By engaging in quantitative easing (the printing of money) on a scale never before witnessed or imagined by the inhabitants of Planet Earth, the Federal Reserve is fast approaching the tipping point.
With QE2, the buying of U.S. Treasury bonds from the Treasury Department (a Ponzi scheme of epic proportions) scheduled to end by June 30th, what is the Federal Reserve going to do?
The move up in stocks, bonds and commodities is almost entirely due to the counterfeiting of the Fed. All that confetti (paper currency) has to go somewhere. But since the "recovery" is not real, should Big Ben (Bernanke) decide to pull the plug on QE2, it will be time to put on your helmets and crawl into your bunkers. Stocks and bonds will plunge along with what's left of the economy.
If, on the other hand, should the Federal Reserve cave and give us QE3, 4, 5, 6 etc., then the Cartel will have lost all credibility when it comes to fulfilling its mandate: price stability and full employment. Inflation will get far more virulent than it already is. Our purchasing power will all but disappear.
My guess is that they will SAY that the end of QE2 is upon us while continuing to print monopoly money at a rate greater than the speed of light. They have no choice, really. With the debt closing in on its own tipping point, it's inflate or die for the Fed.
March 28, 2011
Monday, March 28, 2011
Saturday, February 26, 2011
WE ONCE HAD A LEVEL PLAYING FIELD
Does anyone besides me see the connection between what's gong on in Northern Africa and the Middle East to what's firmly in place here in the good old USA? Over there people are awakening to the long-term abuse they have suffered under dictators and their armies. The result is called "revolution," a term long ago associated with the founding of our own country.
Today, we in America live under a similar equation where a small cartel of corporate and governmental elites are seamlessly mutating free enterprise into a brand of capitalism that borders on fascism.
There used to be a level playing field. On one side of the gridiron was management and their representatives, the Republican party. On the other side was Labor and the Democratic party. They engaged in an antiquity called collective bargaining. And since neither side was happy with the outcome of their arbitration, what they came up with was probably a pretty fair deal. That was when free enterprise existed and flourished.
Contrast that with today where a war is being waged against collective bargaining and the Middle Class. The right-wing rulers of America, the corporations, the big banks and their paid-for politicos, want it their way 100 per cent. No more push back. Their ruthless goal is a perfect game: no runs, no hits, no errors.
In a country where people actually still believe what the government tells them and do as they are told, thank God for Madison, Wisconsin, that last bastion of Liberalism, where, like their brethren in the desert, they are willing to put it on the line for what they believe lest it be taken from them forever.
Question: where is Obama on this crucial issue? As a candidate he said repeatedly, " I promise to be walking the picket lines as President of the United States any time the workers' rights to organize are threatened." Not only hasn't he been sighted in the Badger State, but he has not even uttered a verbal sound on the subject.
Unlike the brave people in the Middle East and in Madison, Wisconsin, centrists stand for nothing. Instead, they stay right down the middle in preparation for November, 2012. Pragmatic presidents rarely show the leadership for which they were elected.
February 26, 2011
Today, we in America live under a similar equation where a small cartel of corporate and governmental elites are seamlessly mutating free enterprise into a brand of capitalism that borders on fascism.
There used to be a level playing field. On one side of the gridiron was management and their representatives, the Republican party. On the other side was Labor and the Democratic party. They engaged in an antiquity called collective bargaining. And since neither side was happy with the outcome of their arbitration, what they came up with was probably a pretty fair deal. That was when free enterprise existed and flourished.
Contrast that with today where a war is being waged against collective bargaining and the Middle Class. The right-wing rulers of America, the corporations, the big banks and their paid-for politicos, want it their way 100 per cent. No more push back. Their ruthless goal is a perfect game: no runs, no hits, no errors.
In a country where people actually still believe what the government tells them and do as they are told, thank God for Madison, Wisconsin, that last bastion of Liberalism, where, like their brethren in the desert, they are willing to put it on the line for what they believe lest it be taken from them forever.
Question: where is Obama on this crucial issue? As a candidate he said repeatedly, " I promise to be walking the picket lines as President of the United States any time the workers' rights to organize are threatened." Not only hasn't he been sighted in the Badger State, but he has not even uttered a verbal sound on the subject.
Unlike the brave people in the Middle East and in Madison, Wisconsin, centrists stand for nothing. Instead, they stay right down the middle in preparation for November, 2012. Pragmatic presidents rarely show the leadership for which they were elected.
February 26, 2011
Tuesday, February 1, 2011
KICKING THE CAN DOWN THE ROAD
The inflation I've warned about and the social unrest that goes with it are here compliments of the Federal Reserve's money printing insanity. Coal and oil are trading at two-year highs. Corn, soybeans, wheat, and sugar are trading at multiyear highs. Cotton has reached 140 year highs. Gold and copper are trading at record highs. Silver is trading at a 30-year high.
When Americans go shopping for food and clothing, their eyes cross in disbelief. What is merely an inconvenience for most of them is a matter of survival for countless millions in the developing world. So, while there is a political component to the protests in Egypt, Tunisia, Yemen, Jordan etc., the trigger is rocketing food prices.
While the government's infamous Plunge Protection Team buys S&P futures to support the fantasy stock market and the Federal Reserve prints up the money to buy the Treasury's (printed-up) Treasury Bonds in a desperate attempt to prevent the bond market from evaporating, the world's investors are running for their lives away from the U.S. dollar. And with most of our state and local governments broke, the municipal bond market has already crashed. Housing prices continue their decline.
The debt bubble is searching for a pin. The government's only solution is to lie to the American people while "fixing" the unfixable debt by adding more debt. This is called "kicking the can down the road" or "extend and pretend." It's a desperate attempt at buying time. But anyone with a certain body part on top of his or her neck knows that it will not end well. We are closing in on the tipping point. Once again, get ahead of the curve. Protect yourselves.
February 1, 2011
When Americans go shopping for food and clothing, their eyes cross in disbelief. What is merely an inconvenience for most of them is a matter of survival for countless millions in the developing world. So, while there is a political component to the protests in Egypt, Tunisia, Yemen, Jordan etc., the trigger is rocketing food prices.
While the government's infamous Plunge Protection Team buys S&P futures to support the fantasy stock market and the Federal Reserve prints up the money to buy the Treasury's (printed-up) Treasury Bonds in a desperate attempt to prevent the bond market from evaporating, the world's investors are running for their lives away from the U.S. dollar. And with most of our state and local governments broke, the municipal bond market has already crashed. Housing prices continue their decline.
The debt bubble is searching for a pin. The government's only solution is to lie to the American people while "fixing" the unfixable debt by adding more debt. This is called "kicking the can down the road" or "extend and pretend." It's a desperate attempt at buying time. But anyone with a certain body part on top of his or her neck knows that it will not end well. We are closing in on the tipping point. Once again, get ahead of the curve. Protect yourselves.
February 1, 2011
Tuesday, December 21, 2010
I hate to have to say this during the Christmas season, but the lies are becoming ubiquitous and the complacency is beyond belief. This can only mean that the people actually believe what the government is saying about the economic recovery. THERE IS NO RECOVERY. The global debt bubble is teetering on a cliff with the world's central banks trying desperately to paper over the debts by adding trillions of additional debt on top of the pile. This is done by printing pieces of paper which are nothing more than worthless IOU's.
The Wall Street/Government conspiracy has secretly forced the public to bail out the banksters, and, in the doing, has managed to transfer what was private debt incurred by fraudulent behavior into sovereign debt now on the backs of the people.
With Wall Street now targeting for profit the debt of one European country after another, the main stream cheerleading press is in cahoots by diverting the public's attention from here to there. But the day of reckoning is coming for the USA. With our Federal, state, and local governments either already bankrupt or soon to be, and the so called "dumb money" all in when it comes to the stock and bond markets, it is time to come out of denial and recognize that we are in a monetary crisis that will end badly.
Protect yourselves. We are running out of time. The better things look on the surface, the more explosive they are getting in reality.
December 21, 2010
The Wall Street/Government conspiracy has secretly forced the public to bail out the banksters, and, in the doing, has managed to transfer what was private debt incurred by fraudulent behavior into sovereign debt now on the backs of the people.
With Wall Street now targeting for profit the debt of one European country after another, the main stream cheerleading press is in cahoots by diverting the public's attention from here to there. But the day of reckoning is coming for the USA. With our Federal, state, and local governments either already bankrupt or soon to be, and the so called "dumb money" all in when it comes to the stock and bond markets, it is time to come out of denial and recognize that we are in a monetary crisis that will end badly.
Protect yourselves. We are running out of time. The better things look on the surface, the more explosive they are getting in reality.
December 21, 2010
Tuesday, December 7, 2010
THE MINORITY RULES THE COUNTRY
The Republicans, who are a minority in Congress, held the unemployed hostage until they got their tax break for their constituency, their millionaire and billionaire pals. Only then would they agree to allow an extension of the unemployment benefits so those out of work could buy food for their families. Never mind that two thirds of the American people were against those tax cuts for the top two per cent. And don't bother that the Democrats still enjoy a large majority in both houses of Congress. The missing link was the leadership that we expected from our President. Obama has been eaten alive by the Republicans because he is not a fighter. For two years he has been jerked around by a mean-spirited opposition that has sought nothing but to bring him down.
Not only is the country run by a minority, the fact is that a very select group of people decide the domestic and foreign policies of these United States. The Democrats have come to stand for nothing, and Obama's presidency is now a study in compromise, appeasement, cowardice and failure. This was not the hope so many of us felt on Inauguration Day in 2009.
December 7, 2010
Not only is the country run by a minority, the fact is that a very select group of people decide the domestic and foreign policies of these United States. The Democrats have come to stand for nothing, and Obama's presidency is now a study in compromise, appeasement, cowardice and failure. This was not the hope so many of us felt on Inauguration Day in 2009.
December 7, 2010
Tuesday, November 30, 2010
MOMENT OF TRUTH FOR OBAMA
We've come to the moment of truth for President Obama. Either he finds the courage to represent in plain English the suffering of those four million Americans who are losing their unemployment insurance and sticks to his policy of letting the Bush tax cuts expire for those making over $250,000, or he will be perceived as a weak leader who is presiding over a failed presidency.
There are no compromises or deals to be made with the likes of a Mitch McConnell or a John Boehner. They are simply not interested. They want to see Obama fail, and they will do whatever is necessary to see that he does.
No, the ball is now squarely in Obama's court. He must choose sides and take a stand. He must try to remember who elected him and act bravely on their behalf.
November 30, 2010
There are no compromises or deals to be made with the likes of a Mitch McConnell or a John Boehner. They are simply not interested. They want to see Obama fail, and they will do whatever is necessary to see that he does.
No, the ball is now squarely in Obama's court. He must choose sides and take a stand. He must try to remember who elected him and act bravely on their behalf.
November 30, 2010
Sunday, November 7, 2010
OBAMA AS JESUS
Swept into office two years ago with the overwhelming approval and unbridled hope of the American people along with a solidly Democratic congress, Barack Obama was given an opportunity few presidents have ever enjoyed. Now, two years later, how did Obama
manage to squander that opportunity and what can he do about it now?
Having inherited the worst financial calamity since the Great Depression and knowing next to nothing about economics, he surrounded himself with the very people who helped to create the crisis in the first place. Their advice was designed to help their buddies on Wall Street. Obama passively signed on.
A psychotherapist could have a field day with Barack Obama. But even to the layman
certain clues are self evident. Obama is without doubt intelligent, articulate, charming, polished, poised, smooth, professorial, cerebral, cool etc. Above all else his modus operandi is to bring people together. In fact, one could go so far as to see Obama thinking of himself as a sort of Jesus, always naively stating his willingness to turn the other cheek. In that respect he becomes more of a religious leader than a political leader. As such he lacks the desire for a good old fashioned fight with a Republican party whose only agenda, in the words of that idiot, Mitch McConnell, is to bring him down. To see Obama still offering an olive branch to those people in his speech following the devastating elections of November 2nd is to see a weak, seemingly lost president, who has apparently learned nothing from the never-ending barrage of upper cuts to the chin his bipartisan efforts have suffered during the past 22 months.
The people did not vote in the Republicans over the Democrats in order to cut the deficit. Boobus Americanus does not really care about deficits. To them the word is an abstraction. What they want is jobs.
Obama's only chance to avoid a failed presidency is to come right out of the gate immediately with a proactive jobs bill that addresses the country's stone age superstructure. This kind of legislation is how real jobs are created and how money is put squarely into the pockets of the American people instead of Wall Street. Then let the "party of no" say no to jobs and watch as they twist in the wind until 2012.
Finally, seizing the agenda right now must also include a thorough house cleaning. It is time to get rid of the old Cabinet and all of the other advisors, whose allegiance is to the "banksters" and the military establishment, and replace them with individuals who embrace the extremist idea of representing the American people. Obama has to stop preaching and instead put on the boxing gloves and bring the fight to his enemy. Unfortunately, Las Vegas odds makers place that eventuality near zero. Barack Obama is what he is: a teacher and not a strong leader who demonstrates decisive action even if that action must be adversarial in nature.
November 7, 2010
manage to squander that opportunity and what can he do about it now?
Having inherited the worst financial calamity since the Great Depression and knowing next to nothing about economics, he surrounded himself with the very people who helped to create the crisis in the first place. Their advice was designed to help their buddies on Wall Street. Obama passively signed on.
A psychotherapist could have a field day with Barack Obama. But even to the layman
certain clues are self evident. Obama is without doubt intelligent, articulate, charming, polished, poised, smooth, professorial, cerebral, cool etc. Above all else his modus operandi is to bring people together. In fact, one could go so far as to see Obama thinking of himself as a sort of Jesus, always naively stating his willingness to turn the other cheek. In that respect he becomes more of a religious leader than a political leader. As such he lacks the desire for a good old fashioned fight with a Republican party whose only agenda, in the words of that idiot, Mitch McConnell, is to bring him down. To see Obama still offering an olive branch to those people in his speech following the devastating elections of November 2nd is to see a weak, seemingly lost president, who has apparently learned nothing from the never-ending barrage of upper cuts to the chin his bipartisan efforts have suffered during the past 22 months.
The people did not vote in the Republicans over the Democrats in order to cut the deficit. Boobus Americanus does not really care about deficits. To them the word is an abstraction. What they want is jobs.
Obama's only chance to avoid a failed presidency is to come right out of the gate immediately with a proactive jobs bill that addresses the country's stone age superstructure. This kind of legislation is how real jobs are created and how money is put squarely into the pockets of the American people instead of Wall Street. Then let the "party of no" say no to jobs and watch as they twist in the wind until 2012.
Finally, seizing the agenda right now must also include a thorough house cleaning. It is time to get rid of the old Cabinet and all of the other advisors, whose allegiance is to the "banksters" and the military establishment, and replace them with individuals who embrace the extremist idea of representing the American people. Obama has to stop preaching and instead put on the boxing gloves and bring the fight to his enemy. Unfortunately, Las Vegas odds makers place that eventuality near zero. Barack Obama is what he is: a teacher and not a strong leader who demonstrates decisive action even if that action must be adversarial in nature.
November 7, 2010
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