Wednesday, November 27, 2013

A Post Keynesian Perspective: The US Recession of 1920–1921: Some Austrian Myths

Social Democracy for the 21st Century: A Post Keynesian Perspective: The US Recession of 1920–1921: Some Austrian Myths

The biggest Austrian Economics myth was that the 1920-21 Depression was a credit crisis. It was not. Therefore, credit was available once companies retooled from war time to peace time production.

It is very important to realize that our 2008 meltdown was a credit event, which takes much longer to rectify. 

How Wall Street Has Turned Housing Into a Dangerous Get-Rich-Quick Scheme -- Again

The Empire Strikes Back: How Wall Street Has Turned Housing Into a Dangerous Get-Rich-Quick Scheme -- Again | Common Dreams 

The article says it is almost like they planned this new housing bubble. Well, don't be fooled, of course they planned it just like they planned the last one. If anyone thinks that the housing bubble of the first decade in this millenium wasn't planned, they are being very naive.

Shiller: No homebuyer excitement

Shiller: No homebuyer excitement

Shiller says that we cannot trust momentum in the housing market anymore and this is because of volatility and lack of participation of first time buyers. Cramer says sales stopped in October.

Unusual demand from investors is the market and that is unsustainable. The market has been driven by psychology. But there is no excitement like in the early 2000's regarding the housing bubble.

Shiller says that the big guys like Blackstone will exit if momentum slows in the housing market. The rental market is coming back, but these investors may not say they are going to dump houses but he believes they will dump the houses. We will see.

I have said that cash buyers make volatility much more likely. Shiller is basically saying the same thing. But will the private equity guys exit the housing market. Will easy money have to come back into the system for the middle class or marginal buyers so there will be a place they can unload the houses onto? That is the real question. 

Durable-goods orders drop 2% in October - Economic Report - MarketWatch

Durable-goods orders drop 2% in October - Economic Report - MarketWatch

This is bad if Christmas season for retail is also slow. Something to watch out for in the casino that is the stock market. 

Sunday, November 24, 2013

Saturday, November 23, 2013

Wednesday, November 20, 2013

Beware of Larry Summers, Criminal Real Estate Bubbles,and a Totalitarian Digital Currency

It has come to this according to Larry Summers, the US government must act in a criminal manner for the US economy to grow. The only alternative, he says, is to move to a cashless society and hold all Americans prisoners to the banks.

Either way is criminal, because if you blow a housing bubble you are lending to marginal borrowers. Lending to marginal borrowers is criminal according to new Dodd-Frank regulations, at least for the banks the Fed has control over, and the FIRREA Act back in the 1980's was passed to allow for civil penalties against those who loaned money to marginal buyers. It was a law that George W. Bush just ignored.

And keeping one from having cash is criminal as well. There is a totalitarian aspect to being forced to keep your money in a bank. If the bank makes a mistake with its investments, it can turn your money into capital to save itself. Those who choose not to partake in this straitjacket have no choice.

If you deposit money into a bank it is a loan to the bank. If it is a loan to the bank, and you cannot withdraw that loan in the form of cash, then you are being forced to lend to the bank. It becomes the banks' money while it is in the bank!

This is totalitarian thinking. And it is no better than blowing bubbles by lending, which is the other criminal means by which the economy grows.

If you are subject to the banks in any form, you are a slave to an international cartel. People tell us that digital currency like Bitcoin or other schemes is a way out but it is not. The cartel will ultimately rule these digital currencies and there will be nothing that the owner of those currencies can do about it.

As it stands, bitcoin is more a speculative investment vehicle, but it may settle down one day and act like a currency instead of like a ponzi scheme. But you can count on it one day being regulated.

I don't agree with those libertarians who say the government should not be able to produce money. Our constitution allows for that. But of course that is not what we have now as we have a private Fed issuing money while the government does not really issue money, only debt.

But digital currency as the only currency should make everyone feel very uncomfortable. There is a possibility of the central bank clearing being hacked, so says a PHD from Oxford University. Joseph P. Farrell believes a cashless society is a massively bad idea.

And I can guarantee you that people will plough into commodities like gold, making the metal a bubble-ish monstrosity. People will seek to find value outside the monetary system. One mistake, one bank run, one hack, and this cashless party will be over. People have killed for less although I absolutely do not advocate that solution.

Besides, how are you going to help the poor begging on the street? Are you going to equip them with a cell phone? Are you going to want a data trail for when you purchase a gift for your wife?

The most important terror of a cashless society is to bring in an international cartel that bypasses the nation states, and destroy sovereignty.

If you think that NSA is bad now, wait until all currency is digital. I am as opposed to offshore hiding of income illegally and against the use of currency for crime as anyone. But if the international cabal's totalitarianism is a bigger crime than the crime we have now, what is gained? All is lost!

Ask yourselves why do all governments, Obama and Romney have Eugenics advisors? John Holdren is a eugenics monster, or so his writings have revealed he has monster thoughts. Could it be that this control of mankind could even include eugenics?

While many find that farfetched, we know that the Vatican has come out with a plan a couple of years ago that calls for a world bank. The article is entitled: "Towards Reforming the International Financial and Monetary Systems in the Context of a Global Authority.

We know that the World Bank said in 1984 (and the date is not lost on many):

"Population policy has a long lead time; other development policies must adapt in the meantime. Inaction today forecloses options tomorrow, in overall development strategy and in future population policy. Worst of all, inaction today could mean that more drastic steps, less compatible with individual choice and freedom, will seem necessary tomorrow to slow population growth.
You wonder if the Federal Reserve's slow growth policy anticipates this decline in population over time. It is becoming expensive and difficult to have children and mature nations are seeing massive population decreases over time. This observation adds to the understanding that the population kept poor tends to have fewer children if given the opportunity to have fewer children.

So then, there is a connection between slow growth, a regime that has been put into place through derivatives and the need to feed big finance rather than the rest of society, and eugenics which seeks to slow population growth.

 The connection of those to a cashless society is simply that the international banking cabal will one day have the power to roll over the constitution of the United States, and other democratic institutions simply by crashing the system. Total control may seem benign, and for most transactions it will be benign, but placed into the hands of the wrong people with the wrong motives, and a cashless society will be destructive to political freedom in a way never seen before.

Business Insider ran an article looking down on a New York state official's attempts to regulate Bitcoin. Bernanke said he likes the idea of Bitcoin. I am telling you that the agenda is that we come to accept a worldwide digital currency, and then only the international banking cartel will have the power to regulate it.

Larry Summers is a company man, and he wants international finance to control the world. The fact that he could be a staunch Zionist makes him doubly dangerous. For more information on the exposure of that political doctrine read my ebook on Amazon entitled, Anglo American Empire, Regime Change, and the Ambition of Israel. 

Monday, November 18, 2013

What is the "Halliburton Loophole?" Bush and Cheney Are Fracking Us Over

What is the "Halliburton Loophole?"

Fracking was made exempt from the Safe Water Act. Most injections into wells of any kind are forced to comply with the Safe Drinking Water Act. However, Bush and Cheney excluded hydraulic fracturing, or fracking, from the rules. Wake up "Amerca". 

Sunday, November 17, 2013

Larry Summers IMF Speech On The Zero Lower Bound - Business Insider

Larry Summers IMF Speech On The Zero Lower Bound - Business Insider

Larry Summers wants a cashless society. He is the poster boy for the term "dumb shit".

I want cash when I want it and so should every American.

Summers is scum. 

You Can Sue a Doctor for Malpractice It is Time to Sue Banks for Malpractice

Most people have it wrong about the last housing bubble. They blame the borrowers. But in fact, it was the banks who failed to do their jobs in determining how much house you could get .

If a doctor makes a wrong diagnosis, resulting in injury or harm to the patient, that patient can sue. But if a bank makes a wrong diagnosis on your ability to pay back a loan, they got wealthy by just taking your house.

But Dodd-Frank seeks to establish a rule whereby banks failing to properly underwrite a loan could result in those banks being sued by the borrowers.

We are so brainwashed that this avenue opening up for borrowers sounds preposterous, while we totally accept the patient's right to sue.

But doctors and bankers provide the same function. And bankers have the additional responsibility of being required to keep their banks solvent. As a doctor would go out of business if he kept offering wrong diagnoses to patients, so too should banks go out of business if they keep offering loans that fail.

Unfortunately, while the banks will be required to stay out of toxic loans, this ability to sue will likely not be extended to shadow lenders, who did most of the damage in the housing bubble anyway.

Point is, if the Federal Reserve and the world's central banks want easy money, in order to fleece the populace, they will ultimately get that easy money.

Here is an article that shows help may be on the way regarding the regulation of the shadow banks, but don't hold your breath.

The article lists who the shadow banks really are. Once we see who they are, it turns out they are familiar characters that we didn't think could hurt the nation and the consumer. But they sure can do both:

Shadow banking refers to largely unregulated bank-like activities performed outside of the traditional banking sector by non-bank financial institutions (NBFI). NBFI include: hedge funds, investment banks, money market funds, and other devices that aggregate and hold financial assets.

Shadow banks' structured investment vehicles, or SIVS, which almost destroyed Citibank and almost destroyed the financial system, saw risk that went to the marketplace returned to the big banks and almost destroyed them.

Sivs played a big part in the financial meltdown. Here is a more complex article describing their function and harm to society.  What we can take away from the article in a nutshell is that securitization of these bad loans were transferred from the bank balance sheets to the market, and then much of the risk was transferred back to the banks themselves. 

This froze interbank lending, and contagion began. Freezing interbank lending caused LIBOR to spike, and LIBOR rates exceeded the fixed swaps rate. When that happened, the entire banking system almost melted down because the big banks take the low interest rate floating side of a swap when they issue a loan to a customer. Here is a chart I put together that shows this very meltdown:

So, will there be another bout of easy money? Mike Whitney and others say yes. Certainly the big investors will want to unload the houses as they find being landlords over thousands upon thousands of houses will not be such a great bargain, and the money will be in selling the properties.

The only way this may not come about is if the plan to bundle up rents actually works. That is a plan that Blackstone is launching with a large bank. That could result in massive hoarding of houses and then what? No one knows.

When a house becomes a commodity instead of a place of shelter, all hell can break loose. And we may not be beyond more hell at this point in time.

If You Can Boycott These Low Paying Companies, the Top Ten Lowest, Then Do It!

10: Starbucks

9: Marshalls, TJ Maxx, Homegoods

8: Macy's

7: Olive Garden, Red Lobster

6: Sears, KMart

5: KFC, Pizza Hut, Taco Bell

4: Kroger, City Market, Dillons, Smiths

3: Target

2: McDonalds

1: Walmart

According to the article below, most positions, like retail sales associates, pay less than 9 dollars per hour on average, or in some cases barely above $9 per hour. You heard it right folks, less than 9 dollars per hour on average. That may be acceptable for an in home job where you don't have to have the expense of working out of the home.

But these wages are unacceptable for those having to work in the home. Even in the Great Depression times, retail sales associates were paid a more dignified wage in comparison! Come on big companies?

Boycott where you can.

Article Source

Thursday, November 14, 2013

Janet Yellen of the Federal Reserve Is Basically a Liar

From my article on Bubblews:

Janet Yellen gave testimony today regarding her nomination to Fed chairman. She is a brilliant woman, but is a liar. The lie is with regards to easy money. Easy money floods the world with excess credit and pushes the prices of goods and services up.

Janet Yellen does not see asset bubbles. But the average shopper sees asset bubbles in the eggs she buys, in the gasoline she pumps, in the house she can't afford to by. Janet Yellen knows that the easy money that drove real estate to unsustainable levels in the housing bubble is now going to the rich. They are buying all the houses up to rent.

Wages in the US have to decline in order for the United States to be competitive in the world. Our wages are too high. Our nation is not as competitive as it should be. Yet the Fed, and Yellen as an insider of the Fed, pushes assets up by allowing the QE stimulus to go to the big banks. They use the stimulus to push up the prices of goods you buy at the store...
While some Republicans share my view, I do not support them at all, because they are liars as well. The Democrats are not much better, but at least they believe that social program cuts on a massive scale will hurt main street. The Republicans and the central bank, the Fed, do not care about main street, so any support from anyone for the middle class is greatly needed and appreciated.

Tuesday, November 12, 2013

Andrew Huszar: Confessions of a Quantitative Easer -

Andrew Huszar: Confessions of a Quantitative Easer -

Bernanke lied, and the Fed just bailed out the banksters with QE. He never intended the banksters to loan to the people. QE is all about the banks and until QE stops, we can be confident that the banks are still in crisis. 

Monday, November 11, 2013

Jackie O tapes to reveal her and JFK's affairs and who she believed was behind his death

Jackie O tapes to reveal her and JFK's affairs and who she believed was behind his death | Mail Online

This article has been out for some time. However, as we remember JFK's death, and most baby boomers do, we can feel confident that LBJ's buddy, D. Harold Byrd was likely involved.

We know he owned the Texas Book Depository. We know he helped LBJ in acts that appear to be criminal before this assassination.

The man is deceased and there is no court that convicted him, but I believe Byrd and Johnson were closely involved in the death of Kennedy.

There is no doubt in my mind that LBJ was aware of the murder before hand, as he said that JFK would never embarrass him again.

JFK would have made the US a better and fairer place, and saved Americans from the crazy general Lemnitzer's false flag plan known as Operation Northwoods.

Here is the smoking gun of LBJ's involvement in the assassination of JFK as reported by the mistress of Lyndon Baines Johnson:

Saturday, November 9, 2013

California Homes Now Affordable to only 1/3 of Californians

California Homes Now Affordable to only 1/3 of Californians

Cali housing now has a median value of $433,000 dollars in California. That is a bubble folks. It is time to live multigenerationally, move to another state or simply move to an apartment and boycott houses completely. 

Golf's 'Silly Season' Goes Sour -

Golf's 'Silly Season' Goes Sour -

This article is an example on why the new Wall Street Journal cannot be trusted. The HSBC tournament is a duel tournament for the PGA Tour and the European Tour. The article states that it is only a PGA Tour event.

That is incorrect. And that golfers are making more money sounds like jealousy from a rag that is owned by one of the greediest men alive, Rupert Murdoch.

I am sick of the Wall Street Journal. 

Wednesday, November 6, 2013

Monsanto, if you are so proud of your products why dont you label them?

Monsanto, if you are so proud of your products why dont you label them? | Health The Organic Way

This is an interesting view of Monsanto and the author claims labels would expose the company for what it really is: evil.

While I am no expert on this subject it would seem that Monsanto has a duty, a moral duty, to label the company products. 

Tuesday, November 5, 2013

Rethink 9/11 Is an Excellent Website

Rethink 9/11 is an excellent website that exposes the truth about George W Bush and Richard Cheney and their neocon friends.

They will be passing out flyers in front of the Rethink 9/11 billboard in New York City:

This November’s “New York Times Billboard Campaign” is the perfect opportunity to get outside and educate hundreds of Times reporters and thousands of New Yorkers about the destruction of Building 7 and the need for a new 9/11 investigation.
In order to capitalize on this great opportunity, ReThink911 is organizing teams of activists to leaflet in front of the New York Times Building throughout November. Come join us!

Anyone in NYC can sign up. Best wishes to people who do not want political truth buried in our once great nation that is now not quite ready for greatness again.