Tyler of ZeroHedge Bans Me

Last night I offered a question over on the ZH board. Why? Well, I start to think about the person or persons, that would post the stuff they do. I mean they just sound like a bunch of crying bitches that lost a game really. They treat people like there is a solution to this or an easy solution, yet no solution comes out.

Tyler what do you do for a living? Just curious.

Why do I have a feeling you haven't worked a hard days work in a very long time.

http://www.zerohedge.com/article/saturday-night-comic-diversion-email-thread-set-qe2

Now what is funny is I never did any research before posting. I just had a wild guess the people that ran the site were the same type of people they were blaming this all on. So, I post this.

It's a simple question.

He believes he has the solution, I am all ears. Tyler sounds like nagging bitch, my guess... forced out of some desk job probably in Wall street. Seriously doubt, he has had a real job.... just a person or persons seeking yield they can't find.

Tyler = Lemming

"bored housewife and a box of chardonnay"

No, a Lemming that got forced out. Do I think the person or persons posting with that name has ever digged a ditch? Not very likely. The person or persons have been sucking off the world and system just like the people they are bitching about.

Whatever is done or not done, one thing is for sure... I know this Tyler is going to bitch about it. I mean if Tyler has a position on something or how it should be done... he should be stating such.

As for myself, it's very clear what my position is... the Lemmings are screwed and have been screwed since the choices were made... there is no way to undo the choices made. Not much Benny or Obama or Bush or Tyler is going to do about it.

Followed by this.

Oh, I think he is qualified... whatever that might mean.

He's a Lemming, doesn't like the cards he was dealt or how he played them. Now he is blaming everyone but himself I would guess.

I would imagine he was very much like the people he writes about, I mean most of the guest authors that give their real name our people in finance... people that used the same system they are now complaining about because they can't find yield. Lemmings.

Now you have to remember I didn't do a search until after I posted this. I found below the article below about the identity of Tyler or one of the identities. I laughed and posted it on ZH.
http://www.nypost.com/p/news/business/item_hn6OGbJ7XLE5BXvLDLA2oK

See, what the poster out on ZH don't want you to know... is they are same as the people that they criticize on their blog daily. They were part of the industry and probably still are, sucking off the world and sucking off the system. See, the problem with them is they just were not very good at it, they are the losers of Wall Street crowd. How do I know they don't have an easy solution, well because they would have to have unlimited power.

I just find it funny that they ban me with exposing them for what they are... ie Lemmings. For a recap of their mission see here:
http://www.zerohedge.com/about

to liberate oppressed knowledge.

They don't want you to know they are stupid Lemmings, just very poor Lemmings, they lost and now they want to blame.

Sorry Tyler or Tylers, banning me is not going to stop you from being a stupid Lemming. See Dan was an insider trader it appears, probably never worked his day in his life and I pretty doubt he is right now. Funny stuff.

Now for the record, I did not care that they hide their identity because you can see right through it. The people that post there suck off the system, they have benefited greatly from the fraud system, most probably were kicked out on their butts. These bitches are last ones that should be complaining about anything in the coming Flood.

As far as the world so called economy, you are seeing a spike up and eventually you will see a massive spike down.

Sure

http://peterschiffblog.blogspot.com/2010/06/investing-in-china.html

"I just think that you get more bang for your buck investing in Chinese stocks."

How is this trade working out?

Decoupling is a myth.

China Leading Right into the Pit

The decouplers have to be scratching there head. Keep believing that China is going to own everything in the world, just like Japan was going to own everything in the world, next they will probably say India will own everything in the world.





Shanghai Chart should look familiar to most by now.

Asia Trying to Extend the Game

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/06/10/bloomberg1376-L3U88O1A1I4H-1.DTL#ixzz0qWw857rP
Currency Controls Mount in Asia as Euro Hurts Exports

The world's biggest expected swings in foreign-exchange markets and the euro's record depreciation are prompting Asian exporters to seek currency controls.

Boy didn't see this coming. :) The Schiff's of the world that believe in decoupling are going to get their asses handed to them. That is not the system and that is not the game.

Credit Collapse Continues

Z1 Report just released.

Not good... -$202B(q2q) for Q1 2010 at $52.126T from $52.902T in Q1 2009. Credit system is collapsing.

http://www.federalreserve.gov/releases/z1/Current/

To put this in perspective, credit system was generating new credit at a $1.2T (quarterly) in 2007 at the peak, it is now down negative -$202B quarterly. New credit was being generated at around a $4.7T rate, now it is being destroyed at a -$.8T rate.

Party on Garth.

Interesting Take on Zerohedge

Interesting exchange at Zerohedge. This guy seems to indicate that the world will never run out of gold, hmmm, well, I can tell you I knew people that showed up at the bank and told me the doors were closed.

by Caviar Emptor
on Tue, 06/01/2010 - 13:33
#387019

The gold won't run out, the goods and services will simply be revalued. It's pretty simple.

* reply
* flag as junk (0)

by Mako
on Tue, 06/01/2010 - 17:50
#387885

Yeah, because you were never able to supply the needed gold to support the system, sorry rewriting history and Math is going to fail.

Let me see the bank run during 1929, what exactly happen, you claim they didn't run out of gold, well, I think quite a few million people that showed up at the bank and they closed the bank would disagree with you.

Oil Chart

Oil has definitely crossed the 50,100, and 200MA. 50DMA is now working to cross the 100DMA.

Larry Believes in the Free Market Until He Doesn't Believe In It

See video below.
Let me see I believe in something even when I don't believe in something. Sorry Larry, there is nothing the government is going to be able to do, it's over.

Government intervention, no government intervention, there simply is no out.

“Free market capitalism is the best path to prosperity?” Hahahaha, nice slogan, you are so full of shit, you just said it isn't the best path. Larry is running from the Truth, eventually there will no where to run.

Kudlow video

Congress Outlaws People Being Poor

I see Congress is having a hearing on the flash crash. Heard one Congress critter say people are worried about their assets. Just have Congress outlaw the market going down or people being poor. I mean it's worked so well in the drug war.

Germany Uses Another Bazooka

When all else fails, you just keep on pulling out bazookas I guess that misfire. There is no hope, if you hope is based on the system not collapsing. The only hope is a miracle from God on that one, give me the other side of that bet. This bazooka will fail just like the last bazooka.

Power of Compounding Interest

The system is unsustainable, always has been.
One ounce of gold lent out at 3% compounded annually.
Year 1 - 1.03oz
Not bad

Year 20 - 1.81oz
Not bad

Year 50 - 4.38oz
still not bad

Year 100 - 19.22oz
still not bad

Year 200 - 369.36oz
still not bad

Year 500 - 2,621,877.23oz
problem will robinson

Year 750 - 4,245,399,152.55oz
holy shit

Year 1000 - 6,874,240,231,169.63oz

unforunately there is only 4.5b oz. that has been mined

Now imagine billions of stupid humans doing the same thing... basically 60-80 years if you are lucky or unlucky.

The European NothingBurger

The European NothingBurger had close to zero calories, the Euro already trading less then it was on Friday.

Time for plan #20 or whatever number they are on.

Plan #14,15, an 16 ie All In

By Sunday the Europeans not only put together a package, actually it looked like they put together a few packages. Helping equities and yields at the moment big time. Sounds like Europe went all in, if I were Greece I would take the money, reverse all the action last week and give everyone a pay raise.

http://www.business-standard.com/india/news/eurozone-leaders-agree1-trillion-aid-package-for-greece/93780/on

Eurozone leaders have agreed on a bailout package of nearly $1 trillion (750 billion euro) for Greece, as part of their concentrated efforts to prevent the debt crisis contagion from spreading to other nations.

In a marathon 11-hour-long session that lasted till early morning today, finance ministers from the 16 Eurozone countries, along with International Monetary Fund (IMF) officials, agreed on a three-year aid plan for Greece.

Tron

Unless you are a super computer with a backdoor to the exchange there is no way to trade in this market. The future of finance is today. Robots fighting each other in a virtual world.

Not Dubai

That was an exciting day. Nothing like the smell of the DOW down 1000pts in about a minute.

http://www.arabianmoney.net/us-dollar/2008/12/27/peter-schiff-says-move-to-dubai/

‘If you are more adventurous, you might consider the nations of the Persian Gulf, such as Dubai, Qatar, Kuwait, or the United Arab Emirates,’ he opined. ‘Flushed with petro-dollars and unburdened by taxes or regulation, the Arab world seems destined to reclaim a more prominent role in the years ahead.’

Peter Schiff appears to be a very confused individual. Let me see he wants me to go invest in real estate on islands that are going to go sink back into the sea. My god. Another great call. And he thinks(thought) this was going to be different there than it is in other way too high priced real estate in the world?

http://www.businessweek.com/news/2010-05-06/dubai-world-said-to-stop-paying-interest-on-loans-update1-.html

May 6 (Bloomberg) -- Dubai World won’t pay interest on outstanding loans starting this month as the state-owned holding company waits for lenders to agree to the $14.2 billion debt restructuring proposal, two bankers familiar with the plan said.

Yeah, great idea Peter.

The Bazooka Shot a Dud

Europe sure did shoot a dud. Let me guess, they have another bazooka in the other pocket. I still want to see it. Europe is decoupling right into the Mediterranean.

Military Blooper

To Infinity and Beyond.... Hahaha

http://jsmineset.com/2010/05/02/in-the-news-today-530/

Jim Sinclair’s Commentary

All Western states, be that New York State or Greece, will be bailed out.

QE to infinity is omnipresent in the West.

I have always gotten a kick out these guys with words of "infinity". I assure the writer of this article that QE to infinity is not going to happen, unless the writer of the article is God or God-like to make that happen. Does the writer even know what "infinity" is? If a government can create credit, or pieces of paper, or even digits in a computer to infinity, well ancient Rome would have never fell.

It's really too bad people get caught up in the 70s and can't get out of the disco. "This ain't no disco" -Sheryl Crow Anyone looking for a repeat of the 70s is in for one rude ass awakening.

The last thing I would would want is shares of a hole in the ground sitting in Africa on the speculation that there might be some gold down there when this TSHTF, but that's just me.

Still Waiting

Here we are still waiting on the bazooka from the EU and IMF, looks like the final hurdle is Germany. See, sometimes there is no solution or more like any solution you want to hear. If this doesn't go through by next Monday it could get pretty ugly, either way it's going to get ugly.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqUKEXajkSzk
Greece Gets $146 Billion Rescue in EU, IMF Package

The first payment will be made before Greece’s next bond redemption on May 19, said Jean-Claude Juncker after chairing a meeting of euro-region finance ministers in Brussels yesterday. The 16-nation bloc will pay 80 billion euros at a rate of around 5 percent and the International Monetary Fund contributes the rest. Greece agreed to budget measures worth 13 percent of gross domestic product.

Decoupling Myth was True :)

We have seen the likes of Peter Schiff say the world will decouple from the United States. Well, he was right, Europe is decoupling right into the Mediterranean right before our eyes. I don't think that is what he envisioned though.

There is no alternate global financial credit system, when the US goes it all goes. All the countries have the same system within the same global system, it's based on expanding credit at an exponential growth, unfortunately humans can't expand exponentially long-term.

Greek debt crisis spreads to Spain as credit rating is cut
http://www.usatoday.com/money/economy/2010-04-29-eurocrisis29_ST_N.htm

The Greek debt crisis appears to be spreading.

Standard & Poor's cut Spain's credit rating one level to AA and maintained its negative outlook. The move came just one day after the rating agency dropped Greece by three levels to junk status and pulled also-troubled Portugal down two notches.

http://www.google.com/hostednews/ap/article/ALeqM5gAEhunREiQ1Dsc98tminI5OFiTqgD9FCKQKG0
Credit-rating agencies loom large in Europe crisis

Yet less than two years after the crisis peaked, investors still take them seriously. Case in point: S&P on Tuesday cut Greece sovereign debt to 'junk' status and dropped Portugal's down two notches. That downgrade sent financial markets from London to Hong Kong plunging.

From Peter Schiff, ok, sure buddy.

US Stock Market
Unlike the "legitimate bull markets" of many foreign markets, Peter Schiff believes the US is merely experiencing a "rally in a bear market," and is lagging the rest of the world "for a reason." Sep 25, 2009 The Business Insider

When the US goes down the whole system goes down, end of story. Anyone that decouples before that date will find themselves at the bottom of an ocean.

May 26, 2009
The World Does Not Need Our Consumption
The world doesn't need our consumption, we need their production. The global economy is fine without propping up the U.S. economy.

Sure, that is why Europe is falling into the ocean. More great entertainment. You think Greece is bad you wait to see what the rest of the European countries are like, they are actually in worse shape.

PS: Well, ultimately, a lot of the currencies that are currently pegged to the U.S. dollar will be very strong, a lot of the Asian currencies. We already see a lot of the resource currencies starting to move back. We have seen rather substantial strength in the Australian and the New Zealand dollars in the past few weeks. I do think you're going to see strength also in the Euro, as the Euro seems to be a good alternative to the dollar as far as a reserve-type currency. And the Europeans' monetary policy is not nearly as bad as ours, so more of that type money will be attracted to the Euro and will probably benefit other Euro-zone type currencies - Scandinavian currencies, the Swiss Franc - those currencies will benefit, as well.

Ok, sure buddy. Thanks for the entertainment.

The Equation Must Feed

Click on the image above to see a better picture.

The equation must be feed, as you can see from the chart above, the equation is not being feed it's required feeding. Debt/credit creation is rolling over and has been for over a year. You can see the federal government spending increase to try and bridge the gap between what is required and what is being created by everyone else. As I explained in an earlier post, it's the equivalent of bridge to nowhere.

The equation must feed, if you don't feed it, it will start to feed on the non-funded liabilities sooner or later.

Portuguese 5-yr CDS at record high, spread wider

Portuguese 5-yr CDS at record high, spread wider
http://www.reuters.com/article/hotStocksNews/idUSLDE63P0NZ20100426

The cost of insuring Portuguese government debt against default jumped to a record high on Monday on concern that Portugal could be next to suffer a Greek- style debt crisis if no lasting solution was found for Athens.

Who would have ever thought this would happen? Sarcasm.

The sharks next victim is on deck.

It's pure Math folks, you are not creating enough new credit to sustain the system.

Greece under pressure as Germany drags feet
Restructuring, contagion fears shadow market despite aid request
http://www.marketwatch.com/story/greece-under-pressure-as-germany-drags-feet-2010-04-26

Worries Germany will resist the early release of bailout funds for Greece put Greek government bonds and the euro back under pressure Monday, cutting short a relief rally triggered by Athens' request last week to tap a joint European Union-International Monetary Fund bailout plan.

Oh here we go again.

German Foreign Minister Guido Westerwelle on Monday said Berlin opposes providing financial aid to Greece without Athens presenting a credible debt-reduction program, Agence-France Presse reported. Westerwelle heads the Free Democratic Party, the coalition partner of German Chancellor Angela

Merkel's Christian Democratic Union.

If a bailout happens every country will upping spending in the hopes that German or someone bails them out. If nothing is done, defaults will occur.

There is no out there is only in.

Oh I Can See This Ending Well

http://biggovernment.com/publius/2010/04/22/chicago-teacher-on-tax-hike-give-up-the-bucks/

You can't save the financial system, but there is time to save your State. Oh I can see this ending well.

It's over folks, the sooner you get that through your head the sooner you can get on with life. The only way to save your States is to eliminate the parasites and break the chains.

Greece Roadshow Moving onto Portugal

Portugal Says It’s on Right Track to Reach 2010 Deficit Target
http://www.businessweek.com/news/2010-04-22/portugal-says-it-s-on-right-track-to-reach-2010-deficit-target.html

Sounds about right until you read the details.

Portugal had a deficit of 9.4 percent of gross domestic product in 2009, more than three times the European Union limit of 3 percent, and the government has pledged to narrow its deficit to 8.3 percent this year and 2.8 percent in 2013.

Moody's is running late as usually but the Greece roadshow is about to possible begin in Portugal.

Debt woes overseas continue to drive dollar gains
http://www.google.com/hostednews/ap/article/ALeqM5hiVtV2zuQIAFn_h-JnQjvVSfPTRgD9F86BF80

Of course, the stupid bitch on CNBC was telling me the other day that Greece was saved and that Europe was fine. Now the stupid ho is on TV telling me Greece might default.

The Greece Plan Roadshow

Don't worry folks, what is happening to Greece will be coming to a Country and/or State near you within time.

German Stocks Fall as Greece Leads Jump in Euro-Region Deficit
http://www.businessweek.com/news/2010-04-22/german-stocks-advance-led-by-merck-siemens-shares-decline.html

The European Union said Greece’s deficit was 13.6 percent last year, higher than the government’s April 7 forecast of 12.9 percent, and could top 14 percent of gross domestic product as “off-market swaps” cloud its estimates. Ireland overtook Greece as the EU nation with the largest shortfall, which was revised up to 14.3 percent.

Greece holds all the cards, and if you don't like the cards they hold wait till you see Portugal, Spain, and Italy's cards. The amount of new credit being generated is not enough to sustain the system, therefore the system must continue to collapse.

Greece Plan #7 or #8?

Greece begins aid talks as bond rout continues
http://www.marketwatch.com/story/greece-begins-aid-talks-as-bond-rout-continues-2010-04-21

Investors "want to make sure that the aid plan for Greece is no bluff," said Luca Cazulanni, deputy head of fixed-income strategy at UniCredit Bank in Milan. "It appears very unlikely that the curve will come down significantly before the package is activated."

On a few websites yesterday rumors of a backdoor bailout of Greece, it sounded like more jawboning to me. The market is now saying show me the money. Less then 16 hours later we have yet another plan.

France is going to lend to Greece, Greece will have to probably lend money to Portugal in a few months, Portugal will have to lend to Spain, Spain will then lend the money to Italy, Italy will do the final reach around and lend it back to France. Problem solved.

Goldman, So What?

All the focus is on Goldman, I really don't get what the big deal is. I mean if you think Goldman is the only company creating these products to sell to gullible people you are sadly mistaken. The whole financial system is one big ass pyramid scheme, sold to all you gullible people all the way back before your grandfather's grandfather was even a thought.

I mean you have the government actually telling everyone to hide their losses, if all these banks wrote down the true worth of these so called assets, well goodbye company and goodbye financial system. People can promote these lies all they want, the Truth always wins. The system will collapse and there is nothing you can do to stop that.

Give it a few more days they will move on to more pressing needs Greece.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a_vJB04lghjc&pos=7

April 17 (Bloomberg) -- Merrill Lynch & Co. engaged in the same investor fraud that the U.S. Securities and Exchange Commission accused Goldman Sachs Group Inc. of committing, according to a bank that sued the firm in New York last year.

Goldman wasn't the only one, Duhhhhh!

The only way the system survives longer is to find more and more gullible people at an exponential rate. Humans can't supply the equation long-term.

Ron Paul Good Intention But...

I love Ron Paul for his views on liberty but his knowledge of the banking system is very flawed. He keeps on saying the Federal Reserve "creates money out of thin air", well, the system is "credit", if it's not created out of thin air where is stored?

All "credit" is created out of thin air, always has, always will. Just like love is created out of thin air.

He has also expressed a desire to go back to a gold standard, well, sounds good on paper but you ran out of gold to support the credit system back almost a century ago. If he with Peter Schiff had been elected the system would have collapse instantly.

THERE IS NO SUCH THING AS A GOLD STANDARD IF PEOPLE BORROW AND LEND WITH COMPOUNDING INTEREST ATTACHED because eventually you run out of the underlying asset, how do I know this... it happened in 1930. Actually, it happened before that but that is when stupid humans went running to the bank.

What Ron Paul is suggesting is the exact same system you have now, he just doesn't want the government involved, well it's going to rise then one day it's going to collapse into a big heap of a mess and people are going to have to be liquidated.

Questions

The only questions I really can think of from Lemmings using the equation are these.

How man Lemmings are going to jump into the fire pit at the end of their march?
Where (when) in the road will the fire pit appear?

Everything else was decided way before most of the present Lemmings where even born.

Greece Is Not Alone

EU Says Portugal May Need Additional Deficit Measures
http://www.businessweek.com/news/2010-04-14/eu-says-portugal-may-need-additional-deficit-measures-update1-.html

Portugal itself may need “pre-emptive” aid from euro-region governments, former International Monetary Fund chief economist Simon Johnson said in an interview on Bloomberg Television on April 12.

Here you go, change the "may need" to "will need".

If you think Greece is the only one, well I have a bridge to sell you. (Insert your Country and/or State here) will be inline sooner or later. As you can see the Greece bailout #5 or 6 or whatever number we are calling it is now being called in. Players on deck and warming up Portugal, Spain, Italy, Ireland or how about California, New York or even Illinois. Eventually every country will be sucked right down the hole.

How many can fit in the warmup circle?


Some say the end is near.
Some say we'll see armageddon soon.
I certainly hope we will.
I sure could use a vacation from this

"They'll Just Inflate Out of this Mess"

"They'll Just Inflate Out of this Mess"

This is the most humorous thing I keep reading on the internet. Now, if someone had magical powers what are the waiting for if they can just inflate the system out of this mess? Why didn't they use this in ancient Rome? Heck, you would have thought Hilter with all his scientist could have figure out how to inflate out of the mess.

There is no inflating out of the mess, as you inflate you are actually getting closer to your ultimate doom. The current global financial credit system has been inflating for 66+ years, now it's not inflating. Now if you believe Helicopter Ben or Benny and the Jets can just endlessly drop money from the sky and produce credit, please have him send me over a pizza and 99 virgins oh and a 6 pack of beer.

Humans have no ability to supply exponential growth, there is no avoiding what is coming down the pike. Benny and the Jets do have enough power to effect the rate of decline, Benny does not have unlimited power to sustain the equation long-term.

If all it takes is putting a few digits in a computer, everyone go home and wait on all the virgins and pizzas to show up at your door and please send me a note as to how this all worked out for you.

Ken Thompson is on Youtube as well (archives)

http://www.youtube.com/user/commonsenseradio

The financial system is toast, there is time for you to reclaim your State government and the Federal government.

Dubai Will Eventually Fall Back Into The Sea

Dubai’s $330 Billion Deferred Buildings Impose Fees
http://www.bloomberg.com/apps/news?pid=20601109&sid=aAmwsshQx1i0&pos=12

Those Dubai islands will eventually sink back into the sea. Suckers still lining up for the slaughter.

Silvia Turrin paid two-thirds of the $520,000 purchase price of her Dubai apartment, only to learn that it won’t be finished until 2012, two years late. When she stopped payments to Emaar Properties PJSC, the developer hit her with late fees.

Boris Thinks the Paulson Bazooka Will Work This Time

http://www.bloomberg.com/apps/news?pid=20601101&sid=at1ABnoS7f8Q

The euro advanced the most in seven months versus the dollar after Europe offered Greece a rescue package worth as much as 45 billion euros ($61 billion) at below-market interest rates.

“The deal has quelled any notion that Greece would default on its debt,” said Boris Schlossberg, director of currency research at the online currency trader GFT Forex in New York.

Well, he is correct, it has slightly abated the notion overnight, spreads have come in slightly.

quell (kwl)
tr.v. quelled, quell·ing, quells
1. To put down forcibly; suppress: Police quelled the riot.
2. To pacify; quiet: finally quelled the children's fears.

The question is for how long? Another minute, another hour, another day, another week, or another month. Paulson tried this same thing back in 2008 and his famous Bazooka blew up in his face. To me this just sounds like plan #4 or #5 or whatever number they are on now.

Don't worry this is coming down the pike for every country and the States won't be far behind. Maybe Italy can send Greece some money and then Greece can turn around and send some to Italy. Sounds like a plan, plan number 6.

None of these plans will work long-term, the system is unsustainable long-term.

Reminder

Highly recommended website, Common Sense Radio. Ken talks about the republic and how the politicians have stolen the American way of life. The financial system as you know it is over, there is time to save the 50 republics of the one United States republic.


http://www.reclaimmichigan.com/commonsenseradio.html

It's Over, Last One to Realize is the Biggest Loser

The graph shows you above that your system is coming to an end, the system DEMANDS exponential growth but you can't even achieve what is needed with interest rates going to all-time lows.

I saw this discussion on TV, there was interviewer and two people being interviewed. One guy was a small businessman, the other was a banker. The businessman was like I can't get a loan to fund payroll, the interviewer was like all angry and says to the banker why won't you give this guy a loan. The banker looked confused, well my first question would be what kind of business model do you have if you have to have continuous loans to fund your payroll.

The seniors are crying because rates are too low, well the reason they are low is because nobody wants your money. The system is coming to an end.

Everyone is searching for yield but no one can or wants to borrow from you. IT'S OVER JACKASSES.

China the 2010 version of the 1930 United States

Headlines: China fin min fails to sell out bills at auction
http://tmdcelebritynews.com/headlines-china-fin-min-fails-to-sell-out-bills-at-auction/012980

China is no different than the United States was in the late 1920s and early 1930s. The United States was a huge exporter, flooding the world with cheap products.

The only reason those factories in China keep running is because of newly created credit created worldwide, lead by the United States. Wait till all you nutbags see the hidden balance sheets over in China where they are building large cities that have no occupants.

China runs the exact same system as the United States, and is a part of the global financial credit system. The system is expands at the rate needed or it starts to collapse. The Chinese have about as much power to sustain the equation long-term as Snoopy.

Inflation My Ass... Dig Up The Corpses

http://www.zerohedge.com/article/two-cases-against-inflation#comment-286772
Interesting article over at zerohedge.

Of course, the one aspect that Moody's does not discuss at all is the surge in money printing. Yet as monetary aggregates are still falling, and all the excess money is held by banks in the form of excess reserves, the debate continues to be just what catalyst will force banks to part ways with this handy $1.2 trillion buffer.

Not this again. The banks are not holding onto anything at all. If you line up a 100 million people that are able and willing to take on additional credit at an exponential rate, you would be back on the road to growth. The problem is the system is tapped out, you ran out of the amount of lemmings to support your pyramid scheme.

Banks will lend, they have no one to lend to. Why people continue to talk about this is beyond me. You ran out of brick to put in your pyramid, I guess you could start digging up corpses and have them sign on the dotted line.

Inflation is the increase of money. In today's system "credit" is used as money. Credit use is not expanding, it's collapsing. Unless you can find more and more people willing to take on more and more debt, it's over... simple as that. You are simply running out bricks to put in your scheme.

YOU KNOW WHY I KNOW THIS WILL COLLAPSE? BECAUSE I CAN DO SIMPLE MATH AND NOBODY CAN EXPLAIN HOW HUMANS CAN SUPPLY AND DEMAND AT A EXPONENTIAL RATE LONG TERM. IF THEY COULD EVERY PYRAMID SCHEME WOULD BE UP AND RUNNING.

The Big Unraveling

It has never been about "if" it will unravel but the size of the problem humans would create "when" it unraveled. This is the largest wave in the history of man to date, the unraveling will be the largest humans have ever seen.

The attempt is to fight off the inevitable as long as possible.

"That is the sound of inevitability"

In this case, the government has figured out that the equation only works in one direction. The problem is, you would have to have unlimited ability to supply and demand from the equation to keep it going. The private sector is gone, the only player left at the table is the federal government. Of course, the house will allow the government to play at the table by themselves until the house has taken everything the government has to play is gone.

For the system to survive even longer leverage must continue to go up, of course that is just going to make the fall that much more interesting.

See Federal government Z1 report, it's over folks.

It's like have this nice sports car, you ramp up to 5000rpm to get some speed, then you ramp it up to 7000rpm, then when that is not fast enough you ramp it up to 9000rpm, eventually smoke starts coming out of the hood and it doesn't matter how far down you press that gas pedal, it's over.



It's not the fall that kills you, it's the landing.




There is no Perpetual Motion Machines in this financial system, all of you are the machine, and when the machine has hit it's max that's it, it's over. You have no ability to supply and demand at an exponential rate for the long-term, around a generation or 60-80years.

3 Suprises This Week

Well, the 3 biggest surprise for the week for me were, that other people were surprised to find out:

1.) Comex is a highly leverage exchange, a paper exchange.
2.) That the Fed were buying products outside of their statutory authority.
3.) The Fed is unhedged in large portions of their holdings.

I am actually shocked these things were news this week. I thought the above was common knowledge among professionals.

End Game (Not April Fools)

Why Is The Fed Actively Managing A $25 Billion Maiden Lane MBS Portfolio When Its $2.4 Trillion SOMA Holdings Have A $1 Billion DV01? (And Are Unhedged)
http://www.zerohedge.com/article/why-fed-actively-managing-25-billion-maiden-lane-mbs-portfolio-when-its-24-trillion-soma-hol#comment-283320

Interesting article over at Zerohedge. Goes on to discuss a non-hedge position by the Fed in case of MBS and Treasuries. It goes to the heart of the end of the system. Tyler goes on to say,

"Yet that which is truly relevant, the Fed's nearly $2.4 trillion in holdings of MBS, Agency and Treasuries is completely unhedged. Good luck finding the counterparty that would be willing to put on a $200 trillion gross notional interest rate swap with the Fed."

There is no counterparty even close to big enough to handle that trade. This is the end game of the equation. They don't call it a death spiral for nothing. I don't know why this is a big surprise, the Fed is the buyer of last resort, if there were a party larger enough to sustain the loses you wouldn't need the Fed in there buying. I assumed everyone already knew this, they don't call them the lender or buyer of last resort for nothing.

One point I would disagree with is this.

"If rates do go up, and if the System Open Market Account holdings are unhedged, hyperinflation Catch 22 - here we come (oh yes, and the Federal Reserve is now a ticking time bomb)."

The only thing hyperinflating will be graves and funerals, that is the final result of using the equation. I assure you credit will not be inflating, it will be non-existent. You can't feed 7 billion without a credit system, no way Jose. The liquidation process will be long, hard and very deep this time -- it's not going to be a picnic like last time.

Also, the Federal Reserve is not a ticking time bomb, the whole system is. It's been a ticking time bomb since humans came up with this pyramid scheme.

THE EQUATION ALWAYS WINS!

Illinois municipal Downgraded - (Insert your State here) is next

Illinois' rating on $23.4 billion of municipal debt cut to A-
http://www.dailyherald.com/story/?id=369433

Illinois' rating on $23.4 billion of municipal bonds was cut one level to A- by Fitch Ratings, which cited a rising budget deficit in the next fiscal year for the second-lowest rated state after California.

Illinois and California are trying to out do each other it seems. Another wake up call to the States, if you think you are just going to be bailed out you are in for a rude awakening. There is no court for a State to file bankruptcy. You better start shedding this debt and do it in a hurry.

The pyramid scheme is coming to an end like all pyramid schemes do, by collapsing. You can't save the financial system and you can't save people from losing.
It's not a matter of whether you are screwed or not, it's only a matter of how screwed you are.

Euro falls on concerns over Greece --- STATES ARE NEXT

Euro falls on concerns over Greece

http://www.irishtimes.com/newspaper/finance/2010/0331/1224267399042.html

Greek seven-year notes fell in the first day of trading and an auction of 12-year bonds garnered demand for less than half the debt offered on concern Europe’s most indebted nation will keep struggling to fund itself.

What is happening in Greece is going to happen to the States. There is nothing the States can do to help save the financial system, it's toast, it will collapse into a heap of a mess. The States must protect themselves, not from financial doom, that's coming anyway. The States need to protect themselves from being taken over by the federal government which will use the financial collapse of the State's financial obligations as the backdrop.

The States better wake up and wake up soon because there is no court for them to file bankruptcy in. The States are just as delusional as Greece, the States should not be talking about eliminating 5-10% of their budgets, they need to start talking 80-90% of their budget and they need to start repealing State legislative acts that allows federal government programs and agencies to move under State law.

First State out is the biggest winner, last State out is the biggest loser.

Low Interest Rates Are Squeezing Seniors
http://online.wsj.com/article_email/SB10001424052702303429804575149633264117248-lMyQjAxMTAwMDIwOTEyNDkyWj.html

"Today's historically low interest rates may be feeding banks' profitability, but they are financially starving our seniors."

This article destroys the whole concept of old=wise theory. Let me get this right, the old people are upset because the pyramid scheme they entered into is no longer growing at the rate needed and because of that they get very little income from doing... oh... nothing. Really what they should be upset about is themselves for believing their parents and going through their whole life believing pyramid schemes actually work. Well, they do work, for a while.

"These people depend on cash savings for their financial well-being. "

Yeah, I am sure they do, the problem is they first made a mistake when they believed the lie, now after decades and decades they are upset. Really what they are basically down to now is begging more people to enter the pyramid scheme to support them for doing nothing.

So, here we are with a bunch of old people that don't do anything and they bought products which really only exist in someone's delusions and they want someone to take care of them. I don't know how to break it to them other than to be completely honest, you were SCAMMED. What they are asking for is an impossibility, if it were possible, well then there wouldn't be things called PYRAMID SCHEMES.

"Those in Washington should keep their plight in mind as they consider Fed monetary policies going forward. "

I don't know whether to laugh or cry at this stupidity. Sorry buddy, DC has no ability to make the equation sustain itself. The Fed certainly could have continued to fight the market in 2007 and the result would have been the biggest mushroom cloud ever witnessed. If the Fed has magical powers, tell them to send me over a pizza and 99 virgins.

The people that realized they were SCAMMED first will be better off than the ones that just don't want to admit it.

Heck, raise the Fed Funds Rate up to 10% and let me know how the seniors like it then when everything they supposedly own vanishes in a flash. I mean if you really want to finish the system off that is surely one way of doing it, I assure the person writing the article those seniors wouldn't collect one more interest payment if that happened.

*Note - As already pointed out in a previous blog. The Fed follows the market, in 2007 the market told the Fed where to stick their interest rate hikes.

States Better Wake Up

http://www.nytimes.com/2010/03/30/business/economy/30states.html

"The state’s economy will also be weighed down by the ballooning federal debt, though California does not have to worry about those payments as much as its taxpaying citizens and businesses do."

Wrong. The Federal government will be pushing down mandates to the States. If they are not getting the Bills now, they will be in the future. The States have one of two choices. 1.) Do nothing and eventually the Federal government will have to take over all the States as they go into bankruptcy but without a court to file bankruptcy 2.) Start cutting the ropes that bind, get rid of all unfunded liabilities such as pensions and entitlements, either done at the State level or by agreement with the Federal government via State legislation.

If the States don't wake up soon there will be no States in the future.

Lemming's Journey

The Lemming's journey started way before the modern day lemmings were even born. The Lemming's goal which is unknown to most of them is to travel as far as they can then jump into the pit.

The Lemmings wouldn't be Lemmings if they didn't march down the road. Now if the Lemmings decide to stop in their march, a big giant pit will open beneath their feet where they stand. The Lemming's fate was sealed as soon as they started marching down the road.

There is no escape for Lemmings. For the Lemmings to be able to escape their doom, they would have to have unlimited power. Imagine for a second there is black hole in front of you, you decide to go check it out, once you hit the event horizon it's over. In a panic, you may decide to hit your rocket boosters to get away from the Singularity, but as you do that you actually are now getting close to your doom.

Bridge To Nowhere With No Income

http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm

"Personal income increased $1.2 billion, or less than 0.1 percent, and disposable personal income
(DPI) increased $1.6 billion, or less than 0.1 percent, in February, according to the Bureau of Economic
Analysis.  Personal consumption expenditures (PCE) increased $34.7 billion, or 0.3 percent.  In January,
personal income increased $30.4 billion, or 0.3 percent, DPI decreased $26.0 billion, or 0.2 percent,
and PCE increased $38.5 billion, or 0.4 percent, based on revised estimates."

The system is rather simple when you break it down. It's a pyramid scheme, it's based on the false belief that humans can demand and supply exponentially forever. If the system were based on grain of sand or dirt, humans pass around the grains as their medium of exchange by loaning and borrowing. As soon as all the humans begin to attach compounding interest on it, it's game over, you are on the lemmings path over the cliff. Eventually, you will run out of grains of sand on the Earth, then you might move over to the Moon but that wouldn't last long because the supply must be exponential.

In essences, the humans today and in the last 65 years are stealing from the future, the problem is humans have no ability to steal at an exponential rate long-term.

As the report above shows, humans are not supplying nor demanding what the equation needs to sustain itself. The target is actually moving now away from humans at an exponential rate.

I hear about de-leveraging, that's the biggest myth in the game. The system is not de-leveraging at all. All that is going on is stupid humans moving non-funded over to the government. For the system to continue to survive even a little longer you are going to have to find a way to leverage more because the amount of power you need to sustain the equation continues to go up exponentially but humans have no ability to supply it.

It's called desperation as the black hole comes into view and you hit the event horizon.

Bridge To Nowhere

Bridge To Nowhere

What has occurred over the last 20 months is the failed attempt at building a bridge between waves. What Benny and the Jets has failed to realize in his study of the Great Depression is that the bridges would have to go up and have infinite power to sustain the system. The only way Benny could be successful is if the bridges are going up at the rate that is exponential to meet the demand of the underlying equation being used in the system.










Benny and the Jets would have to be God or God-like or maybe even have more power than God to sustain the system. They can definitely can and do have influence and effect the rate of decline but the equation always wins in the end.

The underlying equation is still demanding additional credit without an increase in production, nor do humans have the ability to supply the equation exponential growth long-term, unless your idea of long-term is 60-80 years.

Florida unemployment hit record 12.2 percent in February

http://www.sun-sentinel.com/business/fl-unemployment-february-20100326,0,4358873.story

"Florida's unemployment hit 12.2 percent in February, the highest rate on record, soaring past even the rates recorded in the 1973-1975 recession, the state work force agency said Friday."

I could have swore someone told me the economy was growing at a 5.6% annualized rate. It's going to be fun watching these States try and survive with huge cost coming from DC through mandates, higher taxes, and more unemployment. You would think maybe just maybe one of these States would actually wake up.

Someone in the State might want to ask the governor and the legislative branch exactly what happens when a State can't pay it's bills and creditors are sitting at the door.

I hate to tell you guys but there is no Court to file bankruptcy in.

Economy in U.S. Expanded at 5.6 Percent Pace in Fourth Quarter

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJztpYrP_Yhc&pos=3

"The U.S. economy expanded at a 5.6 percent annual rate in the fourth quarter of 2009, and corporate profits climbed, setting the stage for gains in employment that may broaden and preserve the expansion."

Proof you can put a "For Sale" sign on a piece of crap and sell it for a profit to some stupid guy. Where did all this expansion come from I would like to know? Federal Reserve Z1 Report shows a -$133B in credit creation see Q4 Z1 report (http://www.federalreserve.gov/releases/z1/Current/z1.pdf) Yes, that is correct, the credit market is going negative and somehow the economy is setting the stage for "gains".

Well, I have seen to this point is the Federal government coming in to build a bridge to span the gap of the cycle or wave, unfortunately for the Federal government and everyone else on this planet you would need unlimited power to do so.

Total Credit Market Debt
2009 Q1 $52.882T
2009 Q2 $52.686T
2009 Q3 $52.549T
2009 Q4 $52.416T

2009 -$466B of credit creation
In comparison, the credit market was expanding at a $4.715T rate in 2007, so in 2 years you went from almost $5T growth a year to negative $1/2T.

Hmm, how exactly do you pay interest with negative money?

The system is collapsing folks. You can hide from it, you can complain about it, you can shout to put people in jail, you can pray to Helicopter Ben, you can have Congress outlaw it, but at the end of the day you are toast by using exponential growth as the basis of your system.

The system is over folks. The Federal government is the only player left at the table. Without huge Federal government deficits the system would be -$1.445T in the red. You can't pay interest on $53T with negative money.

And all the nutbags that think Helicopter Ben is going to save them are in for a rude awakening. If you can fund your own credit than there would be no use for the credit.

Health Insurance Mandates Unconstitutional, Says Republican Poe

http://talkradionews.com/2010/03/health-insurance-mandates-unconstitutional-says-republican-poe/

“The federal government has overreached its authority and Texans, like the majority of Americans, have had enough. Attorney General Abbott has my full support and I will continue to fight to uphold the Constitution for the people of the great state of Texas,” said Poe in a statement released on Thursday.

Attorney General is someone misleading or fails to understand himself. It is true that any mandate to force someone to buy something would be overreaching, the more important question is why is your State being a WILLING participant in Federal programs which are pyramid schemes? Why is your State allowing the Federal government via State law under Federal programs to operate pyramid schemes? Mr. Attorney General you do know where all the funds are going to come from to fund these schemes, right? You think it comes from the 10 by 10 mile square known as the District of Columbia? I think not Mr. Attorney General.

The Attorney General better wake up fast, if he doesn't like the mandates coming down the pike now he is in for a rude awakening. The State can't file bankruptcy Mr. Attorney General, although Texas is in a better position than most States it will be just like California eventually, the Federal government will have to come in to restructure your State how they see fit.

The pensions, the entitlements, and the pyramid schemes are going to go the way of the dinosaur anyway, you probably should consider keeping your State while you have a chance.

Is Civil War The Answer?

Is Civil War The Answer?

Absolutely not.
What the Tea Party movement is doing appears to me to make very little sense which is war. "Divide and conquer" should be the words used not war. The Tea Party is looking for "change" in DC, but where they should be looking for change is in their State Capital. The Tea Party movement is going to fall on deaf ears in DC, sure the Republicans appear to be listening in DC at the moment, wait till they are the majority. You and your State are in this position not from one of the parties but from the lies spread by BOTH parties, and by people lying to you at the State AND Federal level. These are all Federal programs ran under State law.

The answer lies in your State Capital. Where your State legislative branch has passed State Law that allows the Federal government to come into your State. If you don't believe me go look at your State code.

- There is no reason to use violence right now
- There is no reason for your State to leave the United States right now
- There is no reason for war or throwing bricks through windows
- There is no reason to go march to DC

The solution is simple, it rests in your State Capital.

Treasury To Announce Mortgage Writedown Plan

Gov't to unveil plan to shrink some home loans
http://www.google.com/hostednews/ap/article/ALeqM5gyoZ46fqVwnds84XZfpZHVMrkGCgD9ELTG200

"The Obama administration will announce Friday a plan to reduce the amount some troubled borrowers owe on their home loans, two people briefed on the matter said.

The two people declined to be identified because the program had not yet been announced. Details could not immediately be learned. But earlier in the day, Herbert Allison, an assistant Treasury secretary, told reporters officials are close to expanding the administration's $75 billion foreclosure relief effort.

The administration is also expected Friday to announce aid for homeowners who have lost their jobs."

Look folks this is not going to end very well anyway, but you better get your State out of this mess as soon as possible. Why even pay your mortgage? I really can't think of a reason to keep paying on an upside down mortgage.

State citizens need to take back their State governments and repeal all the Federal agreements with the Federal government. You and your State government are really partners in this mess with the Federal government.

TeaBaggers All Heart, Absolutely No Brains

Why are the tea parties marching on DC all the time, the real problem is your State capital. I mean being on the Fox news with your protest looks cool and all but it isn't going to solve your problem going to DC.

The federal government is given permission by State law to operate Federal programs in the State. Why are you as a State citizen allowing this to happen?

Going to DC is not going to solve your problem. The solution can be found within your State.

Why Are Attorney Generals Suing The Federal Government Because of the Healthcare Law?

Why Are Attorney Generals Suing The Federal Government Because of the Healthcare Law?

http://www.businessweek.com/ap/financialnews/D9ELO7N00.htm

"Republican Wisconsin Attorney General J.B. Van Hollen on Thursday asked the Legislature and governor for permission to join other states challenging the constitutionality of the new health care reform law."

This is the most perplexing question yet. The States give the Federal government permission to come in and administrate huge programs then they complain about how it's done.

The solution is simple, your State is involved in a pyramid scheme, why would you allow the Federal government to come in and administrate a pyramid scheme that they will eventually send a Bill to the State for. The States are already getting Bills they will never be able to pay.

What is the solution?
Take back your State legislative branch, cancel all agreements with the Federal government. Last State to exit is the biggest loser. Pain is coming either way folks, you better wake up.

The Federal government is not paying all this, the State citizens are going to be paying for it, with permission from the State. It seems pretty idiotic to me to disagree with an agreement then sue someone over an agreement I can cancel at any time.

CANCEL THE AGREEMENTS! If you think the Federal government cares, they don't their objective is to grow via State agreements. They will squeeze until there is nothing left.

There Is No Out There Is Only In

"There is no out, there is only in"

Now this quote can't be closer to the Truth. What does that even mean? Well, in the current financial credit system, which is exactly like the system before it and the system before it. Once you create a system where people are lending and loaning at a rate of compounding interest (ie exponential growth) there is no turning back, once you have millions and billions involved in the act of pulling forward (or stealing from the future) you either supply the compounding equation or you fail to do so and the peak happens and the equation starts to consume the non-performing liabilities see time period of 1923-1945. There is no turning back once you start, once that decision is made, the only question is when, and how much you or your children are going to get screwed at the end of the line.

At this point, after the collapse happens you have choice. Do you teach your children the real reason why millions if not billions of people are wiped off the books?

Kohn: Research Needed on Combating Bubbles
http://abcnews.go.com/Business/wirestory?id=10194713&page=1

Donald Kohn said the worst crisis to hit the country since the 1930s points to the need for more research on how higher interest rates can be used to limit financial speculation. Kohn suggested that, and other "homework assignments," in remarks prepared for a lecture at Davidson College in North Carolina.

The guy has some serious misunderstandings as to how the global credit system functions. Once you go down the path of an exponential growth model to sustain your existence, there is no turning back. You have the required amount of gas flowing into the engine or you don't and the engine starts to die on you. The credit market is one big bubble and has been since the beginning, why else would you have credit if other then to borrow for the future what you can't afford today?

Once you attach compounding interest, and millions and billions do the same thing it's over... it just takes 60-80 years to see the results of your stupidity. There is no beating the equation, you either supply it what it needs or starts to consume the non-performing liabilities.

Let me see... raise short-term rates right now up to 10% and let me know how that works out you retard.

The image below shows what happens at the end of the cycle. The Fed had no ability to push rates higher, the system is coming to an end. Sure the Feds could have jacked up the FFR up to 10% and the mushroom cloud would have looked awesome.

State Elected Officials Are Idiots

California could take big hit from healthcare overhaul

http://articles.latimes.com/2010/mar/24/local/la-me-cap25-2010mar25

"States are in such deep financial straits that not only have we already made [Medicaid] cuts, but we're looking to make even deeper cuts," says Kim Belshe, secretary of the California Health and Human Services Agency.

"Now we're being asked to begin planning for the biggest implementation of a social program since Medicaid was created. . . . Medicaid is crumbling. It makes no sense to be building on a house that's falling apart. . .

Proof your State's elected officials and their stupid workers are only looking out for #1. The States are not being "asked" to do anything, the State's are agreeing to this BS then blaming the Federal government. No shit California is going to take a huge hit, it's going to keep on rolling in you idiots. Trying to hold up a pyramid is a futile attempt but it is fun to watch.

Of course Medicaid is crumbling, it was a tax with a so called promise of entitlement, now the pyramid schemes are crumbling because of basic Math. The question why is your State involved in pyramid schemes?

People in California better wake those people up at the Capital soon. You are already screwed, now it's only a matter of how screwed you are.

Plan to Save (Insert Your State Here)

1.) The State and State Citizens need to wake up and wake up soon.
2.) The State and State Citizens need to realize the the financial system is one big pyramid scheme and has been for 1000s of years. The use of exponential growth model to sustain your existence is not going to work past about 60-80 years.
3.) The State and State Citizens can't save the financial system as described above, it will ultimately collapse and there is nothing anyone can do to stop it.
4.) The State and State Citizens have to realize there is no Freedom, we all share a rock with other people so we are never truly Free, but we can maintain or in this case take back that amount of Freedom the Founders fought for.
5.) The State and State Citizens if they want to do the above should start canceling the agreements in place that allows the Federal government to reach into the State.
6.) The solution resides in your State capital .
7.) Why does (insert your State here) continue to supply dollars to DC into the massive pyramid schemes that have been constructed over the last 75 years?
8.) The State and State Citizens can't save the financial system, but you might be able to save yourself and your State.

http://www.reclaimmichigan.com/stateandfederalcontrol.html

Unfortunately, the State political class that sits under the State’s Capitol Dome has enacted States law, federally defined as the State Plan, which has empowered the reach of the Federal Government to move within the exterior boundaries of the State. What few Americans comprehend, is the constitutional fact that without the compliant hand of State law, the Federal reach of administrative agencies stops at the State’s exterior Border.

Why Do the Unfunded Liabilities need to be Liquidated

Why Do the Unfunded Liabilities need to be Liquidated?

After the peak the system must find a bottom, the problem is the system has to reach it's maximum descent. It's a wave or cycle.

You have more and more unfunded liabilities, who is going to fund them, how does it get funded. Are the unfunded liabilities going to be happy when someone doesn't fund them? I doubt it.

Once you get into a death spiral, that's it. In Europe in the 30s they were dumping grain out at sea to try and get prices up while people were starving onshore.

Now consider today where virtually 95% of all people walking around can't even fund their own water supply. The 30s were slow death, the world went into a depression in 1932-35 by 1937-1939 it was back in a depression. The world with the use of Hilter sped the process up from slow death over maybe 40-70 years to get down to about 20 years using blitzkrieg style of liquidation.

In the system that has been constructed, you hit your peak and collapse to the maximum bottom... a wave. There really are no slowdowns if you look at federal reserve Z1 report over the last 66+ years, not that I can find. You are either supplying and demanding what is needed for the equation to sustain itself or it begins to collapse. The only real slowdown I can see from the Z1 report is maybe a slowdown of one quarter in 2000. Now we are on the 3rd straight quarter of negative credit creation, and the only reason the system is even standing is Uncle Sam is trying to build a bridge across the gap... the thing is the gap will get wider and wider. Uncle Sam would have to have unlimited power to keep building the bridge.

It's misinformation that banks are not willing to lend, there just isn't even close to the amount and the amount of people willing to take on more at the 2007 rate, let alone more to keep the equation functioning which must be growing exponentially.

The price is always paid at the end, when a system based on credit no longer exists or in a form that is functional. The people that claim you can let some bad assets be marked down and then the system just keeps going is misinformation. If the credit market has peaked, that's it. If the credit market hasn't peaked then of course you can still write down large assets within the growing credit market.

Even after WWII the growth rate was actually kind of weak even with the large liquidation, but in the years that follow huge population growth helped since the people that were still around knew the fraud.

BofA to start reducing mortgage principal-sources - WHY IT WON'T HELP

http://www.reuters.com/article/idUSSGE62N02520100324

Bank of America will on Wednesday announce plans to start forgiving mortgage loan principal for troubled homeowners who owe more than 120 percent of their home's value or are battling ever-expanding "negative amortization" loans.

Now why won't this help?

Seems pretty simple to me, it doesn't address the fundamental issue with what we are witnessing.
Now what is that.
http://worlddarkestdays.blogspot.com/2010/03/why-is-financial-system-collapsing.html

The current financial system is based on exponential growth, no matter how many principle reductions you do someone has to take out an additional amounts of credit to service the present system which is $52.7T. What has to happen to get the system in a state to grow again is two things 1.) Destruction and 2.) Time. To get to that point after the credit peak of 2007 the system will need to liquidate the non-performing. Way too many non-performing assets being held up.

They don't call it a death spiral for nothing folks. Hilter and Germany got feed up with the slow process 70 years ago. This process will take many decades to work through until we hit the bottom, we have barely started the descent.

At the present time, consumers would have to instantly take on additional $5T of new credit annually over the rate they were in Q4 2009 to have the system have any effect on what is going on. The federal government is the last player at the table.

The End to Healthcare Insurance

Expect huge health insurance coverage drops by employers by 2014. As I have pointed out the purpose of the Law is to bankrupt the health insurance companies and the States.

Why would an employer pay for health insurance?

Starting in 2014, the health insurance companies will not be able to refuse for "pre-existing" conditions. Why in the world would a company offer health insurance coverage? Instead of kicking out $10-25k a year in health benefits, just give the employee a $1-2k bonus for taking care of the penalty or increase your salary by a few percent. Instant savings. This would be good for companies that do not have many employees right now or self-employed.

In theory, everyone will have health insurance coverage even if they are not paying for it. You just sign up when get sick.

As far as medium and large companies, if you are not moving out of the US now you better get busy. Your bills are going to be going up drastically with no out clause. The ones remaining will have huge cost increases and as more and more leave the cost will increase that much more.

Exponential Growth the Two Edge Sword Monster

The hairless monkeys marvel at the use of the power of compounding interest. They say if you put your money in the bank or invest it you will be rich in 40 years. Well, that is partial true. If you put your money during the beginning or even the middle part of the 60+ year run between cycles you have a good chance of actually doing just that.... the marvel of exponential growth model.

There is only one problem with this, hairless monkeys have never charted nor tried to understand exponential growth. Now what happens if you have a system that only runs when you supply it exponential growth and you fail to supply the growth needed? In that case, the equation must feed on something, you created the monster now you must feed it something, but what does it feed on. The exponential growth model Monster then starts to look around and starts to consume the non-performing liabilities. What are the non-performing liabilities? Go look in a history book for the time period of 1923-1945, and the term World War II and Hilter. Without Hilter the world would have probably been in a death spiral for 60-80 years.

http://www.federalreserve.gov/releases/z1/Current/data.htm
The federal reserves Z1 report shows the death spiral you are already in.

The report will show you 3 straight quarters of negative credit creation, this has not happened for 70 years. What does that mean, it means it's over folks. You have pushed the equation to it's highest peak, now you must suffer the consequences for your actions.

Gap in health care law's protection for children

Gap in health care law's protection for children
http://www.google.com/hostednews/ap/article/ALeqM5jYnajhWrPEXihcCrpRNfUKN7rN-AD9EKO82G2

Obama's public statements conveyed the impression that the new protections for kids were sweeping and straightforward.

This is actually a good thing, but since the purpose of the Bill is to kill the health insurance companies they will do what they can to change it. So my previous post was only part right. The intention is for all children to be covered any time they need to be but that is not how it is in the Bill. The question is, how can they close a gap in regulation that is not specified by statute? The agency is responsible for filling in gaps with the intent of the statute, the agency can't make law.

Wait and see on you taking your children off your health insurance plan.

There is no denying the Bill is intended to bankrupt the insurance companies and the States to where there is only one to provide for you and your family.

The only way this is going to change is the States to get out of the pyramid scheme. You can't squeeze blood from a turnip.

Drop Coverage on Children Right Now

The purpose of the Health Care Reform is to produce chaos, at the health insurance level and the State level.

For you guys getting health insurance notices today and in the days to come (yes they are sending them out already), I have a suggestion. Drop all children from your plan under the age of 18. If your children get sick, the health insurance companies will have to pick them up later. No reason to cover for children anymore unless they have major sickness.

The plan is to bankrupt the health insurance companies to where there is only one provider, the other plan is to dismantle the country by bankrupting the States.

The States need to wake up right now. The plan is one United STATE, not the one United States.

Arizona Kills SCHIP program

Arizona Kills SCHIP, Puts Medicaid on a Diet

1) States pull out, and coverage drops

2) States don't pull out, and they go bankrupt.

The Bill is intended to stuff the States and Insurance companies with more obligations. A few problems with that, the States are already toast and the insurance companies will just fold up shop.

SS, Medicare, Mediaid, etc. are all ponzi schemes folks. You need to get off the Federal government ponzi scheme. How do you do that, cancel the agreements with the federal government and get them out of your lives.

If you fail to do that quickly your State will go down the hole. I assure you the Federal government will come in but not without strings.

Healthcare Bill Is Intended to BK the States

Healthcare Bill Is Intended to bankrupt the States. You don't believe me, ok good luck. The States better wake up really fast because the clock is ticking. Unfortunately your State's elected officials have been responsible for this mess over the last 100 years. You either fix it soon or it will be too late.

The Bill is also intended to bankrupt every health insurance company. Let me see, why in the world would I buy health insurance unless I was sick under this plan? I would just buy it when I am sick. The mandate is clearly unconstitutional but even if it were it's cheaper for most to take the penalty.

Article.

Under the new health care system, Abbott says, the State of Texas alone would be burdened with about $20,000,000,000 in additional Medicaid costs over a 10-year period.

"By forcing Texans to spend $20,000,000,000 more in its Medicaid-based programs and in these healthcare based programs, it means either 'A' we're not going to be able to take care of other aspects of public safety, education, issues that are critically important to our fellow Texans or 'B' we're not going to be able to fulfill the goals and the mandates established by the federal government," said Abbott.

Why is the financial system collapsing?

Why is the financial system collapsing?

Because exponential growth is the basis of the system. Exponential growth looks like the chart above which is unsustainable by humans for more than about 60-80 years. Currently the world is on a 60-year cycle. Life is a series of cycles.

Billions of humans over 60+ years of lending to each other, one problem, humans have to continue to supply and demand the exponential growth or you start to collapse. That's it, that is why, the rest is just smoke and mirrors.

What you are watching now is all the hairless monkeys point their fingers at one another saying they caused the mess, no they didn't, all the hairless monkeys caused what is about to occur.

Excellent Radio Show on State Rights

http://www.reclaimmichigan.com/commonsenseradio.html

A great web site and radio show about reclaiming State Rights. Your individual Rights do not come from the State or the Federal government those are civil rights that can be controlled or changed or even eliminated. We all need to reclaim our God given Rights.

What is the Healthcare Bill about?

What is the Healthcare Bill about?

Control. There is no other reason for this Bill. The reason for the Bill is to eliminate competition for the Federal government. The Bill that has been pass will have two effects, 1.) bankrupt every health insurance company that exists or they voluntarily leave knowing they are going to go belly up 2.) eliminate the States by forcing more unfunded liabilities down their throat to where the States go belly up as well.

What can you do at the State level?

Eliminate the State's plans that work under Federal government programs. Eliminate all agreements with the Federal government.

What does this entail?

Taking back your State's legislative branch so that your State is not merely a name in the history books.

Why?

Why did I create this blog?

Over the years I have seen the Federal government intrude into the lives of States and their citizens more and more. Although the Federal government is to blame for this, a large responsibility for this is due to the State citizens not holding their State legislative bodies to their mandates. The Federal government intrudes mostly from the approval of your State government. For instance, the wage tax as instituted by your State's legislators for instance see Michigan Public Law.

Public Act 1 of 1936 (Ex Session)
http://www.legislature.mi.gov/%28S%28b23yrufibtoga555sm4phzeq%29%29/mileg.aspx?page=getobject&objectname=mcl-Act-1-of-1936-Ex-Sess-&query=on&highlight=Social%20AND%20Security

Public Act 280 of 1939
http://www.legislature.mi.gov/%28S%28kxylyv55cmg1v045rln2xx45%29%29/mileg.aspx?page=getobject&objectname=mcl-Act-280-of-1939&query=on&highlight=Social%20AND%20Security

Every State has enacted the same acts.


Another reason I started this blog was to show the complete stupidity of humans instituting a financial system based on exponential growth ie compounding interest on our medium of exchange.

Finally, this blog is to remind us that WE are responsible for allowing this to happen. WE let it happen.

Feel free to comment, I will try to post as often as possible.