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NSA, Patriot Act, Bail-in’s, Govt Lies, & Poor Economy – It’s All Related!

A report was delivered to the President this week by a group of outside advisors regarding the NSA’s unconstitutional data collection techniques. Among many of the complaints cited in the report, the most unreported consequence of the NSA’s surveillance is the impact on commerce, and therefore capital flows and growth.

The report specifically mentions that, “Silicon Valley executives complained to Mr. Obama that the N.S.A. programs were undermining American competitiveness in offering cloud services or selling American-made hardware, which is now viewed as tainted.” A specific example was provided on Wednesday, when Brazil ditched Boeing jets, and grants $4.5 bln contract to Saab, citing NSA concerns.

What’s ironic about the concern from Silicon Valley is that it was the big tech companies that cooperated with the NSA (took money) to permit back-door access to their systems and data sharing. It’s almost as ironic as people giving the Fed credit for saving us from a financial collapse that was caused by the Fed; or the govt’s war on terrorism, drugs, poverty, and ignorance that are largely the result of its own insidious policies.

The violation of our Constitutional rights is obvious. So is the perjury by top “intelligence” brass, that should result in serious jail time. After all, if govt officials are permitted to lie with impunity, how do we know they are not lying every time they open their mouths? It is also important to understand the impact of a loss of trust and confidence in government on capital flows and growth.

However, the over-riding point that people should realize is that the NSA’s surveillance and data collection has nothing to do with stopping terrorism, and EVERYTHING to do with tracking down money for a broke government, and maintaining power.  General Alexander admitted months ago in his own words in front of the Senate Judiciary Committee that “one, perhaps two” plots were thwarted, and this new report says no proof exist that any of the NSA’s Constitutional violations have thwarted a single terrorist attack. Yet, people are still permitted to state on TV that if we had these unconstitutional tactics in place before 9/11, then the attacks could have been stopped. Based on what? The Govt had plenty of data that an attack was imminent, and they did nothing. The same thing is true about Bernie Madoff, MF Global, and all of the other cases of fraud and manipulation that have been documented over the last five years. Does it matter if the fraud was “missed” due to incompetence, neglect, or complicit behavior? In a free and just society, incompetence and neglect would result in business failure; and being complicit in a crime would also result in jail time. Only in govt can these type of activities result in bigger budgets, bonuses, and promises of high paying jobs in the private sector.

People have a hard time comprehending that it is their own govt that is at the heart of our biggest problems. After all, our political leaders tell us they are here to help. I’m sorry, but the facts and data say the opposite.  By its nature, govt must take money from its productive citizens to survive; and through its bureaucratic incompetence and inefficiencies, it does more harm than good for the groups it claims to help. The only people who benefit from govt, are those in govt.  If one does not yet understand the big picture or appreciate the Constitutional violations, they would at least have to admit that the NSA and DHS are incompetent, wasteful, and deserve to be shut down now. The only kind of security provided by the Dept of Homeland Security is of the investment type, and therefore they should at least take their security public.

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“Bail-ins” Are Coming

Do you think the “what-if” rescue option for the big banks in Switzerland will be any different that in the U.S.? Do you think the big money in Swiss banks will wait around for the next financial crisis to have their deposits bailed-in? If the big money flees, whose left to bail-in the banks? As the small depositors in Cyprus discovered, there is no such thing as “deposit insurance” when it comes down to you versus the banks.

Under a bail-in, Finma says it would distribute losses “across a range of
creditor groups” of the bank and, if applicable, its holding company. That would
include first shareholders, then bondholders and, as a last resort, “could”
include uninsured deposits of about 300 billion Swiss francs per bank.

Once again, I would refer you to STEP-2.

How the CIA made Google & why Google made the NSA

Before getting to an example of real investigative journalism about the incestuous relationship between the Govt and Google, I want to recommend a couple of outstanding reads from Armstrong that will lay the historical foundation as to why and how the current corporatocracy will collapse the world economy. The paranoid and psychotic actions of a govt, whose leaders fear the loss of their job, perks, and power, is nothing new because the passions of man have never changed. However, understanding how it happened before is what makes history interesting.

Whether you do or do not understand why Centrally-Planned Societies Always Fail , an understanding of what propels the world economy is mandatory to comprehend its demise, as well as weathering the coming storm.  This historically informative piece by Armstrong is well worth your time, as is this one that unveils the paradox of inflation and deflation, which explains why gold and other commodities have declined in the face of continuous QE (money/debt creation). These are longish reads, so treat them like chapters of a book, which Armstrong is trying to get out – but why not get a head start.

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Centrally Planned Societies Always Fail

The fundamentally false premise that society is better off by taxing the wealthy and corporations defies logic and common sense. Everyone should understand that govt (and large corporations for that matter) are significantly less efficient and more corrupt than small businesses. Most should also understand that business creation and growth requires capital, either borrowed or saved. If govt confiscates and mis-allocates capital or scares it away, there goes the capital needed to create and grow jobs. This fact has been proven throughout history, and we are seeing it played out again now. So, why are so many ignorant to what is so obvious?


The “arrogance of officialdom” explains the actions of those in power. What explains the willingness of people to prefer serfdom over freedom? I suppose it’s related to why the Brits (and many others for that matter) idolize and worship a royal family that had such a long history of oppression. It was recently reported that by 2016 the richest 1% will own 50% of the world’s wealth. Forgetting for the moment that much of this wealth will be vaporized when the bond bubble pops between 2016-2020, the misinformation that’s sold as fact is that govt’s are working to fix the problem (a point made at the end of the video). The fact is it is govt that is the big enabler of the 1% (to which govt leaders belong), because they pass laws that give economic advantage to those with political influence.

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Will We Ever Learn?

While the mainstream media will not do their job of holding govt accountable, many in the alternative media understand the source of our problems and the consequences that are headed our way over the next few years. However, there is one misunderstanding that many who like to label corporations as the villain’s have – that govt does not suffer from the same human frailties as corporations (even though both employ humans).

The sin that business-haters say is the root cause of our economic and social demise is that corporations throw their money around to get what they want. Does anyone see the naiveté of this assertion?  Corporations and people will put their hand out even when the chances of getting what they want are low. When the chances are high, not only will they ask, but they will do a lot more work to get what they want (like write a Bill themselves), since the return justifies the investment.

Just as a prudent banker must deny some borrowers, politicians must resist the urge to line their pockets at the expense of the country. Since human nature makes this a risky bet, our Founding Fathers designed a system of checks and balances, that is still dependent on limited govt (since govt has no competition or free market to constrain abuses or eliminate poor performers).

In a good article about the coming crash, the author highlights the ongoing growth of unregulated, Over-the-Counter (OTC) derivatives as the ticking time bomb that will blow up the world. While I have no doubt that derivatives will play a leading role in the financial collapse, it is not derivatives that must be eliminated – it is the career politician. Derivatives have been around since the dawn of trade. It is excessive debt, driven by political promises that are mathematically impossible to meet, and excessive leverage (imprudently granted by politicians) that will be to blame for the economic Armageddon that’s headed our way.

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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.


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Henry Giroux’s “Rise of Neoliberalism” – More Leftist Propaganda or Naive Fantacy?

Whenever I read one of the anti-business, anti-free market manifesto’s, like Piketty’s “Capital”, Naomi Klein’s “Shock Doctrine”, or Giroux’s “Rise of Neoliberalism”, I can’t tell if the author is a gov’t plant, propagandist, or they truly believe what they write. If they believe what they write, then what in their life formed their keen sense of imagination and fantasy? Do these people not realize that the arguments they make against neoliberalism are the same arguments that can be made against all forms of big govt – be it Socialism, Fascism, or Communism?

Who causes the economic “shocks” and false flags, and who benefits, and who has the power to thwart the opportunist? It doesn’t matter if the totalitarian power over people comes from a collaboration between large corporations and govt, or a complete govt monopoly, the result is the same – an unconstrained, centrally planned govt will ultimately go bankrupt and in the process forcibly drags society down with it, as govt runs out of other people’s money.

A recent example of this destructive trend is provided by Brazil, which just elected Rousseff on the pledges to deepen social benefits while simultaneously working to revive an economy. Good luck with that one. I guess as long as the masses keep believing these same oxymoronic promises, politicians will keep lying - just like Hillary, who recently stated at a fundraiser, “Don’t let anybody tell you it’s corporations and businesses that create jobs“. clip_image00211

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The Roads to Hell ALWAYS Emanates from Government

After re-listening to speeches by Senator Elizabeth Warren, and Professor Jeffrey Sachs, that were given during the heat of the subprime meltdown, I was reminded why we will crash and burn before any true reform will be proactively implemented.  The same pattern of propaganda can be seen in Ukraine, Syria, and Iraq, where the pyromaniac’s in govt call for the US fire department after the US sets the fires.

The path to recovery must start with first acknowledging that you have a problem – and government has a big problem. Unfortunately, we have far too many psychopaths and sociopaths in govt – and the ones that aren’t crazed by power are narcissistic and so full of hubris they are incapable of even apologizing, much less admitting they made a mistake or that govt is the problem. What’s worse is the followers of these self-centered people suffer a cognitive dissonance that’s so severe they will go down with the ship, as if they were Bernie Madoff’s wife.

Business owners are no different from citizens that vote for the politician that will give them the most hand-outs. Like most enterprises, corporations don’t like competition, and many will do anything to gain an advantage, including committing fraud and bribing politicians. Govt doesn’t like competition either, and because they have the most power, those in powerful positions like their perks and power and want to keep it – which leads to even greater abuse.

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Are Stocks Ready to Crash?

With all of the turmoil in Ukraine, Iraq, and Gaza, the sell-off in stocks over the last couple of weeks is causing many people to ask, is the top in for this Fed-induced bubble?  The short answer is NO. The bubble in govt hubris, that is turning the world against us, may have popped, but stocks are not done inflating. The reason has nothing do with traditional valuation methods, or even the Fed. Simply put, stocks will rise due to global capital flows that see no other alternative, at least for now.

As stated on April 5, 2014, the “Jaws of Death” pattern in the Dow (shown below), that was originally displayed on 1/31/2013 , still remains valid. At that time the upper boundary was around 17,000. As the bearish wedge expands, the upper boundary is now closer to 17,200. By the time the bubble burst in 4Q15, the upper boundary will be closer to 17,500. Since final legs can blast through resistance before crashing, making a guess where stocks will top out is about as futile as picking the top of the NASDAQ in Dec, 1999, when it rose another 85% in the final three months.

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