Thursday, August 2, 2012

Change Is Something I Keep In the Ashtray

Life changes. Anything and everything. Mostly, you cannot control that. All you can do is greet change and develop a strategy for mitigating the ill effects. Ignoring change will leave you at a tremendous disadvantage. In fact, it always has.

I am a big change guy. I am one of those people who will change shit around on a whim just because it bores me. Several years ago, during a job interview, I asked a kid what he thought about change. The kid got this weird look on his face and then said he didn't have any problem with change. Most of the time he said- he threw change in his ashtray. When he had accumulated enough change he explained, he used it to buy gas or something to eat. The man in that interview with me is now the Chief. I thought he was going to split his gut wide open- trying to keep from laughing. I was in some sort of "you've got to be kidding me" moment. WE both burst out laughing. We hired the kid. He turned out be an excellent human being and he will soon be a father- I am told. He will be a good dad.

Some people embrace change, most don't. The people changing the world don't care which camp you fall into.

Imagine a world where the most greedy, ruthless, people have control of your money supply. They have control of the politicians and the media. They are in control of every facet of commerce that relies on credit. They are able to practice deception because they have changed the accounting rules. The rich and the greedy get what they want- and you don't- because their needs and your needs are mutually exclusive. They have the money to get what they want.

In short, you are simply a tool for the controlling elite. You work in their corporations and you do so at a salary that always allows them to get the best of it. People with money have power. They have power because they have something the rest of us need. They carve out the rules to keep money and power and the only time they give you money- is when they receive more money or more benefit in return. It is a huge bonus to them if they can look like charitable, magnanimous bastards in the process and really fuel their image. Enter sponsorships and charitable giving. Please allow a quick detour here.

Do you know why people like Bill and Linda Gates have charitable organizations? Because they have so much fucking money that they don't know what to do with it all. You can only buy so much shit. Eventually, their conscience finally tells them, "Maybe you ought to give some of this back." So like the magnanimous bastards that they are...they select who gets it and who doesn't. They prance around with beaming faces on stages- in front of crowds of desperate people who pray that their shadows cross- if only long enough for the Gates' to write them a check. The rich, like all of us, are trying to make sense of their lives. Philanthropy- if you say so. http://money.cnn.com/2010/06/15/news/newsmakers/Warren_Buffett_Pledge_Letter.fortune/index.htm

Ok, back on track.

In 2007, the rich and elite finally screwed the pooch. The banks and world governments are broke. Enter "Plan B." Plan B is a triage plan. A way to keep things from appearing as bad as they really are. So far it's been working. The workers of the world are all getting hosed. They lost their houses but their peers- convinced them that this was their fault. The bankers, the people that made off with millions and billions, are giggling. All that mortgage money was just make believe money anyway. Those crappy jobs with no benefits- not their problem. That giant debt pile they created? Well, they socialized that liability and gave it to you. Only one prize remains. The last source of real, measurable wealth in this country.

Equities and bonds. Everybody in the United States has a vested interest in keeping our zombie stock market afloat. Everyone. Because if that market flattens- like it should have already- then all hell is going to break loose. Because at the moment of the great flattening- it's finally going to dawn on every working stiff in this country that they've been ripped off. That all of their retirement money is lost. That is why everyone is savagely performing CPR on our zombie markets. Obama, self centered sociopath that he is, can only pray to Allah that things don't deteriorate further.

I believe the chances of my state funded retirement system (invested like every other retirement fund in US markets) going broke in my lifetime is better than 85%. It is all predicated on 8% returns. The bankers have robbed this country of all yield. Last year my fund made 1.5%. In fact, every retirement plan in this country is predicated on appreciating markets. Guess what? Appreciating markets are over. Markets have been topped out for 13 years. The bankers have stolen all yield and all return. Real money doesn't exist. But the people you see, don't understand this. They don''t understand eternal stagflation. Yet. But they will- and they are not gonna like it.

They don't understand that markets will crash and that our money supply will go completely supernova trying to keep markets elevated. Gold and silver and other commodity prices will also go into warp drive. You can't sell gold at 10k an oz. when the following day they are buying it for 20k an oz. Hyperinflation happens fast. There is no other way for the end game to play out.

So with zombie and QE injected markets hovering at 13,000- the hoi polloi and the people that deny change, look at writers like me and say, "Geezus, that dude's left the rails." The hoi polloi can't distinguish the true from the false because they have no vested interest in believing some anonymous writer like me. They see no evidence with inflated markets at these lofty levels. That 16 trillion dollar debt is of no concern to them. If the hoi polloi could distinguish the true from the false- if they had any power whatsoever- we would not be here waiting for the implosion and collapse.

People have been deceived. The last great deception is upon us. Not unlike the myth that house prices grow to the sky- equity prices are not some eternally growing beanstalk either. That truth is about to be revealed. The best way to describe or illustrate the great self deception that is occurring in this country is what I call the marriage myth. It goes like this. 

The idea that people get married and live happily ever after is a myth that is predicated upon life expectancies of 35 years. To a couple wed in 1900 at age 18, you had about 17 years on average before someone died. Thus happily ever after was about 17 years. A "doable" stretch of time. One hundred years later, life expectancies were hitting 80 years. Happily ever after equated to about 62 years or about 4 times what it used to. For most of us, that is not quite so "doable." Putting up with someone's shit for that length of time requires sainthood- and most of us are not willing to do it. So our idea, the myth of "happily ever after" was sent down our family trees and framed with short life expectancies by people who stay married a whopping 17 years.

So why is it some big shock that more than half of all marriages end in divorce? It shouldn't be. Just as it shouldn't surprise anyone that housing prices had to stop climbing. You can't sell a huge over priced supply- into a shrinking demographic.

So it should come as no surprise to anyone that in order for stock prices to rise, (a) there should be a larger amount of people trying to buy and drive the price of equities up which there is not, (b) the supply should dry up- rather than expand (c) wealth creation should be on the rise rather than decelerating (d) there are simply no fundamentals to drive markets any higher beyond that of artificially driving up the money supply. Inflation. (e) we have a 16 trillion dollar debt load with trillions coming due and payable that nobody has a solution for.

All of this is happening now. That is life. It changes. Even if you don't want it to. So if you are some sort of person that thinks this market cannot collapse in spite of the serious problems and evidence all around you- some of which is irreversible- that is ok.

You might be someone who thinks that change is something you keep in the ashtray.




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