Thursday, June 16, 2016

The Student Loan Racket In Action

The Atlanta Journal Constitution recently reported that 43% of student loans are not being repaid. But, despite this, the Federal Government keeps making (or guaranteeing) more and more of them. Total student loans outstanding has quadrupled in a decade to over $1.2 Trillion.  And our wonderful and wise government is making even more of them at very low interest rates!  College loans are one of the few and largest "assets" of the US government. But default's are rising fast. What's going on here?

Congress knows there is huge problem and refusing to do anything about it. Their plan is to eventually bail-out these "students" and put $100s of billions of debt onto the taxpayers shoulders!  They don't care!  Trump is right, the system is rotten and people in Government are very, very stupid.

Student loans surged especially after 2009.  The government is providing these loans as a welfare program to placate young people where there are few jobs or other opportunities available for them. (There are few jobs for them because of the destruction caused by the Government!!)

It's a huge racket for schools in general and for-profit schools in particular. All of the Federal money flooding their way is enabling even more lobbying efforts to keep the money coming!  But "students" are racking up debt that much will never be repaid -- witness that 43% are not being paid now and outright defaults are north of 13%..

College Tuition Money Soaring Thanks to Federal Government
The result has been that government and government-backed money are inflating college tuition (just like government spending is inflating medical and housing costs). College is now un-affordable for this and the next generation without huge expenditures or huge debt.

College Tuition Inflation Caused By US Government Is Astonishing
Now, 43% of Loans Are Not Being Paid back...and probably never will.


Observing The College Tuition Racket First Hand


I live on an urban block with Condos and apartments about a 1/2 mile away from an Art Institute school.  Art Institute rents nearby apartments and re-leases them to their students so that they can walk to school.  I often see the students walk to and from school.  The vast majority of them are black and many are obviously gay.

Here's what is going on. These kids are getting students loans either from the Federal Government (most likely) or from other institutions whose loans are "guaranteed" by the Feds.

The problem is that very few of these kids will get jobs even if they finish. If they get jobs, it's unlikely that they will earn enough to live AND pay back their loans. Many won't finish at all. Bottom line: most of these loans won't be paid back. Stats support this.

With all the defaults coming in this loan category, you can be confident that taxpayers will be on the hook when Congress bails out these students at taxpayer's expense. But Congress is CAUSING this problem and the plan all along is to put the burden on US taxpayers.   

The interesting thing is that black students of primarily black schools are leading the list of schools where students are failing to ever repay even a single $1 of their loans.

Black Colleges Lead The List of Institutions where Not Even $1 of Loans Are Repaid
Black Colleges Are Where Most Loans Are Not Being Repaid

Tuesday, May 17, 2016

Socialism is the Immoral System--Not Capitalism

From C. Bradley Thomson from his 1993 article via Zero Hedge. My comments in brackets:

"Throughout history there have been two basic forms of social organization: collectivism and individualism. In the twentieth-century collectivism has taken many forms: socialism, fascism, Nazism, welfare-statism and communism are its more notable variations. The only social system commensurate with individualism is laissez-faire capitalism.

The extraordinary level of material prosperity achieved by the capitalist system over the course of the last two-hundred years is a matter of historical record. But very few people are willing to defend capitalism as morally uplifting.

It is fashionable among college professors, journalists, and politicians these days to sneer at the free-enterprise system. They tell us that capitalism is base, callous, exploitative, dehumanizing, alienating, and ultimately enslaving.

The intellectuals’ mantra runs something like this: In theory socialism is the morally superior social system despite its dismal record of failure in the real world. Capitalism, by contrast, is a morally bankrupt system despite the extraordinary prosperity it has created. In other words, capitalism at best, can only be defended on pragmatic grounds. We tolerate it because it works.

Under socialism a ruling class of intellectuals, bureaucrats and social planners decide what people want or what is good for society and then use the coercive power of the State to regulate, tax, and redistribute the wealth of those who work for a living. In other words, socialism is a form of legalized theft.

The morality of socialism can be summed-up in two words: envy and self-sacrifice. Envy is the desire to not only possess another’s wealth but also the desire to see another’s wealth lowered to the level of one’s own. Socialism’s teaching on self-sacrifice was nicely summarized by two of its greatest defenders, Hermann Goering and Benito Mussolini. The highest principle of Nazism (National Socialism), said Goering, is: “Common good comes before private good.” Fascism, said Mussolini, is “a life in which the individual, through the sacrifice of his own private interests… realizes that completely spiritual existence in which his value as a man lies.”

Socialism is the social system which institutionalizes envy and self-sacrifice: It is the social system which uses compulsion [Government is force] and the organized violence of the State to expropriate wealth from the producer class for its redistribution to the parasitical class.

Despite the intellectuals’ psychotic hatred of capitalism, it is the only moral and just social system.

Capitalism is the only moral system because it requires human beings to deal with one another as traders — that is, as free moral agents trading and selling goods and services on the basis of mutual consent.

Capitalism is the only just system because the sole criterion that determines the value of a thing exchanged is the free, voluntary, universal judgment of the consumer. Coercion and fraud are anathema to the free-market system.

It is both moral and just because the degree to which man rises or falls in society is determined by the degree to which he uses his mind [explains why US was great bastion of Capitalism as US was settled with mostly higher IQ European immigrants than most of the world.]

Capitalism is the only social system that rewards merit, ability and achievement, regardless of one’s birth or station in life. [This is why lower IQ populations can't cope with Capitalism and fall to the siren call of Socialist/Populist politicians and ultimate disaster; like countries in Africa, S. America, Middle East, etc, etc. Lower IQ populations are basically any population other than N Europeans/E Asians and their descendants]

Yes, there are winners and losers in capitalism. The winners are those who are honest, industrious, thoughtful, prudent, frugal, responsible, disciplined, and efficient. The losers are those who are shiftless, lazy, imprudent, extravagant, negligent, impractical, and inefficient [like many minorities].

Capitalism is the only social system that rewards virtue and punishes vice. This applies to both the business executive and the carpenter, the lawyer and the factory worker.

But how does the entrepreneurial mind work? Have you ever wondered about the mental processes of the men and women who invented penicillin, the internal combustion engine, the airplane, the radio, the electric light, canned food, air conditioning, washing machines, dishwashers, computers, etc.?

What are the characteristics of the entrepreneur? The entrepreneur is that man or woman with unlimited drive, initiative, insight, energy, daring creativity, optimism and ingenuity. The entrepreneur is the man who sees in every field a potential garden, in every seed an apple. Wealth starts with ideas in people’s heads.

The entrepreneur is therefore above all else a man of the mind. The entrepreneur is the man who is constantly thinking of new ways to improve the material or spiritual lives of the greatest number of people.

And what are the social and political conditions which encourage or inhibit the entrepreneurial mind? The free-enterprise system is not possible without the sanctity of private property, the freedom of contract, free trade and the rule of law.

But the one thing that the entrepreneur values over all others is freedom — the freedom to experiment, invent and produce. The one thing that the entrepreneur dreads is government intervention. Government taxation and regulation are the means by which social planners punish and restrict the man or woman of ideas.

Welfare, regulations, taxes, tariffs, minimum-wage laws are all immoral because they use the coercive power of the state to organize human choice and action; they’re immoral because they inhibit or deny the freedom to choose how we live our lives; they’re immoral because they deny our right to live as autonomous moral agents; and they’re immoral because they deny our essential humanity. If you think this is hyperbole, stop paying your taxes for a year or two and see what happens.

The requirements for success in a free society demand that ordinary citizens order their lives in accordance with certain virtues — namely, rationality, independence, industriousness, prudence, frugality, etc. In a free capitalist society individuals must choose for themselves how they will order their lives and the values they will pursue. Under socialism, most of life’s decisions are made for you.

Both socialism and capitalism have incentive programs. Under socialism there are built-in incentives to shirk responsibility. There is no reason to work harder than anyone else because the rewards are shared and therefore minimal to the hard-working individual; indeed, the incentive is to work less than others because the immediate loss is shared and therefore minimal to the slacker.

Under capitalism, the incentive is to work harder because each producer will receive the total value of his production — the rewards are not shared. Simply put: socialism rewards sloth and penalizes hard work while capitalism rewards hard work and penalizes sloth.

According to socialist doctrine, there is a limited amount of wealth in the world that must be divided equally between all citizens. One person’s gain under such a system is another’s loss.

According to the capitalist teaching, wealth has an unlimited growth potential and the fruits of one’s labor should be retained in whole by the producer. But unlike socialism, one person’s gain is everybody’s gain in the capitalist system. Wealth is distributed unequally but the ship of wealth rises for everyone.

Sadly, America is no longer a capitalist nation. We live under what is more properly called a mixed economy — that is, an economic system that permits private property, but only at the discretion of government planners. A little bit of capitalism and a little bit of socialism.

When government redistributes wealth through taxation, when it attempts to control and regulate business production and trade, who are the winners and losers? Under this kind of economy the winners and losers are reversed: the winners are those who scream the loudest for a handout and the losers are those quiet citizens who work hard and pay their taxes.

As a consequence of our sixty-year experiment with a mixed economy and the welfare state, America has created two new classes of citizens. The first is a debased class of dependents whose means of survival is contingent upon the forced expropriation of wealth from working citizens by a professional class of government social planners. The forgotten man and woman in all of this is the quiet, hardworking, law-abiding, taxpaying citizen who minds his or her own business but is forced to work for the government and their serfs.

The return of capitalism will not happen until there is a moral revolution in this country. We must rediscover and then teach our young the virtues associated with being free and independent citizens. Then and only then, will there be social justice in America."

Wednesday, April 20, 2016

More "Black" Stuffed Down Your Throat

I hear that our Liberal overlords in government, media and film have decided to shove even more "black" down your throat. Today they have decided to put Harriet Tubman on the $20 bill. To hell with Andrew Jackson's great contribution to history as President. Nothing against black Republican Tubman, but Liberal governments and Media outlets have decided that they must glorify black persons at every opportunity. Never mind that the entire black race is descending into an abyss of stupidity, crime, depravity and violence. "Welfare" has nearly ruined black families and black culture in America can be best described as "in total collapse."  That huge disparity is amazing.

All this black "love" and "promotion" can't be for financial gain, as black incomes are suffering the worse under our "token black President." Obama, our first affirmative action president, has predictably failed in every way imaginable. Poverty in this country is higher than ever. Dependence on government is higher than ever. Obama, a huge flop, was promoted all his life without merit or responsibility by Liberal affirmative action programs, then propelled into the Presidency by Liberal media outlets who are proven to be entirely propaganda outlets for Liberal causes. Obama is entirely a creation of Liberals complete with entirely insufficient credentials and capabilities -- including cognitive ability.  This shouldn't be surprising since nearly 90% of blacks have IQs lower than than the white average of 100.

They're still at it, putting black faces all over the TV and movie screens. It's embarrassing as it's so obvious.  But night after night I have to watch a nearly 90% parade of black criminals dominating the surveillance crime videos shown on my local news. This is true even though the majority of persons in my city are Latinos. The news readers NEVER say the race of perpetrators because it would be entirely too incriminating to the black race. And the wider national media suppresses the truth of the black cultural collapse. Media never reported "flash robs" and "knock-out crimes"were virtually 100% black criminal phenomenas.
As of this week, there's a Jesse Owens movie coming out (a black man who won four gold medals at the 1936 "Nazi" Olympics). Never mind that 55 other Americans won medals that year, but Liberal Hollywood HAS to glorify the black person! There's plenty of movies and shows about black athletes, since they excel in many sports. But they rarely shine in academic or higher education. In fact, without the lower standards of Liberal affirmative action, there would be very few blacks in top graduate schools.

Given that, one black doctor becomes an acclaimed neurosurgeon and they make a movie about it (Dr. Ben Carson). I bet Liberal Hollywood wouldn't have done it if they knew Carson was a Republican who would run for President. Hollywood loves black persons only as long as they tow the line and are obedient Democrats. If not, the long knives come out.  There's a Jackie Robinson movie coming too.  Black, black and more black.

Blacks All Over Television


Media companies in the US are putting blacks all over TV in a cultural "affirmative action."  America's Funniest Videos has a black host now. I watched that show the other night and blacks are very prominently displayed in front rows-- way out of proportion to black person's 12% of the general population. Wayne Brady has the host of The Price is Right. Steve Harvey now has several shows now.  A TV series "Underground" has premiered. Black, black and more black.  I'm sick of it really.

Only about 2% of physical science PhDs in this country are black. This means that there are 1000's of highly distinguished white and foreign astrophysicists out there and very, very few black ones. But this doesn't stop "media" to promote  black astrophysicist Neil deGrasse Tyson to become a 'star' on television's 2nd rate reincarnation of TV series "Cosmos." Tyson is ok, but the new Cosmos series was a dumbed-down high school level science program using cartoon sequences for illustration. Black "promotion" and "dumbed-down" go hand in hand. More Leftist destruction!

And he's not the only rare astrophysicist selected for a prominent role as a TV "expert" either.  Hakeem Oluseyi, a black astrophysicist, hosted 'Outrageous Acts of Science' and 'Alien Encounters' and "You Have Been Warned" on TV.  All this to "program" public opinion.

Tyson's and Oluseyi's promotion to prominent positions on TV are a clue to a wider effort by media to promote black persons TO BE SEEN as equal and high achieving -- a cultural "affirmative action" so to speak. Yeah, it's great that these men made it through graduate school, but media folks had to dig very deep to find guy's like Tyson and Hakeem Oluseyi since there's so few.  Meanwhile there's 1000's of highly accomplished white astrophysicists.  

And how come I have to put up with blacks on CNN or most any other TV show panels at least one in four; which is double their 12.5% representation in the population? The answer is that 95% of the time they voice Democratic party positions. And we know Media journalists are 93% Democratic and fully "indoctrinated" in Leftism at our universities. And where are the Latinos??? Latinos are more numerous in this country than blacks.

I sat down to watch the Grammy awards a month ago hosted by LL Cool J. Within a 1/2 minute the first award was for the Rap category! Sadly the popularity of rappers (criminals) shows how decayed and collapsed black (and young white) culture is. When white youth fawn over these criminals, it makes me sick for our country. Rap is not even art in my opinion. Mostly they steal melodies from other artists for their bullshit rantings.

Media Systematically Suppresses Unflattering News Involving Blacks


I'm sick of this "propaganda" proselytizing the "wonderful" black community, when the truth is that the black community is in near total collapse.

Media is often caught not reporting negative news wrt blacks.  Take the recent racial attack on white veteran Chris Marquez in DC after being harassed by a couple of black thugs in a DC McDonalds. These black low-lives beat and robbed him. These urban blacks are about as close to animals as could be. Media often refuses to cover black-on-white crime.

The Media is also relatively silent about the surge in violence in urban areas like Baltimore and St Louis after Obama and black Baltimore mayor attacked law enforcement in the wake of Baltimore riots. All to "promote" Freddie Gray as "important" black life. Yes, every life is important, but does a career criminal like Gray with 18 arrests already in his young life really matter so much? It's a similar situation to thug Michael Brown in Ferguson. These guys are unworthy martyrs.

Law enforcement has recently been under attack by our black racist President who only speaks out (usually in ignorance) in instances when white officers shot at black persons, but NEVER speaks out for white officers under attack from black assailants. But blacks commit the majority (56%) of violent crime in this country despite their 12.5% representation in the population.

About 150 blacks PER WEEK are dying at the violent hands of other blacks and the media doesn't report it!  This dwarfs all other crime in this country including the occasional shooting of a black person by police. Younger black men are committing crimes at 10 times the rate of whites and 7 times the rate of whites for all black men.  Black men are committing more than 55% violent and gun crimes despite being only 6% of the population.  Black men outnumber white men in prisons or 7 times higher rate than whites!  Black men are derelict dads too with some 80% of young black kids abandoned by their deadbeat dads.  And it didn't use to be that way.

But you'll never hear any of this reported anywhere in the liberal media.

Sunday, March 27, 2016

Trump Is Right On Immigration and Trade Too

I've mentioned before that Trump is right on immigration. The US Government, especially the Obama administration, is nearly 100% derelict in it's duty to enforce immigration laws. But it's been poor for a long time. As a result, we've seen surges of illegal immigration. And catch and release has been the norm for a long time.  Not enough is done to deport those with expired visas as the government is not tracking them and has no idea where they are. Even criminal illegal aliens are not getting deported.

We've reached peak insanity, peak stupidity, peak absurdity, peak-political correctness, peak dishonesty, peak corruption and peak cronyism.  No where is this more obvious than in the Obama administration and Obama Democrats. This is why Trump is rising. However indelicately he speaks, Trump is mostly correct in his observations about immigration, trade, crony-ism, jobs, the problem of Islam and the stupidity and incompetence of Washington DC.

He's right about our 40 year history of lousy trade deals. Various trade deals have led to the greatest wealth transfer in human history — out of America!! For 40 years, both parties have been passive as first Japan, then China and other Asian countries have essentially robbed us blind through chronic trade imbalances with America. Trump reminds us that NAFTA has also led to chronic trade deficits with Mexico.  Entire industries have been exported along with high paying jobs. For 40 years, both parties have been passively watching this happen.

These persistent trade (and current account) deficits have actually bankrupted this country. But this fact is not yet obvious as the effects of the "greatest wealth transfer in the history of the world" have been mitigated by $9 Trillion in debt-fueled spending in Obama's short time alone.  Add another $3 Trillion in "money printing" deposited directly into the big banks.  And the emergency policy of zero interest rates continues for 7 years running. This is masking outright Depression. 

Another reason why chronic trade deficits haven’t already “visibly” bankrupted the US is that we no longer have sound money (gone is Bretton Woods and long-gone is a gold standard).  With a gold standard, the country who imports too much, relative to exports, would see gold outflows. Since gold is money, loss of gold slows the country importing too much and balances trade. Also, with a gold standard, the Treasury and Federal Reserve can't just willy-nilly pump up the money supply like they are doing now. In our era of "fiat" paper money, the central bank and Treasury continue pumping up "money" to keep the game going.  We’re bankrupted but not yet “visibly”.

We've really reached the end of the road of can kicking. From Fast Collapse or Slow?, I explain why this is so.

Trump is signaling an end to “globalization” which is bankrupting our nation, killing our industries and jobs market, hurting incomes and the middle class. It had to end sometime. Incomes for non-elite workers have continued dropping especially since 2008. Struggling consumers in the US don’t have any money left to buy Chinese stuff!  This is bringing down China; exports from China are down 25% this past year.  Suddenly their massive debt is souring.  We’ll all go down together. Expect revolution in China.

In all likelihood, the greatest financial crisis and Depression starts this year, probably just in time for the November election. Trump will rightly be seen as the only one with the strength in a time of crisis.

There will be revolution in America too, but hopefully it will be mostly at the ballot box. Trump has rightly recommended stopping ALL immigration for a year or two. Our immigration system is utterly and completely broken (as you know).  Trump is completely right that we’re ruled by a bunch of fools and stupid people (Why would really clever people work for the Federal government?). We haven’t won a war since WWII. We are losing royally on trade.  Everything at the Federal Govt is broken and unfixed. Trump is right to be proud that he’s nobody’s puppet since he’s self-funding.  I hope he proposes campaign finance reforms to get money out of politics. That would be truly ground-breaking.  The funniest thing of all is that Trump is the billionaire for the common people!!  Just let that sink in!  

Basically There Is No Women's Pay Gap

There is, in fact, a 23% gap in women's pay nationwide but it's largely explained by logical reasons -- not discrimination. In fact, despite 7 years of phony rhetoric, there continues to be real pay gap between men and women employees in the White House itself.

Again, rational people like economics professor Mark Perry have long explained the pay gap. But irrational Democrats need to keep alive myths and "causes" like this. Because without them, they are irrelevant!  For this reason, they ignore "facts"and information that inconveniently contradict their phony "problems" because they really are, in fact, irrelevant.  That irrelevance was never more clear with Obama completely distracted from world events while playing around in the 3rd world banana republic of Cuba and tango dancing in Argentina while Europe is under siege due to what Obama would call "workplace violence".

Economics professor Mark Perry says "the differences in raw wages may be almost entirely the result of the individual choices being made by both male and female workers.”
  • Men work longer hours,
  • Men work in more physically demanding occupations like farming, construction, roofing, logging, truck drivers and working on oil rigs,
  • Women work in family-friendly workplace environments like teaching elementary school that coincide with their children’s schedules (with summers off, etc.),
  • Men take less time off, or no time off, for child birth and child care to minimize their time away from the labor force that might affect their earnings.

Monday, March 21, 2016

Entire Myth of Obama's Competence Built On Lies

When Obama burst on the political scene, he had no record to run on. He had no real notable career or accomplishments on his resume. His only claim to legitimacy was his Columbia and Harvard academic degrees.

The Journal of Blacks in Higher Education states clearly that, without affirmative action, that "the numbers and percentages of blacks in our leading graduate and professional schools would drop to very low, nearly nonexistent levels." Clearly this is true. There are so many qualified white applicants. The Journal also ominously notes that the black-white gap is actually widening.

So, the reality is that, with near 100% certainty, Obama only attended these universities due to lower admission standards of affirmative action. There are far too many highly qualified White and Asian applicants. Affirmative action is based on Liberal justices "making laws" from their benches. Liberalism in action!

And Obama clearly didn't do well at Harvard or Columbia. If he had a great record, why didn't he release his transcripts? It's because he couldn't tolerate objective scrutiny. Even Obama himself has intimated that he was a lazy student. But, his academic credentials are the only notable thing on his CV.

We know that the elections of Obama were significantly due to Liberal media manipulation of public opinion. They falsely painted Obama as having a superior intellect with superior ideas. He might even be somewhat "above average" intelligence as he's able to speak well and conjugate verbs unlike a large portion of blacks, but he's hardly brilliant.

According to the Bell Curve and statistics, "brilliant" blacks are very rare statistically (0.027%). Yes, he's 1/2 black, so he might have inherited high intellect genes from his white side, but for 7 years he's shown a telling lack of logic and consistency, an inability to adjust or learn and a high degree of incoherence in his statements and policy.  He's even said some ridiculous things about matters of law that shows he's not a law expert at all, despite having gone to Harvard Law. ("It would be unprecedented if the Supreme Court overturned a law like the ACA")

So, the reality is that Obama is a mediocre intellect promoted far beyond his capabilities through the omission of information and tricks used by Leftist media to paint an exaggerated narrative. Leftism is imposed by tricks, lies and even omission of truth. He never was a professor of Law as was claimed. He was a senior lecturer -- not a professor: another trick.

He was a senior lecturer, but we're not told the reason as to why he left this post.  Maybe it was because he was a massively arrogant prick that no one could stand??  Probably. No resume information has been provided. No job references were provided either. And the "Media" didn't ask for any either. So much whitewashing of truth!!

So, Obama, handed softball questions by Leftist media through both of his campaigns shielded him from being exposed. Leftist tricks are nearly entirely responsible for his rise.

So the entire myth of Obama's competence and prestige is built on lies, omissions and "propaganda." 

So, it's not surprising that his performance in office has been dismal. His record is one of nearly perfect failure. Instead, he's been a wrecking ball for social cohesion, a disaster in ALL matters of foreign policy, and his only major legislation, ObamaCare, was squeezed through passage using horrible tactics, has remained a disaster with public approval down to 29% among whites (a low 37% overall).  It's helped 2 or 3% but hurt 98%.  That's considered success in his incompetent world.

Wednesday, February 17, 2016

They Don't Know What They Are Doing

The problem with economists is that they are just a bunch of academic statisticians with no real world or business experience. They don't really know about how the economy or business works. Even worse, for our times, is that they know nothing of finance and the world of wholesale global finance. Everything in finance has changed and the Federal Reserve keeps showing the same ignorance and making the same mistakes.

The "eurodollar" and it's various derivatives took over the world from about 1990 until 2008, funded the US housing, debt and equity bubbles (confounding Greenspan), crashed in 2008/09, but was partially and temporarily resurrected until about 2013. It's has been shrinking ever since.  It's in full collapse in 2016 and taking world commerce with it.  See the chart below for the big picture view.

The Fed and Yellen apparently know nothing about this.This is why they are completely lost. Their "Keynesian" money manipulations are not working at all. And after years now of total and utter failure, evidence showing their continued failures is called "transitory" by our schoolmarm chairwoman.



Evidence of the demise of the "Eurodollar," crashing again like 2008, is revealed by distress at Morgan Stanley, Credit Suisse, Deutsche Bank, Barclays, RBS and other money center banks especially in Europe. All have been cutting dividends, raising capital repeatedly and firing employees in the past year. Their earnings have turned into huge losses as they exit the leveraged "Eurodollar" markets as fast as they can. The fact that the stock price of Deutsche Bank is cratering day after day to new post-2009 lows should be understood as a canary in a coal mine. Since "eurodollars" are a bank balance sheet phenomenon, this "money" is disintegrating or disappearing world-wide and taking down every asset class with it.  It explains the commodity collapse, China's collapse, oil's collapse and soon the world economy.

Into all of this, Yellen just tightened liquidity!!


"Eurodollar" currency swaps/forwards/etc are virtually the entire basis of international trade. When a company in Sweden buys something from a company in Japan, their banks buy and sell "dollar" currency forwards/swaps to fund the transaction. Their traded "instruments" becomes part of the "Eurodollar" derivative complex which exists on (or off) bank balance sheets as "derivatives".

There are few dollars backing "Eurodollars". It's substantially unregulated and there are few margin or reserve requirements. It's nearly pure leverage. The problem is that, in times of crisis, like in 2008, there's no safe place to go --except to hold dollars. Thus the "eurodollar" system is essentially a huge dollar "short". That's why demand for dollars has driven the dollar sharply higher in the past year -- especially against weaker currencies like the Brazilian Real, Indonesian Rupiah, Mexican Peso, etc. There is a struggle for liquidity worldwide as this leverage collapses. The world is short of dollars in a $trillion QE world!

Commerce and trade is predicated on this market functioning normally. When it doesn't, there's a huge problem like in 2008 when world trade came to a standstill. Now, the "Eurodollar" market is not functioning again as banks like Morgan Stanley and Deutsche Bank scramble to exit these markets as fast as possible. The real economy is suffering and world trade is shrinking in 2016. No one knows enough to address the problem. So economic damage is ongoing and accumulating. And it won't stop until the underlying problem is addressed. By then, I'll be too late.

Yellen and all the "economists" (statisticians?) at the Fed apparently don't really see what's happening. Why else would they have raised the Fed Funds rate and withdrawing liquidity in the middle of a building dollar liquidity shortage? They literally don't know what they're doing. The Fed's complete failure to accomplish any of their goals such as creating 2% inflation, or to create a solid recovery, continues. Everything that confounds Janet is labeled "transitory". That song is getting real old.

She, and all the other central planners in the world don't know what they're doing.

Monday, February 1, 2016

What a New American Revolution Would Look Like

Here's just a taste of what a "new" American Revolution would look like.  Also see my blog entry "56 Items on America's To-do List"
  • Lower corporate taxes and bring back jobs from Asia.
  • Drastically improve border control, and track all immigrant's location, contact info and all other immigration info in a national database accessible by law enforcement all over the country. All long-term visa holders should report to immigration every 90 days to update current info.  
  • Reform immigration with "point system" to prefer English speakers, persons with college degrees, and those persons with unusual talents or accomplishments in arts, science, math, engineering (STEM) or athletics. No more asylum abuse, no more catch and release. America needs the 'best of the best' not the 'worse of the worse' which is Obama's ridiculous approach.
  • Pass laws to outlaw "sanctuary cities" with penalties of jail time for all top city officials and councils.
  • Pass a national right-to-work law.
  • End Unions at all levels of government; local, state and federal. Because of unions, Federal workers are collecting more pay than private sector when considering benefits.  Even FDR didn't believe that unionism belonged in the public sector.
  • Get rid of the Federal Reserve. Central banks all over the world are a bunch of fools that will bring ruin to our country and the world. They are so out-of-control and so stupid. Get rid of them.
  • Get rid of the carbon regulation mandate at the EPA.
  • Clean house at EPA, SEC and NLRB.
  • Get rid of the NSA -- It is out of control (and never will be controlled as "oversight" at the Federal level is a complete joke). It's not helping our security and costing $50 Billion per year and only causes mischief. You ARE aware that they are reading/scanning your texts, emails, watching your phone calls, and monitoring your Internet activity, right? Nearly all of this is contrary to your Constitutional rights. All this and nearly no terrorist attacks stopped.
  • Get rid of Dept of Energy-- which creates no energy at all.
  • Get rid of Dept of Education -- which doesn't educate a single child.
  • Downsize Dept of Housing and Urban Development and Commerce.
  • Get rid of TSA and FEMA.  TSA doesn't work and has never caught a terroris and misses 95% of fake bombs meant to test them!
  • Get rid of ObamaCare and replace it with a premium-support voucher system. Incentivize individual savings accounts, and promote competitive insurance markets. Transfer company-provided health insurance policies to employees so that each employee "own" their policies (and retain them even when they change employment), Companies would continue to provide pre-tax benefits to employees to pay their policies. Work to make policies portable across the 50 States.
  • Give states Medicaid money in the form of block grants. Let The States administer this money.
  • Give up on the "War on Drugs" We're not winning it. The US hasn't won any war since WWII.
  • Legalize Marijuana, regulate it and tax it at the state level.  Repeal Marijuana prohibition at the Federal Level. Free prisoners that were convicted on simple possession charges.
  • Eliminate ethanol subsidies
  • Repeal Bacon Davis Act which increases cost of government (all contractors will pay Union wages, ie., high wages at a burden to taxpayers)
  • Get government out of the home mortgage market, sell-off FHA, Fannie, Freddie Mac
  • Get government out of the student loan business. Sell off Sallie Mae. End loan guarantees that are creating a bubble in student debt and driving-up tuition prices. Stop it!
  • Get government out of the minimum wage business. The fact that they don't adjust it shows they shouldn't set it! Duh!
  • Privatize the Post Office. Japan and UK did this recently.
  • Privatize Amtrak
  • End agricultural subsidies to large corporate farms. This would help to pay for health care premium support mentioned above.
  • End sugar price supports keeping sugar prices higher in US and driving jobs overseas
  • End electric car subsidies (especially to rich people buying $100k Tesla cars)
I could go on, but you get the point. This country needs a return of a true Federalist system where The States are largely independent and can do what they want as long as it doesn't violate the Constitution. This is the intent of our Constitution. In a Federalist system, Vermont could be a Socialist paradise with sky-high taxes, universal healthcare, and legal cocaine if it wanted. Equally, Texas could have a minimal state government, low taxes, light regulation, open carry, ban marijuana and ban gay marriage, etc.  This is what freedom looks like.

Saturday, January 30, 2016

Democrats Chasing Phantoms While World Burns

Why is that Democrats are constantly chasing false phantoms like climate "change" and the false claim of an unfair pay gap for women? Oh, and add the largely disproved "rape culture problem" on college campuses. Democrats are worried about Washington Redskins while they have bring this country much closer to financial ruin ($9 Trillion in new debt and absolutely nothing to show for it).

And all this while the world is falling apart and in flames, in part, because of Obama himself? Look at the Middle East where Obama has "changed sides" in supporting Iran. The social fabric in the US is in flames as Obama has tried to start a race war and a war against law enforcement resulting in increased inner-city violence and death of black persons (as in Baltimore). Or maybe they want to distract from the brewing worldwide financial crisis where China is crashing, and the US, Europe and Japan economies are sinking? Or the fact that the US economy has never really recovered since 2009?  Or that  64% of the public still says, after 7 years of Obama, the US is headed in the wrong direction?

Polls show "climate change" is the very least of our worries. And discrimination of women in the workplace is simply not true. Both are phantoms.

Democrats are obsessed by climate change even though, after 100 years, the effects are barely perceptible. Yeah, the earth has warmed 1.6 deg F and the seas have risen about 8" in the past 100 years. So, where's the imminent disaster? I don't know about you, but I'm enjoying the weather!  And there's reason to think that the earth will warm a further 1.6 deg in the next 100 years, which will probably mark the end of the hydrocarbon fuel era.  I don't care what "the models" say. Nor should you.

But, listening to idiots like Obama, you'd think we're facing imminent disaster -- just like Al Gore. Gore predicted 10 years ago: “within the next 10 years, the world will reach a point of no return” and “a true planetary emergency.” Sorry, I don't see any emergency except those caused by bankers and politicians.  And Gore is still spouting this nonsense! And he almost was President! He makes George Bush look like a genius.

In 2005 the UN predicted that, by 2010 (4 years ago), "some 50 million “climate refugees” would be frantically fleeing from those regions of the globe." There ARE millions fleeing the Middle East and North Africa, but they are fleeing collapsed economies caused by dictatorships, wars, violence and oppression, and corrosive Islam -- not climate change as our Idiot-in-Chief insists.

Obama, who apparently worships the United Nations, believes that ISIS is due to climate change! What a complete joke! ISIS came about after Obama's sudden and complete withdrawal from Iraq (against the advice of our $Trillion military) and his failure to act in Syria. And Obama's subsequent attempts to control ISIS would be a laughable joke if it  they weren't so disastrous. He still claims that he has a strategy, but no one can find it.

Obama recently claimed that the recent and laughable climate change "accord" in Paris, would "be a sharp rebuke" to ISIS. What? That he wasn't skewered thoroughly by the media for such a ridiculous statement again shows their bias. The media has been protecting him all along, from his first campaign until now, which has kept him in office and continuing his damage to our country. Shameful.

The other phony phantom is the repetition of false claims of discrimination in women's pay. There is, in fact, a 23% gap in women's pay nationwide but it's largely explained by logical reasons -- not discrimination. In fact, despite 7 years of this rhetoric, there continues to be a pay gap between men and women employees in the White House itself.

Again, rational people have long explained the pay gap. But Democrats need to keep alive myths and "causes" like this. They (and Obama) become irrelevant without them! Economist and professor Mark Perry says "the differences in raw wages may be almost entirely the result of the individual choices being made by both male and female workers.”
  • Men work longer hours,
  • Men work in more physically demanding occupations like farming, construction, roofing, logging, truck drivers and working on oil rigs,
  • Women work in family-friendly workplace environments like teaching elementary school that coincide with their children’s schedules (with summers off, etc.),
  • Men take less time off, or no time off, for child birth and child care to minimize their time away from the labor force that might affect their earnings.
So, the world's burning and Obama Democrats are obsessing about non-existent problems. Obama is like Nero fiddling while Rome burns. More accurately, he's like Neville Chamberlain with his unexplainable appeasement of the terrorists in Tehran. He's instead igniting another World War.

Politicians and Central Bankers are the biggest danger to your health and well-being, not climate change.

Sunday, January 17, 2016

20 Teachings of Thich Nhat Hanh

Something different. I recently started looking into the teachings of a Vietnamese Buddhist monk named Thich Nhat Hanh.  I love Buddhist Monks, which comes from my enjoyable interactions with Buddhist monks from my many years of visiting or living in Thailand. You might enjoy having a look at Thich Nhat Hanh's community here.

Here's a nice collections of quotes of his from one of his followers:
  1. People usually consider walking on water or in thin air a miracle. But I think the real miracle is not to walk either on water or in thin air, but to walk on earth. Every day we are engaged in a miracle which we don’t even recognize: a blue sky, white clouds, green leaves, the black, curious eyes of a child – our own two eyes. All is a miracle.
  2. Life is available only in the present moment.
  3. If we have too many worries, fears, and doubts, we have no room for living and loving. We need to practice letting go.
  4. Letting go gives us freedom, and freedom is the only condition for happiness. If, in our heart, we still cling to anything – anger, anxiety, or possessions – we cannot be free.
  5. My actions are my only true belongings.
  6. May our heart’s garden of awakening bloom with hundreds of flowers.
  7. Let one embrace his own truth and devote himself to its fulfillment.
  8. Hope is important because it can make the present moment less difficult to bear. If we believe that tomorrow will be better, we can bear a hardship today.
  9. Walk as if you are kissing the Earth with your feet.
  10. I promise myself that I will enjoy every minute of the day that is given me to live.
  11. Because you are alive, everything is possible.
  12. Be like the earth. When the rain comes, the earth simply opens up to the rain and soaks it all in.
  13. Understanding is like water flowing in a stream. Wisdom and knowledge are solid and can block our understanding.
  14. Through my love for you, I want to express my love for the whole cosmos, the whole of humanity, and all beings. By living with you, I want to learn to love everyone and all species. If I succeed in loving you, I will be able to love everyone and all species on Earth… This is the real message of love.
  15. Using your intelligence and your compassion, you’ll be able to find your way out of any difficulty that arises in daily life. This gives you greater confidence in your own capability, making you even more solid.
  16. Drink your tea slowly and reverently, as if it is the axis on which the world earth revolves – slowly, evenly, without rushing toward the future.
  17. Because of your smile, you make life more beautiful.
  18. When you are a young person, you are like a young creek, and you meet many rocks, many obstacles and difficulties on your way. You hurry to get past these obstacles and get to the ocean. But as the creek moves down through the fields, it becomes larges and calmer and it can enjoy the reflection of the sky. It’s wonderful. You will arrive at the sea anyway so enjoy the journey. Enjoy the sunshine, the sunset, the moon, the birds, the trees, and the many beauties along the way. Taste every moment of your daily life.
  19. You have to learn how to help a wounded child while still practicing mindful breathing. You should not allow yourself to get lost in action. Action should be meditation at the same time.
  20. You must love in such a way that the person you love feels free.
Nothing like wisdom to calm your soul. Drink it in.

Friday, January 15, 2016

Obama's Legacy: Devastation Everywhere, Death of the Petrodollar

A chain of events leading to sudden political and economic upheaval in America is conceivable and not entirely out of the question.  Poor US monetary policies of ZIRP and various QEs, our political weakness at home and in the world, and the alienation of our traditional allies like Saudi Arabia could have a sharp and sudden impact to this country. Idiots like John Kerry and Barack Obama will never see it coming. An even larger explanation of the coming devastation lies here.

Well before the recent public "deal" with Iran's Rouhani, Obama was already removing the highly effective sanctions which forced Iran to the bargaining table in the first place. See my blog on this topic. This is appeasement in every sense. It is very likely that Obama's "reset" with Iran will end in disaster just like his entirely discredited Russian "Reset." In fact, he is reminiscent of Neville Chamberlain's appeasement of Hitler in the 1930s.  Liberals like Obama, who are immune to facts and reality, are dangerous and their policies lead to failure if not war.  They never see the truth to the "peace through strength" well-proven by Ronald Reagan.

Obama, who has stumbled and equivocated for years has helped to create a perception of a US power vacuum in the world. I say it's intentional as Obama is an enemy of our country (like the other US black "leaders").  Putin (and China and Iran) have been filling this vacuum. Saudi Arabia is in shock at the parade of incompetence since it's been a long-time ally of the US. That alliance is responsible for establishment of the Petrodollar.

By playing "nice" with the murderous Iranians in an effort to have a (any) foreign policy "victory," Obama has thoroughly annoyed our allies of Saudi Arabia, Israel, and many others.  But it's the Saudi's that could unleash real disorder for the US if ignored.

The Saudi's hate the Iranians and have watched the Iranians (and Russian) interests advancing in the region due to the incoherent and mindless American administration.

Could it be that the intentional aiding and abetting of our enemy Iran, and the loss of another long-standing alliance with Saudi Arabia, combined with the US policies of money printing and dollar debasement, might lead to a dollar (and economic) crisis for the US and world?  It's possible if not probable.

The potential chain of events might start with Saudi's willingness to accept other currencies for oil payments rather than just dollars.  Accepting all currencies for payment, rather than solely dollars, is hardly a radical concept.  (In fact, it would be normal except for the Saudi's leadership.)  Iran, China and Russia are already making deals for oil bypassing the US dollar in an effort to displace and diminish US power. If Saudi made a change, Iraq would quickly follow suit since they are increasingly aligning themselves with Iran (thanks to the US power vacuum).  Egypt is hardly sympathetic with the US these days too.  Libya could jump on the bandwagon too.  China would renew calls for a new reserve currency again at that moment.

The breaking of the petrodollar's status is a nuclear war without the nukes. If Saudi makes such a move and it will be followed by other oil exporters in the region, the demand for the dollar could fall significantly. Demand for treasury notes and bonds would also drop (due to less petrodollar recycling) leading to a fall of the dollar and/or possibly rising US interest rates.  Confidence is a delicate thing.  Loss of US dollar reserve status would be a huge blow for the US and cause a test of our ability to run huge trade budget deficits forever.

The economic and political decline of America could become apparent literally overnight.  Suddenly, US citizens might wake up one morning and find themselves significantly poorer vis-a-vis the rest of the world due to a decline in the dollar.  They can't say that they weren't warned.  Ron Paul, for one, has warned of this possibility for many years now, although he couldn't have predicted the chain of events.  The US might be compared to a frog sitting in a pot of water on a stove and suddenly finding itself cooked.

Wednesday, January 6, 2016

Devolved Muslim Animals Rampage In Cologne

I just wrote a blog entry called "Differences in Intelligence Cause Clashes of Civilization." There I explain that intelligence and culture go hand-in-hand.  I mentioned that one of the most obvious and extreme examples of a "clash of civilizations" was comparing "devolved" Palestinians, who are now devolving further with international 'welfare', versus the higher IQ Israelis mostly from Europe, who are civilized, tolerant, democratic and prosperous.  Clash of civilizations!

But it's not just the Palestinians who have devolved, it's the entire Arab/Muslim culture. It's in a state of collapse and has triggered a mass migration into Europe.

Over the New Year weekend, Muslim migrants in Germany showed their true colors by attacking and raping women in a stunning rampage of violent behavior -- in their host country!  These people, all Muslims no doubt, show that this population has devolved into animals. And that's an insult to animals!

Reuters says
“About 90 women have reported being robbed, threatened or sexually molested at New Year celebrations outside [the city’s] cathedral,” Reuters writes, adding that the men were “between 18 and 35” and appeared to be “mostly drunk.”
Listen to a chilling eye-witness account from a bystander in Cologne Germany (click here if video does not display):