen, we idolized and romanticised them. Rugged, well leathered Afghan resistance fighters, coming down from the mountains to bloody the Soviets, then like gear-laden-billy-goats they'd retreat back up the slopes into the mysterious tough-as-iron world from which they were forged
Heck, we even had America's #1 beefy-bone-head, Sylvester Stallone cast them as freedom-loving brave-hearts in the shamefully overlooked by the Academy masterpiece, Rambo III. But that these same Mujahideen would form the core of the Taliban, that they were Shariaists who represented a brutal shudder-inducing theocracy was something we absolutely did not know.
And shame on us for not knowing it. And we must never forget the lessons of not knowing it - that the world is full of ironies we don't understand. All we wanted, me too at the time, was for the Soviets to get bloodied. We couldn't see past the Cold War. So Carter started arming the Mujahideen and Reagan accelerated it. Then the world sat back aghast (and this even before 911) at what the Taliban actually were. We watched them blow up 1,500 tear-old carvings to Buddha, literally destroying irreplaceable national and world treasures because it supposedly went against their religious creeds. Women were not allowed to be educated and religious death squads were formed, enforcing Sharia law with an iron fist.
Now it wasn't the Taliban directly that perpetrated 911, but they welcomed Bin laden and his terrorist camps into the country with open arms. And we're left with the supreme irony that a Soviet-style Communist Afghanistan would have actually been more in our national interest than was the post-Soviet Taliban. One take-away from this is that we really don't always know what our national interest is at the time, although we think we do. Another is that we don't understand foreign people, their societal factions, their cultural and religious institutions and proclivities the way we think we do.
This lesson was solidified further in Iraq. Which, by the way, I actually thought we were going to just knock off Saddam Hussein and leave. Not caring what they did next, but just making it clear that governments who may do us harm will get harm done to them first. When it became clear we were actually going to stay to build a Jeffersonian democracy, then we began to understand what we didn't understand. For instance, there never was 1 Iraq, there were 3 Iraqs. The Kurdish north, Sunni center and Shiite south. Apparently, Saddam permitted opposition Shiite clerics to exist. I would have just though he would have had them all killed. But there they were, El-Sadr and the like. What a mess.
I'm tired of these parts of the world. We only need to do what we need to do, both home and abroad, to keep crazies from flying planes into buildings. Let's do no more, and never get caught not knowing what we don't know ever again.
When they were called Mujahideen, we idolized and romanticised them. Rugged, well leathered Afghan resistance fighters, coming down from the mountains to bloody the Soviets, then like gear-laden-billy-goats they'd retreat back up the slopes into the mysterious tough-as-iron world from which they were forged
Heck, we even had America's #1 beefy-bone-head, Sylvester Stallone cast them as freedom-loving brave-hearts in the shamefully overlooked by the Academy masterpiece, Rambo III. But that these same Mujahideen would form the core of the Taliban, that they were Shariaists who represented a brutal shudder-inducing theocracy was something we absolutely did not know.
And shame on us for not knowing it. And we must never forget the lessons of not knowing it - that the world is full of ironies we don't understand. All we wanted, me too at the time, was for the Soviets to get bloodied. We couldn't see past the Cold War. So Carter started arming the Mujahideen and Reagan accelerated it. Then the world sat back aghast (and this even before 911) at what the Taliban actually were. We watched them blow up 1,500 tear-old carvings to Buddha, literally destroying irreplaceable national and world treasures because it supposedly went against their religious creeds. Women were not allowed to be educated and religious death squads were formed, enforcing Sharia law with an iron fist.
Now it wasn't the Taliban directly that perpetrated 911, but they welcomed Bin laden and his terrorist camps into the country with open arms. And we're left with the supreme irony that a Soviet-style Communist Afghanistan would have actually been more in our national interest than was the post-Soviet Taliban. One take-away from this is that we really don't always know what our national interest is at the time, although we think we do. Another is that we don't understand foreign people, their societal factions, their cultural and religious institutions and proclivities the way we think we do.
This lesson was solidified further in Iraq. Which, by the way, I actually thought we were going to just knock off Saddam Hussein and leave. Not caring what they did next, but just making it clear that governments who may do us harm will get harm done to them first. When it became clear we were actually going to stay to build a Jeffersonian democracy, then we began to understand what we didn't understand. For instance, there never was 1 Iraq, there were 3 Iraqs. The Kurdish north, Sunni center and Shiite south. Apparently, Saddam permitted opposition Shiite clerics to exist. I would have just though he would have had them all killed. But there they were, El-Sadr and the like. What a mess.
I'm tired of these parts of the world. We only need to do what we need to do, both home and abroad, to keep crazies from flying planes into buildings. Let's do no more, and never get caught not knowing what we don't know ever again.
Tuesday, August 18, 2009
Turn down the noise, I can't hear myself implode!
.
Imagine a room with 10 radios blaring, each tuned to a different station. If one station was more important than the others, you would need the extraneous stations tuned off so you could listen to the important one. When they're all playing, it's just gibberish.
Such is the state of our nation today, too many noisy and pointless programs playing all at once. All that matters is the economy. there is no recovery, and there are no green shoots.
The stock market has been puffed up by TARP funds the banks are laundering in through the back door. Money borrowed from future generations to cover bank losses, snuck into the market through the back door. This is Bernanke's Generational Ponzi Scheme - the idea was to recapitalize the banks, while a run-up in the market would induce media green-shoot-gasms that would seduce consumers into spreading wide their wallets.
Instead, the consumer is tapped out and didn't budge. The banks will be withdrawing from the market soon, parlaying 2 trillion into 3 trillion. The additional trillion plundered from your 401k contributions, as the system continues to siphon from the bottom and feed the gangsters at the top. And Don Bernanke sits in the big chair and is gets his ring kissed over the whole affair.
But by mid-October the market will be in free-fall. The commercial real estate, consumer debt, and bailout bubble that Bernanke blew up to hide the housing bubble will be popping in full force. Real unemployment will be near 20%, and though the news media will likely still be going over to Japan to import green shoots, the American people will be crushed.
This is the only radio station that should be playing. We'll never even get to healthcare. The economy will exploding before both Houses have a reconciled bill on the President's desk. And the nation will have one giant "Oops" moment, as we collectively realize that all this time we should have been talking about nothing else but the meltdown.
The idiotic channels that must be turned down so that we can hear ourselves implode are:
1. Healthcare, as mentioned.
2. The junk-science lunacy that is Global Warming.
3. The world ending in 2012.
4. The much ado over Obama's birth certificate.
5. Illegal immigration.
6. Antidepressants.
7. All things Karl Rove and Dick Cheney
8. All things GM
9. Every and all stories about Obama painted as The Joker.
I leave the door open for Swine Flu if it gets serious, Afghanistan and Gitmo. But only when our main station is in commercial.
Monday, August 17, 2009
Pac-President will gobble that co-op for breakfast
.
The news media took a breather from finding green shoots in Japan today, to let us know that the Obama Administration would be willing to shift from a Public Option to a co-op on the upcoming healthcare legislation.
Sunday, August 16, 2009
What Solomon wanted
.
I see this story on MSNBC that people are continuing in large numbers to go listen to the "prosperity gospel."
The answer to their idiocy is here:
In Gibeon the LORD appeared to Solomon in a dream by night: and God said, Ask what I shall give thee.
- 1 Kings 3:5
Give therefore thy servant an understanding heart to judge thy people, that I may discern between good and bad: for who is able to judge this thy so great a people?
- 1 Kings 3:9
But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.
- Matthew 6:33
I see this story on MSNBC that people are continuing in large numbers to go listen to the "prosperity gospel."
The answer to their idiocy is here:
In Gibeon the LORD appeared to Solomon in a dream by night: and God said, Ask what I shall give thee.
- 1 Kings 3:5
Give therefore thy servant an understanding heart to judge thy people, that I may discern between good and bad: for who is able to judge this thy so great a people?
- 1 Kings 3:9
But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.
- Matthew 6:33
Saturday, August 15, 2009
What we're not getting from the media, is killing us
.
OK so imagine, it's 1985. The economy is going gangbusters. And Charles Kuralt of CBS News comes on the tube for one of his "human interest" stories.
He finds "Gus from Huston" living under a bridge. And in his sweet and wistfully somber tone, Charles tells us about old Gus. Playing his harmonica, collecting his bottles, passing the hot and humid Houston Summer days away, remembering the old days and thinking about what he could have become. Then, as we're all softly serenaded by Gus' bluesy harmonica, the piece ends with good ol' Gus slowly wheeling his shopping cart full of lost dreams away into the sunset.
Now back in '85, as a 22 year-old strong buck, enjoying the fruits America had to offer, I would think to myself. "How useless! America is going gangbuster boom, and leave it to the Liberals at CBS News to always find someone left out, and feature him in their human interest pieces." I was disgusted at how on one hand America was in Glorious Morning, and yet the media always insisted on making sure that, 10 times a day, we never forgot there was someone left behind.
But now I understand, that if nothing else, these pieces were importantly cathartic. We at least never forgot that there are so many flavors of people in this world. And not all were able to partake in our boom. Some didn't have the education, the background, or the wherewithal to join our party. While we boomed the good boom, some got left behind, and remembering them was indeed the Christian thing to do.
To be sure, the news media went overboard with it. Because Reagan was President, it got to the point where you'd think all of America was homeless. Stories about the newly discovered homeless were everywhere. Time, Newsweek, CNN, CBS, TV Guide, Modern Maturity, you name it. During the Reagan years, for every story about the boom that was lifting up 99% of us, there were 5 stories about the 1% of us that were not-so-lucky and left out. But at least our valves were depressurized. Those who felt the empathetic sting of their fellow citizens being left behind had an outlet. Times 10.
But now the pressure is building and it has nowhere to go. Seems these days everybody knows someone who has been unemployed for at least 6 months or more. Foreclosures are at record historic levels. Long-term unemployment is worse than at any time since the Great Depression. Personal bankruptcies are through the roof. People in huge numbers are under employed, forced to settle for meager, benefitless part-time work at record rates.
And yet we don't get a single human interest story to help us blow off steam, because Obama is President. The news media has their guy in, so everything must be "green shoots." And it's zapping the American Spirit. Nothing zaps the spirit more than to not be empathized with. Recently I saw a story that looked like it might be about displaced people during the housing crisis, but it was about this lady who found an unusual job "house-sitting" multi-million dollar homes so that they looked lived in. She gushed about how much she enjoyed that unusual lifestyle, and how it was a "hidden green shoot" that is only now gloriously possible because of the state of the economy.
The American people so desperately want their pain to be felt, but they can't have it felt because Barack Obama is President. Feeling their pain would mean that all is not well. All is not well could be interpreted as Barack Obama doing something wrong. And Barack Obama doing something wrong goes completely against the narrative that the news media has created. Barack Obama is our great savior, and the news media will not permit anything to go against that narrative.
And so this is creating pressure that is not being released. As what the American people feel and experience every day on the ground gets worse and worse, and the news media sticks to their guns and proclaims that things are getting better and better. Thousands upon endless thousands of human interest stories about evictions, destitution, increasing hunger, are out there and growing larger by the day. Never have we needed them told more than we do now. But we can't have them told, because Barack Obama is President.
The top is about to blow off.
OK so imagine, it's 1985. The economy is going gangbusters. And Charles Kuralt of CBS News comes on the tube for one of his "human interest" stories.
He finds "Gus from Huston" living under a bridge. And in his sweet and wistfully somber tone, Charles tells us about old Gus. Playing his harmonica, collecting his bottles, passing the hot and humid Houston Summer days away, remembering the old days and thinking about what he could have become. Then, as we're all softly serenaded by Gus' bluesy harmonica, the piece ends with good ol' Gus slowly wheeling his shopping cart full of lost dreams away into the sunset.
Now back in '85, as a 22 year-old strong buck, enjoying the fruits America had to offer, I would think to myself. "How useless! America is going gangbuster boom, and leave it to the Liberals at CBS News to always find someone left out, and feature him in their human interest pieces." I was disgusted at how on one hand America was in Glorious Morning, and yet the media always insisted on making sure that, 10 times a day, we never forgot there was someone left behind.
But now I understand, that if nothing else, these pieces were importantly cathartic. We at least never forgot that there are so many flavors of people in this world. And not all were able to partake in our boom. Some didn't have the education, the background, or the wherewithal to join our party. While we boomed the good boom, some got left behind, and remembering them was indeed the Christian thing to do.
To be sure, the news media went overboard with it. Because Reagan was President, it got to the point where you'd think all of America was homeless. Stories about the newly discovered homeless were everywhere. Time, Newsweek, CNN, CBS, TV Guide, Modern Maturity, you name it. During the Reagan years, for every story about the boom that was lifting up 99% of us, there were 5 stories about the 1% of us that were not-so-lucky and left out. But at least our valves were depressurized. Those who felt the empathetic sting of their fellow citizens being left behind had an outlet. Times 10.
But now the pressure is building and it has nowhere to go. Seems these days everybody knows someone who has been unemployed for at least 6 months or more. Foreclosures are at record historic levels. Long-term unemployment is worse than at any time since the Great Depression. Personal bankruptcies are through the roof. People in huge numbers are under employed, forced to settle for meager, benefitless part-time work at record rates.
And yet we don't get a single human interest story to help us blow off steam, because Obama is President. The news media has their guy in, so everything must be "green shoots." And it's zapping the American Spirit. Nothing zaps the spirit more than to not be empathized with. Recently I saw a story that looked like it might be about displaced people during the housing crisis, but it was about this lady who found an unusual job "house-sitting" multi-million dollar homes so that they looked lived in. She gushed about how much she enjoyed that unusual lifestyle, and how it was a "hidden green shoot" that is only now gloriously possible because of the state of the economy.
The American people so desperately want their pain to be felt, but they can't have it felt because Barack Obama is President. Feeling their pain would mean that all is not well. All is not well could be interpreted as Barack Obama doing something wrong. And Barack Obama doing something wrong goes completely against the narrative that the news media has created. Barack Obama is our great savior, and the news media will not permit anything to go against that narrative.
And so this is creating pressure that is not being released. As what the American people feel and experience every day on the ground gets worse and worse, and the news media sticks to their guns and proclaims that things are getting better and better. Thousands upon endless thousands of human interest stories about evictions, destitution, increasing hunger, are out there and growing larger by the day. Never have we needed them told more than we do now. But we can't have them told, because Barack Obama is President.
The top is about to blow off.
Friday, August 14, 2009
That which does more, costs more
.
For the last few years, we've been having a national freakout over the "rising cost" of healthcare.
And the underlying assumption, without even questioning it, has been that rising healthcare costs are a bad thing. But is that true?
And everyone is carping over the fact that healthcare has risen to 16% of our economy. But it's just assumed this is a bad thing, but is it? Imagine if healthcare advances to the point where we all live to 200. This may involve not just hip replacement, but perhaps new organs grown in the lab, and a whole host of other advances. So what would be the problem, if by then, healthcare was 50% of the economy? It would be a bigger economy, since so many people would stay healthy for so much longer. Of course living to 200 would require medical equipment manufacturers, skilled doctors, pharmaceutical resources etc. and the jobs that come with it. It would be 50% of our economy, but that would be a good thing!
Meanwhile we have the 500 pound gorillas of the economy and terrorism waiting to throw us around the room like a piece of Samsonite, and Obama is not hosting a single town hall about those issues. Our leadership is blind, and we're following it, with our newly replaced hips, right into a ditch.
Thursday, August 13, 2009
Colonel Obama, you look marvelous in those Gucci sunglasses!
.
Took me a while to figure out how to understand the man. I puzzled on it for a couple months, then it all came clear. Barack Obama is a Thirdworldist. And when I learned to shine his light through that prism, I found I can split his colors in a way that never fails me.
The man strives to foist on us as much of the Third World as he can get away with. And when I started picturing a tackily over-decorated colonel in mirrored sunglasses, heading a Latin American junta, the real Barack Obama tuned in with complete clarity.
A Latin American Colonel in Mirrored Sunglasses will want to:
1. Do everything possible to make criminals out of the last leadership, while publicly saying it ain't so. Come as close as possible to hauling the previous government in front show tribunals. When this cannot be done physically, then at least cement them as criminals in the tribunals of our minds. The point being, Third World Colonels in Mirrored Sunglasses must always live in a perpetual state of reminding the people that outlaws populated the last regime. This must be said again and again, so many times, that the public (at least in the Colonel's mind) will thank their lucky stars that finally they have a moral, ethical and spiritual super-being occupying the Office of El Presidente.
2. Work to make the United States just another nation, continually floundering around in search of an identity. One that needs to shut it's mouth and hear from all the poor peoples it has oppressed over the ages. Open mouth only to apologize, the age of speaking is over.
3. Do everything possible to debase the US currency. Equalize everyone by making the cash of the rich worthless, and everybody else's along with it. The more worthless the cash, the more important the Colonel.
4. Make at least 20% of the nation unemployed. The nation must muddle through the muck of stifling, nutty and arbitrary regulations administrated by an army of bureaucrats reporting up to El Presidente.
5. Have a squad of brownshirts working the streets. These thugs, disguised as democratists and get-out-the-voters, are really there to make sure all ground operations go to the Colonel's liking, and that the public understands that the Colonel has lots of boots on the ground.
6. Perpetually gin up a crisis such that right now is the only opportunity there will ever be to act. Whatever the emergency measure, don't sweat the details - you must put aside all doubt and trust the Colonel.
7. Have a state run press that under all circumstances continually drumbeats about how things are getting "better and better." Whole new definitions of "good" and "progress" must be conjured. The main mission of this press is to hypnotize the people into supplanting what they see and experience in their everyday lives with the happy-smiley-truth that the Colonel supplies.
And yes, the Colonel is stylish. He always looks fabulous in those Guccis. You can't afford a pair, but down the street there are some Chinese knock-offs that you may be able to get your hands on for a few Canadian tourist dollars and a couple gasoline ration coupons.
Took me a while to figure out how to understand the man. I puzzled on it for a couple months, then it all came clear. Barack Obama is a Thirdworldist. And when I learned to shine his light through that prism, I found I can split his colors in a way that never fails me.
The man strives to foist on us as much of the Third World as he can get away with. And when I started picturing a tackily over-decorated colonel in mirrored sunglasses, heading a Latin American junta, the real Barack Obama tuned in with complete clarity.
A Latin American Colonel in Mirrored Sunglasses will want to:
1. Do everything possible to make criminals out of the last leadership, while publicly saying it ain't so. Come as close as possible to hauling the previous government in front show tribunals. When this cannot be done physically, then at least cement them as criminals in the tribunals of our minds. The point being, Third World Colonels in Mirrored Sunglasses must always live in a perpetual state of reminding the people that outlaws populated the last regime. This must be said again and again, so many times, that the public (at least in the Colonel's mind) will thank their lucky stars that finally they have a moral, ethical and spiritual super-being occupying the Office of El Presidente.
2. Work to make the United States just another nation, continually floundering around in search of an identity. One that needs to shut it's mouth and hear from all the poor peoples it has oppressed over the ages. Open mouth only to apologize, the age of speaking is over.
3. Do everything possible to debase the US currency. Equalize everyone by making the cash of the rich worthless, and everybody else's along with it. The more worthless the cash, the more important the Colonel.
4. Make at least 20% of the nation unemployed. The nation must muddle through the muck of stifling, nutty and arbitrary regulations administrated by an army of bureaucrats reporting up to El Presidente.
5. Have a squad of brownshirts working the streets. These thugs, disguised as democratists and get-out-the-voters, are really there to make sure all ground operations go to the Colonel's liking, and that the public understands that the Colonel has lots of boots on the ground.
6. Perpetually gin up a crisis such that right now is the only opportunity there will ever be to act. Whatever the emergency measure, don't sweat the details - you must put aside all doubt and trust the Colonel.
7. Have a state run press that under all circumstances continually drumbeats about how things are getting "better and better." Whole new definitions of "good" and "progress" must be conjured. The main mission of this press is to hypnotize the people into supplanting what they see and experience in their everyday lives with the happy-smiley-truth that the Colonel supplies.
And yes, the Colonel is stylish. He always looks fabulous in those Guccis. You can't afford a pair, but down the street there are some Chinese knock-offs that you may be able to get your hands on for a few Canadian tourist dollars and a couple gasoline ration coupons.
Wednesday, August 12, 2009
If California fell into the ocean
.
If California fell into the ocean, it would cause the national unemployment rate to go down, since California's unemployment is higher than the national average.
The AP would immediately report this as a green shoot. Proof that the Stimulus is working.
If California fell into the ocean, it would cause the national unemployment rate to go down, since California's unemployment is higher than the national average.
The AP would immediately report this as a green shoot. Proof that the Stimulus is working.
What I should have told Mom
.
"There is a silver lining to this report card Mom. Most of my grades were better than expected. I'm continuing to flunk trig, but at a slower rate. My bad grades are starting to bottom out. Most teachers surveyed think I'll do better next semester."
"There is a silver lining to this report card Mom. Most of my grades were better than expected. I'm continuing to flunk trig, but at a slower rate. My bad grades are starting to bottom out. Most teachers surveyed think I'll do better next semester."
Bubble Blowing Ponzi Schemers
The position of Chairman of the Federal Reserve does not violate the letter of the Constitution. But no position in the history of this country has ever done more harm to the Spirit of the Constitution.
One unelected person, with the single-handed ability to sink this country.
Alan Greenspan was fawned over by the financial elite as some sort of subtle sage. When he was never anything more than a fork-tonged rascal. And this rascal shrimp just about sunk us. One man, bending over backwards to insure that the economy blew up a housing and credit bubble so large, that when it burst the shock wave shattered our collective spleens. And now we're reaping the karmic benefits of years of idolatry heaped upon this little rascal, a man who not enough bad things can be said about. Whole websites are devoted to exposing the damage that man caused, and except for the ones that are anti Semitic hate sites - Peace be upon them.
And his successor, Bubble Blowing Ben Bernanke is just as bad. A man engineering a Generational Ponzi Scheme with the markets. Borrowing trillions from future generations in the form of TARP, so that with a wink and a nod, the banks are now laundering that TARP money into the markets through the back door.
The cabal is completed by the media elite, who have masturbated themselves into multiple green-shoot-gasms over it all, hoping to similarly arouse the public.
But the way it's going to explode again isn't even funny. And now, every left-leaning economist, and not a one predicted the bubble bursting to begin with, is saying the recession is over. When in fact it might be, but only because the depression is beginning. They were all wrong then, and they're all wrong now.
After the mess, after the coming food riots (which should begin around Christmas), after the people take to the streets and this crew in Washington has to be disassembled by the American people's bare hands - after all that, we can not allow this position of Chairman of the Federal Reserve to exist. Interest rates will have to be calculated by some formula that takes into account money supply, inflation, GDP, some sort of scientific guesstimate on what the correct rate should be. We need to take it out of the hands of these "subtle geniuses," and get these subtle geniuses forever out of our face. Because they are not geniuses at all, they are some of the most dangerous and damaging people this country has ever seen.
One unelected person, with the single-handed ability to sink this country.
Alan Greenspan was fawned over by the financial elite as some sort of subtle sage. When he was never anything more than a fork-tonged rascal. And this rascal shrimp just about sunk us. One man, bending over backwards to insure that the economy blew up a housing and credit bubble so large, that when it burst the shock wave shattered our collective spleens. And now we're reaping the karmic benefits of years of idolatry heaped upon this little rascal, a man who not enough bad things can be said about. Whole websites are devoted to exposing the damage that man caused, and except for the ones that are anti Semitic hate sites - Peace be upon them.
And his successor, Bubble Blowing Ben Bernanke is just as bad. A man engineering a Generational Ponzi Scheme with the markets. Borrowing trillions from future generations in the form of TARP, so that with a wink and a nod, the banks are now laundering that TARP money into the markets through the back door.
The cabal is completed by the media elite, who have masturbated themselves into multiple green-shoot-gasms over it all, hoping to similarly arouse the public.
But the way it's going to explode again isn't even funny. And now, every left-leaning economist, and not a one predicted the bubble bursting to begin with, is saying the recession is over. When in fact it might be, but only because the depression is beginning. They were all wrong then, and they're all wrong now.
After the mess, after the coming food riots (which should begin around Christmas), after the people take to the streets and this crew in Washington has to be disassembled by the American people's bare hands - after all that, we can not allow this position of Chairman of the Federal Reserve to exist. Interest rates will have to be calculated by some formula that takes into account money supply, inflation, GDP, some sort of scientific guesstimate on what the correct rate should be. We need to take it out of the hands of these "subtle geniuses," and get these subtle geniuses forever out of our face. Because they are not geniuses at all, they are some of the most dangerous and damaging people this country has ever seen.
Monday, August 10, 2009
Scared little boys in expensive suits
Why can't we get a number anymore? Just a simple, straightforward, friggin number.
So someone asks you, "What percentage of your money is disposable income?" And you go through the calculations. You know you have about $1,000 in total, but $900 is obligated, so you calculate that $100/$1,000 = 10% of your money is disposable income.
But then you say, "Wait, I owe $75 to Chuck, but I don't really have to pay him until next month." So you decide to do something sneaky - instead of shifting that $75 over to disposable income, you remove it from the denominator.
So now your disposable income in terms of percentage magically grows to $100/$925 = 10.8%. You just grew your percent disposable income by dropping out the $75 you owe to Chuck.
The Labor Bureau reported that we lost yet another big chunk of jobs in July - 247,000 of them. Less people working. But the unemployment rate went down! Why? Because like your Chuck Shenanigans, they tinkered with the denominator. They "dropped out" hundreds of thousands of people who have had their unemployment insurance run out, and are so discouraged they stopped looking for work. That's how they did it! They changed the labor base. And the news media starts jumping up and down going "green shoots green shoots!"
But think about this just for a second. This green shoot was reliant on despair! It literally required the destitution and despair of hundreds of thousand of people for this "green shoot" to pop up. What kind of a green shoot is that!
But this is where we are these days. We can't get a simple, honest, straightforward number anymore from our government. Then after this green-shoot-of-despair, the stock market rallies on the "good news!" But (see my post of Aug 9) the market is a ponzi scheme, being fueled by TARP funds the banks are laundering in through the back door. So we have a not-real market going up on not-real good news.
So who will get the bill when this next bubble bursts? You will, you and your children. But what will land down on your head will be so much more than government and Wall Street debt, it will be Government and Wall Street Shame. The absolute shameful behavior of not being able to tell the truth. So afraid they are of losing their positions and their power and their authority, as if they're going to live forever.
There comes a time when citizens take to the streets and tear down governments and institutions with their bare hands. Are we there yet? Not yet, I don't think. History books tell us that the people revolt when they are not fed bread. I suspect it's more likely that they were sick of being fed lies.
And lies and more lies are what we are getting, dished up cold, by scared little boys in expensive suits.
So someone asks you, "What percentage of your money is disposable income?" And you go through the calculations. You know you have about $1,000 in total, but $900 is obligated, so you calculate that $100/$1,000 = 10% of your money is disposable income.
But then you say, "Wait, I owe $75 to Chuck, but I don't really have to pay him until next month." So you decide to do something sneaky - instead of shifting that $75 over to disposable income, you remove it from the denominator.
So now your disposable income in terms of percentage magically grows to $100/$925 = 10.8%. You just grew your percent disposable income by dropping out the $75 you owe to Chuck.
The Labor Bureau reported that we lost yet another big chunk of jobs in July - 247,000 of them. Less people working. But the unemployment rate went down! Why? Because like your Chuck Shenanigans, they tinkered with the denominator. They "dropped out" hundreds of thousands of people who have had their unemployment insurance run out, and are so discouraged they stopped looking for work. That's how they did it! They changed the labor base. And the news media starts jumping up and down going "green shoots green shoots!"
But think about this just for a second. This green shoot was reliant on despair! It literally required the destitution and despair of hundreds of thousand of people for this "green shoot" to pop up. What kind of a green shoot is that!
But this is where we are these days. We can't get a simple, honest, straightforward number anymore from our government. Then after this green-shoot-of-despair, the stock market rallies on the "good news!" But (see my post of Aug 9) the market is a ponzi scheme, being fueled by TARP funds the banks are laundering in through the back door. So we have a not-real market going up on not-real good news.
So who will get the bill when this next bubble bursts? You will, you and your children. But what will land down on your head will be so much more than government and Wall Street debt, it will be Government and Wall Street Shame. The absolute shameful behavior of not being able to tell the truth. So afraid they are of losing their positions and their power and their authority, as if they're going to live forever.
There comes a time when citizens take to the streets and tear down governments and institutions with their bare hands. Are we there yet? Not yet, I don't think. History books tell us that the people revolt when they are not fed bread. I suspect it's more likely that they were sick of being fed lies.
And lies and more lies are what we are getting, dished up cold, by scared little boys in expensive suits.
Sunday, August 9, 2009
America: We wanted a new drug, and we found it!
Flat screen TVs are the cocaine, China is the supplier and Walmart is the pusher.
If we start with the premise that every "real penny" in the economy theoretically traces itself back to some piece of production, then it is not rocket science to figure out that the producers will have all the real pennies. Manufacture a penny out of thin air, tracing itself back to only air, and that penny will become as useless as a Zimbabwean nickel.
And so we have the unholiest and unhealthiest alliance between two nations that we've seen since Hitler and Mussolini exchanged glow in the dark friendship rings.
Over the last decade, China produced like mad but it's citizens socked away 30% in savings. The US consumed like mad, socking away 0%. China is awash with real pennies. Like a good supplier, they then lent those pennies back to the hapless addicts. The addicts, having addictive personalities to begin with, then had a field day. Remember, these are real pennies, not fake pennies, so the addicts can essentially give them away for a time, and still have low interest rates and a decent valuation.
But the pennies have nowhere to go after a while, and sooner or later this structural imbalance must create a bubble in something. But what? Tulips? No, we already had the Great Tulip Crash of 1634 so we can't repeat that one:
http://www.investopedia.com/features/crashes/crashes2.asp
Always disheartening to find out your crash has been taken. So, what new to crash? Hey .. how about a stock bubble! No, we already did that one idiot, several times!
Then the addicts, always in search of a new high, get a brilliant idea. Somewhere around year 2000 one very smart Ivy League educated addict blurts "Hey .. how about houses .. they've pretty much went up only with inflation since 1950 .. let's start having them go up 3, 4, 5 times faster than inflation .. and let's give mortgages to everyone .. in fact let's insure through regulation that this happens .. and then we can use the houses as ATM machines dispensing Chinese pennies!"
And so the addicts are off to the races. Loading their Chinese financed houses with Chinese made flat screen TVs.
And so now that the addicts have gone bust, what are the flabbergasted Chinese suppliers going to do? They could stop lending us real pennies, but then the addicts will start manufacturing fake pennies out of thin air, and Chinese debt will become worthless, as their real pennies would be indistinguishable from the fake.
Will they even try this "tough love?" That assumes they even love us to begin with, generally speaking the drug supplier has little love for his customers. The solution would be for China to start consuming it's own goods. Each nation should save at 10%, the rest should be consumption. Had we done this, Alan Greenspan, the former Keeper of The Cost of Chinese Pennies would not have been able to shower them all over us so cheaply.
Next time, let's just exchange rings.
If we start with the premise that every "real penny" in the economy theoretically traces itself back to some piece of production, then it is not rocket science to figure out that the producers will have all the real pennies. Manufacture a penny out of thin air, tracing itself back to only air, and that penny will become as useless as a Zimbabwean nickel.
And so we have the unholiest and unhealthiest alliance between two nations that we've seen since Hitler and Mussolini exchanged glow in the dark friendship rings.
Over the last decade, China produced like mad but it's citizens socked away 30% in savings. The US consumed like mad, socking away 0%. China is awash with real pennies. Like a good supplier, they then lent those pennies back to the hapless addicts. The addicts, having addictive personalities to begin with, then had a field day. Remember, these are real pennies, not fake pennies, so the addicts can essentially give them away for a time, and still have low interest rates and a decent valuation.
But the pennies have nowhere to go after a while, and sooner or later this structural imbalance must create a bubble in something. But what? Tulips? No, we already had the Great Tulip Crash of 1634 so we can't repeat that one:
http://www.investopedia.com/features/crashes/crashes2.asp
Always disheartening to find out your crash has been taken. So, what new to crash? Hey .. how about a stock bubble! No, we already did that one idiot, several times!
Then the addicts, always in search of a new high, get a brilliant idea. Somewhere around year 2000 one very smart Ivy League educated addict blurts "Hey .. how about houses .. they've pretty much went up only with inflation since 1950 .. let's start having them go up 3, 4, 5 times faster than inflation .. and let's give mortgages to everyone .. in fact let's insure through regulation that this happens .. and then we can use the houses as ATM machines dispensing Chinese pennies!"
And so the addicts are off to the races. Loading their Chinese financed houses with Chinese made flat screen TVs.
And so now that the addicts have gone bust, what are the flabbergasted Chinese suppliers going to do? They could stop lending us real pennies, but then the addicts will start manufacturing fake pennies out of thin air, and Chinese debt will become worthless, as their real pennies would be indistinguishable from the fake.
Will they even try this "tough love?" That assumes they even love us to begin with, generally speaking the drug supplier has little love for his customers. The solution would be for China to start consuming it's own goods. Each nation should save at 10%, the rest should be consumption. Had we done this, Alan Greenspan, the former Keeper of The Cost of Chinese Pennies would not have been able to shower them all over us so cheaply.
Next time, let's just exchange rings.
Stock market run-up is a Generational Ponzi Scheme
When will we get honest, when will we get real? Why do we let them do this to us?
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