Search This Blog

Saturday, November 3, 2012

Come Have a Few Laughs- The Sunday Collage

It's almost over- plus one hour.

It's been like a war zone this week. Thank gawd, here at FG, I have intelligent readers. I haven't had to kick anyone's ass or listen to one more nazi Obama hater tell me that my vote for Johnson is a vote for Obama.

Every once in awhile, if I am feeling especially hateful, I drop by Ace of Spades or Huffpo. I launch some vitriol and get out. Like a sniper. 

Have you ever noticed how the pro-choice people are still fighting a fight that was declared over with in 1973? Why do they do that? Because of editorials like this. It's all scare tactics, propaganda, and bullshit intended to get people to vote for democrats lest those evil Republicans overturn your abortion rights. You'd think those intellectually superior people in NYC wouldn't fall for shit like that but apparently they do. Like somehow Romney and Ryan could overturn Roe v Wade. In fact, given the last two atheist statist appointees, it would take a miracle to turn over enough Supreme Court seats in the first place and then overturn the law- which has been pretty damn safe for 40 years despite those evil Republicans. Like Reagan, Bush, and Bush.

I am surprised that the NY Times is not running articles on why the Vietnam War sucks and why we need to get out. 

My ex wife hated voting for a reason that had nothing to do with abortion or politicians. Oh sure, she hates politicians like the rest of us. But she hated the idea of jury duty even more. I am still receiving jury notices and I left town five years ago. So I am thinking she may have been clairvoyant. Dave in Denver hates voting for an entirely different reason. I'm sure he'd like Carlin's take on it. Maybe the public sucks. Absolutely precious.

Years ago when I was going to school and living off campus, there were these two ancient twin sisters who lived in the apartment above mine. They lived there for something like 60 years. I am not making this up. They drank, they smoked, they gambled, and they never voted. I liked them right away. I asked them why they never voted and they told me that they never agreed on politics. So instead of wasting their time and canceling each others' vote- they simply elected not to participate. That made sense to me. 

It's fall back weekend. That means we have to set our clocks back tonight. Come to think of it, daylight savings is another one of those ridiculous government ideas which I have long since forgotten just what the hell it was supposed to accomplish in the first place. From wiki: The US Dept. of Transportation (DOT) concluded in 1975 that DST might reduce the country's electricity usage by 1% during March and April,[13] but the National Bureau of Standards (NBS) reviewed the DOT study in 1976 and found no significant savings.[75]

No shit. 


Precious Metals Miners, Research, Thoughts

In keeping with my mathematically based opinion that neither Obama nor Romney can fix the deficit nor find the money to pay off that 16.3 trillion debt that we owe- I have been doing a lot of research lately.

Eventually the fiat money system will cave in. There will be a reversion to the mean- which will have gold and silver as the centerpiece of currencies. That's how it's been for thousands of years. Gold and silver are money.

It is interesting to note that just because you are in the right business at precisely the right moment in time- doesn't mean that you will be successful. A huge earnings miss at Barrick Gold proves this out.

I have always shied away from mining stocks. I'll tell you why. They are infamous for pumping and dumping stock on investors; inflating and lying about potential finds. Never have I seen an area of investing so filled with shysters. Mining has always been a feast or famine business. I grew up in a mining town. Butte is essentially a ghost town now, relying on various other business ventures to survive.

Precious metals also have one additional and monumental hurdle to overcome. Bankers. When you buy precious metals, you are actually buying puts on the banker's invention, currency. When people quit using fiat currency- they quit needing bankers. Bankers can't make money if you refuse debt and their fiat currency. They can't build those giant monolithic memorials to themselves when people realize that any debt at interest means in essence- that you are working for a bank. So banks have this giant captive work force of slaves that rely on debt and who in turn pay "interest" on debt. You could not dream up a better scheme for enriching yourself without risk and without breaking a sweat. Indeed, the only time Christ was pissed was at the moneychangers in the temple. Screwing people out of their money. Not much has changed- just the size and scope of the operations.

So that's what you are up against. Schemers, lies, boom and bust cycles, central bankers, and a market that seriously needs to correct. A formidable array of opposition. You absolutely have to use good judgment and due diligence- do not scatter what wealth you have to chance and the four winds.

I believe 25-50% of your money should be in physical gold, silver, and platinum. I even have about 100 pounds of copper in the form of old pennies and nickels.

I've put together a list of 21 mining stocks, juniors and seniors, that meet my "unhedged" criteria. One by one, I've been researching them all week. So far, I've invested in only two. Many of the miners, nearly one half, came from Dave in Denver. Dave runs a precious metal fund with a minimum "buy in" of 100k. It's very safe to say that Dave knows a little bit more about mining stocks and most importantly their financial status- than I do. Not only do I like Dave and love what he writes but for some odd reason- I trust him without ever having met him. I think because he is willing to stick his neck out. I have radar for cowards and Dave ain't one of those. I check his site everyday.

I have about ten other sites like TF Metals which I review frequently. I use 321 Gold as sort of a clearinghouse for information, a site my Uncle Lynn turned me on to.

If any of you are interested in the list of miners that I have- I will provide it to you with absolutely no opinion. You will have to do your own due diligence. Email

One last thought. Be patient. The world is financially collapsing and the people in power are going to try and stave off the inevitable. It will not work. Do not be a bi-polar investor. Don't worry when gold sells off 40 bucks like it did Friday. Gold and silver are the ultimate backstops in an irresponsible world of worthless fiat currency. There will come a day when conscious, rational thought catches on. You will be positioned correctly when that time comes.

Thursday, November 1, 2012

The Stock Market: What Could Possibly Go Wrong?

I originally scheduled this blog for 9/17/2012. I forgot about it.

On 09/17/12, I was watching a segment of CNBC where 4 talking heads all agreed that the stock market can only go higher.

Then after that, they brought on some guy who said Dow 15,000 would happen and then Dow 17,000 in a couple of years.

So what happened between 9/17/2012 and now? Er, down. How about the last 6 months?

The talking heads are salesmen with the same theme always. Buy stocks.

So we've had trillions of bailouts and stimulus, QE1, QE2, Operation Twist, and now QE3 to eternity- and all of that money printing since 2008 has only bought us a few thousand dow points?

What do we do for an encore?

I have known for quite some time, that economically, we are dead meat. That's not an opinion- that's a statement of fact. The problem with knowing something like that is waiting for everyone else to figure it out. They haven't figured out that we have a structural problem that we cannot fix. It's called the loss of 50 million jobs. So until then...

I call it the short side dilemma. You can be 100% right that a company or even an index is sputtering, failing, or fraudulently cooking the books- but if the herd doesn't figure it out and stampede for the exits- you're put options expire worthless.

So how do you play a fraudulent market buoyed by talking heads, funny money ad infinitum, and bullshit?

Here's what I am doing. I believe Romney will win the election in a landslide. Not because I like him but because Obama is such a wretched failure. You cannot short stocks ahead of a Romney win- obviously that includes puts. Good gawd- the man is a banker.

So what happens after Romney wins? The country is going to become giddy happy that Obama is gone. Particularly business. In this scenario- business is going to go on a massive hiring and investment spree. Businesses are going to start gearing up, banks will start making loans. We have a fiscal cliff dilemma which politicians will conveniently kick down the road again. Obamacare might be suspended. The DJIA may actually shoot up and beyond 14,000.

You cannot be short for the next few months. But one thing is an absolute certainty in this scenario. Spending and lending will increase dramatically- so will inflation and so will the value of precious metals and mining stocks. I have never seen a better scenario in all of my life for this. It's like the perfect storm. Big mature miners, cash rich, will be looking for additional assets. They will be gobbling junior miners up while the underlying price of precious metals can only levitate.

So that's how I am playing this for now. Junior miners with unhedged positions, physical gold and silver, maybe some calls on various precious metals funds and etfs...while I wait for the rest of the investing public to stampede for the exits when inflation goes double digits and the Fed shits it's pants- realizing that they'll have to raise rates (as banks unleash those trillions they've been hoarding) which in turn will cause the interest on our outstanding debt service to go supernova. That is the real storm. I will be short. You can count on that.

I said this four years ago and I will say it again. I don't think we can afford a recovery.

Government Needs Sea Turtle Observers, Good Benefits!

That is why I started this blog- Frankenstein Government- and I can think of no better example of statist government gone wild than this.

President Obama's administration, heavily criticized for the BP oil spill and closing offshore waters to drilling, has miraculously had a change of heart just prior to the election. Later this month, you'll be able to obtain offshore drilling leases just so long as you comply with government regulations. One of those regulations mandates that oil companies must hire marine wildlife observers to make sure drilling activities are not bothering marine mammals and such. I'm not sure how the monthly reporting might look.

You cannot make this shit up.

A Simple Explanation- Why We Can't Eliminate the National Debt

Thanks to reader Mark W, I viewed this clip yesterday on You Tube. I am constantly searching for simple ways of explaining to people why we cannot pay our debt. This vid might be the best I've found so far.

People aren't stupid. They just aren't all accountants or people with unlimited time to read the intartubes like me.

Take 5 mins. and give this a look. You'll be more informed than most folks.

Wednesday, October 31, 2012

Did Obama Watch With Indifference as Americans Died?*Updated

The answer is probably. Wow. Update from Republican Mother. Check this link out.

For weeks I have been reading and digesting everything I can find on Benghazi. Never have I seen a more reprehensible lack of reporting, honesty, or integrity everywhere. That is why it has taken 7 WEEKS for the truth to begin leaking out.

Why? Because the leftist media in this country are compromised. They want Obama to win. There is simply no chance in hell that any investigative reporting of Benghazi will take place prior to the election. If ever. They are very obedient subjects.

Please refer to my piece "On Cowards" from yesterday.

There are literally thousands of articles on Benghazi available on the web. As new information becomes available (daily) it is becoming crystal clear to me that Obama not only knew what was happening but that he was indifferent to it.

Right after the well organized attack on the Benghazi consulate you will recall that President Obama claimed it was a spontaneous act of terror. Obama promptly scapegoated some poor sap in California- going so far as instigating the guy's arrest by local cops on a bullshit probation violation somebody dreamed up. Probably a loyal democratic prosecutor. This was a convicted felon who was disposable and possessed no real credibility so he has no shot at a defense. He produced some anti- Mohammed films which were posted on You Tube and the President cited this as the flashpoint for the murders in Libya.

Complete and utter bullshit. Lies. Please watch this video for something a little more credible.

Benghazi was a well planned attack using 150 men with machines guns and perimeters. It was done on September 11. A drone was filming the whole thing in real time. The attack lasted from about 930 PM to 4 AM or the better part of 7 hours. At anytime, Obama could have intervened. We had military assets nearby and within reach.

So why did Obama do nothing and then lie about it?

In 1980, Jimmy Carter was running for re-election and hanging by a thread. He ordered up  "Operation Eagle Claw" which was meant to free American hostages. It was a complete disaster. Many say it ruined Carter's chances of re-election.

I was 19 at the time. Obama would have been nearly 18. We both remember. Could Obama have watched the Benghazi events unfold, not wanting to risk his re-election chances by intervening and screwing up something? Yes. In fact, I think that was precisely what happened. I believe Obama, the most self seeking narcissist I have ever witnessed, did not lift a finger to help the ambassador because it might make him look bad and effect his e-election chances if something went wrong.

Is Obama that petty and indifferent? Is it possible to prove? As a matter of fact- it is. A number of people know the truth. I believe Obama should be impeached. I believe Hillary knows the truth. I believe the Pentagon knows the truth.

But in our banana republic, where we have apparently rid ourselves of the rule of law, don't expect any investigation. Maybe some dog and pony show. The latest.

Tuesday, October 30, 2012

On Cowards

I detest cowards- I always have. I have radar for cowards. Honestly, without getting too political today, I think that is why I have never liked Obama. He set off my coward alarm. He serves himself.

Nobody hates free speech like a coward.

I started writing publicly 6 years ago. During that time, I have written some very personal things and I have put many of them out here for public consumption. I didn't do that because I am stupid or because I didn't think about the consequences. I do that for reasons that cowards could never understand.

Because truth, your truth, has great value. This life is a giant classroom and you aren't going to learn anything until you start speaking the truth, demanding the truth, and start hearing the truth. Cowards cannot do that. They have absolutely no ability to self scrutinize or self disclose- and quite honestly and consequentially- they have nothing to offer the rest of us. I have never learned anything from a coward except that- I don't want to be like one of them.

I get angry when someone is spilling their guts, trying to express a pain riddled truth about themselves, only to be trampled by a bunch of anonymous cowards in the comment section. In the old days, that type of attack would have generated a missile launch from me.

Nowadays, I just don't care so much for cowards. I give them no play.

Cowards always rationalize their inability to speak truthfully as something else entirely. They will call it restraint, good judgement, discipline. Cowards hate courage. They don't possess it and therefore they don't understand it. Cowards think people with courage are idiots. Gunslingers. They'll say things like..."you should think things through before you open your mouth." Of course they say that. That's why they are cowards.

The problem with our society is that it continually rewards obedient cowards and punishes the courageous. Is that so? Without a doubt it is. People in power fear people who challenge them- they eliminate them. Cowards are far easier to manipulate and control. Long ago, somebody planted fear in these folks and poured miracle-gro on it. Cowards are obedient, compliant. They become controlling types- continually advocating some safe strategy, worrying about shit that never happens, and dreaming up new things to be afraid of. Cowards never have your interests at heart. Only theirs. Therefore, you can safely dismiss cowards with the confidence that you have missed nothing of value. Unfortunately, there will be more of them. There always is.

The world will not be destroyed by those who do evil, But by those who watch them without doing anything.
~Albert Einstein~

Obamacronium Discovered!

Stolen from "It Ain't Holy Water" who undoubtedly stole it from somewhere else.

The author of this You Tube vid like me, has an idiot for an editor. You ought to at the very least, spell your title correctly.

Monday, October 29, 2012

New Orleans, Gulf Coast, Watches Frankenstorm

I moved to New Orleans about two years after Hurricane Katrina paid her visit there.

You learn a lot about human nature when money and lives are at stake. Here then were some of my observations in New Orleans in 2007.

The streets and highways were still torn up. Construction had closed a number of lanes. There was a military presence still guarding certain parts of town although I saw a lot more of that in the summer of '07.

The French Quarter was on higher ground than other places. It fared pretty well. In fact I noted no vacant buildings or construction there. Other areas of town, mid city and a couple of wards, received the worst of it. Streets were missing man hole covers. Every once in awhile somebody would ride a bike into one of these open holes and lose a few teeth. They were also pretty hard on cars.

Buildings and entire neighborhoods were left to rot. Chain link circled vacant lots and abandoned buildings. I passed several everyday on Canal, N of the  bridge. Debris was piled everywhere. Homes were crooked and listing. High water marks on the siding. There had been a shortage of licensed contractors and most of them were fraudulent. Many had greased city officials to get licenses. Fraudsters, posing as contractors, were paid exorbitant amounts from some homeowners who simply got screwed.

Two class action lawsuits were filed trying to recover damages from insurance companies. Flood damage wasn't covered so homeowners without a spare 100k or so had no recourse but to sue- hoping that a judge or jury somewhere might agree the storm surge was caused by wind which was covered- rather than water. I thought it was a reasonable argument.

Of course the homeowners lost. Like all good crony capitalist ventures- insurance companies vigorously fight paying claims and even when they lose...they manage to socialize losses through a pool of people whose premiums go up- or through taxpayer subsidies. George Soros has close ties with Progressive, Warren Buffet owns Geico. In the elite world- elites win and you lose. Always. Who wouldn't want to own a company wherein the government forces you to buy their products?

I was amazed at New Orleans. The government didn't really give two shits about that town. Hundreds of thousands of people left and never came back. Their houses, uninsured and destroyed with no flood insurance, were uninhabitable. Often I think, Katrina was the first domino of our great recession. Odd that we always have money for war. We invest in killing.

There will always be those that say people in New Orleans were too stupid to evacuate. Or that they were too poor. Or that they should not live on a coastline. I could say the same things for the east coast and indeed, those things are partially true. But even if it were all true, it still doesn't absolve the government's incredibly shitty response. If New Orleans is or was the baseline- you can bet residents there will be watching everything unfold in NYC. I can already hear the comparisons.

I send my money in. But I don't get to elect where it goes. I bet nearly 100% of us would elect our own U.S. disaster relief. We'd invest in  American lives rather than some eternal war in Afghanistan.

A cop in New Orleans told me once that the police department shot 180 looters and drug dealers after the storm. I have never been able to substantiate that number. It is probably grossly exaggerated, but I'm not entirely sure.

So what is different about Frankenstorm, Jersey, and the NY coastline? All the money and influence in the free world is there. You can bet your ass that no matter how bad Frankenstorm is- NYC and the surrounding area will not be waiting two years for contractors and manhole covers. Nobody is going to string chain link around the financial district. Looters will not be shot, bodies will not be left floating in stagnant floodwaters.

If you are stuck on the upper east coast- I wish you the very best. I hope your losses are minimal. It will be interesting to see the response there v. the Gulf Coast response in 2005. You can bet the folks in Louisiana and Mississippi will be watching.

Eating Yourself, California Style

Heh... and I'm not talking sexual innuendo, either.

Years ago, I think in South Carolina, politicians had this brilliant idea. Let's tax the rich! We'll take their money from them and redistribute it to everyone else. Which if you think about it- is all that government does. Never do the statists consider spending less. Thus anytime you have a revenue problem, the statist solution is to take more money from people. Usually from those rich bastards. There's not that many of them and we don't like them anyway. 

Mostly, the statists don't even know they are statists.

People are leaving California by the thousands already. When you begin to tax the rich like they did in South Carolina years ago...guess what happens? The rich leave. Tax revenue actually went down. But state doesn't quit taxing. They go after the remaining survivors.

So people don't just sit idly by and let government steal their money. Weird, huh?

The problem California has is that it is filled with people willing to implement and initiate new programs as long as they can do so with your money. Laws for cross dressers and happy meals coupled with welfare for everyone, guarantees that sooner or later you will run out of other peoples' money. Then you are forced to start using your own money to administer that bullshit. One day, all of that good will gets out of control and voila! Everyone is drinking your milkshake- except you.

Elite Nudists Pressure Frogs Into Action!*Warning Royal Nudity

Photographing Kate Middleton's boobs is apparently a non starter in France. Now I've avoided posting nude photos on FG for a number of reasons, however, for illustrative purposes only- I have hijacked a photo of Kate Middleton's boobs. I can only pray that the French or Interpol won't storm my house.

Royal Boobs Look A Lot Like Regular Boobs, Odd Huh?

Here's one of the few reasons I take a Huffington Post feed. Where else can you find worthless shit to read about? My hometown paper only publishes twice a week.

I remember a day and time when my thought process went like this. Hmmm..."I don't want anyone photographing my private parts today- therefore I don't think I will expose them in a public place."

That's how cloudy my thinking is. Apparently I had it all wrong. If you are famous and have a little clout and money- you can have anyone arrested while your role in the matter becomes inconsequential or conveniently invisible.  In fact here in Idaho, Ms Middleton's the one that would get arrested for indecent exposure. They would call that photo "evidence." That's how backward we are.

Most of the clothing worn now days really exposes a lot of boob. So apparently catching glimpses of boob is ok as long as it's areas of the boob that are deemed harmless. Upper and side boob shots are legal. The nipple, under boob, or heaven forbid- the full boob photo is how the criminal clock gets wound up in France.

Now don't get me wrong, I am a libertarian. That means that I prefer no laws regarding nudity. I don't mind Kate Middleton's boobs, either. I think the real story here is that the French police finally found something to do. Dangerous criminals, like the one that photographed Kate, have me worried.

I will sleep better knowing this madman is off the street and behind bars.

Sunday, October 28, 2012

The God of the Machine- The Sunday Collage

Today during breakfast, I had an inspired moment. These moments come when someone else sparks something, my mind immediately wanders, and I stumble onto a philosophical truth. This morning's thought occurred as another person was telling me about a forklift accident.

We've only got 10 days left until the national insanity is over. So let's start here...

Currently there are nine recognized types of intelligence. Here's a test to confirm what you probably already know or suspect. For the record, I score highest in intra personal intelligence followed closely by interpersonal intelligence. That means that I can process my own thoughts and emotions pretty well- including the emotions of those folks that I am in contact with. There are seven other types of intelligence and quite honestly, I'm not sure that I possess much if any, of the other types. Two out of nine. A typical score for me.

Writers and philosophers share those traits. Go figure.

The sub heading on my blog is a quote from the 1943 book, "The God of the Machine." It essentially states that mostly, all of the harm in the world has been done via the well intentioned acts of others. The "God of the Machine" and then some 15 years later, "Atlas Shrugged" help define the boundaries of current libertarian thought. Both books also spell out quite accurately- what happens when government interferes with the lives, liberty, and freedom of it's citizens.  You can download the God of the Machine for free on the internet. Here's the Cliff Notes version of "Atlas Shrugged."

We all have to make choices and decisions about our lives. Nobody makes a decision thinking at the time that they are making it- that it is a mistake. It is only after a decision is made and it goes wonderfully well or woefully bad- that we are able to reflect back on it. Our memory of these choices and decisions is what gives us wisdom and maturity. Real wisdom can also help us to distinguish decisions which were uniquely situational. Choices that may have had a different outcome because the circumstances were different.

It is a complete and utter disaster when we make a bad decision and suffer the consequences, plot corrective action, and then make the very same mistake all over again.

We did it in 1929. And nearly 80 years later, we did the very same thing. The economic meltdown of 2008 was a preventable disaster with a historical precedent. It begs the question. How could we have been so remarkably stupid? Sometimes we are out right lied to and deceived. That happened with the 1913 Federal Reserve Act. So this time around- not only did we make the same mistake- but we have doubled down on the damage by wasting an additional 6 trillion dollars we don't have. So mostly...

We forget. We forget who the villains are. But mostly we forget who we are. We do all sorts of things intending to help others when in fact- we are not helping them at all. We make the same mistakes over and over again. We don't think our decisions through. But mostly we don't learn from our mistakes. Oh sure, we bullshit ourselves and say that we do- but we really don't. Or we think the mistake that we made once was isolated- and somehow not our fault- perhaps just some freakishly bad luck.

In our world it seems that it is no longer honorable to be a student while many think they are qualified to be teachers. Never have I seen so many people- so self deluded. People practicing contempt prior to investigation- launching attacks because in their minds- all of the evidence is in. The issue was decided long ago. I am right and you are wrong. I wish I could tell you that I was above all of that insanity. Unfortunately for about 46 years, I practiced all of the self delusion that a person can lay hands on. One day in 2007, the universe just kind of ground me up and spit me out.

Somehow I think, human beings should have more evolutionary capacity than plankton. We keep getting a few things wrong and we keep repeating the same mistakes. We are about to do it again. I am getting comfortable with that process. I have listened to a lifetime worth of vitriol directed by one group of people practicing contempt prior to investigation- ridiculing an equally armed group of people yelling back. I have to get ok with the idea that millions upon millions of people are entitled to make the same mistake over and over again, dutifully believing that they are doing the right thing. Just like last time. One day, there will come some painful reckoning when the universe spits all of that out and we will define a whole new system of governance.

So I think mostly- people are trying to be good. They do a lot of damage in the process. I think that's necessary.  I don't think anybody wakes up and says, "ya know, I think I'll go to work today and wreck the forklift. That sounds like a lot of fun." But mistakes, and more importantly the consequences, are how we learn not to repeat them.

I just wish when it came to politics- we could learn a little faster than plankton. Maybe increase our speed to full ahead glacial.