History Is Repeating

We hang the petty thieves and appoint the great ones to public office. — Aesop

Since government cannot give to anybody anything that the government does not first take from somebody else, politicians will steal from their own mothers to maintain their Santa Claus delusion. To protect the public from the corruption of power, a free country must have blind justice. When societies show disrespect for the Rule of Law, collapse is on the horizon. Armstrong’s explanation for why he moved his consulting and hosting service to Switzerland should be a warning to everyone.

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Increase GDP by Screwing Pensioners – Yea…That’s the Ticket!

Right when you thought our govt couldn’t get more brazen in their efforts to deceive and screw the public, out comes these two related stories. First, the govt has found a novel way to increase GDP. The govt will now count promised payments to pensions as actual contributions for the sake of GDP calculations. You read that right.  Up until now, actual pension payments were counted as wages in the GDP calculation.  Now, the govt will use future promises to pay pensioners as the actual number. In other words, the bigger the promise, the bigger GDP.

Why would the govt do this? Are they expecting pension payments to decline? Well, what do we have here – the govt is giving companies the ability to average out their pension liability so they can lower contributions. What a coincidence! Imagine if you could average your electric bill during the most moderate months and apply that rate to the rest of the year. During the summer months when the bill was higher than average, the electric company would just pay the difference. Well, that is exactly what companies are doing, with one small exception – pensioners are the electric company in this example. The govt’s creative accounting simply sticks the pensioner with a lower standard of living. 

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Keep These Charts Posted on Your Wall

Keep these charts on the wall. They will keep the markets in perspective.


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Do You Think China Might Have Clue As To What The Future Holds?

Here’s one of the charts




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Welcome to the World of Stagflation (and rising gold)

Gerard Depardieu Wants His Freedom Backhttp://www.forbes.com/sites/realspin/2012/12/18/gerard-depardieu-wants-his-freedom-back/.

History clearly states that money, highly mobile and flexible, will flee various forms of social, economic, and financial oppression. German wealth fled to Switzerland to hide from the NAZI taxation in the early 1930’s. While today’s taxation premise could be viewed as “its different this time”, it’s producing a similar flight or withholding of productive capital throughout western economies. This dampens economic growth while expansionary monetary policies are implemented to encourage it. Welcome to the world of stagflation. Just as the “bad guys” will always get their guns, the uber-wealthy will always stay a safe distance from the long-arm of oppressive governments. It’s always the little guy that takes the hit.

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What do you know that the media and masses don’t?

The market is up because of today’s employment report, right? On the surface, it was a good report, right?  As always, with the lazy media’s nose so far up the govt’s backside, all you’ll hear discussed is the color of the lipstick and not the pig. When everyone else is walking around like a zombie trying to figure out why the economy and stocks collapsed, simply shoot them this 2nd grade math assessment.

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JP Morgan Caught Again

JP Morgan caught in another manipulation game, this time in the energy markets – http://dealbook.nytimes.com/2013/05/02/jpmorgan-caught-in-swirl-of-regulatory-woes/.  Does anyone remember Enron?

I could literally write everyday about a big bank somewhere in the world getting caught with their pants down. It’s actually becoming boring, as it’s become so expected. What I don’t think I’ll ever get used to however, is the fact that no one EVER goes to jail. Didn’t we just learn that no one will be prosecuted for the London Whale trade, where Bruno kept doubling down with other peoples money until he couldn’t. The only difference between Bruno and Bernanke is Bruno had a constraint called shareholders. However, none of them have their fraudulent actions constrained by the law, which is the only thing that matters, because it impacts trust. In a free market economy, who’s life blood is capital formation, trust is everything. 

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The Next Bubble to Pop

Please take 25 min to view this presentation – Columbia Economist Dr. Jeffrey Sachs Speaks Candidly About Reform

All bubbles form and peak in a similar manner. They go unnoticed for years, and then transition from linear growth through a parabolic blow-off stage before collapsing. The next bubble is following that exact same trajectory and we have certainly hit the parabolic phase. Some may think the bubble to which I refer is the bond market, or even gold. However, the bubble I am referring to is the fraud bubble. I have been echoing the research done by many others since the root causes of the financial crisis were uncovered in early 2009. It’s encouraging that a prominent insider like Jeffrey Sachs has gone to the top of the mountain and started shouting.

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3-D Printed Gun is Now a Reality

If you’ve ever seen a 3-D printer in action, you’re aware of the massive potential of this disruptive technology. The Liberty inherent in a 3-D printers ability to make most anything in one’s own home has to scare the fascism right out of the elite. To exemplify the diffused power of 3-D printing, Cody Wilson set out to put the power of the 2nd Amendment in everyone’s hands by giving them the power to print their own gun. The actual act of providing the building blocks for a gun is trivial compared to the message this kid is trying to convey. What the Internet did to information, 3-D printing can do for Liberty. No wonder the govt wants to control the internet.

This interview with Cody Wilson is truly inspiring. If the future is reflected by youth like Cody, the future is bright. 3-D printing could very well be the next battleground for govt, who is hellbent on maintaining power. Therefore, I fully expect IBM, Microsoft, Apple, GE, and/or Google to buy up every patent and 3-D printing start-up and mothball it along side thorium reactors. I hope this next generation is much more involved than the last.

The Big Dots – See If You Can Connect Them

When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe.
Frederic Bastiat

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