Saturday, March 16, 2013

The Bastards Keep Winning- The Sunday Collage

Oh how I used to love St. Patrick's Day. It's like Fat Tuesday- Butte, Montana style.

On March 17 of each year, the town of Butte is transformed into a sea of drunken debauchery. It has been that way my entire life and this weekend will be no different. Butte owes it's St. Patrick's Day revelry and roots to the mining industry and it's copper kings. Most notably Marcus Daly- the copper king who for decades hired the Irish and killed the Irish in some of the most unsafe working conditions ever conceived. Amidst all of that working and dying, the Irish found time to drink. They always found time to drink. In Butte, the bars just like the mines, stayed open every hour of the day and night.

History is not always kind to the good men nor do the willfully arrogant always get what they sow.

When you are paying people 3 dollars a day and you have an unlimited amount of workers, in some cavalier and sociopathic sort of way, people (particularly immigrants) become disposable. This was not lost on those immigrant miners working twelve hour days, six days a week, and watching as their friends died of black lung and their widows went without. This tends to anger any man and it certainly had a cumulative effect on Butte's miners. Eventually the "copper kings" sold out and died off and the Anaconda Company was born. By the time WWI and 1917 rolled around, while the Anaconda elite made millions- they had also proposed a pay cut for the miners just as copper prices soared. That level of "in your face greed" lit a fuse. The company (I never heard it referred to in any other fashion) used people in the same disposable ways that it's predecessors had with an added pinch of ruthlessness. In fact, the Anaconda Company might have been the most lawless, criminal enterprise of it's kind.

It all came to a head in the summer of 1917. There is a fantastic book (rated 4.8 stars out of 5) about Butte and that disaster.  http://www.amazon.com/Fire-Brimstone-North-Mining-Disaster/dp/1401308899

Butte became the "Gibralter of Unionism." You probably owe what work benefits you still cling to- in some measure- to the efforts of a bunch of immigrant miners and their unions. Once unions were embraced- the bar was raised for corporations with competing interests. They had to get competitive or lose workers. Workers began receiving benefits, defined work and vacation hours, safety measures, overtime pay.

In Butte for many years, the Anaconda Company employed "rustling cards." These cards were used to identify and blacklist miners. They were a dossier on potential employees and they were hated. I have actually seen a few of these cards. Perhaps they were the predecessor to today's references and job history.http://www.butteamerica.com/labor.htm

In many respects, the working world really hasn't changed all that much. A few things have changed. Government is by far the largest employer now. Human resources, litigation and law have taken over where most unions left off. We have taken credentialing to ridiculous heights. The government, bankers, and universities routinely exploit students seeking the means and the education to increase their lot in life. Companies skim the best and the brightest  students and demand steadfast loyalty. They want obedient slaves- not independent thinkers. In time, corporations will eventually reduce every fringe benefit that they can in order to enlarge margins.  They can't really kill you anymore. They just dump you onto the government unemployment dole. Or offshore your job to one of 2 billion Chinese workers willing to work for one dollar an hour.

It's always been about greed and money. Always. It was that way in 1917 and it is still that way in 2013. The bastards just keep winning.

So who are these elite bastards?

The bastards are a class of people who understand how to exploit labor. They pay people just as cheaply as they can while reaping enormous profits for themselves. They are never concerned with anyone other than themselves really- although they will pretend to care about workers because civility and propriety demand it and they must continually recruit and attract new workers as they dispose of old ones. Having garnered huge fortunes- they occasionally fling a few crusts of bread to some charity here or there. They use charities to enshrine themselves. Buildings are built for them, often christened with their name. They claim to be great humanitarians but that's not who they are. They are simply people who happened upon a great opportunity and seized it. They then extract the maximum amount of wealth that they can- any way that they can. They always have a few key people who surround them and facilitate their wealth gathering. Those people are handsomely rewarded and often act as professional cheerleaders and ego guards. They deflect any criticism.

I have always known this. It was a gift bestowed upon me by the son of miners in 1971. It was by far and to this day, the most important lesson I have ever learned.

Many folks don't know that the the copper industry, the Anaconda Company and their owner/ manipulators, played a huge role in fleecing America just prior to, and perhaps actually caused, the great depression. From Wiki:


Great speculation

In 1928 Ryan and Percy Rockefeller aggressively speculated on Anaconda shares, causing them to go up at first (when they sold) and then to go down (when they buy them back). Known today as a "pump and dump", at the time it was not illegal, and was actually quite common. The prices, under the pressure of a "joint account" set up by Ryan and Rockefeller of nearly a million and a half shares of Anaconda Copper Company, fluctuated from $40 in December, 1928 to $128 in March 1929.
Smaller investors were completely wiped out. The results are still considered one of the great fleecings in Wall Street history. The American Senate hearings concluded that those operations cost the public, at the very least, $150 million. A 1933 Senate banking committee called these operations the greatest frauds in American banking history and a leading cause of the 1930s depression.[citation needed]

[edit]Great Depression

In 1929 Anaconda Copper Mining Co. issued new stock and used some of the money to buy shares of speculative companies. When the market crashed on Oct. 29, 1929, Anaconda suffered serious financial setbacks. Moreover, at the same time, copper prices started going down dramatically. During the winter of 1932-33 copper prices had dropped to $0.103 per kg, down from an average of $0.295 per kg only two years earlier.
The Great Depression took its toll with massive unemployment in both the United States and Chile (up to 66 percent unemployment rate in the Chilean mines). On March 26, 1931, Anaconda cut its dividend rate 40%. John D. Ryan died in 1933 and was buried in a copper coffin. His mighty Anaconda shares, once worth $175 each, had dropped to $4 at the bottom of the Great Depression. Cornelius Kelley became the Chairman in 1940.


Cornelius Kelley, or "Mr. Anaconda" was no saint. But that biography will have to wait for another time.

Is there an alternative to the greed based, capitalistic working model that enslaves most of us? Yes Virginia my dear, I believe there is.

Years ago, I stumbled onto an extraordinary business model. It was a model wherein the owner/operator of a company paid himself the exact same salary as his 6 other workers. All of their salaries were based on their mutual success and they were all paid exactly the same amount and they worked similar hours. Each had a specific job to do- and they all agreed upon this socialized business model. Because nobody was taking a lion's share of the profits- all of them made very good money. I would dearly love to find that company and find out if the business model went well or if not, how it failed. I remember thinking at the time that I stumbled onto it- that someone had finally found a way to succeed without exploiting others. Here's the socialist business model that operates in much the same way as the business I just described. http://www.openforum.com/idea-hub/topics/money/article/a-look-at-a-more-socialist-business-model-1/

Today in Butte, a bunch of drunken lunatics will take to the streets in uptown Butte. They will drink green beer, listen to the bands play, watch the kids try to grab a greased pig. Many do not know or perhaps care, that they are dancing amidst the history of this country. This is where the elite and the uneducated working stiffs squared off for a brief moment in time in the 1910's. A lot of people were killed in uptown Butte and they are mostly forgotten now. Heroes don't always triumph. The sons of miners taught me that when the good guys lose...

... often, the bastards just keep winning.

















Tuesday, March 12, 2013

Golden Blog Report- The Pointman

Even a blind squirrel finds an acorn now and then and so I must confess. If I had any writing ability at all, I would want it to look like this.

Excellent. Free. http://thepointman.wordpress.com/

Monday, March 11, 2013

Adam Carolla's Epic Anti- Huffpo Media Rant- Not For Women, Children, Monks, or Mormons

I couldn't have said it better. Grab a beverage, you'll like this.



Judge Tells Bloomberg, Nah... You Don't Get To Run The World

Striking a blow against tyranny while acknowledging  "freedom" , a judge has struck down billionaire Mayor Michael Bloomberg's edict that people must quit drinking big soda pop.

This is the quintessential EGO- the one that tells us how stupid we all are- while he- King Bloomberg, occupies the vaunted and soda free high ground. http://money.cnn.com/2013/03/11/news/companies/soda-ban/index.html?hpt=hp_t1

Gawd I hate tyrants. Now if only the Supreme Court had gotten rid of that POS Obamacare edict- I might actually have believed that we lived in a free country.

Huge POMO Month, Link to Sheep SmartAssery

Somewhere I bookmarked the POMO (permanent open market operations, aka FED counterfeiting) schedule for March. In a nutshell- anyone shorting the market this month is crazy. I remember that Mar. 15 is the juiciest day of the month...

With the Fed buying mortgages and treasuries hand over fist- 5 billion on Friday alone- you simply have to stand out of the way. The banks selling the FED these products are going to park that money in the market. The great tulip craze continues.

This is a market that you cannot go long on- you cannot short (right now) however, I am convinced the grand experiment is almost over. Bernanke's going to keep the accelerator mashed on the floorboard right up until his term expires Jan 31, 2014. By that time the full scope of Obamacare will be on display and there is not a doubt in my mind that Bernanke will get the fuck out of Dodge.

I continue to be in awe, daily, at the greatest zombie stock market ever created. With trillions of debt added, reduced corporate earnings which were earned and off shored, reduced wages and shitty jobs, rising inflation and taxes, some expensive Obamacare taxes with horrible coverage on it's way, and a media culture absolutely owned by the state- Ben Bernanke's thesis continues.

How would you like to be the poor sap that follows this shit up?  Not me. Forward to smartassery.

Here's the deal. You simply can't ignore the effects of FED intervention. They have taken an absolute dead patient (US economy) and injected epinephrine and defibrillated it with trillions upon trillions of anti-deflation dollars. (stimulus, gawd how I have grown to hate that term) How long can they continue to keep the patient alive?

Who knows? Just because the patient's heart is beating doesn't mean he is going to sit up and run a 5k.

Nobody really likes a smart ass. Especially a smart ass who thinks they are brilliant. They annoy those of us who really are brilliant.

Which brings me to the salient point. I simply can't deny the illusion of a healthy market that the Fed has created. The simpletons would like to forget the inconvenient fact- that this illusory and healthy market was created and manufactured with the aid of trillions of dollars in the form of QE 1,2,3, Operation Twist and Now QEternity at 85 billion a month. Trillions of debt which somebody is going to have to pay.

The smartasses always and very inconveniently forget to mention the brontosaurus in the room. It is simple. You ain't rich if you have two million and owe the IRS 6 million.

It's a funky delusion. The same one that is occurring daily in the U.S. as I write. However, right now the sheep are winning. The delusion is working up until some point at which somebody else will say- "I want my fucking 16.6 trillion or I am gonna double or triple the interest" which some will say is metaphor, others inevitable, as future generations are taught to hate us and rightfully so.

So as you gaze at this piece of smartassery, quite possibly written by the same authors as those who write at naked capitalism, note the absence of that most inconvenient of facts. That Hauser's Law states that you can't tax yourself to prosperity and you certainly can't do it beyond 19.5%-

All debts are paid, either by the lender or by the borrower. That includes that 16.6 trillion with a currently flat lined GDP.

Convince me oh great optimists how we are going to take care of that. How are we gonna pay that debt? If you can do that- I'll renounce my doomer status and extoll your brilliance.

I have 2000 years of recorded human history and tragedy on my side. Right now I am losing and the sheep are winning. But that will change. It always does. I can almost taste that Gyro sandwich now.

Here's the counter view to all that which I hold near and dear. Who says I don't play fair? http://nihoncassandra.blogspot.com/2013/03/take-zero-hedge-test.html


Bad Ideas, Like Bad Verdicts, Last Forever (Originally Published in March of 2013)

Of all of the stupid things we do, changing our clocks each spring and fall, has to rank near the top. The anarchists of Arizona don't r...