Tuesday, May 26, 2009
Well said
I want to say Peter's video blogs are genius but in reality it's simple logic, which can sound so friggin' brilliant sometimes. I can't believe more people don't hear him.
Monday, May 25, 2009
The Fed & Ron Paul
QUOTES OF THE WEEK:
From Congressman Ron Paul, in his weekly “Texas Straight Talk” column, posted on his House of Representatives website on May 18th:
“Fundamentally, you cannot defend the Federal Reserve and the free market at the same time. The Fed negates the very foundation of a free market by artificially manipulating the price and supply of money – the lifeblood of the economy. In a free market, interest rates, like the price of any other consumer good, are decentralized and set by the market. The only legitimate, Constitutional role of government in monetary policy is to protect the integrity of the monetary unit and defend against counterfeiters.”
“No politician or central banker, no matter how brilliant, is smart enough to know more than the market itself. The failure of central economic planning has been witnessed over and over. It is frankly beyond me why we ever agreed to try it again.
To understand how unwise it is to have the Federal Reserve, one must first understand the magnitude of the privileges they have. They have been given the power to create money, by the trillions, and to give it to their friends, under any terms they wish, with little or no meaningful oversight or accountability. Thus the loudest arguments against greater transparency are likely to come from those friends, and understandably so.
However, it is the responsibility of every member of Congress to represent the interests of the people that sent them to Washington and find out what has been happening with our money. As the branch of government with the power of the purse, we really have no other reasonable choice when the economy is in the shape it is in.”
. . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on May 18th:
“The US national debt was $9.364 trillion a year ago. Today it is $11.256 trillion. That means that over the last 12 months we've added $1.89 trillion to the national debt. I figure that over the next two fiscal years the US national debt should rise by $3 trillion from the current $11.256 trillion to around $14 to 15 trillion. I figure the average interest on the national debt is around 4%. Well, 4% of $14 trillion is over half a trillion dollars a year. How in God's name is the US going to attract over half a trillion dollars every year to carry our national debt? My answer -- higher taxes and inflation. When you think about it, this is one major reason why the government doesn't want gold to sky-rocket. An exploding price for gold tells the world that the US and its financing is backed against the wall, and that inflation plus higher taxes are the only ways out.”
From Congressman Ron Paul, in his weekly “Texas Straight Talk” column, posted on his House of Representatives website on May 18th:
“Fundamentally, you cannot defend the Federal Reserve and the free market at the same time. The Fed negates the very foundation of a free market by artificially manipulating the price and supply of money – the lifeblood of the economy. In a free market, interest rates, like the price of any other consumer good, are decentralized and set by the market. The only legitimate, Constitutional role of government in monetary policy is to protect the integrity of the monetary unit and defend against counterfeiters.”
“No politician or central banker, no matter how brilliant, is smart enough to know more than the market itself. The failure of central economic planning has been witnessed over and over. It is frankly beyond me why we ever agreed to try it again.
To understand how unwise it is to have the Federal Reserve, one must first understand the magnitude of the privileges they have. They have been given the power to create money, by the trillions, and to give it to their friends, under any terms they wish, with little or no meaningful oversight or accountability. Thus the loudest arguments against greater transparency are likely to come from those friends, and understandably so.
However, it is the responsibility of every member of Congress to represent the interests of the people that sent them to Washington and find out what has been happening with our money. As the branch of government with the power of the purse, we really have no other reasonable choice when the economy is in the shape it is in.”
. . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on May 18th:
“The US national debt was $9.364 trillion a year ago. Today it is $11.256 trillion. That means that over the last 12 months we've added $1.89 trillion to the national debt. I figure that over the next two fiscal years the US national debt should rise by $3 trillion from the current $11.256 trillion to around $14 to 15 trillion. I figure the average interest on the national debt is around 4%. Well, 4% of $14 trillion is over half a trillion dollars a year. How in God's name is the US going to attract over half a trillion dollars every year to carry our national debt? My answer -- higher taxes and inflation. When you think about it, this is one major reason why the government doesn't want gold to sky-rocket. An exploding price for gold tells the world that the US and its financing is backed against the wall, and that inflation plus higher taxes are the only ways out.”
Sunday, May 24, 2009
Ben Stein was wrong, now he's right?
First, watch the video of Ben Stein arguing with Peter Schiff about the housing collapse in 2008...watch the whole video too, it's awesome.
http://www.youtube.com/watch?v=RYX1AgEV0vo
Obviously Schiff was right (and is still right), and Stein was embarrassingly wrong. Then read the NYT article of Ben Stein that came out today.
http://www.nytimes.com/2009/05/24/business/24every.html?ref=business
Sounds like a little light went on in Ben Stein's head. Maybe he wiped the dollar signs from his eyes and sees things a little more clearly. Good for him, we need a lot more people to recognize reality.
Another thing I want to point out is how ridiculous TV can be. Every Sunday I tune into the morning talking heads to hear some kind of discussion about the economy. Every week, for weeks now I've been disappointed. What could possibly be more important than the economy? I mean, check out this video about the Inspector General of the Federal Reserve and you tell me if there is anything more important than the gov's moves to "save" the economy...
http://www.youtube.com/watch?v=PXlxBeAvsB8
Of course, those of us in the know, realize that nothing the gov is doing is saving the economy on any level. This country was on the way to economic self-destruction before Obama got into office, now Obama, Bernanke, Geithner and others have actually slammed the accelerator into the floor!
It's simple to understand really. If your wife or husband spent too much, ran up the credit card and spent your son's college savings, does it make sense to get an extension of credit from your credit card and INCREASE your spending further? No, of course not. It would be very painful but you have to cut all spending and save money. Your son can't have money for the mall, can't have his 1st car when he turns 16/17 and has to go to community college. You can't go on vacation and you can't buy more useless things that will get you further into debt.
http://www.youtube.com/watch?v=RYX1AgEV0vo
Obviously Schiff was right (and is still right), and Stein was embarrassingly wrong. Then read the NYT article of Ben Stein that came out today.
http://www.nytimes.com/2009/05/24/business/24every.html?ref=business
Sounds like a little light went on in Ben Stein's head. Maybe he wiped the dollar signs from his eyes and sees things a little more clearly. Good for him, we need a lot more people to recognize reality.
Another thing I want to point out is how ridiculous TV can be. Every Sunday I tune into the morning talking heads to hear some kind of discussion about the economy. Every week, for weeks now I've been disappointed. What could possibly be more important than the economy? I mean, check out this video about the Inspector General of the Federal Reserve and you tell me if there is anything more important than the gov's moves to "save" the economy...
http://www.youtube.com/watch?v=PXlxBeAvsB8
Of course, those of us in the know, realize that nothing the gov is doing is saving the economy on any level. This country was on the way to economic self-destruction before Obama got into office, now Obama, Bernanke, Geithner and others have actually slammed the accelerator into the floor!
It's simple to understand really. If your wife or husband spent too much, ran up the credit card and spent your son's college savings, does it make sense to get an extension of credit from your credit card and INCREASE your spending further? No, of course not. It would be very painful but you have to cut all spending and save money. Your son can't have money for the mall, can't have his 1st car when he turns 16/17 and has to go to community college. You can't go on vacation and you can't buy more useless things that will get you further into debt.
The same goes for gov spending. Oh wait, don't forget, our lendors (foreign governments) are giving us less of their money....less credit. If you do some research you'll see the headline says that China has increased it's purchase of U.S. debt lately. Ahh, breathing room right? Not so fast, keep reading and you'll see that China is simply selling off it's purchases of securities from those like Fannie Mae/Freddie Mac, and buying short term debt, no more 10 and 30 yr T-Bonds. They are not buying into Obama's solution, they are not stupid.
I should give Ben Stein some credit though, he did apologize to Schiff...
"Next, here’s a lesson I learned in a 12-step program and should have learned better: avoid contempt prior to investigation. When the financial stock meltdown started, I was on a television show with Peter Schiff of Euro Pacific Capital, who warned that Merrill Lynch could be in very bad shape. I glibly said that I thought that its problems were limited and that the stock was a buy. Mr. Schiff was completely right and I was wrong. I had no idea that Mother Merrill, where I have been a happy stockholder for years, had been turned into a such a wild house of high-stakes gambling. I apologize to Mr. Schiff for my dismissal of his views, which turned out to be far superior to mine in this area. (I could do without his acolytes sending me endless hate mail, though.)"
http://www.nytimes.com/2007/12/09/business/09every.html?r=1&ref=business&oref=slogin
I wish the President, his administration, the Fed, Congress, and state politicians (especially CA) would apologize too. Sadly, I think it's too late. I hope you have your seat belt on because as Chris Martenson said, "I think the next 20 years are going to be completely unlike the last 20 yrs." I'm buying Peter Schiff and Chris Martenson who got it right and make sense. Who are you buying?
I should give Ben Stein some credit though, he did apologize to Schiff...
"Next, here’s a lesson I learned in a 12-step program and should have learned better: avoid contempt prior to investigation. When the financial stock meltdown started, I was on a television show with Peter Schiff of Euro Pacific Capital, who warned that Merrill Lynch could be in very bad shape. I glibly said that I thought that its problems were limited and that the stock was a buy. Mr. Schiff was completely right and I was wrong. I had no idea that Mother Merrill, where I have been a happy stockholder for years, had been turned into a such a wild house of high-stakes gambling. I apologize to Mr. Schiff for my dismissal of his views, which turned out to be far superior to mine in this area. (I could do without his acolytes sending me endless hate mail, though.)"
http://www.nytimes.com/2007/12/09/business/09every.html?r=1&ref=business&oref=slogin
I wish the President, his administration, the Fed, Congress, and state politicians (especially CA) would apologize too. Sadly, I think it's too late. I hope you have your seat belt on because as Chris Martenson said, "I think the next 20 years are going to be completely unlike the last 20 yrs." I'm buying Peter Schiff and Chris Martenson who got it right and make sense. Who are you buying?
Friday, May 22, 2009
A lesson not yet learned - Andrew Jackson
"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves."
"I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country."
Farewell Warning
Jackson genuinely feared the rise of a moneyed elite bent on enriching themselves at the expense of the hardworking people of the United States. Upon retiring from the presidency, Jackson gave a dire warning:
"...unless you become more watchful...and check this spirit of monopoly and thirst for exclusive privileges you will in the end find that the most important powers of Government have been given...away, and the control over your dearest interests has passed into the hands of these corporations."
—Andrew Jackson, Farewell Address to America, 1837
"I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country."
Farewell Warning
Jackson genuinely feared the rise of a moneyed elite bent on enriching themselves at the expense of the hardworking people of the United States. Upon retiring from the presidency, Jackson gave a dire warning:
"...unless you become more watchful...and check this spirit of monopoly and thirst for exclusive privileges you will in the end find that the most important powers of Government have been given...away, and the control over your dearest interests has passed into the hands of these corporations."
—Andrew Jackson, Farewell Address to America, 1837
It's not my fault the water is rising
Some people might think, or do think, those that state things in the economy and government are getting worse not better, are all gloom and doom and that they are not doing anything but being negative. They would say, "Where does that get you?" or "you're making it worse" or "There's nothing you can do about it, just live your life."
But here's the thing.....if your house is flooding, the water is rising up all around you, and the things you value are being destroyed, should you just keep your head up and think positive? Should you just keep walking around the house, denying that your feet are soaking wet? Of course not. Now that positive attitude does have value, it has great value because if you don't have it, you won't make it through, you probably won't even try because why bother right? Everything sucks, the sky will always be grey. But to ignore your wet feet and destroyed valuables, or to adjust to them and not take any other action, is.....well, not a winning solution I think.
I certainly do not want bad things to happen. I want only the best for everyone, of all races, classes, creeds, etc. I want everyone to have the ability to do whatever they want. I just see that personal freedom being taken away a little more every day. I see the water rising and it's not my fault that I'm pointing it out and that I think I found out where it's coming from.
Also in my house, there is no one to rescue, there's little to actually save from the flood. So my plan of selling all of my stupid stuff to buy more valuable smart stuff and getting the heck out of CA (a.k.a ground zero) works for me. It was just me and.....my new vacuum cleaner from Home Depot (with a HEPA filter-great deal) and a queen sized, oak futon I bought off Craig's List for $20, literally (can you beat CL?). I didn't even have a goldfish....but I did have some plants I loved and had to give up for adoption. Also, could I have more free time to investigate this mess unlike many others? Definitely not!
So going forward, I don't expect or believe everyone should do what I'm doing and that my solution is good for everyone. You have your own house, loved ones, and valuables to take care of. I thought it was a good idea to shout out to my neighbors as I found my basement flooding, as I moved out. Maybe your house won't flood. Maybe all will be peachy keen. Freakin' awesome! I know there's a chance things could be just fine. Although, it also depends on how you define fine, and I think returning to fine has about as much chance as me winning the lottery 10x in a row. Hey, It's not impossible! But I will still be happy because I was able to learn so much about what I value and how I want to live. For example, how it feels to get rid of a lot of old stuff that you will never use, that you'll never wear...old letters, cards, college papers, shoeboxes full of junk, and on and on (thank you Mary) It feels GOOD! Go ahead, give some of your crap away, and when you think you don't have anymore to give, give some more! There's plenty of people who need your old shirt, your old shoes...
Yeah, that's what I'm all about! Uhh, I guess I shouldn't mention that I've spent $80 every time I've gone into REI lately...and I've been there a lot. But you get my point right?
But here's the thing.....if your house is flooding, the water is rising up all around you, and the things you value are being destroyed, should you just keep your head up and think positive? Should you just keep walking around the house, denying that your feet are soaking wet? Of course not. Now that positive attitude does have value, it has great value because if you don't have it, you won't make it through, you probably won't even try because why bother right? Everything sucks, the sky will always be grey. But to ignore your wet feet and destroyed valuables, or to adjust to them and not take any other action, is.....well, not a winning solution I think.
I certainly do not want bad things to happen. I want only the best for everyone, of all races, classes, creeds, etc. I want everyone to have the ability to do whatever they want. I just see that personal freedom being taken away a little more every day. I see the water rising and it's not my fault that I'm pointing it out and that I think I found out where it's coming from.
Also in my house, there is no one to rescue, there's little to actually save from the flood. So my plan of selling all of my stupid stuff to buy more valuable smart stuff and getting the heck out of CA (a.k.a ground zero) works for me. It was just me and.....my new vacuum cleaner from Home Depot (with a HEPA filter-great deal) and a queen sized, oak futon I bought off Craig's List for $20, literally (can you beat CL?). I didn't even have a goldfish....but I did have some plants I loved and had to give up for adoption. Also, could I have more free time to investigate this mess unlike many others? Definitely not!
So going forward, I don't expect or believe everyone should do what I'm doing and that my solution is good for everyone. You have your own house, loved ones, and valuables to take care of. I thought it was a good idea to shout out to my neighbors as I found my basement flooding, as I moved out. Maybe your house won't flood. Maybe all will be peachy keen. Freakin' awesome! I know there's a chance things could be just fine. Although, it also depends on how you define fine, and I think returning to fine has about as much chance as me winning the lottery 10x in a row. Hey, It's not impossible! But I will still be happy because I was able to learn so much about what I value and how I want to live. For example, how it feels to get rid of a lot of old stuff that you will never use, that you'll never wear...old letters, cards, college papers, shoeboxes full of junk, and on and on (thank you Mary) It feels GOOD! Go ahead, give some of your crap away, and when you think you don't have anymore to give, give some more! There's plenty of people who need your old shirt, your old shoes...
Yeah, that's what I'm all about! Uhh, I guess I shouldn't mention that I've spent $80 every time I've gone into REI lately...and I've been there a lot. But you get my point right?
Thursday, May 21, 2009
Truth Found, Bold Steps Taken
Warning: I have a lousy vocabulary, a poor understanding of grammar, and I'm a lazy typer...enjoy.
Previous months, as I learned more and more about our present economic collapse, have been rich with many moments of fear, astonishment, excitement, anger, and lots of veggie burritos and cheap beer. I'll reflect on lots of it as I post more. Actually, I still experience all of that and like Ozzy, I can never get sick of burritos....or cheap beer
Right now I'm typing away into this blog, in a rented room in the Bay Area after quitting my job. My last day at work was Tuesday, May 19th. I moved from a nicely furnished one bedroom in San Diego on May 2nd to start a new position with the same employer. I left at 12am so I could join Mary for the Giants/Rockies game at 1pm....can't miss that or those field level seats. Matt Cain pitched, good game, Giants lost but there were some great plays. I left late b/c it was a real bitch getting everything done. Whatever I couldn't sell on Craigs List I brought to Goodwill.
Now I can fit all I own into a little Hyundai Accent. I have the ability now to live just fine even amidst the craziest possible times. Yes, I know I quit my job when others are dying to find one and no, I'm not insane; quite the contrary. To me insane was continuing to work as if I cared about trivial events while the economy, the role of government, and my life was changing so incredibly & rapidly. I feel I see things differently than others, with more urgency. Also...I had money saved up, a job waiting, so I'm all set.
Basically, I began to cut expenses near the end of last summer and one of the things I did was cut cable down to basic, basic cable. So I could watch probably 25 channels, 1/4 of them Spanish it seemed-good stuff. One day I noticed way up amidst the snowy channels was CNBC. It was the only channel that was part of a real cable lineup so I got sucked into watching it every morning, and evening.
I could go on and on about the different shows and personalities I discovered on CNBC, and I enjoyed them all (except for Larry Kudlow, what a freakin' nob) before realizing how steeped in bullshit they all are. But most importantly I became interested in the stock market and wanted to learn more about it.
Later, the crash happened in October and I couldn't shutup about it. I was fascinated. I had to learn how and why. I had to understand this shocking event that was unfolding every day. Like 9/11, and other things in my life, I began to ask questions, look for answers and read. I realized this collapse was big, perhaps a once in a lifetime event, and the market would rebound big also. Fitting into my theme of a life with no regrets, I decided to research online trading companies, and I threw some of my new savings into a few stocks using Scottrade....it was cheapest.
I followed my stocks fanatically. They went up, went down, but mostly down. I ended up losing about $250 on $1000 net in my little adventure after getting out completely in January. However, I was still interested in the economy and how all of these things worked. I thought, why isn't this turning around yet?
What I found out was the guy who I saw on CNBC back in November who sounded like a nutjob and seemed wildly off-base, was the most correct. Yup, Peter Schiff! After reading many online and printed articles, and watching many YouTube videos etc, what ended up making the most sense was how Peter Schiff was explaining the events. Of course there are many like him who understand the Austrian School of Economics, but I think he was not only the most outspoken, but the most plain-spoken.
I began to get scared as I learned about the possible scenarios that we all might have to deal with. My questions went from what's a hedge fund???...to how would I eat if people freak out and clear out the grocery stores? It was a tough thing to seriously deal with the realization that this life that I know of, the foundation of all daily events, has giant, gaping cracks and could crumble away any day now. If you don't know this right now, you need to learn more, and fast. I knew from 9/11, and then of course Katrina, that no one should ever assume someone, or some system has got your back. Ultimately each of us, all 300 million individuals, are on our own. Years ago I decided to shelve my disgust and distrust of 99% of politicians to just live my life in ignorant bliss with the others. I couldn't do it any longer.
Over time I began to make serious changes. There are many things that spoke clearly to me, one of them being Chris Martenson's videos about economics. I continued to seek out truth. I stuck my foot out, found firm answers that made the most sense, and went further.
I am now at this point. It's May 21st, I have a pretty good understanding of the markets and economics, have the things I need secured, and I put together a plan to get out of CA for new work and a new life. For those who know me they won't be surprised to hear I'm moving again. I am very excited to be leaving ground zero for greener pastures very soon b/c I'm not only leaving CA, but I'm moving into Yellowstone! Thanks to Mary, this might end up being the greatest summer of my life.
It all seems to be happening as if it was scripted also. I feel like my timing is working out pretty well. Although I am realizing all of this very late, I think I am way ahead of many others and that is comforting. But I still wonder sometimes if I might be a bit late in getting out of CA and into Wyoming.
Today the market took another dip and showed strong evidence of finally moving in a new direction. Gold was up $16 today, a big day. Everything else was down big, including stocks, bonds, and the dollar. This is unlike the previous relationships when bond prices would rise as stocks dropped, oil would drop equally with stocks, and the dollar would rise as stocks dropped.
The game appears to be changing and tomorrow could be the next big drop. Either way tomorrow is a defining moment since it sets the tone for the near future. Will we continue this phony rally or move into the next phase of this Depression. And yes, this is a Depression (evidence to be shown in future posts). Ultmately, the important supporting level of 877 in the S&P was not broken yet. It got down to 880 and rebounded. Will it break down tomorrow? I believe if not tomorrow it definitely will at some point.
So this blog is simply sharing my journey as I learn more about the truths of this Depression we are in, the causes of it, and take real steps in my life to protect myself from it; and throughout all of this I seek simple freedoms and happiness. Yes...I DO intend and want to have a good time! So I'll share the good times and the bad. I am not afraid of the ups and downs since life is about making decisions and dealing with the consequences. I am not afraid of change either, never have been, and perhaps this will entertain, inform, or influence others (all one or two of you) to move in a better direction too. This is all about discovering and continuing to enjoy truth, true freedom, and happiness through this economic collapse.
I have never been afraid of taking bold steps and these are definitely exciting ones. After all, how many people quit a great job, sell all their belongings, and move into the mountains of Wyoming? I'm thinking not many, but....many people might want to, they just don't have the balls to do it. They are feeling helpless perhaps, or going through the daily grind hoping for the best. That's not for me. I have to move on. My mind can't settle until I understand, have answers, and a new plan. Right now the big picture is clear, a plan is set (and always evolving), now it's time for action, the journey begins!
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