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.

Http://www.zerohedge.com/news/trichet-repeats-call-european-finance-ministry-abdication-national-sovereignty

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

PIMCO PREDICTS PAIN!

http://www.pimco.com/EN/Insights/Pages/Prediction-Pain.aspx

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.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/6_Madoff_Whistleblower_Tells_KWN_Banks_Stealing_From_Pensions

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.

Wednesday, October 5, 2011

Obama By The Numbers



The numbers do not lie in this case. The fact of the matter is there is more unemployment and more debt in the system now. The stock market going up in the short term has benefited the people on Wall Street but not main street. I have to disagree with using the price of oil as a metric given that it went from $140 to $40 a barrell. Drink the kool aid if you like but the people in both Republican and Democratic parties are paid off by the same big corporations. Ron Paul is the only politician that I will vote for.