Saturday, December 25, 2010

Jim Rickards Presentation / Feds 4 Options




This was a slide on Jim Rickards "Economics and National Security" presentation on 12/7/10 from the Applied Physics Laboratory of Johns Hopkins University. The mp3 and notes are posted here: http://outerdnn.outer.jhuapl.edu/rethinking/VideoArchives.aspx It is funny how a child can pick the correct answer. The presentation is over 90 minutes, but worth listening or reading as it provides a fresh perspective and different thinking than main stream media. The gold portions start about 57 minutes in. Gold revalued to $3,000-7,000 per ounce is not a pipe dream. The charts in the presentation point out that the US is gold superpower (our gold is like the Saudi's oil with 8,000 tonnes and custody of 6,000 tonnes to convert as needed) and why China is playing catch up in purchasing gold.

I would also listen to Jim Rickards recap of 2010 and predictions for 2011.

Feds 4 Options from the above interview.
  1. It would not be politically correct to increase interest rates with high unemployment.
  2. If they sold their assets to reduce the money supply they would be bankrupt due to mark to market losses.
  3. If they continue to do the same will devalue the US dollar and its stability.
  4. If they stop and do nothing, asset values will drop to real market values.
It is scary to see how we compare to Weimar Germany. The masses think when the cost of food and energy goes up; the problem is the price, when in reality the problem is the currency. Also, when the stock market is up, the increase cost of food/energy is "padded" as the stock markets gains make you "feel" like you a breaking even. You only see a 20% food/energy increase as 5% due to the 15% stock market gain.
After listening to all 3 mp3's, the fed has a wild card up their sleeve with the US being the largest hold of gold. Today's $1375 spot price of gold will look cheap in a few years, yet of we drop the $1265 in the next month, the masses will be afraid to exchange their US dollars for gold coin in fear it will "crash" while I see it as a sale to accumulate.

Tuesday, November 30, 2010

Friday, November 26, 2010

Top holder of US Debt is now the Fed

I am catching up on the news and as of 11/23/10, the federal reserve has overtaken china as the biggest holder of our debt.   http://www.zerohedge.com/print/253891

Hmmm, the next day Russia and China are using their own currencies for a bilateral trade.
11/24/10 http://business.asiaone.com/print/Business/News/Story/A1Story20101124-248833.html

Wednesday, November 24, 2010

My Interview at Airport: I Come in At 1:33

This is the most mild thing I said, but still I am glad it got on TV maybe 1 other person will change their thinking which is better than none.

share

Friday, November 19, 2010

Max Keiser: Crash JP Morgan - Buy Silver!

If Americans were serious about killing the financial terrorists, this is how to do it. Anyone informed on the precious metals markets and exchanges knows this to be true. And unlike the balance sheets they can't just print digits here. They will be expected by counter parties to deliver a hard asset in the form of silver. It will force them to acknowledge the fraud they have been committing.

Thursday, November 18, 2010

Finger Lickin' Chicken Cornish x Rocks - Day 11 (6-21-2010)

My little brother has been busy with school and work but promised to get on this soon so we can share this entire process with anyone interested and hopefully learn from any critique or suggestions.

Please come back to http://fingerlickingchicken.blogspot.com/ soon as I think this blog will become more active and eventually a great source of knowledge from first hand experience.

Unclaimed Tax Refunds

3,194 people in AZ have $4,722,912 in unclaimed tax refunds http://www.kpho.com/arizona/25830071/detail.html

In listening to this story on the news, it sounds like you should celebrate if you are one of the 3,194 people. Why is it good news when you get a tax refund? I am upset as it proves they f'ed up as they took too much out. It is a real kick in the face when prices of silver/gold increase during that tax year when measured in USD's as someone could have used the USD's and purchased silver/gold at a lower cost during the year.

Warren Buffet Writes Thank-you Letter to Uncle Same: Buffet is a Crook in My Opinion

DEAR Uncle Sam,

My mother told me to send thank-you notes promptly. I’ve been remiss.

Read the rest of this disgusting a$$ kissing here.

Silver Margin

The Chicago Mercantile Exchange increased the margin requirement to trade future contracts of silver twice in the past 2 weeks. As a small retail trader, this only matters if you hold overnight. Day trading is still 1k (8 times less) per contract. If you are trading overnight, you can still use the mini-silver contract as the margin is still $1,755. I wonder if NYSE (mini) will follow Comex's steps soon. A 1 point move in silver = 5k vs 1k for the mini. Plus, we all know that a 1% move in silver at $26 vs $17 a few months ago seems more drastic now, especially with futures as each tick remains the same.

Tuesday, November 16, 2010

Updated Special Drawing Right (SDR)

The IMF's 5 year "re-basketing" of fiat currencies shows a 2.1% drop in USD's.

http://www.imf.org/external/np/sec/pr/2010/pr10434.htm

U.S. dollar 41.9 percent (compared with 44 percent at the 2005 review)

Euro 37.4 percent (compared with 34 percent at the 2005 review)

Pound sterling 11.3 percent (compared with 11 percent at the 2005 review)

Japanese yen 9.4 percent (compared with 11 percent at the 2005 review)

Monday, November 8, 2010

$50 Bill / Silver

Silver broke $27 an oz today http://www.finviz.com/futures_charts.ashx?t=SI&p=d1

Silver has been around $17 an oz for pretty much all of 2010 before it broke out in late August. I was hammering my fist down and telling everyone to buy since it is cheap for under $20 an ounce.

A $50 bill in you left hand = 3 silver ounce coins in your right hand. Today, you can't even buy 2 coins for $50. By next spring, it will be even $50 for an ounce of silver.

This is a loss in purchasing power of the USD, yet the public would rather have the $50 bill as silver seems risky. Plus, since they still have that $50 bill, they do not perceive that they have lost purchasing power. Once the public wakes up, we will see shortages of physical bullion and parabolic prices in USD for silver and gold.

The fact is, when silver/gold goes up, it is really showing how much purchasing power the USD is losing.

Monday, November 1, 2010

Max Keiser Getting Pissed

He is right. Anyone who thinks the current financial/banking world is legitimate, even a little bit, either doesn't understand how it works (most common) or are simply lying to protect their own ego. There are also the scumbags who don't respect property rights of any other individual and are willing to steal and kill to get more wealth and power. The latter group tends to end up in government or connected to government in some capacity.

Wednesday, October 27, 2010

See Krugman Debate Murphy: Keynesian vs Austrian Business Cycle Theory

All proceeds go to buy food for poor in New York City. They are at $34,000 as I post this. Can Krugman have no heart and refuse the challenge? He still has neglected to address it. This is great, I wonder how Krugman will back out of this one...

UPDATE: Murphy is training hard by the looks of things.



Friday, October 15, 2010

Thursday, October 14, 2010

Study Suggests Curveballs Break Only in Batters' Minds: Video

Off topic a little, but I found this to be very interesting:

Wednesday, October 13, 2010

Loud and Clear Buy Signal


Big Ben is telling you to buy gold/silver.   I think their fear of deflation, will cause massive inflation.  "protecting the recover" means adding more chips to the casino of the stock market?  More USD into the system = higher price of gold/silver in USD.

Saturday, October 9, 2010

TV Shows and Set-top Boxes

If you look at the current line of set-top boxes like the boxee box, roku, apple tv and google tv that connect to your tv and connect to the internet are shaping the young generation of tv show watchers. We are no longer told when to watch a show. Just like playing mp3's in your car, you do not need the radio station choosing what music you can hear at that specific time. For word of mouth tv shows, the idea is you should be able to stream the first 2-4 episodes to get hooked and then pay x dollars for the rest of the season. A tivo device is not needed since you do not have a subscription to cable or satellite. All of the shows are in the "cloud" so you do not have worry about the nonsense of having enough hard drive space to store your shows. Hopefully the price will be cheap enough per season/show or have monthly cost of having access to all the shows. The next step is for these devices to steam sports in full HD.

Foreclosure Freeze

This will start to become a trend among the banks.

Bank of America freezes foreclosure sales nationwide

The way I see it, is if you are underwater or your mortgage payment, stop paying as now the process is going to take longer. This is 1-2 years of "free money" since there are no short term consequences of not paying your mortgage. As for the banks, they do not want to face the losses. All in all, just an ugly situation.

Non-gold holders

It seemed this past week when the price of gold hit $1366 USD overnight, the general public noticed. The funny part is when it dropped to $1325 that same day, those who do not own or follow gold started to celebrate that the price dropped. Is this envy? Can they not afford it? I am not sure. One said - how come you did not sell the top? Well, if your target is 3-5k, then there is no need to. I think 2 prices where gold will pull back to in the next 2 weeks are 1305 and 1265. After that, a run towards $1450. During the pull back in the next 2 weeks, the haters will celebrate, but I will tell them that gold is "on sale" and buy if you do not have a core position. If they think they know the markets better, than I will tell them to open a futures trading account to prove it.

Perception of % Gains

If you look at the % gains of gold vs. silver in the past 3 months, silver has outperformed gold by 17%. But, no one seems to care or notice silver.

During the run of the past 2 months, silver when from (rounded) $17 to $23 and gold from $1155 to $1355 an ounce. That is $6 for silver and $200 for gold.

1155/17 = 68 ounces of silver. 68 times 6 = $408 profit vs. gold's $200 Yet, everyone is focused on gold.

I guess it comes down to big/small number perception. A $1000 stock dropping 50% to $500 is more dramatic and noticeable than a $3 stock dropping to $1.50 when looking that the price alone and not percent gains.

The reason for writing this is, even today, I think silver will outperform gold in terms of % gains, but will go unnoticed for quite some time.

Saturday, September 25, 2010

Salary - Ounces of gold per year

I was looking over my social security statement and thought it would be interesting to see how many oz of gold I earned. (I changed the salary #'s around because I do not want to post how much I am making)

In 1999, I was a bagger/clerk at a grocery store working part-time during my senior year of high school. That year, before taxes I could have bought 10 oz of gold.

I started working full time at a real IT job in 2003. That salary could by 76 oz. of gold that year.

Using $1300 of USD's for 1 oz of gold in 2010, the salary could by 47 oz. of gold.

Here is the staggering point. The salary has nearly doubled from 2003 to 2010. 76 – 47 = 29. How can a salary nearly double, but buy 29 oz of less gold than 2003?!?! You mean to tell me a 4k bagger in 1999, today only can buy 1/5th of gold compares to someone making ~15 times that salary in 2010?

What upsets me is how can you get excited about 5-10% raise when the cost of food and energy continues to increase? Who wants to work when more and more of your paycheck is goings towards the basics like food, utilities and gasoline? I am not looking to break even. I am look to save a percentage of my paycheck to afford nice leisure time.

 

Rare Earths Update

This article was posted by the WSJ on Thursday "China Denies Halting Rare-Earth Exports to Japan". Remember China hold ~97% of the world's rare earths production.

The rare earth sector has already been on fire, but this just dumped a barrel of gasoline. Here are 2 traded on the US exchanges:

Rare Element Resources Ltd. – Up 32% since the Thursday's announcement. Up 114% in 1 month.

Molycorp, Inc. - Up 13% since the Thursday's announcement. Up 86% in 1 month.

The masses are far away from this sector. Once would think a 100%+ gain is time to get out and celebrate, nope, I am looking for 5-15 times gains in the years to come.

FACTBOX-What are rare earth elements?

Sunday, September 19, 2010

HFT in Action?

I was playing around with a new volume study and for grins ran it for the most active stock - Citigroup. A half of a billions shares were traded on Friday. Click on this chart for the full screen view. This is a 1 minutes chart and you can see the price trade between $3.96 - $3.99 after the open. Look at the price action and volume. People talk about HTF and looking at this chart, it makes we wonder how many humans are buying or selling this stock as a swing trade or accumulating. Is it the HFT bots just scalping for tenth a of penny profits between each other to make up this top volume stock?



Headline Nonsense - Amid

I continue to notice headlines with the preposition "amid". Yahoo is notorious for this. Google search: "amid" site:finance.yahoo.com

I think average people read the headline only and think amid is the reason why. Like an equals sign. I think this is a foolish mistake.

Here an example of the price of oil. Headline – My interpretation

Oil falls to near $75 amid high US crude supplies – Oil will drop when there is high supply.

Oil jumps above $77 in Asia amid US pipeline leak – Oil will increase when there is a pipeline leak.

Oil hovers above $77 amid US pipeline leaks - No, wait, Oil remains flat when there is a pipeline leak.

Oil hovers below $75 amid mixed US economic data - Oil remains flat when there is mixed econ data.

Toronto stock market heads for lower open amid falling oil prices – A drop in oil price will cause the TSE to open lower?

Oil hovers near $74 amid growth uncertainty – Someone was expecting growth, not they are not sure of the growth and that causes oil to remain flat?

Oil rises near $73 amid light 4th of July trading – I do not understand the point of this headline. It is giving the price of oil and letting you know the trading volume is light.


 

Stocks fall amid uncertainty over the economy – Who determined this uncertainly? I would like to know so I can put on a day trade short to profit.

Stocks mixed amid swine flu concerns, better than expected consumer data – So, stock would have been up because of the consumer data, but were not due to the swine flu concern? If there was no positive consumer data, the stock would have close down due the flu?


 

Overall, I think it is a bunch of nonsense. Prices always gyrate and there is a waterfall of news every day.
I can say Blizzard in Vermont amid a foggy morning in San Diego.
Or a foggy morning in San Diego amid a Blizzard in Vermont.
So, anytime Vermont gets hit with a blizzard, SD will experience a foggy morning? Or anytime SD experiences a foggy morning, VT will get hit with a blizzard? Of course not. All you are doing is stating 2 facts in 1 headline. I just worry than non-critical thinkers make the wrong assumption about a pair of events being the cause and effect. Amid is not "due to".

Sunday, August 29, 2010

Rare Earths / Uranium / $1200 USD Gold is cheap

I am really hesitant to post my silver/gold/rare earth/uranium stock portfolio.

The writing is on the wall….

8/29/10 China Backs Rare Earth Controls

7/25/10 Uranium Bottoming as China Boosts Stockpiles


 

Nice chart to keep in mind for those who think $1200 is too high.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/8/27_Gold_-_The_Big_Picture.html

Streaming Football Games - update

As an update to my Streaming Football Games post, I was reading an LA times article stating that you can buy the stream only package, but you have you have to meet some rules. It basically boils down to is if you can receive the satellite service, then you will be forced to pay for the TV package. While this is better, I still think the satellite service company sees the uptrend in HTPC's. Why spend $300, when you can spend $50 to steam all of the games on the HTPC to your 55" TV? This reminds me of ATT wireless around 2002. This was before they became Cingular and the back to ATT wireless. ATT offered free unlimited incoming text messaging. They removed this option and forced you to a purchase x amount of incoming and outgoing text message plan. I do not think the big company's want you kill your cable/satellite TV package in favor of steaming. I think the consumer will win since we want to steam wirelessly on our laptops. It just so happens that a $250 HTPC can do the same for your 55" TV.

Saturday, August 14, 2010

Streaming Football Games

http://www.directv.com/DTVAPP/content/sports/nfl_online_mobile

I noticed you can now finally stream the games via your computer or phone now. But, it is $49.95 on top of the $300 TV package. The problem is you cannot purchase the streaming package only. So, if you cannot install a dish where you live, you are out of luck. This does not seem fair.

The solution? http://live247.tv For $37.87 USD after using the coupon code from http://live247.tv/newsletter/w31/w31.html, you can steam all of the professional and college games this season. As far as how they pull this off from a legal standpoint, I do not know. To take it step further, you can purchase a $300 HTPC http://shop.lenovo.com/us/landing_pages/ideacentre/2010/q150 to steam the games to your large HDTV. Again, this is an alternative solution for those whom cannot install a dish at he/her house or apartment.

Unemployed, Underwater? No problem.

http://reversemortgagedaily.com/2010/08/12/hud-provides-1-billion-of-emergency-loans-to-homeowners-ti-default-solution/

"..$1 billion Emergency Homeowners Loan Program to provide assistance to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition."

"HUD's emergency homeowners loan program will work through a variety of state and non-profit entities. The loans will be a deferred payment "bridge loan" (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months."

A $50,000 0% non-recourse loan; sweet deal. So, if you are unemployed and underwater on your home, you will receive USD to not foreclose for the next 2 years? What is wrong about foreclosing and finding a house that you can afford to rent? Where are the perks for those who are not in this pinch?

 

Iran to start selling oil in any currency

http://economictimes.indiatimes.com/articleshow/6308125.cms?prtpage=1

Again, the writing is on the wall with the world rejecting the USD.

Read page 95 http://www.jhuapl.edu/urw_symposium/proceedings/2009/Authors/Rickards.pdf where gold will be a constant. A new dollar/gold equilibrium. So, 1 oz of gold would equal a fixed amount of wheat, corn, oil, etc. But, 1 USD will then be equal to say 1/4000th of an oz of gold. This would be a realistic case of gold going to $4,000 an oz. We would have to convert the USD into gold to purchase a commodity as the seller of the commodity does not accept USD's.

Sunday, June 27, 2010

Hedging Your Paycheck

No one I work with thinks to hedge their paycheck. They are bullish on funding their 401k since the company provides a certain percent to match. Some buy TIPS, but as we know the inflation numbers, CPI, etc are all fudged.

Here is the fact. We all get paid in US dollars. That is not going to change. If you are not in debt and are looking to save, why not buy physical gold or silver? I know 1 oz of gold is too much for one to buy every month, but silver coins are only around $20 per oz. Why not buy a few coins per month? In the worst cash of the price of silver/gold goes down, your US dollar paycheck "should" be able to purchase more goods.

I think we could see $30 per oz Silver by the end of this year. I think once silver breaks $60 an oz, the public will take notice and then manic buying will send the price above $100.

For those who say gold is in a bubble, I disagree. I was at the local mall recently and noticed a new gold to cash store. If we were in a bubble, that store would be selling gold and those kiosks would be selling gold/silver. I do find it funny that these cash for gold store exists since this is the time to keep/accumulate gold and not sell it. But, I understand that if you have to pay debts and if you are out of work or a discourage worker, you sell what can and not what you want to pay the bills.

Friday, June 18, 2010

Finger Lickin' Chicken - Our New Educational Venture I Hope You Follow With Us

Me and my Brother Joe are looking to start a local Farm at some future date.  We started with 27 (now 25 as 2 died shortly after delivery) Cornish x Rocks and have been documenting by video and a new blog, Finger Lickin' Chicken.

Sunday, June 13, 2010

Surprise, Surprise: US Finds Close to $1 Trillion in "Previously Unknown" Mineral Deposits in Afghanistan

Convenient.  Maybe there was more than just poppy and pipelines that influenced our decision to go into Afghanistan.  The NYT reports here on this story.

I wonder if the Afghanistan citizens will be allowed to profit from any of this.  Call it a hunch, but the US is not going to share much, but just it's a hunch.

Friday, June 11, 2010

Could this Be Why The Germans Want a EURO Short-Selling Ban?

Commerzbank AG leveraged 150:1??

The rest of the list, as you can see, is very highly leveraged as well

Thursday, June 10, 2010

Drones Were Bad Enough...

Unmanned drones making decisions based completely on AI is something only a psychopath would consider a good idea.

Wednesday, June 2, 2010

Al Qaeda Larger Threat Than Believed: They Can Resurrect the Dead!

The 3rd in command of Al Qaeda stubbornly just won't stay dead.

August 2008

October 2009

June 2010

This is going to make winning the "War on Terror" far more complicated than we once thought.

Ron Paul Correctly Predicts Obama Lie

Thursday, May 27, 2010

Bullshit! How Can Someone Get Away With This?

I am as anti-socialism as it gets.  I am also all about people being responsible for themselves.  But this video pisses me off.  This lady owned her home, which probably has a value of 5-10k at most if you know the area (which I do).  Baltimore sold her water bill debt which at time of eviction was a little more than $700.  So no confusion can be had:  SEVEN HUNDRED DOLLARS!  And these fucking banks,  who wouldn't exist without the money they robbed us of, have the pretense to pull this shit.  Fuck that!  How can this be justified in anyone's mind in light of what has taken place.  Put it in perspective here.  For a fraction of the bailout, we could have bailed out every single mortgage in the country.  And it would have been cheaper than what we did and still are doing.  Anyone who thinks we live in a society with equal citizenship is blind, simple, or just plain ignorant. 


Wednesday, May 26, 2010

Greeks Paying Over $1,700 Per Ounce For Physical Gold

http://news.coinupdate.com/panicky-greeks-paying-for-physical-gold-0293/

"Bank officials estimate that at least 100,000 other coins changed hands on the black market.  The Bank of Greece has received as much as $409 per coin, which works out to a price of more than $1,700 per ounce of gold!  Prices paid on the black market are reckoned to be even higher.  A popular spot for street vendors to sell their coins is near the Athens Stock Exchange.  There the traders wait for citizens to bring payments received from unloading their paper assets like stocks and bonds."

"As each day passes, the risk is growing that owning any form of "paper gold" could turn out to be as worthless as the paper currencies used to purchase it.  While you still can, you should protect yourself by converting such "assets" into real physical gold."

The question is when this panic will come to America?

Where's deflation in my electric bill?



(click on the images to enlarge)

By the way, I got a letter like this 2 years ago with the same type of increase. I see inflation and not deflation in my electric bill.

Notice this is only in effect from May-Oct, the only months out of the year that the air conditioner is used. Although, we have had only 1 day above 100F this May vs. 15 days last year. The electric company does not like that. Off the top of my head, I think i used the heat 5-7 nights this past winter.





SP500:Gold

Where's the equity recovery when deflated by gold? (copy the link into a new tab/window)

http://stockcharts.com/c-sc/sc?s=$SPX:$GOLD&p=W&yr=3&mn=0&dy=0&i=t65820977414&r=7166


With the recent correction the SP500 and drop in the Euro, look around the May 6th "flash crash" on how gold and silver decoupled. UUP is the US dollar and is the better of the bad fiat currencies for now. People should take this opportunity to buy gold and silver while the dollar is "strong". The writing is on the wall when you look at the Euro. Not only can you buy less gold/silver, but the cost of imports goes up.

http://finance.yahoo.com/echarts?s=FXE#chart2:symbol=fxe;range=3m;compare=^gspc+slv+gld+uup;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Wealthy investors are buying items of intrinsic value

http://etfdailynews.com/blog/2010/05/19/dan-sullivan-joins-richard-russell-in-bear-camp-moves-to-cash/

"Yet in the background big money, wealthy investors, are seriously worried. In their hearts, they don't trust fiat currency. They are familiar with the history of fiat currency, and they know that no fiat currency has ever survived for long. Therefore, these people are buying items of intrinsic value — gold, silver, platinum, gems, top quality art, rubies, jade, beach property, collectables"

The post also lists some gold/silver ETF's. I still like PHYS over GLD.

Do everyone agree that buying gold, silver, platinum, gems, top quality art, rubies, jade, beach property, collectables is a good idea? None of my coworkers are buying items of intrinsic value. There is no fear of the US dollar dropping. People are still in the mindset of buying a house to get "rich".

Monday, May 17, 2010

Are the United States a Christian nation?

First, read the following quote:

"The Constitution of the U. S. forbids everything like an establishment of a national religion."
To see who said this click here.


Another interesting quote:

I contemplate with sovereign reverence that act of the whole American people which declared that their legislature should make no law respecting an establishment of religion, or prohibiting the free exercise thereof, thus building a wall of separation between church and state.

You can find who said this and the context here

Article 1 of the Bill of Rights:
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.
The following is from the US Treaty with Tripoli in 1797 which "was sent to the floor of the Senate, June 7, 1797, where it was read aloud in its entirety and unanimously approved. John Adams, having seen the treaty, signed it and proudly proclaimed it to the Nation."  In Article 11 we find:

As the Government of the United States of America is not, in any sense, founded on the Christian religion; as it has in itself no character of enmity against the laws, religion, or tranquillity, of Mussulmen; and, as the said States never entered into any war, or act of hostility against any Mahometan nation, it is declared by the parties, that no pretext arising from religious opinions, shall ever produce an interruption of the harmony existing between the two countries.



It is pretty straight forward if you ask me.  Religion should be left out of political discussion unless it is to defend a group who is being oppressed in the free practice of their beliefs.  I am a little tired of the "radical" Christians politicizing if we are a Christian Nation and go off the handle when someone says otherwise.  And I have decided, since not all Christians fall in this camp, to call them "radical" Christians.  The same label to be used on the Evangelicals who look to accelerate the Rapture through political support to Israel.  This seems fair, since they also go off the handle if you won't call someone a "radical" Muslim.

Sunday, May 16, 2010

Max Keiser: Attacking Banks on Every Level Possible

These are a few months old, but very informative and as always entertaining. The first is a very quick one, the 2nd is pretty long.



Thursday, May 13, 2010

Bernanke: Prohibiting swaps will weaken risk mitigation of banks

Correct me if I am wrong, but I was not aware that there was risk mitigation taking place.  That is unless you take into account the put that taxpayers had shoved down their throat by the banks and governments.  I could mitigate risk too if I had a FREE PERPETUAL PUT!
Bernanke, in a May 12 letter to Senate Banking Committee Chairman Christopher Dodd, said the proposal, part of the Senate financial-overhaul bill, would harm the Fed’s ability to monitor systemic risk among financial institutions. He had previously spoken privately against the proposal crafted by Senator Blanche Lincoln, chairman of the Senate Agriculture Committee.

Prohibiting depository institutions from engaging in significant swaps activities will weaken the risk mitigation efforts of banks and their customers,” [translation: much less $$$ for my pals Lloyd and Jamie] Bernanke wrote in the letter, according to a copy obtained by Bloomberg News. “Depository institutions use derivatives to help mitigate the risks of their normal banking activities,” he said in the letter, which was also sent to Republican Senator Richard Shelby of Alabama and Senator Kirsten Gillibrand, a New York Democrat. 

Out of Curiosity, What Country Needs the Next Bailout?

I say Italy, but Spain, Ireland and Portugal all are bad off and could take it.  I still say Italy followed by the three mentioned.  Greece will find its way back in, but eventually the entire Eurozone is defaulting and/or being bailed out.

Wednesday, May 12, 2010

And the Hits Keep Coming

We still have a long way to go:


UPDATE: Now 4 US Banks in 'Perfect 10' Club

This is what a government monopoly (the only kind that can truly ever exist) looks like.  This is unheard of.  A week straight would be unheard of, but 4 large banks with an entire quarter of positive days...preposterous!  And please, spare me the fool's paradise "they are the smartest guys in the finance world and are just riding the recovery."  If they were so smart, why were they all recently bankrupt and losing billions a quarter?  They are financial terrorists, to steal a line from Max Keiser.  Anyone who thinks this happened in an honest fashion has lost all sense of reality. 

‘Perfect Quarter’ at Four U.S. Banks Shows Fed-Fueled Revival
May 12 (Bloomberg) -- Four of the largest U.S. banks, including Citigroup Inc., racked up perfect quarters in their trading businesses between January and March, underscoring how government support and less competition is fueling Wall Street’s revival.

Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc., the first, second and fifth-biggest U.S. banks by assets, all said in regulatory filings that they had zero days of trading losses in the first quarter. Citigroup Inc., the third-largest, doesn’t break out its daily trading revenue by quarter. It recorded a profit on each trading day, two people with knowledge of the results said.

Read the rest here.

Tuesday, May 11, 2010

The Irrepressible Max Keiser

From January 2009.  It is old but he speaks on issues from the United States and Israel military connection to the financial markets and derivatives, all of which are still not out of date topics.




JPMorgan Joins "Perfect 10" Club With Flawless Trading Quarter, Morgan Stanley Loses Money On Just 4 Days

Yesterday we discussed the statistically impossible trading desk results of Goldman Sachs, which reported in its 10Q that it lost money on exactly 0 days last quarter, and was profitable on 63 out of 63 days. Today we find that the rape and pillage of the middle class was not isolated to Goldman, and that JP Morgan also had a flawless quarter.

Read the rest at ZeroHedge

 Also see:

Unfuckingbelievable: Goldman Has Zero Trading Loss Days In Last Quarter

If you ever wanted to see what monopoly looks like in chart form, here it is:

Peter Schiff on Bailouts, American Style

Thursday, May 6, 2010

Great Article from LewRockwell.com

False Virtue: The Politics of Lying About History

by Thomas J. DiLorenzo
by Thomas J. DiLorenzo
Recently by Thomas DiLorenzo: In Defense of Sedition


In 1961 Life magazine invited the Pulitzer Prize-winning poet and novelist Robert Penn Warren (author of All the King’s Men, and nineteen other novels) to record his thoughts on the meaning of the American “Civil War” on the centennial of that event. Warren responded with a long essay on the “symbolic value of the war” which was eventually published as a small book entitled The Legacy of the Civil War.

If Robert Penn Warren were to write this book today, he would be loudly condemned as an Enemy of Society (and a “Neo-Confederate”) by all the usual defenders of the central state, from race-hustling “civil rights” activists to beltway “libertarians” and of course, the Lincoln Cult. For example, he wrote (p. 7) that in addition to slavery, there was a “tissue of causes” of the war, including the dispute over the constitutionality of secession, “the mounting Southern debt to the North, economic rivalry, Southern fear of encirclement, Northern ambitions, and cultural collisions . . .”

There were also economic causes of the war apart from slavery, Robert Penn Warren believed. “The Morrill tariff of 1861 actually preceded the firing on [Fort] Sumter, but it was the mark of Republican victory and an omen of what was to come; and no session of Congress in the next four years failed to raise the tariff.”


“Even more importantly,” Warren wrote, “came the establishment of a national banking system . . . and the issuing of national greenbacks . . . plus government subsidy [to corporations].” “Hamilton’s dream” of a large national debt was also realized, and “this debt meant a new tax relation of the citizen to the Federal government, including the new income tax” [introduced by the Lincoln administration for the first time].

“Out of the Civil War came the concept of total war,” i.e., the bombing, plundering, and mass murdering of civilians. In this regard, Warren quotes an 1862 speech by Lincoln in which he said, “The dogmas of the quiet past are inadequate to the stormy present . . . . As our case is new, we must think anew, and act anew.” That is, “we” must abandon the law of nations with regard to the criminality of waging war on civilians, and “we” must abandon the U.S. Constitution as well, since it is one of the chief “dogmas of the quiet past.”


A major theme of The Legacy of the Civil War is that the war left the North (which is to say, the U.S. government) with “a treasury of virtue” (p. 54). This is the “psychological heritage” left to the North, and it is an insidious heritage, wrote Robert Penn Warren. “The Northerner, with his Treasury of Virtue, feels redeemed by history . . . . He has in his pocket, not a Papal indulgence peddled by some wandering pardoner of the Middle Ages, but an indulgence, a plenary indulgence, for all sins past, present, and future . . .” (emphasis added).

Thus, this “treasury of virtue” would become the excuse for why the U.S. government would commence a twenty-five year campaign of extermination against the Plains Indians just three months after Appomattox; shamelessly rob the treasury for the benefit of railroad corporations; plunder the South for a decade after the war under the laughable guise of “reconstruction”; murder more than 200,000 Filipinos who opposed being ruled by the American empire after having escaped from the imperialistic clutches of the Spanish empire; and enter a European war that was none of our business to supposedly “make the world safe for democracy.” It was all done in the name of virtue, freedom, and democracy, or so we are told.

Robert Penn Warren called this “moral narcissism” (p. 72). It is “a poor basis for national policy,” he wrote, but is the “justification” for “our crusades of 1917–1918 and 1941–1945 and our diplomacy of righteousness, with the slogan of unconditional surrender and universal spiritual rehabilitation for others” (emphasis added).

Posing as The Most Virtuous Humans to Ever Inhabit the Planet requires that many “facts get forgotten,” wrote Robert Penn Warren. For example:

[I]t is forgotten that the Republican platform of 1860 pledged protection to the institution of slavery where it existed, and that the Republicans were ready, in 1861, to guarantee slavery in the South, as bait for a return to the Union. It is forgotten that in July, 1861, both houses of Congress, by an almost unanimous vote, affirmed that the War was waged not to interfere with the institutions of any state but only to maintain the Union. It is forgotten that the Emancipation Proclamation . . . was limited and provisional: slavery was to be abolished only in the seceded states and only if they did not return to the Union before the first of the next January (p. 61).

It must also be forgotten, wrote Warren, that most Northern states “refused to adopt Negro suffrage” and that Lincoln was as much a white supremacist as any man of his time. “It is forgotten that Lincoln, at Charlestown, Illinois, in 1858, formally affirmed: I am not, nor ever have been, in favor of bringing about in any way the social and political equality of the white and black races.”


Thus, after so much history is forgotten, and much of the rest of it rewritten as a string of fairy tales, “the War appears, according to this doctrine of the Treasury of Virtue, as a consciously undertaken crusade so full of righteousness that there is enough overplus stored in Heaven, like the deeds of the saints, to take care of all small failings and oversights of the descendants of the crusaders, certainly unto the present generation” (p. 64).


Warren quotes the historian Samuel Eliot Morison as commenting that one effect of this Treasury of Virtue on his (Morison’s) native New England was that “In the generation to come that region would no longer furnish the nation with teachers and men of letters, but with a mongrel breed of politicians” obsessed with “profiteering” through their political connections.

Among other effects are that “the man of righteousness tends to be so sure of his own motives that he does not need to inspect consequences.” And, “the effect of the conviction of virtue is to make us lie automatically and awkwardly . . . and then in trying to justify the lie, lie to ourselves and transmute the lie into a kind of superior truth.” This, I would argue, is a perfect definition of so-called “Lincoln scholarship,” especially the Straussian variety.

Warren believed that most Americans are content with all of these lies about their own history, the results of “the manipulations of propaganda specialists, and their sometimes unhistorical history” (p. 79). For they “are prepared to see the Civil War as a fountainhead of our power and prestige among the nations” (p. 76). They have been good and brainwashed as obedient little nationalists, in other words, who place a very high value on the “prestige” of the American state as bully of the world.

This is yet another dire consequence of the war: Americans came to believe in Alexander Hamilton’s notion that the “prestige” of the state through its pursuit of “imperial glory” was a legitimate function of government. Limiting the role of government to the protection of God-given natural rights to life, liberty, and property became one of Lincoln’s “dogmas of the quiet past.”

May 6, 2010

Thomas J. DiLorenzo [send him mail] is professor of economics at Loyola College in Maryland and the author of The Real Lincoln; Lincoln Unmasked: What You’re Not Supposed To Know about Dishonest Abe and How Capitalism Saved America. His latest book is Hamilton’s Curse: How Jefferson’s Archenemy Betrayed the American Revolution – And What It Means for America Today.

Tuesday, May 4, 2010

Why Not Feel Sorry for the Oil Company?

By:  Murray N. Rothbard

To say that the oil spill has been blown up to hysterical dimensions is a grave understatement. Hysteria abounds everywhere, and everywhere the term "disaster" is freely used. Even Pat Buchanan, who of all the media commentators I thought would be most resistant to the wiles of environmentalism, used that term. The Idiotic Overstatement Award of the Year goes to Alaska Judge Kenneth Rohl, who opined about the oil spill, "We have a manmade destruction that has not been equaled, probably, since Hiroshima."

Hundreds of thousands of innocent Japanese were massacred at Hiroshima; that's a disaster. Over the last several months, the Ayatollah's government has murdered thousands of political prisoners; a million Iranians and Iraqis were killed in their late monstrous war; the Pol Pot regime, in the mid-1970s, genocidally massacred one-third of the Cambodian population.

Those are disasters. That's "man-made destruction." In the Valdez oil spill, not a single human life was lost. Not a single person was even injured.
 
Furthermore, those disasters were intentional; the oil spill was, quite obviously, an accident. Who suffered the loss of the oil spill? None other than the Exxon Corporation, which lost ten million gallons of crude oil; in addition to the $5 million this loss represents, Exxon will be forced to pay cleanup costs, as well as compensation to the economic losses incurred by the fishing industry in Alaska. And so the only loser is Exxon, suffering from the negligence of its allegedly drunken sea captain. So is everyone feeling sorry for Exxon, as I do? Hell no; to the contrary, Exxon has been reviled every day by virtually everyone in the media and in public life. Contrary to government when it commits an accident or similar "externality," Exxon, as a private corporation, must pay the costs it inflicts on others.

So what's the problem? Once in a while, accidents happen. Are we to ban all oil tankers, because once in a long while, a tanker runs aground? Are we to outlaw all shipping because some ships sink? Are we to prohibit all air flight because once in a while a plane crashes?

The problem, of course, is that environmentalists don't give a tinker's dam about paying for external costs. They have their own agenda, scarcely hidden any more. Look at all their bellyaching about the poor birds, and the sea otters, and the salmon, etc. Look at their whining, too, about the beauty of the pristine blue water now befouled with black or brown oil slicks.

(Well, hell, maybe a coating of black on blue waters provides an interesting new esthetic experience; after all, once you've seen one chunk of blue water, you've seen them all.) The environmentalists are in pursuit of their own perverse and anti-human value-scale, in which every creature, animal, fish, or bird, heck even blue water, ranks higher than the wants and needs of human beings. The environmentalists welcome this trumped up "crisis," because they want to shut down the Alaska pipeline, which supplies a large chunk of domestic American oil; they want to reverse the Industrial Revolution, and get back to pristine "nature," with its chronic starvation, rampant disease, and short, ugly, and brutish life span.

Note the difference between the berserker reaction to the Valdez oil spill, and the response to the last great oil spill in 1978, off the French coast, when the Amoco Cadiz let loose no less than 60 million gallons of crude oil into the Atlantic – the worst oil spill in history. There was no hysteria, no screaming headlines, no bellyaching on television. The courts quietly forced Amoco to pay $115 million to compensate for costs of the accident, and that was that. The reactions were different because, in the meantime, the virus of environmentalism has deeply infected our culture. Arguing on the basis of private firms paying the costs of liabilities they impose upon others is all very well, but, as we see in the smears against Exxon, it is not enough.

We must no longer allow the environmentalists to seize, undisturbed, the moral high ground, and arrogate to themselves the good of the cosmos while the rest of us are portrayed as narrow, selfish, short-sighted, and immoral. There is no greater immorality than deep opposition to mankind per se, and environmentalism must be exposed as that kind of immoral and destructive creed. Only then will the party of mankind be able to take back our culture.



Published in the July 1989 issue of Liberty Magazine.
Murray N. Rothbard (1926–1995) was dean of the Austrian School, founder of modern libertarianism, and academic vice president of the Mises Institute. He was also editor – with Lew Rockwell – of The Rothbard-Rockwell Report, and appointed Lew as his literary executor. 

Monday, May 3, 2010

Anyone Else See the Trend? Below are all very recent statistics or events...

 I keep hearing about this recovery, but the governments behavior would indicate they are scared stupid.  It reminds me of the cartoons where in a sinking boat with multiple holes the character would never have enough fingers and toes to plug 'em all up.  This is an unorganized post of all cut and paste really.  Didn't take me long since there is really nothing good to find in terms of the economy if your honest with yourself.


World Bank Reforms Voting Power, Gets $86 Billion Boost

WASHINGTON, April 25, 2010 - Historic Package Expands Capacity to Provide Finance, Gives Developing Countries More Influence, Sets Post-Crisis Strategy, Endorses Comprehensive Reform Program




April 15, 2010
For Immediate Release
Contact: Phil Cogan, +01 (202) 565-3200

Ex-Im Bank Doubles Export Loan Authorizations to $13.2 Billion; Record-Setting Pace of Export Financing Continues



  USDA ANNOUNCES UPCOMING PURCHASES OF COMMODITIES FOR FEDERAL FOOD AND NUTRITION ASSISTANCE PROGRAMS

  WASHINGTON, April 30, 2010 – Agriculture Secretary Tom Vilsack today announced USDA's plan to purchase $161.4 million in a wide variety of foods for federal food and nutrition assistance programs.



March 25, 2010 

 

Saturday, May 1, 2010

Freddie Mac Delinquency Rates March 2010

Freddie Mac Delinquency Rates March 
2010

Saturday, May 1, 2010

Mortgage Market Share in Q1 96.5% of Mortgages Backed by Gov't Entities

ZZZ

Sunday, May 2, 2010

Peter Schiff - How an Economy Grows & Why it Crashes

Peter Schiff talks about his new book, "How an Economy Grows & Why it Crashes," and more.


Friday, April 23, 2010

Gold

I know there are "gold bugs" on this blog and I wanted to bring in advice for those who do not own gold/silver. You can use the bing cash back on ebay to get 8% off coins. The question is, what type of coins do you buy? I like the Gold Eagles PR70 rated coins by the NGC. Ultra High Relief MS70 is the best, but some people may think it is too much money. My take is to buy the best gold and silver coins since how many in reality are you going to physically own? If you are going to own a handful, why not purchase the best/rarest?

I still worry down the road, the government can "confiscate" an ETF like GLD in your trading or roth ira account. While it does do a great job at tracking the price, the government can take over and give you inflated US dollars. The Sprott Physical Gold Bullion Trust http://www.sprottphysicalgoldtrust.com/ just came out which you can purchase with your trading or roth ira account to own the physical gold bullion.

As for the gold and silver miners, GDX, GDXJ, SIL are etf's that own a basket of the miners. The 2 reasons I prefer the ETF's is they own miners non traded on the NY stock exchange and it is easier to manage. The only con is one of the miners can explode 200% and you will only see a small increase in the ETF since the EFT may only have a 3% holding in that particular miner.

Anyway, I wanted to get some of these gold thoughts out there to receive some feedback.

Short term, gold is looking to make another run toward $1200. 0 sigma held and the 200 bar just when inside -3 sigma.


Friday, April 16, 2010

SEC Charges Goldman with Fraud over CDOs

I do not have time to write much about this now, maybe someone else can do that. I just wanted to post a link to the complaint so everyone can read it if they want to. Here it is: http://www.sec.gov/litigation/complaints/2010/comp-pr2010-59.pdf

Tuesday, April 6, 2010

The wikileaks video of Iraq Shooting - WARNING Graphic and You May Become Nauseous

Here it is. Way to go wikileaks, no wonder the Government tries so hard to shut them down. The video speaks for itself.

Monday, April 5, 2010

Capital Controls = Forced inflation tax

I am surprised the "herd" media outlets have not picked this this up.

LINK

"Provision requires that foreign banks not only withhold 30% of all outgoing capital flows (likely remitting the collection promptly back to the US Treasury) but also disclose the full details of non-exempt account-holders to the US and the IRS."

So now, it is illegal to have a foreign bank account that is not in part of the US umbrella. If you trade the Asia/Europe markets with an overseas broker, you have to waiting until tax time to get back up to 30% of your profits? Unreal. This is the camel's nose under the tent as they do not want anyone to get out of the dollar. It's not about home many dollars that you have, but what can those dollars purchase. I really do not want gold to got to 10k an ounce since that will mean 1k US dollars today would be = to $10 in a 10k gold environment. But, the writing is on the wall.

Monday, March 29, 2010

YouTube to MP3

Recently Peter Schiff gave an excellent 55 minutes speech in Killingly, CT. Link - http://www.youtube.com/watch?v=K70vAAhpk-c

My pain point is I do not want to set in front of my computer for 55 mins just to listen to speech and to click a link every 10 mins. If the video was a webinar, then that is a different story.

Here is what I have been doing.

I use Firefox as my web browser. http://www.mozilla.com/firefox/

I use the Firefox extension DownloadHelper http://www.downloadhelper.net/

I visit YouTube and download the .flv video file(s) to my computer.

I use Leawo Free FLV Converter http://www.leawo.com/flv-converter/ to convert the .flv files to an MP3. The neat part is the software can take the 5 parts of the speech and combine it into 1 mp3 file.

I can now multitask by listening to the speech and performing a physical activity vs. sitting in front of the computer screen.

$10K Homebuyer Tax Credit in California

Gov. Schwarzenegger Extends $10K Homebuyer Tax Credit in California

Link - http://www.dsnews.com/articles/print-view/gov-schwarzenegger-extends-10000-homebuyer-tax-credit-in-california-2010-03-26

"….important housing bill that will get people off the fence and into homes…."

Why not let the free market lower prices by apx. 25-100k? We do not need an artificial market forces interfering with prices.

Why would anyone want to purchase an artificial price for a house?

This is helping the seller of home and not the buyer. The credit is trying to round up more sucker buyers in my opinion.


 


 

Saturday, March 6, 2010

The Cops Have Quotas? Tell Us Something We Don't Know

This is a well known practice to most but it is a wonder to me how everyone seems to accept it as normal. It seems to be people will look the other way on just about anything as long as they are not impacted. Of course, when it is them they are shocked and can't believe people allow such things to happen and ask why no one will help.

The following shows how even the few who will stand up for others are ignored, as nothing will be done to fix the current quota system. There are some police who actually mean to serve and protect others, and are police for that very purpose. The government prefers police who serve and protect the state and not the people and does not tolerate honesty and character.

Friday, March 5, 2010

Is This 12 Year Old a Terror Threat? The TSA Thinks So

For all those who think it can never happen to them, you should think again. Imagine if this obviously random, computer generated selection had been done to a 22 year old Middle Eastern man named Mohommad. Would anyone have believed he was really not a threat? Now think about how many people we have in secret prisons without a fair trial, but because the fear of "radical Islam" has been propagated at incrasing levels since 9/11, many Americans are happy since "it doesn't impact them" if they have nothing to hide.

Wednesday, March 3, 2010

So Is Bill Gates a Conspiracy Theorist or Are Vaccines and Health Care a Means to Population Control?

If we "do a really great job..." that is. I think this one speaks for itself and gives me one more reason to buy Apple.



Bill Gates, who I do not doubt is a lot better with computers than myself, has proved himself an idiot savant. The Malthusian theory on population that our elite rulers believe in which Malthus states, spuriously albeit, that population grows in a geometric series while the production of food, on the other hand, grows as an arithmetic series is what has misled, unfortunately to the loss of all of society, the technocrats of the time since. This is preposterous in light of the increase in the standard of living of all classes in our current time. A king just a few hundred years ago would have dreamed, if even he could imagine it, to live in the comfort of some of the poorest that live today. What about the homeless? Even they, in Newark, sleep in a heated train station at night and have access to health care far beyond yester-year's.

Wednesday, February 24, 2010

"That which nobody owns, nobody will care for."

Ron Paul vs Assassination

US now has explicit policy to assassinate, if they decide it is necessary, not just foreigners but US citizens as well (you trust their judgment though right?):

Thursday, February 18, 2010

Joe Stack's Suicide Note

I understand that this has been taken offline many places and is hard to find. Well, I am going to post it here for anyone who wants to read it. I recommend reading it. Mr. Stack clearly went too far, but he makes a lot of good points. Here it is:

If you’re reading this, you’re no doubt asking yourself, “Why did this have to happen?” The simple truth is that it is complicated and has been coming for a long time. The writing process, started many months ago, was intended to be therapy in the face of the looming realization that there isn’t enough therapy in the world that can fix what is really broken. Needless to say, this rant could fill volumes with example after example if I would let it. I find the process of writing it frustrating, tedious, and probably pointless… especially given my gross inability to gracefully articulate my thoughts in light of the storm raging in my head. Exactly what is therapeutic about that I’m not sure, but desperate times call for desperate measures.

We are all taught as children that without laws there would be no society, only anarchy. Sadly, starting at early ages we in this country have been brainwashed to believe that, in return for our dedication and service, our government stands for justice for all. We are further brainwashed to believe that there is freedom in this place, and that we should be ready to lay our lives down for the noble principals represented by its founding fathers. Remember? One of these was “no taxation without representation”. I have spent the total years of my adulthood unlearning that crap from only a few years of my childhood. These days anyone who really stands up for that principal is promptly labeled a “crackpot”, traitor and worse.

While very few working people would say they haven’t had their fair share of taxes (as can I), in my lifetime I can say with a great degree of certainty that there has never been a politician cast a vote on any matter with the likes of me or my interests in mind. Nor, for that matter, are they the least bit interested in me or anything I have to say.

Why is it that a handful of thugs and plunderers can commit unthinkable atrocities (and in the case of the GM executives, for scores of years) and when it’s time for their gravy train to crash under the weight of their gluttony and overwhelming stupidity, the force of the full federal government has no difficulty coming to their aid within days if not hours? Yet at the same time, the joke we call the American medical system, including the drug and insurance companies, are murdering tens of thousands of people a year and stealing from the corpses and victims they cripple, and this country’s leaders don’t see this as important as bailing out a few of their vile, rich cronies. Yet, the political “representatives” (thieves, liars, and self-serving scumbags is far more accurate) have endless time to sit around for year after year and debate the state of the “terrible health care problem”. It’s clear they see no crisis as long as the dead people don’t get in the way of their corporate profits rolling in.

And justice? You’ve got to be kidding!

How can any rational individual explain that white elephant conundrum in the middle of our tax system and, indeed, our entire legal system? Here we have a system that is, by far, too complicated for the brightest of the master scholars to understand. Yet, it mercilessly “holds accountable” its victims, claiming that they’re responsible for fully complying with laws not even the experts understand. The law “requires” a signature on the bottom of a tax filing; yet no one can say truthfully that they understand what they are signing; if that’s not “duress” than what is. If this is not the measure of a totalitarian regime, nothing is.

How did I get here?

My introduction to the real American nightmare starts back in the early ‘80s. Unfortunately after more than 16 years of school, somewhere along the line I picked up the absurd, pompous notion that I could read and understand plain English. Some friends introduced me to a group of people who were having ‘tax code’ readings and discussions. In particular, zeroed in on a section relating to the wonderful “exemptions” that make institutions like the vulgar, corrupt Catholic Church so incredibly wealthy. We carefully studied the law (with the help of some of the “best”, high-paid, experienced tax lawyers in the business), and then began to do exactly what the “big boys” were doing (except that we weren’t steeling from our congregation or lying to the government about our massive profits in the name of God). We took a great deal of care to make it all visible, following all of the rules, exactly the way the law said it was to be done.

The intent of this exercise and our efforts was to bring about a much-needed re-evaluation of the laws that allow the monsters of organized religion to make such a mockery of people who earn an honest living. However, this is where I learned that there are two “interpretations” for every law; one for the very rich, and one for the rest of us… Oh, and the monsters are the very ones making and enforcing the laws; the inquisition is still alive and well today in this country.

That little lesson in patriotism cost me $40,000+, 10 years of my life, and set my retirement plans back to 0. It made me realize for the first time that I live in a country with an ideology that is based on a total and complete lie. It also made me realize, not only how naive I had been, but also the incredible stupidity of the American public; that they buy, hook, line, and sinker, the crap about their “freedom”… and that they continue to do so with eyes closed in the face of overwhelming evidence and all that keeps happening in front of them.

Before even having to make a shaky recovery from the sting of the first lesson on what justice really means in this country (around 1984 after making my way through engineering school and still another five years of “paying my dues”), I felt I finally had to take a chance of launching my dream of becoming an independent engineer.

On the subjects of engineers and dreams of independence, I should digress somewhat to say that I’m sure that I inherited the fascination for creative problem solving from my father. I realized this at a very young age.

The significance of independence, however, came much later during my early years of college; at the age of 18 or 19 when I was living on my own as student in an apartment in Harrisburg, Pennsylvania. My neighbor was an elderly retired woman (80+ seemed ancient to me at that age) who was the widowed wife of a retired steel worker. Her husband had worked all his life in the steel mills of central Pennsylvania with promises from big business and the union that, for his 30 years of service, he would have a pension and medical care to look forward to in his retirement. Instead he was one of the thousands who got nothing because the incompetent mill management and corrupt union (not to mention the government) raided their pension funds and stole their retirement. All she had was social security to live on.

In retrospect, the situation was laughable because here I was living on peanut butter and bread (or Ritz crackers when I could afford to splurge) for months at a time. When I got to know this poor figure and heard her story I felt worse for her plight than for my own (I, after all, I thought I had everything to in front of me). I was genuinely appalled at one point, as we exchanged stories and commiserated with each other over our situations, when she in her grandmotherly fashion tried to convince me that I would be “healthier” eating cat food (like her) rather than trying to get all my substance from peanut butter and bread. I couldn’t quite go there, but the impression was made. I decided that I didn’t trust big business to take care of me, and that I would take responsibility for my own future and myself.

Return to the early ‘80s, and here I was off to a terrifying start as a ‘wet-behind-the-ears’ contract software engineer... and two years later, thanks to the fine backroom, midnight effort by the sleazy executives of Arthur Andersen (the very same folks who later brought us Enron and other such calamities) and an equally sleazy New York Senator (Patrick Moynihan), we saw the passage of 1986 tax reform act with its section 1706.

For you who are unfamiliar, here is the core text of the IRS Section 1706, defining the treatment of workers (such as contract engineers) for tax purposes. Visit this link for a conference committee report (http://www.synergistech.com/1706.shtml#ConferenceCommitteeReport) regarding the intended interpretation of Section 1706 and the relevant parts of Section 530, as amended. For information on how these laws affect technical services workers and their clients, read our discussion here (http://www.synergistech.com/ic-taxlaw.shtml).

SEC. 1706. TREATMENT OF CERTAIN TECHNICAL PERSONNEL.

(a) IN GENERAL - Section 530 of the Revenue Act of 1978 is amended by adding at the end thereof the following new subsection:

(d) EXCEPTION. - This section shall not apply in the case of an individual who pursuant to an arrangement between the taxpayer and another person, provides services for such other person as an engineer, designer, drafter, computer programmer, systems analyst, or other similarly skilled worker engaged in a similar line of work.

(b) EFFECTIVE DATE. - The amendment made by this section shall apply to remuneration paid and services rendered after December 31, 1986.

Note:

· "another person" is the client in the traditional job-shop relationship.

· "taxpayer" is the recruiter, broker, agency, or job shop.

· "individual", "employee", or "worker" is you.

Admittedly, you need to read the treatment to understand what it is saying but it’s not very complicated. The bottom line is that they may as well have put my name right in the text of section (d). Moreover, they could only have been more blunt if they would have came out and directly declared me a criminal and non-citizen slave. Twenty years later, I still can’t believe my eyes.

During 1987, I spent close to $5000 of my ‘pocket change’, and at least 1000 hours of my time writing, printing, and mailing to any senator, congressman, governor, or slug that might listen; none did, and they universally treated me as if I was wasting their time. I spent countless hours on the L.A. freeways driving to meetings and any and all of the disorganized professional groups who were attempting to mount a campaign against this atrocity. This, only to discover that our efforts were being easily derailed by a few moles from the brokers who were just beginning to enjoy the windfall from the new declaration of their “freedom”. Oh, and don’t forget, for all of the time I was spending on this, I was loosing income that I couldn’t bill clients.

After months of struggling it had clearly gotten to be a futile exercise. The best we could get for all of our trouble is a pronouncement from an IRS mouthpiece that they weren’t going to enforce that provision (read harass engineers and scientists). This immediately proved to be a lie, and the mere existence of the regulation began to have its impact on my bottom line; this, of course, was the intended effect.

Again, rewind my retirement plans back to 0 and shift them into idle. If I had any sense, I clearly should have left abandoned engineering and never looked back.

Instead I got busy working 100-hour workweeks. Then came the L.A. depression of the early 1990s. Our leaders decided that they didn’t need the all of those extra Air Force bases they had in Southern California, so they were closed; just like that. The result was economic devastation in the region that rivaled the widely publicized Texas S&L fiasco. However, because the government caused it, no one gave a shit about all of the young families who lost their homes or street after street of boarded up houses abandoned to the wealthy loan companies who received government funds to “shore up” their windfall. Again, I lost my retirement.

Years later, after weathering a divorce and the constant struggle trying to build some momentum with my business, I find myself once again beginning to finally pick up some speed. Then came the .COM bust and the 911 nightmare. Our leaders decided that all aircraft were grounded for what seemed like an eternity; and long after that, ‘special’ facilities like San Francisco were on security alert for months. This made access to my customers prohibitively expensive. Ironically, after what they had done the Government came to the aid of the airlines with billions of our tax dollars … as usual they left me to rot and die while they bailed out their rich, incompetent cronies WITH MY MONEY! After these events, there went my business but not quite yet all of my retirement and savings.

By this time, I’m thinking that it might be good for a change. Bye to California, I’ll try Austin for a while. So I moved, only to find out that this is a place with a highly inflated sense of self-importance and where damn little real engineering work is done. I’ve never experienced such a hard time finding work. The rates are 1/3 of what I was earning before the crash, because pay rates here are fixed by the three or four large companies in the area who are in collusion to drive down prices and wages… and this happens because the justice department is all on the take and doesn’t give a fuck about serving anyone or anything but themselves and their rich buddies.

To survive, I was forced to cannibalize my savings and retirement, the last of which was a small IRA. This came in a year with mammoth expenses and not a single dollar of income. I filed no return that year thinking that because I didn’t have any income there was no need. The sleazy government decided that they disagreed. But they didn’t notify me in time for me to launch a legal objection so when I attempted to get a protest filed with the court I was told I was no longer entitled to due process because the time to file ran out. Bend over for another $10,000 helping of justice.

So now we come to the present. After my experience with the CPA world, following the business crash I swore that I’d never enter another accountant’s office again. But here I am with a new marriage and a boatload of undocumented income, not to mention an expensive new business asset, a piano, which I had no idea how to handle. After considerable thought I decided that it would be irresponsible NOT to get professional help; a very big mistake.

When we received the forms back I was very optimistic that they were in order. I had taken all of the years information to Bill Ross, and he came back with results very similar to what I was expecting. Except that he had neglected to include the contents of Sheryl’s unreported income; $12,700 worth of it. To make matters worse, Ross knew all along this was missing and I didn’t have a clue until he pointed it out in the middle of the audit. By that time it had become brutally evident that he was representing himself and not me.

This left me stuck in the middle of this disaster trying to defend transactions that have no relationship to anything tax-related (at least the tax-related transactions were poorly documented). Things I never knew anything about and things my wife had no clue would ever matter to anyone. The end result is… well, just look around.

I remember reading about the stock market crash before the “great” depression and how there were wealthy bankers and businessmen jumping out of windows when they realized they screwed up and lost everything. Isn’t it ironic how far we’ve come in 60 years in this country that they now know how to fix that little economic problem; they just steal from the middle class (who doesn’t have any say in it, elections are a joke) to cover their asses and it’s “business-as-usual”. Now when the wealthy fuck up, the poor get to die for the mistakes… isn’t that a clever, tidy solution.

As government agencies go, the FAA is often justifiably referred to as a tombstone agency, though they are hardly alone. The recent presidential puppet GW Bush and his cronies in their eight years certainly reinforced for all of us that this criticism rings equally true for all of the government. Nothing changes unless there is a body count (unless it is in the interest of the wealthy sows at the government trough). In a government full of hypocrites from top to bottom, life is as cheap as their lies and their self-serving laws.

I know I’m hardly the first one to decide I have had all I can stand. It has always been a myth that people have stopped dying for their freedom in this country, and it isn’t limited to the blacks, and poor immigrants. I know there have been countless before me and there are sure to be as many after. But I also know that by not adding my body to the count, I insure nothing will change. I choose to not keep looking over my shoulder at “big brother” while he strips my carcass, I choose not to ignore what is going on all around me, I choose not to pretend that business as usual won’t continue; I have just had enough.

I can only hope that the numbers quickly get too big to be white washed and ignored that the American zombies wake up and revolt; it will take nothing less. I would only hope that by striking a nerve that stimulates the inevitable double standard, knee-jerk government reaction that results in more stupid draconian restrictions people wake up and begin to see the pompous political thugs and their mindless minions for what they are. Sadly, though I spent my entire life trying to believe it wasn’t so, but violence not only is the answer, it is the only answer. The cruel joke is that the really big chunks of shit at the top have known this all along and have been laughing, at and using this awareness against, fools like me all along.

I saw it written once that the definition of insanity is repeating the same process over and over and expecting the outcome to suddenly be different. I am finally ready to stop this insanity. Well, Mr. Big Brother IRS man, let’s try something different; take my pound of flesh and sleep well.

The communist creed: From each according to his ability, to each according to his need.

The capitalist creed: From each according to his gullibility, to each according to his greed.

Joe Stack (1956-2010)

02/18/2010