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Saturday, March 9, 2013

Dead Man's Party- The Sunday Collage

In a day early.

In life, we all choose who and what we want to be. Your ability to make informed decisions should be based in fact or as close as you can get. That is the best you can do and sometimes that doesn't always work. So I try to be as accurate and as truthful as I can be. I am not here selling bullshit.

I write here. I ask for nothing and I receive nothing and I will tell you this. I am not here so that some uninformed whack job who finds the truth to be inconvenient can launch his vitriol all over the comment section. If you don't like what I write here- just leave. I will cancel your subscription and return your money. 100% guaranteed. You will then have enough free time to read about Katie Couric's makeup or what the stars wore to the Oscars over at Huffington Post.

Remember Harry Markopolis? I do. Harry only had to tell the SEC for 9 years that Bernie Madoff was a fraud before someone actually took notice. As it turns out- they never did listen to him- Madoff's scheme imploded first. So what I thought I'd do today is prove to you that our nation is bankrupt and why it is that we can never pay our debts. Hopefully it will not take 9 years nor will people be calling me Frankenstein Markopolis although...that has a nice ring to it.

Are you rich if you have a million dollars in the bank but owe 3 million dollars to the IRS?  I don't think so but there are those who would argue.

That's the dead man's party. I'm a least until I pay my debts. That type of delusional thinking is precisely the current state of affairs in the U.S. So there's that and then there is this...

A comment from Zerohedge which captures the pure essence of my writing philosophy. I wish I had written it.

McMolotov's picture
Remember, 95%+ of the populace has no fucking clue what is going on, its like talking to your dog.
Which is precisely why I no longer give two shits what they think of me or anyone else who knows what's going on.
I get what you're saying, but there's simply no excuse anymore for being uninformed or misinformed. Information has never been as freely available as it is today. At this point in the game, it's likely they're either complicit or willfully ignorant, neither of which is worthy of any respect.

Have you ever awakened from a dream, covered in sweat or shock, and wondered if it was real? Or believe that if you dream something often enough- it becomes reality?

So as our "leaders" continue to mask and hide the realities of our bankrupt society, perhaps we have actually begun to believe our own bullshit. Perhaps people will believe our economy and country are fine just as long as we print and add over a trillion dollars worth of liquidity to markets every year.

What the FED has done for the past 5 years is UNPRECEDENTED in the U.S. Nobody really knows how monetizing the debt and printing trillions will turn out. Most of us think it will eventually lead to hyper inflation.

Ever hear of Hauser's Law?

Hauser's Law is a historic figure that has remained static for about 75 yeras or since WWII. Essentially, Hauser's Law states that tax revenue averages 19.5% of GDP no matter what. Historically speaking if GDP were 15 trillion, then the US would take in just a shade less than 3 trillion in tax revenue.'s_law

In other words, Hauser's Law is a cap. No matter what our government does- no matter who it targets or how much it raises or lowers tax rates- all the government can grab is about 19.5%.

So what does that mean?

It's a dead man's party. We're broke and pretending not to be. Our liabilities far exceed our assets. We cannot EVER raise enough money to pay what we owe. We cannot tax away that 16.6 trillion we owe when the absolute most we can tax each year is about 19.5% (this year the CBO says taxes will hit an all time record of 2.7 trillion) and yet we will spend 3.5 trillion this year alone- thus adding another 800 billion to that massive 16.6 debt that we cannot possibly pay.

All debt is paid. Either by the lender or by the borrower.

Therefore, it is mathematically impossible to tax ourselves out of this mess. It can't be done. Hyper-inflate debt away, default, or extend the dead man's party just as long as we can. Those are the choices. Right now- it's the dead man's party with Ben Bernanke supplying the punch. I don't see that as good or bad- labels that actually don't really matter. I just see those things as the potential outcomes and I have positioned myself accordingly.

I shall leave you with a little Oingo Boingo before I fire up the RoadKing. Have a good weekend!

Wednesday, March 6, 2013

This Woman Has Balls- Orly Taitz

I have often thought that the one thing that truly successful people have is a bulldog style, a never give up level of perseverance.

Ask Harry Markopolis about that.

Orly Taitz is trying to get to the bottom of the Obama mystery. She refuses to give up. While the rest of the country quite frankly doesn't seem to give a shit, Orly keeps on chugging along. She reminds me of that poor sap Harry Markopolis who spent 9 years trying to ferret out Bernie Madoff.

In the end Markopolis prevailed. The SEC, the fucking chumps that they are- did nothing.

Here's Orly's site. Interesting video. The mystery of Obama's Massachusetts social security number, like so many other things (transcripts, scholarships, girlfriends, passports) have never been answered.

The vid is about 4 mins. She has just served subpoenas on the judiciary committee.

The Vagina Gun

This woman comes with a built in holster. Gotta read the comment thread- funny shit ensues.

Tuesday, March 5, 2013

The End Game

Today I am going to talk a little bit about a fraudulent stock market that is close to bursting and other odd events that I am finding which are hard to dismiss.

Yesterday, I sold my position in a Russell 2000 ultra short fund. I was tired of getting my ass kicked when it suddenly dawned on me that we have not experienced the great "blow off top" that marks the end of bull markets- manufactured or genuine.

So I GTFO. Thank God. I watched today as the DOW set a new record. Aren't you overjoyed?

I would like you to consider a couple of things that are going on concurrently. I can offer references if you need validation.

Each year, our government spends 1.2 trillion dollars a year that it doesn't have. They call this deficit spending. In addition, the FED is buying 85 billion dollars per month both in mortgages and treasuries. When we add the 1.2 trillion of debt we add each year with the 1.1 trillion of funny money that the FED uses to print and buy mortgages and treasuries...

Our government is adding 2.3 trillion dollars per year in spending and debt- money that does not exist. Money that flows into fraudulent GDP figures as all of that government spending cooks the books. Think about the 2700 armored vehicles that Homeland Security just bought. Or drones. ( I selected this link specifically because I believe the author is practicing some apprehension, disbelief, or cognitive dissonance which seems appropriate for this piece)

All of that make believe money has to go somewhere. Right now, the only game in town is the stock market. The FED and it's member sycophants have ruined every other asset class as bankers, hedge funds, retirement fund managers and anyone else who relies on returns and yield are getting funneled into the investment of last resort. Ben Bernanke's POMO fueled, inflated stock market which is getting very close to completely bursting.

It's blow off top time. After that, the mother of all bear markets and staggering inflation. People, millions of them, are going to be financially ruined. And they are going to be PISSED. How do I know that?

Because that is the history of money printing. Always. Wealth is destroyed- and the people with tangible assets, real money like gold, art, and farmland- make it. Everyone else gets cooked.

But don't take my word for it.

Ludwig von Mises – Austrian Economist (1881- 1973)

Don't think that the government doesn't see this coming. That's why we are seeing 1.6 billion rounds of ammunition being purchased by DHS, drones used domestically, and 2700 armed Homeland Security tanks. They ain't doing that to defend against invading forces- they are doing that to protect themselves from you.

If they can grab your guns first- that's even better.

Here's the best part. The vast majority of people practice cognitive dissonance. I am convinced that they do. They think there is no way that our government could be planning for events like that. That's how sheep think. Those wolves won't eat us. They like us. That's how government is assembling and amassing right before your very eyes- additional IRS agents, ammunition, domestic drones and tanks, a domestic fighting force. They are preparing. They know what is coming.

If you don't think government will shoot you, pls. read this.

So do I. I have never been this nervous in my life. I do not practice cognitive dissonance which is to say, I rely on what people do- I don't believe anything that they say. Right now my government is amassing a domestic fighting force while our President has just signed a bill giving him lifetime Secret Service protection. What are they saying? That all of this is simply precautionary and for our benefit...

That is patent bullshit.

Now you get to believe what you want to believe. You can discount everything that your lying eyes are showing you (tangible evidence) and you can believe your government's statements instead. (heresay)
Let me tell you a little secret. When four armed men with masks on rush your home they are not there to deliver flowers. Even if they say so and even if you desperately want to believe it.

Ever hear the leftists, the great statists, call other people conspiracy theorists? They do this because they practice cognitive dissonance. They simply can't believe that the Frankenstein Government that they have created and have been supporting so long- would turn on them. So instead, they call you a nutjob, a tinfoil hatter.

I suppose that's exactly how it was in Germany about 1937. The world ignored a lot of shit- practiced a lot of cognitive dissonance while Hitler amassed a gigantic army. That's what sheep do, that's what they are. They are self deluded- they lie to themselves. They rely on hope. They can't believe their lying eyes even as the wolves are about to slaughter them.

I think it's time for us to consider the very real likelihood, that shit is about to get really bad. They have drawn the roadmap for you- all you have to do is look at the fucking thing.

I shall leave you with a definition of one of the four types of cognitive dissonance. I think it's the one that is most appropriate here.

Belief disconfirmation paradigm

Dissonance is aroused when people are confronted with information that is inconsistent with their beliefs. If the dissonance is not reduced by changing one's belief, the dissonance can result in restoring consonance through misperception, rejection or refutation of the information, seeking support from others who share the beliefs, and attempting to persuade others.