Tuesday, February 21, 2012

Work, Save, Die?

What about retirement? Work for 40 plus years, save at least 10% of your income, RETIRE FROM WORK and then you die. This type of thinking promotes accepting that you allow the bankers to steal your saved labor and they get to retire while you pay for it. Let me give you a simple example of a college student graduating and earning $30,000 from the time they are 22 years of age to the time they are 65 years of age. Lets assume that person's salary doesn't increase and also the Federal Reserve doesn't continue their easy money policies which creates the inflation that requires the necessary increases in salary. Contrary to what you are told, inflation is not a monetary phenomenon. Actually, lets assume the Federal Reserve is abolished! Also in our example we assume that you save 10% of your income which equals $3,000 per year. We shall also assume that your investments earn 6% per year. In our example we shall also include that the employee and employer contribute 6.20% each to FICA. Therefore the employee's FICA is $1,860 and the employer's FICA is $1,860 for a total of $3,720 saved per year. Notice that the employee actually pays for FICA which means it's not an entitlement because you paid into it. When you run these assumptions at age 65 the person would accumulate $1,015,861 for a retirement nest egg. So NO I do not support the notion of work til death. If you want to then it should be your choice. Here's the math.

Friday, February 10, 2012

Where In Bankruptcy Law Do Bondholders Get Bailed Out?

When global banks make loans to government, businesses, or people they get rewarded for the good loans and should be punished for the bad loans. It's not capitalism on the way up and socialism on the way down. It's not this way for 99% of the people, so why should 1% of the world's elite expect this outcome? Especially when considering that this problem was created by the international money center banks and the country's central banks. The Hegelian dialectic of problem, reaction, and solution perfectly explains the situation we are in today. The big banks create lax lending standards through exotic mortgages and teaser rates to borrowers whose only needed qualification is the ability to fog a mirror. These loans create the bad situation we are in today and borrowers can't obviously repay these loans. The people's reaction is one of anger and now the solution is austerity. Even worse, is the solution of amputating both legs after they just sawed off two arms only three years earlier. Remind you that this proposed "solution" is coming from the same people who created the problem. Wow, this really is 1984 and George Orwell was right.


Monday, October 24, 2011

College Students Boo Call For European Finance Ministry

Speech today by outgoing ECB president Trichet in which he called for the formation of a European Ministry of Finance coupled with what is essentially a requirement for the abdication of national sovereignty of those less than worthy countries, together with some less than flattering commentary. It appears a few people at least were not too happy with the call for the formation of the United Empire of Europe, at Humboldt University where the speech was delivered. Bloomberg reports that the "ECB president interrupted during speech in Berlin. Banners held up by students in audience reading “no more money for banks,” and “say no to debt tyranny.” We hope to bring readers a video as soon as one is available. The transcription is linked below. What this means is the experiment of the Euro zone won't make it just like the Soviet Union.


Tuesday, October 18, 2011

United States Deficit a Bipartisan Movement

The US had roughly 1 trillion in debt before Ronald Reagan. In 8 years through trickle down economics Reagan added 2 trillion to the pile. Yes he was a republican who cut taxes and spent money we didn't have. In 4 years HW Bush added 1.5 trillion to bring the debt up to 4.5 trillion. Read my lips, "no new taxes", but a ton of new debt. In 8 years the democrat Bill Clinton added 1.4 trillion. He said he didn't have sexual relations with Monica Lewinsky but he did bend over the American taxpayer. Now W. Bush added 6.1 trillion to the pile being the great conservative he wasn't to bring the grand total to 12 trillion. W. stands for WOW! Obama has added 2.4 trillion to the total. Now that's a bipartisan effort.

Thursday, October 13, 2011



I recently made a market call when the market was oversold and of course the market bounced and moved higher. The stock market is actually up over 125 points since my call. It's mainly up based on plans to bail out Greece. The problem is you have to bail out Italy, Portugal, Ireland, Spain, Belgium, and Holland. The rule on Wall Street is you have 3 months and if your call is not confirmed then you are wrong on the timing. We shall wait and see. The deflation in the stock market is gauranteed to come it's just a matter of when. You can't grow your GDP at 3% and your debt at 6%, the math simply doesn't work. I attached a link to Pimco's website and they are not drinking the Kool Aid and expect a down turn in equities.

Friday, October 7, 2011

IMF is Scaaaaarrred!

We shall see. Goldman Sachs doesn't rule the world. Actually Goldman Sachs should have went out of business 3 years ago. More theft of pension funds via the link below. Banks don't earn money because it's easier to steal.

Can the EU Really?

The last couple of days the stock market has been on a tear upwards because the European Union is expected to bailout Greece. First off, this is one of many reported stories. Secondly, what's the real plan? Lastly, will it work?

Since the financial crisis started back in September 2007 the world markets have been uneasy. As the saying goes when the United States economy sneezes the world catches a cold. Eventually it was reported that many countries in Europe were in serious trouble and they needed to take "austerity" measures. Greece took center stage and riots ensued because "austerity" means regular working people take pay cuts to pay for the bad banker loans. Government expenditures have to be reduced to pay interest on debt which of course in paid to the banks. If you stop and think about this for one second you say to yourself, does this need to happen? The answer is NO. Governments have the ability to issue currency through their treasury. Governments do not need to borrow from a central bank at interest which the people have to pay. As long as the governments spend what they take in in taxes you will never see any inflation. The inflation is the governments deficits. Inflation occurs when the government borrows from the central bank to cover the fiscal deficit. The point is the only solution is to borrow more money which we already can't pay back. Bottom line is you can't solve a debt crisis by issuing more debt.

The real plan comes because the bankers know the countries can't pay. Then, the bankers request privatizing the countries power, water, and transportation systems. This means selling the people's assets to banker's cronies a discount to pay for debts caused by the bankers in the first place. It's the Hegelian dialectic of problem, reaction, and solution. The banks caused the problem, the people have reacted, and the bankers have their solution. This really is a racket!

Will the EU bailout work? Like I stated earlier, is you can't solve a debt crisis by issuing more debt. I give this 2 more weeks and the markets will go much lower.