Tuesday, October 18, 2011

Ron Paul vs. Mitt Romney: Who do you trust?

This would be better as an info graphic overlaid with logos of the contributors.  Unfortunately I do not have the talent.  If you do and would like to contribute, post a comment on the blog.


Wednesday, September 14, 2011

Inflation Targeting gone Amok

I read the following quote from a facebook post from a friend who majored in Economics:

A slightly higher inflation target promotes the incentive to spend money, rather than hold onto it.

There is absolutely no doubt that the above statement is true.  I have two questions in response to the above statement:

1. What is inflation?

Inflation is the expansion of the supply of money AND credit marked to market.  Basically its the entire supply of currency available to transact in the economy.  Inflation is NOT the rise in prices.  Rising prices are a symptom of inflation.  In a capitalistic economy prices tend to actually fall over time which would increase the purchasing power of currency.  Unfortunately we do not have a capitalistic economy.  We have a banker run economy.

2. What causes inflation?

Bankers cause inflation by monetizing unsecured "assets".  Treasury debt is unsecured.  Underwater residential mortgage backed securities are partially unsecured.  SBA loans guaranteed by the Treasury are unsecured.   The Federal Reserve is the greatest monetizer of debt since it is accountable to no one and can only be shut down by the US Congress, which ceded its Constitutional authority to regulate the value of its currency.  Typically if a bank lends unsecured and the loan defaults, the bank will lose a lot of money.  Therefore it will only make unsecured loans to customers with a minuscule probability of default.

Housing prices, commodities, and oil rose dramatically in price during the 2003-2008 boom as a result of unsecured lending, mostly in housing.  Price spirals were caused by monetary inflation which were then backed by fraudulent lending to those who could not afford to pay debt service.  These price signals suggested that people who had houses could cash out "equity" in their houses to fund further consumption, increasing the supply of credit.

In 2008, the margin call came.  The frauds were realized and prices began spiraling down because CREDIT was not available and the unsecured credit evaporated.  The reason banks began failing is because they had lent too much without collateral.  That is they may have lent money with collateral, however the presumed value of the collateral in reality was reliant upon a fraud perpetrated by the Federal Reserve in order to signal people to spend money they didn't really have.

Monetary inflation is in effect an invisible tax that depreciates the value of your earned money.  Monetary inflation is determined by an organization owned by private banks.  Price inflation is a result of monetary inflation.

My next question is this: WHO should control the supply of money?  

I'll start with who should not.  Bankers and Academics should not control the supply of money.  They've had their turn and failed miserably.  See Historical CPI Since 1800 and focus on what happened to price inflation after the Federal Reserve was started in 1913.  Governments also are typically poor managers of the supply of money since they tend to want to emit bills of credit to pay for political projects and wars.  

This leaves the market to define what money is.  Gold and silver have typically been the form of money chosen by the market.  Although many other commodities or products could be used as money.  Credit can be issued under gold and silver and in the Historical CPI since 1800 chart under the gold standard, the level of price inflation was effectively zero over time.

E-CON-onmists had no effect on the supply of money.  As a result prices were stable, older people didn't lose value on their savings, and banks didn't blow up quite like they did in the Great Depression, Savings & Loan crises, and the recent credit crisis.  They still blew up, but there was no risk backstop by the government and a central reserve bank.  JP Morgan was basically the reserve bank in the late 1800s.  When interbank lending dried up, JP Morgan would either lend or take over banks at incredible rates of return.

Inflation targeting is blatantly unlawful under the Federal Reserve Act which mandates stable prices.  It is also immoral since it is a theft of purchasing power with policies set by banker's acting in their best interests.  The problem this country is in is due to too much credit.  Inflating the supply of credit only exacerbates the problem of less demand because more currency is spent covering debt service rather than for productive purposes.  The simple solution to this mess we're in is to end central planning of the economy by bankers and return to a market based currency.

Tuesday, September 13, 2011

Gold is Money

Everything you need to know about money came from the original money center banker:

“Gold is money.  Everything else is credit.”  -J.P. Morgan, testifying to Congress in 1912.

The Tea Party has been Hijacked

The Tea Party began as a grassroots movement for limited government, lower taxes, and support for the rule of law as outlined in the US Constitution.  Anyone who tells you otherwise is a fool.

Unfortunately, it has been hijacked for political expediency by charlatans and hacks such as Sarah Palin, Michelle Bachman, and Rick Perry.  There is no other explanation for Palin and Bachman other than they are either appealing to dumb people or old men hoping to have an attractive woman president because they both speak illogically.  Rick Perry is a political opportunist whose record is full of corporate cronyism and liberal tendencies.

Last night's "Tea Party Express" debate on CNN was a sad display from beginning to end.  Wolf Blitzer didn't ask the originator of the Tea Party, Dr. Paul, about his key issues; Ending the Federal Reserve, Ending the Income Tax, Healthcare (he is a doctor for god's sake).  This was incredibly frustrating to see the strategy being played out by the corporate media.  The strategy was originally to ignore Dr. Paul.  Now it appears that the strategy is to attribute Dr. Paul's policies to the other candidates who are advocating (for political expediency) some of the same positions that Dr. Paul has been advocating for over 30 years.

The saddest part of the debate was in the clip below.  To see gun-toting, gay-bashing, "god"-loving people like Rick Santorum (google his last name... seriously hilarious) support endless murdering of people in the middle east by failing to see the logic of Dr. Paul's argument that our policies were "blowback" from our meddling in their politics was a disgusting sight to see.  It is however not unexpected given the state of our public schools that have no respect for the Constitution (where is Federal education permitted in the Constitution?).  Logic is not taught in any public school class until at least upper high school and usually university, and even then it is often an elective.

If Japan bombed us and killed 3,000 Americans, what would we do?  Fight back.  Isn't it logical that if thousands of Muslims had been killed or maimed by our interventions in their affairs that they would do the same?

I suspect that over time, Dr. Paul's insight, derived from Osama bin Laden himself will gain traction.  It may take time, but the realization that the US is causing many of its own security problems will hopefully come to light.  Until then, I suggest Dr. Paul create a new "Party" for this next phase of Liberty because someone stole his first party.

Sunday, September 11, 2011

9/11 - 10 years later

I was a college sophomore on 9/11/2001.  I had learned about the incident from some classmates.  Of course after class I was glued to the TV the rest of the day and was both saddened and infuriated by the events.

As a young impressionable person, I tended to believe much of the "news" and "facts" spouted by the media.  As I've gotten older however, reality, truth, and logic have made me more and more infuriated at our government than the people who committed the murder of over 3,000 people on that fateful day.

The people who planned the 9/11 events were more like revolutionaries than terrorists.  I actually believe they have succeeded in their mission which was very much like the mission of Afghani's in their war versus Russia although on a much larger scale.  The Afghanis wanted to draw the Russians into a long expensive guerrilla war that would destroy morale and bankrupt the Russian treasury.  The Afghanis won and the US has either not learned that lesson or those with an interest in war have bought themselves compliant politicians to continue the war.

The US has been dragged into a multinational "war" on terrorism that has no measuring stick.  There can be no end to a war with an undefined "enemy".  The war has costed thousands of lives, trillions of dollars, and most importantly the destruction of the law.  Under Bush and Obama the Constitution and its protections on the Free Speech, Right to Carry, and Habeas Corpus have been utterly trampled.

People of this country have sacrificed their rights under the Common Law to fight against people who are pissed off that we have meddled in their politics, invaded their countries, toppled their leaders, and killed their brethren.  If another country had done what we have done to their countries we would do the same thing.  Consider what you would do if the Russians blatantly stole land from Texans and gave it to the North Koreans or helped incite a war between the US, Canada, and Mexico.   These ideas are of course ridiculous, but it is exactly what the US has done by meddling in the affairs of the Middle East.

The US was heavily involved in the creation of the Jewish state which has essentially made the majority of Islamic Middle Easterners hate us.  The US aided Osama bin Laden in defeating the Afghanis.  The US deposed the Shah of Iran and supported the Ayatollah Khomenei who has become part of the "Axis of Evil".  The US provided weapons of mass destruction to Sadaam Hussein to fight the Iranians.  The US has fomented seeds of hatred for the past fifty years and unfortunately Middle Eastern culture has very long memories.

Purveyors of the status quo believe that the US is not at fault for meddling in the Middle East, inciting war and violence, and helping to support and install ruthless dictators.  They probably do this knowingly and willingly unless of course you are listening to Michelle Bachman or Sarah Palin whom are complete idiots.  Barack Obama is a smart man who knows political strategy very well so he knows the consequences of the actions, but he knows better how to control media spin and put forth a message that misdirects the truth.  Bush was also effective at controlling the neo-conservative base's thoughts.

9/11 was a terrible consequence of injecting US intelligence, military, and taxpayer resources into affecting political outcomes around the world for political benefit.  It was indirectly caused by years of oppressing people in the Middle East by our interventionist policy.  So yes, I am saying that the murder of over 3,000 innocent people in the Twin Towers, Flight 93, and the Pentagon was the result of many years of deeply flawed and misleading American foreign policy.

The longer US citizens tolerate this, the more freedom we lose, the poorer we become, and the more vulnerable we become to increased hatred toward us.  If we continue killing people in Afghanistan, Pakistan, and Iraq, more and more Muslims will become disenchanted with our policies and join the ranks of "radical" Islam.  What choice do they have?  This will inevitably endanger thousands more Americans at some point in time.  The agencies entrusted with finding these people can not track every one.  It is an impossible task.

What must we do?  Remove ourselves from Middle Eastern politics, pledge not to intervene unless attacked, and apologize for the actions of our past politicians.  Muslims are tolerant people if we get off their backs.  We must require all levels of our governments to follow the laws of their jurisdictions and importantly the US Constitution and all Common Law.  This means right to the fruits of our labor, freedom of speech, freedom from unwarranted search and seizure, and the presumption of innocence.  This takes a sea change of enlightenment from the current populace of sheep.  It requires the realization that "Hope and Change" and "Saddam has WMDs" were blatant lies and misdirections.  We need new leadership who focus on the only common good: freedom.

Thursday, August 18, 2011

David Stockman likes Ron Paul

This is a great video on Yahoo! Finance.

The real question is whether Dr. Paul will run as a third party candidate if he does not win the Republican nomination. I think the answer to that is yes. He's all in this time around since he's not running for re-election for his house seat. He has nothing to lose other than sleepless nights from the threats to his family that the mainstream candidates will no doubt surface much like they did with Perot. I think he is smart enough to know this is as well.

Ron Paul is in to win and I'm sure he has enough gold lying around to not care that much about the idiots that don't vote for him in the case that he loses. He is going to gain followers no matter what. Either way he has already won.

Wednesday, August 10, 2011

Chart-based trading behind big market swings - Yahoo! Finance

See ignorant article blaming technical analysis for the market drop.

Chart-based trading behind big market swings - Yahoo! Finance

Of course it't not because the government is stupid, European banks are insolvent, Bank of America is insolvent, etc. etc.

Monday, August 08, 2011

London burns

So London has been burning for the last several days. Apparently the event that triggered it was a shooting by police of a black male. If that was the case here in the US, every major city would burn at least once a week.

I think what's really happening is people are growing weary of the effects of the effective serfdom that global governments are putting them under. The great recession has persisted despite the bailouts of the biggest fat cat bankers and the lower and middle classes have nothing to show for it.

Governments govern at the consent of their people. It seems that the people are giving their governments a warning from the Mideast to Greece to Spain to London. If the US government doesn't stop pissing on the people I'm afraid that you'll start seeing scenes like this popping up at home. My guess is the government is already prepping for this. They may be assholes but they aren't stupid.