Renewed Actions By The Incompetent Aristocracy As The Voice Of Liberty Spreads. Expect A Very Real Possibility Of Negative Third Quarter GDP.
It is natural to man to indulge in the illusions of hope. We are apt to shut our eyes against a painful truth, and listen to the song of that siren till she transforms us into beasts. Is this the part of wise men, engaged in a great and arduous struggle for liberty? Are we disposed to be of the numbers of those who, having eyes, see not, and, having ears, hear not, the things which so nearly concern their temporal salvation? For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth, to know the worst, and to provide for it.
-- Patrick Henry
And indeed, as an ongoing process of enlightenment sweeps the globe like a virus, the world's free peoples are beginning to know the whole truth, to know the worst, and now to provide for it. That is, our politicians have been busy selling our public institutions and our rule of law to the highest bidder, most often bankers, while both work in concert to pillage our societies in the process.
Just days before market volatility returned, President Obama told us the economic storm was receding. It isn't receding. I think we can all see that. A few days later the President said a healthy economy means a strong dollar. The economy was seemingly booming on the surface in 2005 and the dollar was cratering. Now the economy has fallen off of a cliff and we have nearly ten million more unemployed yet the dollar is rising. I think it's obvious the President is more than a little confused on what is driving the dollar. Just a few days after that the President remarked that jobs growth is encouraging. There is no jobs growth. The number of employed in the United States has not improved one iota from his first day in office. Not one new job. It's clear to me our President has no grasp of what awaits the global economy or he is purposefully misleading the American people or he arrogantly believes he has the power to change our economy with what has generally been nothing but hot air. There are only a finite number of possibilities for the ridiculous rhetoric and none of them are encouraging.
The President called Chancellor Merkel and stressed the importance of market confidence. A ridiculous position which continues to worship the false god of financial markets. His comments come straight from the investor class mentality that killed our economy in the first place. The only confidence measurement that matters is that of the majority of the "sovereign" of the United States correlated to wage growth and productive jobs. (Not banking and finance jobs. Not political delusions. Not the Ponzi scheme the President is so concerned about. ie, Global finance.)
The sovereign market of individuals in a free society, as opposed to the financial markets our President seemingly worships, promptly rejected his silly "confidence" notions shared with Merkel by registering a vote of no confidence by sacking Merkel's ruling government in German elections. They also sacked the U.K.'s Gordon Brown. Looks like the people of Greece are not alone in their disdain for the current aristocracy of Europe as volatility spreads like wild fire.
-- Patrick Henry
And indeed, as an ongoing process of enlightenment sweeps the globe like a virus, the world's free peoples are beginning to know the whole truth, to know the worst, and now to provide for it. That is, our politicians have been busy selling our public institutions and our rule of law to the highest bidder, most often bankers, while both work in concert to pillage our societies in the process.
Just days before market volatility returned, President Obama told us the economic storm was receding. It isn't receding. I think we can all see that. A few days later the President said a healthy economy means a strong dollar. The economy was seemingly booming on the surface in 2005 and the dollar was cratering. Now the economy has fallen off of a cliff and we have nearly ten million more unemployed yet the dollar is rising. I think it's obvious the President is more than a little confused on what is driving the dollar. Just a few days after that the President remarked that jobs growth is encouraging. There is no jobs growth. The number of employed in the United States has not improved one iota from his first day in office. Not one new job. It's clear to me our President has no grasp of what awaits the global economy or he is purposefully misleading the American people or he arrogantly believes he has the power to change our economy with what has generally been nothing but hot air. There are only a finite number of possibilities for the ridiculous rhetoric and none of them are encouraging.
The President called Chancellor Merkel and stressed the importance of market confidence. A ridiculous position which continues to worship the false god of financial markets. His comments come straight from the investor class mentality that killed our economy in the first place. The only confidence measurement that matters is that of the majority of the "sovereign" of the United States correlated to wage growth and productive jobs. (Not banking and finance jobs. Not political delusions. Not the Ponzi scheme the President is so concerned about. ie, Global finance.)
The sovereign market of individuals in a free society, as opposed to the financial markets our President seemingly worships, promptly rejected his silly "confidence" notions shared with Merkel by registering a vote of no confidence by sacking Merkel's ruling government in German elections. They also sacked the U.K.'s Gordon Brown. Looks like the people of Greece are not alone in their disdain for the current aristocracy of Europe as volatility spreads like wild fire.
Merkel and other European Union bureaucrats (unelected finance ministers and EU cronies) promptly attempted to fight back against the sovereign people of Europe and approved a $1 trillion bailout for European banksters. And that means European central banks started buying Euro area sovereign debt, thus eventually having the opposite effect they desire. ie, these actions will cripple the Euro zone even further.
Now European countries who already cannot pay their bills have a new $1 trillion burden thrust upon them by mostly unelected bureaucrats. It's obvious to me we could see governments sacked all across Europe just as is starting to happen in state and federal elections the United States. I wouldn't be surprised to see votes of no confidence in the U.K. (scratch that, Brown resigned while I was typing this a week ago.) and Germany in the not too distant future. That means this $1 trillion Ponzi plan of tyranny is far from a certainty. What happens if a vote of no confidence is issued against Merkel before said bailout funds are disseminated? There are many uncertainties which could and likely will disrupt the actions of corrupt EU bureaucrats over coming months and even years. Throw in Japan for good measure where sacking incompetent politicians has become more popular than Pachinko. It looks like Japan is building up the momentum to sack another one.
The common theme in all of this? Incompetent politicians attempting to usurp the sovereignty of democratic countries on behalf of maintaining a fraudulent global financial and economic system. And often doing so via dubious, if not corrupt, neoliberal scams. Of course, all by the way of the sovereign people's wallets.
I believe it is highly plausible we are in the throws of a second revolution against the public-private-partnership central banking apparatus around the world that always results in wealth transfer and eventually leads to great poverty and massive tyranny. (Maybe the government should prosecute itself under the RICO racketeering Act.) The first revolution against the tyranny of this bankster-aristocracy racket was the original Age of Enlightenment we have talked about quite often. As we have noted a handful of times before, the dynamics of today are very, very similar to that leading up to the American Revolutionary War. It was not just the Revolutionary War either. Aristocracy across Europe was also sacked for the same general reason as volatility and word of America's revolution spread throughout Europe. Make no mistake, this is a very similar dynamic of the tyranny of repressive banksters and their beholden stooge aristocracy attempting to foist a great penalty on us poor peasants and in the process circumventing any and all forms of self-rule or self-determination. All while political stooges continue to feed their gluttonous system of incompetence by sacrificing lives of the proletariat in the grist of the fraudulent machine.
The English and French aristrocracy of two hundred years ago are more than comparative to the elite arrogance we see in a self-appointed aristocracy around the globe today. Washington, as an example, continues to feed like ravenous pigs with record lobbyist spending to gain favor for corporatist government handouts of taxpayer money. There was a recent black tie gala in Washington which brought in the most wealthy from the lobbyist community, the mainstream media and the political elites. When I saw the mainstream media's coverage of this event, the only thing I could think of was before 1789 when a gluttonous French aristocracy lived a life of excess while peasants starved. Would it be too much to ask our public servants to take an oath of personal austerity until they fix the crisis they created? Today many counties surrounding Washington DC have become the wealthiest in the United States due to influence-peddling and the bidding off of taxpayer money to socialist corporations while nearly one in three American children are on food stamps. The peasants are starving. Two hundred years later is the reason for social upheaval really any different?
Could the entire global financial apparatus be replaced in the coming decade as the sovereign vote out the profligate aristocracy? Could we be in the final throws of a private banking system and private money creation in democracies? If so, what will the Lloyd Blankfeins of this world do? Lloyd probably made $250 million in the last decade pushing around paper while doing God's work, betting against his customers and selling "shitty" products to any willing buyer. If we have a public treasury, what skills do the Lloyds of Wall Street have to contribute to society? Do they make anything? Are they inventors or entrepreneurs? Do they have a craft? Are they scientifically-trained and thus of benefit to the process of new invention? Can their artistic or creative talent produce culture, art or literature which deepens society? Doe they have any skill to provide a useful purpose to society? The Lloyds of Wall Street are bureaucrats. Paper-pushing banksters. They make or do nothing that increases the culture or wealth of society. If they could make or do something of value, they wouldn't be bureaucrats. If they can't live off of the monopoly of capital provided by the Federal Reserve or if they cannot suck society dry by living off of their productive work via never-before-seen levels of bankster usury in the United States, they'd probably be in a $75,000-a-year cubicle-job pushing paper. Possibly a necessary position but far from the master of the universe the banksters are perceived as today.
How did a bureaucrat whose company's only source of profits is a tax on society ever come to make $250 million? Society's values and our economic vibrancy have been completely hijacked by incompetent, self-serving stooges. That is why 14% of Americans view Congress as competent and even less view the banksters as valuable to society. Our self-appointed aristocracy, who are supposed to be public servants, do not reflect our values or ideals. And isn't this the only real driver of social instability around the world? The stooges are trying to save themselves rather than do what is best for We the People?
Let's jab our finger into the bullish comments of the status quo including our corporatist Wall Street-beholden President. From what I see, From some data points I'm looking at, I believe it is highly plausible we could actually see negative U.S. GDP in the third quarter. (For the true believers, the President is substantially responsible for killing the Grayson/Paul Federal Reserve audit in the Senate. The only legislation he has actively tried to stop since he took office. In addition to his bankster-dominated staff and both his campaign's and the Democratic party's large financial contributions from the banksters. The President and many politicians may be virtuous persons in an broken system but they are benefiting from that broken system and its lack of virtue. In other words, they may not be responsible for creating this dynamic but they are complicit in its continuation. And the end result to society is the same regardless of who is to blame. That is, more anti-democratic government and financial fraud.)
Market weakness from a few weeks ago was not because of a computer glitch. Market weakness was because there were no buyers. Do you remember the numerous posts we made last year where we talked about the dynamic where Wall Street would eventually trade liquidity and counterparties out of the stock market and we would be left with a handful of firms batting shares back and forth? Very unique fundamentals of today nearly guarantee that is going to happen unless the Federal Reserve and/or our government changes its policies. I believe it is highly probable the trading dynamic which is supposed to add liquidity but actually drains it was the cause of this recent mini collapse. When firms turned their computers off because the market was cratering (or so it seems to be reported), there were no bids in the market. No buyers other than the Frankenstein computer algorithms Wall Street has created. A Frankenstein beholden Washington politicians continue to allow to operate. We either have or are likely close to a point where no one is left as a major counterparty to stock market activity beyond the Frankenstein that is Wall Street. Just like 1987. And that is what we wrote would happen. Wall Street has already become the economy. Wall Street has also become the stock market. Because of this, we have a quandry. If we turn the machines off, the market will eventually find its true steady state. That is a valuation based on some intrinsic value... or less. That value is our downside target of 200-450 on the S&P. In fact, I wrote in the comments section many months ago that I believe it is mathematically impossible for the economy to recover without the stock market first collapsing. Obviously I am not sharing the specifics behind that statement but it is based on assumptions of Washington's economic policies. Some people will understand this once they think about it but it's obvious Wall Street and Washington don't.
Now European countries who already cannot pay their bills have a new $1 trillion burden thrust upon them by mostly unelected bureaucrats. It's obvious to me we could see governments sacked all across Europe just as is starting to happen in state and federal elections the United States. I wouldn't be surprised to see votes of no confidence in the U.K. (scratch that, Brown resigned while I was typing this a week ago.) and Germany in the not too distant future. That means this $1 trillion Ponzi plan of tyranny is far from a certainty. What happens if a vote of no confidence is issued against Merkel before said bailout funds are disseminated? There are many uncertainties which could and likely will disrupt the actions of corrupt EU bureaucrats over coming months and even years. Throw in Japan for good measure where sacking incompetent politicians has become more popular than Pachinko. It looks like Japan is building up the momentum to sack another one.
The common theme in all of this? Incompetent politicians attempting to usurp the sovereignty of democratic countries on behalf of maintaining a fraudulent global financial and economic system. And often doing so via dubious, if not corrupt, neoliberal scams. Of course, all by the way of the sovereign people's wallets.
I believe it is highly plausible we are in the throws of a second revolution against the public-private-partnership central banking apparatus around the world that always results in wealth transfer and eventually leads to great poverty and massive tyranny. (Maybe the government should prosecute itself under the RICO racketeering Act.) The first revolution against the tyranny of this bankster-aristocracy racket was the original Age of Enlightenment we have talked about quite often. As we have noted a handful of times before, the dynamics of today are very, very similar to that leading up to the American Revolutionary War. It was not just the Revolutionary War either. Aristocracy across Europe was also sacked for the same general reason as volatility and word of America's revolution spread throughout Europe. Make no mistake, this is a very similar dynamic of the tyranny of repressive banksters and their beholden stooge aristocracy attempting to foist a great penalty on us poor peasants and in the process circumventing any and all forms of self-rule or self-determination. All while political stooges continue to feed their gluttonous system of incompetence by sacrificing lives of the proletariat in the grist of the fraudulent machine.
The English and French aristrocracy of two hundred years ago are more than comparative to the elite arrogance we see in a self-appointed aristocracy around the globe today. Washington, as an example, continues to feed like ravenous pigs with record lobbyist spending to gain favor for corporatist government handouts of taxpayer money. There was a recent black tie gala in Washington which brought in the most wealthy from the lobbyist community, the mainstream media and the political elites. When I saw the mainstream media's coverage of this event, the only thing I could think of was before 1789 when a gluttonous French aristocracy lived a life of excess while peasants starved. Would it be too much to ask our public servants to take an oath of personal austerity until they fix the crisis they created? Today many counties surrounding Washington DC have become the wealthiest in the United States due to influence-peddling and the bidding off of taxpayer money to socialist corporations while nearly one in three American children are on food stamps. The peasants are starving. Two hundred years later is the reason for social upheaval really any different?
Could the entire global financial apparatus be replaced in the coming decade as the sovereign vote out the profligate aristocracy? Could we be in the final throws of a private banking system and private money creation in democracies? If so, what will the Lloyd Blankfeins of this world do? Lloyd probably made $250 million in the last decade pushing around paper while doing God's work, betting against his customers and selling "shitty" products to any willing buyer. If we have a public treasury, what skills do the Lloyds of Wall Street have to contribute to society? Do they make anything? Are they inventors or entrepreneurs? Do they have a craft? Are they scientifically-trained and thus of benefit to the process of new invention? Can their artistic or creative talent produce culture, art or literature which deepens society? Doe they have any skill to provide a useful purpose to society? The Lloyds of Wall Street are bureaucrats. Paper-pushing banksters. They make or do nothing that increases the culture or wealth of society. If they could make or do something of value, they wouldn't be bureaucrats. If they can't live off of the monopoly of capital provided by the Federal Reserve or if they cannot suck society dry by living off of their productive work via never-before-seen levels of bankster usury in the United States, they'd probably be in a $75,000-a-year cubicle-job pushing paper. Possibly a necessary position but far from the master of the universe the banksters are perceived as today.
How did a bureaucrat whose company's only source of profits is a tax on society ever come to make $250 million? Society's values and our economic vibrancy have been completely hijacked by incompetent, self-serving stooges. That is why 14% of Americans view Congress as competent and even less view the banksters as valuable to society. Our self-appointed aristocracy, who are supposed to be public servants, do not reflect our values or ideals. And isn't this the only real driver of social instability around the world? The stooges are trying to save themselves rather than do what is best for We the People?
Let's jab our finger into the bullish comments of the status quo including our corporatist Wall Street-beholden President. From what I see, From some data points I'm looking at, I believe it is highly plausible we could actually see negative U.S. GDP in the third quarter. (For the true believers, the President is substantially responsible for killing the Grayson/Paul Federal Reserve audit in the Senate. The only legislation he has actively tried to stop since he took office. In addition to his bankster-dominated staff and both his campaign's and the Democratic party's large financial contributions from the banksters. The President and many politicians may be virtuous persons in an broken system but they are benefiting from that broken system and its lack of virtue. In other words, they may not be responsible for creating this dynamic but they are complicit in its continuation. And the end result to society is the same regardless of who is to blame. That is, more anti-democratic government and financial fraud.)
Market weakness from a few weeks ago was not because of a computer glitch. Market weakness was because there were no buyers. Do you remember the numerous posts we made last year where we talked about the dynamic where Wall Street would eventually trade liquidity and counterparties out of the stock market and we would be left with a handful of firms batting shares back and forth? Very unique fundamentals of today nearly guarantee that is going to happen unless the Federal Reserve and/or our government changes its policies. I believe it is highly probable the trading dynamic which is supposed to add liquidity but actually drains it was the cause of this recent mini collapse. When firms turned their computers off because the market was cratering (or so it seems to be reported), there were no bids in the market. No buyers other than the Frankenstein computer algorithms Wall Street has created. A Frankenstein beholden Washington politicians continue to allow to operate. We either have or are likely close to a point where no one is left as a major counterparty to stock market activity beyond the Frankenstein that is Wall Street. Just like 1987. And that is what we wrote would happen. Wall Street has already become the economy. Wall Street has also become the stock market. Because of this, we have a quandry. If we turn the machines off, the market will eventually find its true steady state. That is a valuation based on some intrinsic value... or less. That value is our downside target of 200-450 on the S&P. In fact, I wrote in the comments section many months ago that I believe it is mathematically impossible for the economy to recover without the stock market first collapsing. Obviously I am not sharing the specifics behind that statement but it is based on assumptions of Washington's economic policies. Some people will understand this once they think about it but it's obvious Wall Street and Washington don't.
The stock market has become a liquidity-sucking Frankenstein. Where will continued market liquidity come from? The economy isn't spinning off enough free cash flow to even pay its bills and many market participants have walked away because the SEC, the CFTC, the Federal Reserve and the federal government are perpetuating rigged markets. We are simply repeating the same fraud that was outlawed after the collapse post 1929. Wall Street and politician behavior is timeless - pride, envy, greed, lust and gluttony in lieu of generally cherished virtues of a free society including charity, temperance, justice, prudence and courage.
Unless we see large capital flows from Europe into the United States as a result of this latest bailout foolishness, (and I see no substantial dynamic allowing this as of right now. The EU's bailout does not include arming the financial speculators as the Federal Reserve has done.) I'm dubious of the EU's bailout even coming to pass. We still don't have any idea if this $1 trillion dollar plan is legal, will be approved, will not be challenged, will not cause more countries to sack their leadership, etc. It's a lot of talk right now. Unlike politicians who love hot air, we don't place any merit in talk. None.
Unless we see large capital flows from Europe into the United States as a result of this latest bailout foolishness, (and I see no substantial dynamic allowing this as of right now. The EU's bailout does not include arming the financial speculators as the Federal Reserve has done.) I'm dubious of the EU's bailout even coming to pass. We still don't have any idea if this $1 trillion dollar plan is legal, will be approved, will not be challenged, will not cause more countries to sack their leadership, etc. It's a lot of talk right now. Unlike politicians who love hot air, we don't place any merit in talk. None.
Remember our discussion of LTCM and Wall Street's "models" that were scraping nickels from fixed income markets twelve years ago? Their models didn't predict riots in the streets, resulting bank failures in Asia and sovereign deb defaults? The ensuing volatility in financial markets forced the federal government to step in and stop what would have been a larger virus that may have potentially caused serious financial damage, if not outright failure, to most Wall Street firms, including Goldman Sachs. Twelve years later we still have this interconnectedness but now only worse.
Let's see. Wall Street is now scraping nickels from the stock market with computer trading models that have never been stress tested nor has anyone contemplated their unintended consequences. And we are seeing riots in the streets and a growing possibility of sovereign debt defaults. Hmm.... The exact specifics are different but tell me what is different this time? But remember, LTCM was hedged. And, again Wall Street tells us they are hedged. But, in fact, it is a handful of firms hedging each other in a bout of circular lunacy. There is no hedge against Wall Street's stupidity and the monster they have created. The only hedge is to ban all trading and all derivatives from our banking system. The only sound hedge for our banking system is a fundamentally-sound economic model as we have seen with the constant collapse of their hedged scams.
How many tens of trillions of dollars of other people's money will the status quo piss away for personal gain trying to save a fraudulent system? The aristocracy doesn't have the ability to save the global economy. Ironically, it is only the aristocracy which arrogantly believes it can save the mess they created as misery-related poll numbers, data points, economic numbers and volatility around the globe substantiates. Each time we see a crisis, we are told this is the end of "the crisis" by political idiots and banksters. All of these fire drills are unreasoned patches on a Frankenstein that cannot be resuscitated. But then, isn't that how politicians operate? Unreasoned behavior induced by financial or political favor in lieu of the search for knowledge, reason and truth? Wasn't that the driving force behind the Age of Enlightenment? Eventually financial and political favor will be exhausted and a new age of enlightenment will expose all to the massive incompetence of political favoritism, cronyism, fraud, market-rigging and personal greed that is perpetuated by the aristocracy.
The smallest worm will turn, being trodden on.
Vote out the bankster-loving political elites sucking our societies of their economic vibrancy and dismantling our rule of law for special favors to the banksters, special interests and corporations.
Vive la Revolution. Next week we'll look at the Greek crisis from a perspective of reality. That is, a revolution of democracy, instead of the lies and bulloney fed to us by the Wall Street mobsters and the status quo that Greece is a profligate and unproductive society.
Let's see. Wall Street is now scraping nickels from the stock market with computer trading models that have never been stress tested nor has anyone contemplated their unintended consequences. And we are seeing riots in the streets and a growing possibility of sovereign debt defaults. Hmm.... The exact specifics are different but tell me what is different this time? But remember, LTCM was hedged. And, again Wall Street tells us they are hedged. But, in fact, it is a handful of firms hedging each other in a bout of circular lunacy. There is no hedge against Wall Street's stupidity and the monster they have created. The only hedge is to ban all trading and all derivatives from our banking system. The only sound hedge for our banking system is a fundamentally-sound economic model as we have seen with the constant collapse of their hedged scams.
How many tens of trillions of dollars of other people's money will the status quo piss away for personal gain trying to save a fraudulent system? The aristocracy doesn't have the ability to save the global economy. Ironically, it is only the aristocracy which arrogantly believes it can save the mess they created as misery-related poll numbers, data points, economic numbers and volatility around the globe substantiates. Each time we see a crisis, we are told this is the end of "the crisis" by political idiots and banksters. All of these fire drills are unreasoned patches on a Frankenstein that cannot be resuscitated. But then, isn't that how politicians operate? Unreasoned behavior induced by financial or political favor in lieu of the search for knowledge, reason and truth? Wasn't that the driving force behind the Age of Enlightenment? Eventually financial and political favor will be exhausted and a new age of enlightenment will expose all to the massive incompetence of political favoritism, cronyism, fraud, market-rigging and personal greed that is perpetuated by the aristocracy.
The smallest worm will turn, being trodden on.
Vote out the bankster-loving political elites sucking our societies of their economic vibrancy and dismantling our rule of law for special favors to the banksters, special interests and corporations.
Vive la Revolution. Next week we'll look at the Greek crisis from a perspective of reality. That is, a revolution of democracy, instead of the lies and bulloney fed to us by the Wall Street mobsters and the status quo that Greece is a profligate and unproductive society.
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