Archive for December, 2014

CITI Moves Headquarters to the House of (non)Reps.

Jamie Dimon may be able to pick up the phone and directly lobby CONgress to remove all the teeth from Dodd-Frank , but he couldn’t outspend Citigroup for the office space at the House of (pretend) Representatives. While the move is satire, the only difference in the results is the travel expenses. The banking favors written into the spending bill should leave no doubt as to who is running the country. Senator Warren, like Brooksley Born, has warned everyone – again. Expect the establishment to start portraying Warren as a devil-worshiping  transvestite.

Ever since the banking cartel showed their plans when Cyprus depositors where bailed-in to cover bank losses, it became clear that tax-payer funded bail-outs where going to be replaced by the bail-in. After all, you are assuming the risk when you loan your money to the bank. CONgress has now written it into the law that it is okay for banks to speculate with your deposits, using levered, unregulated OTC derivatives. When they blow up again (with 100% certainty), you will be in the same boat as Madoff’s and Corzine’s customers – going to NY judges to try to get your money back from NY banks. Good luck with that one.

Could the people finally be pushed to their limit when their retirement accounts and deposits receive a haircut? The US Treasury is not taking any chances, as they are actually ordering survival kits for all of their employees.

“Desperationism” – A Policy for Disaster

If you’ve ever read about the Great Depression, then you know that the protectionist policies, and other knee-jerk govt interventions like tariffs, taxes, price controls, currency manipulations, the Agricultural Adjustment Act, and gold confiscation made the great depression much worse. Instead of relying on the free market to self-correct, as occurred in the 1920-21 Depression, contemporary govt’s try to “manage” the output based on what’s best for them and their donors. Yes, there is a reason you probably have never heard about the rapid recovery from the 1920-21 Depression, and instead only hear how Roosevelt saved us from the Great Depression, which like Japan’s never-ending recession, lasted decades due to govt’s self-centered meddling.

When you start from an ignorant premise, like declining prices was the cause, instead of the result of the Great Depression, is it any wonder why implementing policies to raise prices (i.e. paying farmers not to produce) made the problems worse. Yet, we continue to rely on inexperienced, self-interested remedies disguised in “intellectually superior” gibberish like QE, which has not worked after almost six (6) years of employment, because it’s a mathematical impossibility. Roosevelt is famous for saying, “the only thing we have to fear is fear itself”. The reality is the only thing to fear is a politician that believes govt is a means for achieving one’s private aspirations.

Unfortunately, it appears that ignorance and self-serving policies have no bounds when it comes to govt employees who are desperate to hang on to their underserved perks and power. Not only is FATCA permitting the govt to hunt down any spare change it can find, but so is the Supreme Court’s interpretation of slavery. You see, if you left the US after birth and never returned, you are still owned by the IRS. Even if you NEVER lived in the so-called land of the free, and one of your parents was born in the USA, the IRS still thinks they own you – and in our upside down judicial system, it’s up to you to prove otherwise. Since all of these policies are born out of govt desperation, I am coining a new overarching policy called DESPERATIONISM, which as history has taught us, usually leads to despotism.

History

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