Saturday, April 17, 2010

GOVERNMENT SHUTS GOLDMAN SACHS DOWN

Sources report that the U.S. Justice department and the SEC in a coordinated effort locked the doors of the Goldman Sachs office in Manhattan and New Jersey after the close of the market Friday. It was reported that at least a dozen gray prison buses were seen being loaded with unidentified employees and officers of the venerable institution. Most kept their heads covered to prevent identification. Several bystanders were arrested for throwing eggs and painting obscene slogans on the buses. The mob was dispersed by mounted NYC police at the Broadstreet location.

A press conference is scheduled at 900 am April 17 by the US Attorney Generals office to update the dynamic situation. Typically there would have been an immediate response, but there were ongoing arrests at a number of locations within the New York Federal Reserve offices and at several other major Bank locations. The Gambino crime family was being asked to leave the prisons in the New York to make room for the oveflow of arrests.

OK thats enough satire...I give. I can't help it. This story is just toooo funny. Do they really think this is going to satisfy Nature. Let's see. A 31 yo junior exec at GS named Fabrice did it. You gotta be kiddin me. Thats equivalent of saying that 5 enlisted men and women committed all the atrocities at Abu Ghraib. We're supposed to swallow that?? hehehehe... Anyway the point of this is I really don't care what they trot out because it is all for show. This is a systemic cancer that cannot be removed, since the system is completely corrupted. What is the solution? We as individuals are the solution. We participate in the ponzi because of our own avarice and human failings and lack of moral courage. Including yours truly. WE are cowards. WE don't demand integrity or justice.

If you are going to be a trader in this market you have to know that this entire show today was just that. A show. A dog and pony show for the masses. We may see some brief fall out next week in the market but don't even count on more pullback. This is an effort to restore CONfidence and they would never prevent this market recovery without calculating every market effect of a move like today beforehand. So the game is still on. Look for the "buy" next week. gl gang btw we needed some steam out of this market...we may get it...at least we know why they ran it up...had to beat that friday news deadline....

http://www.huffingtonpost.com/2010/04/16/goldman-sachs-fraud-expla_n_540938.html

55 comments:

  1. Kli,
    Thanks for all you do. You put things into perspective and give the serfs like me a fighting chance. Thanks to all the great contributors too.
    Congrats to TXB on her GS killing. I have just officially entered the ponzi, As I just took a job "bird dogging" for a Commodities broker. I feel like I am where I am supposed to be for the first time in my working career.
    It's amazing how your description is so accurate of the big picture. Even the veteran traders in my new office don't really get it, with one exception. They all say there will be 2 to 3 weeks of blood. I tend to agree with you, that it will just be a slight blip, but of course, no one can predict what the market will do with total certainty.
    I will look to buy into Pal next week if it gets hammered, CNAM looks to be a buy soon too.
    Good weekend to all
    -CBS

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  2. excellent post by Rtspayne ( SKF board) in regard to why most Americans are dumb:

    most Americans are quite dim. To add to the carnage, most are also provincial. Add to this that they are ignorant of both history and geography. What's that spell? Idiots.

    The citizens of the rest of the world probably know more about history, but that's about it. Anywhere you go, really, people are basically, no surprise average - which is to say dim, self serving, modestly to not too educated.

    I used to poor opinion of most folk for these exact reasons, until one day I started reflecting on Darwinism. I had the realization that, generally speaking, it's the sea of idiots who are out-breeding the educated, well heeled folk. So, the sea keeps getting bigger, while the educated have zero or ever fewer kids. The realization is that it's all about survival of the fittest, and obviously the most fit from a reproduction standpoint are the people who don't ask too many questions and don't ask too much of life. There is supposed to be an evolutionary component of Darwinism, but aside from obesity, which is hardly positive and not easily arguably evolutionary, but maybe I'm missing something.

    Interestingly, it's easy to understand why wealth and power are increasingly possesed by fewer and fewer "haves" because the sea of idiots keeps growing and they are, generally speaking again, the have nots.

    San Francisco, New York, Seattle, Boston, Austin... where there is a concentration of "elites" may get criticized for their eliteness, good schools, etc. by who can blame successful people from wanting to be around others of their ilk?

    Demographics is the ultimate fundamental. The demographics of the USA ensures this country continue its journey toward the mediocrity that the masses both engender, reinforce and ensure.

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  3. Kli, good post and I agree, this is nothing more than a good opportunity to look for long entries. I would love to see some downside, since frankly some positions hardly bothered to blink over Friday's action. - Analyze.

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  4. Edit: see some MORE downside. - Analyze.

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  5. Thnx folks....my goal is a selfish one here and that is to provide a format that keeps a group of talented people together to provide a collective intelligence. Joe has the experience and knowledge of the market that helps put this board above most...but without mentioning other names its amazing the intellect here. Hope all of you stay with this ponzi but when you leave ...I will understand......gl

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  6. What is the solution? We as individuals are the solution. We participate in the ponzi because of our own avarice and human failings and lack of moral courage. Including yours truly. WE are cowards. WE don't demand integrity or justice.


    A few of us care KLI. See the growing Tea Party movement.

    But what can we do to change it? Let's just say we dismantle the kingpins in NYC. Won't others form in a couple of generations?

    Capitalism is a tricky business. No one says we got it right the first time. We'll be long dead before it's perfected.

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  7. Jay play by the rules even though they may not work for you...I know that sounds like a contradiction. Try to change yourself first. If you view your actions on a daily basis as conforming to the ponzi then adress them individually...also sounds simple ...but i am sure you can think of examples. this is a great discussion and i am involved in a project right now....i promise to post a more lengthy response...Joe is a fiend on this subject and has burnt a hole in my brain on this....see ya later

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  8. Jay,

    Tea Party movement in principal is not a bad or destructive move, how ever with the exception of Ron Paul the rest of the so-called leaders of the tea party are numb-nuts who are controlled and paid for by bankers and big lobby interest, also within the tea party values of individuals vary from those that have racist agenda ( thug) to those who are knowledgable about constitution and want constitutional party. Majority of tea party followers along with their leaders do not understand civics. The problem with the world we live in is that majority of those who chout about lack of justice or fairness do not care about that concept, what they envy is the power thery do not have and wish to acquire not justice. People are what they do, not what they say. History repeats itself time after time, those who had power and lost it or those who are at the receiving end of it really are complaining about lack of POWER not lack of JUSTICE. It reminds me of the movie " Devil's Advocate" with Al Pacino. Al who plays the role of devil tells one of his subjects, " I like the concept of CHOICE and FREE WILL GOD gave you monkeys, with your tongue you curse me and praise the lord and talk about integrity and justice BUT in action which is what it counts you do what I want you to do, I do not even have to do much for you to give in to your selfish and wicked desires and your pride and egos knows no boundry, so tell me when it comes to real action who is winning, hahaaaaaa"

    Joe

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  9. Jay see if you can figure out the short answer now to your question....

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  10. By the way folks, most people want capitalism but they complain about concentration of wealth by few at the expense of many, dahhhhhh, what do you think capitalism is?

    Joe

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  11. kli,

    Speaking of the subject we are discussing, couple of weeks ago a friend of my wife was complaining about how corrupt GS is and the unethical ways they make money. I agreed with her and asked her a simple question, " If GS offers you $2M to do what they do, will you accept the job offer?" She replied without hesitation, " Yes, I would be stupid not to take it". My reaction was, " heheeeeee"

    Joe

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  12. Joe, excellent point most human beings give in to temptation and will take what they despise verbally given an opportunity due to desire for wealth and power which has nothing to do with justice. It's easier to blame the powerful than fixing the darkness within one's heart. You are absolutely correct when you mentioned, we are what we do not what we say, people are good at lying to themselves.-Jim

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  13. I will chime in as sanctioned by the grand poobah hisself. The psychological concept of "projection" asserts that we identify and criticize character defects in others precisely to the degree that they exist within ourselves, becoming the most disgusted and angry when we see in others what we dislike the most about ourselves. Hence the ability of the true Zen masters to observe and remain detached and resist the temptation to label some people "good" while others are "bad".

    I am glad this forum is here because it gives me hope and something to turn to for insight and a degree of comfort in the light of what certainly appears to be the unraveling of the "American" way of life. Kli and his cohorts have helped me to understand how this market is truly not what it appears to be, and is to be genuinely feared for it potential to ruin the unwitting "investor" or "trader" as the case may be. As a result my wife and I are largely in cash right now, and I am hoping that an opportunity to start a core of miners has presented itself. I have been very cautiously selling some covered calls on a small met coal position to make a little extra cash, but that is all. It took me losing the better part of $200k attempting to short a market that should have been on life support, only to watch it climb higher and higher. I surrendered to the fact that I did not know what the hell I was doing and started living my life again, playing music, helping others, and reconnecting with family and friends. That is where life is. When this is all said and done, these are the things that will matter.

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  14. Jim, I have come to believe that mortality is what drives evil in humans. The sense of time running out afterall is what makes us urgent on anything. And urgency pressed on humans to make decisions is our tragic fault. Running out of time has always been the driver for human progress, just like war has been the caldren for invention, but the end result has never been the betterment of anything under the law of sedition. The pattern repeats, the seasons continue, and nothing is new under the sun. - Analyze.

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  15. Just to continue this abit, one thing that has weighed on me for some time, is why am I alive and what purpose do I serve? Everyone goes about their lives, and the natural mode of society to ignore death is to find a comfort zone within a mass acceptance, so that average is good, and conformity is right. But what use is that when I piss my pants in a water-chair, and have my adult-sized diaper changed. Is there nothing more to anything than just existing like this? Living out our days and denying we are human until old age and death prove us wrong? Why are we here, why bother to even post to people who would never even recognize me face to face? Why the need to connect with others, when success from Darwinian rules would mean we should never connect with anyone to help them since we should just compete and try to destroy. It's all a mystery. - Analyze.

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  16. Sorry to vent on you Jim, you do not need to respond to this, I'm much better on the T/A side than bearing down on people in this fashion. Sometimes I need to let out how I feel, I'm a very vocal person, I let rip whatever I feel at the moment, but better to speak up than just sit here and pretend there is nothing more to life than this. - Analyze.

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  17. Excellent posts....and what you SHOULD be asking. As our "Ponzi Rendezvous With Destiny" marches on there are going to be startling shocks to many of your current perceptions of "reality". I firmly believe that some of your are going to find these "shocks" a rejuvenating breath of life. Hopefully there will be a "mother of invention" moment but by now you should know the "answer". Its really not that complex.

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  18. "I have become death...the destroyer of worlds"- Oppenheimer after seeing the fruits of his creation. I think this is appropriate for the current state of things.

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  19. Analyze,

    You mentioned:

    "I have come to believe that mortality is what drives evil in humans".

    It's really other way around. What drives evil in humans is the sense of ILLUSION that they are un-destructable and superior to others and the concept of all is one applies to others not them. EGO is a concept of tricking one to believe they are better than others. The only way to DEFEAT evil within one is thru AWARENESS not intelligence. Evil has lot more intelligence than any living human being, it makes the most intelligent people do crazy things thru it's best weapon which is GREED, FEAR, EGO,PRIDE, RAGE,,etc. Only thru AWARENESS one can defeat evil within themselves and for that one needs to recognize their physical existance is temporary not permanent. So what drives evil within men is convincing them thru illusion temporarily that they are un-destructable and others are not as worthy as they are.

    Joe

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  20. Prcisely joe.....When you are confronted with your OWN mortality...and most of you have not been...Then your perception can be transformed to ultimate AWARENESS. Some of you if given the time in this state will do an inventory per se of your life....realizing that in fact YOU ARE GOING TO DIE. Amazing how many comitting evil have NO sense of mortality. Their ego is their enemy and their greed fear pride anger drives their existence and in the end their lives are pathetic instruments for evil only.

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  21. If most human were AWARE which is the best weapon against evil and not intelligence then they would recognize that superior human being is the one with highest VIRTUE and that concept is ganist wealth, power, selfishness,,etc. Good person realizes that he/she is MORTAL and the only thing that matters is what they have done during the time they lived since every one dies and therfore DEATH is not the measurement for winning or losing.

    Joe

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  22. I type too fast, forgive the typos. Against wealth NOT gainst.

    Joe

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  23. Yes, that fits, the tie between mortality and evil, and deluding oneself about indestructibilty as the path to allow corruption to grow. Kli in your occupation you cannot ignore what the rest of us suppress about the end state everyone heads toward. - Analyze.

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  24. Analyze,

    kli faces other people's mortality in his profession, I can assure you they are others here that not only face other people's mortality BUT also their own at any given moment due to their profession. AWARENESS is always the key.

    Joe

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  25. Joe, good point, military personnel have this awareness close to home. Also anyone with health issues or family members that have them as well. - Analyze.

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  26. Analyze,

    do not forget about fire fighters as well who face death every single day.

    Joe

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  27. Eyjafjallajökull is the dwarf, Katla the giant.

    Depending on how long the volcanic plume hangs over northern Europe, this could accelerate stagflation as economic activity declines and the Eurozone is forced to print faster than the FED to forestall the collapse of employment. One of the reasons why very long overseas European bug out plans involving planes could be problematic if Katla goes off. Besides face masks, Nestles canned Alpo could be the next hottest thing in Europe over the next few years.

    Not sure of the immediate market decline extent since nature does not let her plans leak out at Fed meetings. But fairly certain now food crops will see a move up in the future if the plume covers Europe for more than a few months.

    So continue to prepare your personal lives, and don't play with what you can't lose even with the miners.

    Eyjafjallajokull: Impending Catastrophe?

    http://english.pravda.ru/world/europe/17-04-2010/113070-iceland_volcano-0

    People die all the time. Just like that. Why, you could wake up dead tomorrow. Well, good night.
    -- Homer Simpson

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  28. From one of my favorite comedians, Stephen Wright, famous for his surreal one liners:

    "I plan to live forever, so far, so good."

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  29. Kli, Red, and others, thank you so much for the hearty welcome and encouragement you gave me when I raised my ugly head a few days back. I was quite flattered. Sorry to have taken so long to show my gratitude. It is a beautiful day out there today and anyone who can should get out there in it. That is what I am going to do. God bless you all.

    Wilks

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  30. I think it's safe to say. Most of us playing the stock market casino are middle to upper class. Without cash, we can't play the game.

    But why do we play even when it's fixed? The system almost requires it. For a very long time our government has been pushing 401K's and IRA's through tax incentives. They want everyone to play the game. Then some of us with a little extra cash try to use common sense to go in bigger. We are pawns but still play.

    I sometimes wonder if a capitalist society without a stock market would benefit everyone the most. But how could it be prevented? Everyone likes easy cash. It's almost like we need to eliminate to passion for cash to take our civilization to the next step.

    ps. Great posts Joe. Now I know why KLI references you so often. You understand human nature more so than the stock market. This is key for going super LONG.

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  31. Jay, Joe understands the market, economy, history, politics, human nature and lots of other subjects. He speaks 7 languages fluently and in summary he is a machine. My wife & I had the honor of meeting him face to face this week-end and believe me the man is an awsome physical speciman as well, a freaking tree trunk, truely exceptional.-Jim

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  32. kli, everything you have said about Joe is right on and then some.-Jim

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  33. Partly disagree with Joe.. The rich getting richer is only capitalistic if they play by the same rules as everyone else. Sure real capitalism leads to social stratification all by itself, but in our real-world market a lot of that wealth has been concentrated via fraud, bailouts, bribery, and front-running (all unpunished) none of which are free market concepts.

    With capitalism + the rule of law, we'd have less wealth concentration and far fewer empty prison cells.

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  34. Morla,

    You mentioned:
    "The rich getting richer is only capitalistic if they play by the same rules as everyone else."

    I have news for you brother, it's time to get REALISTIC. RICH WILL NEVER WOULD HAVE BEEN RICH IF THEY PLAYED BY OTHER PEOPLE's RULES. In order to get real rich, you have to take away from others by means of power. Real capitalism in action based on human nature is what you are seeing and it will get worse. It's the world of haves and have nots. It's important for one to really understand that concept. It's impossible for one to be filthy rich without real mnanipoulation, stealing,,etc.

    Joe3

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  35. I need to slow down when I type. " real manipulation" and there is no Joe3.

    Joe

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  36. The minute you bring in capitalism then you had better be careful what you wish for. In the past they threw you a little meat morla. The "real power" is now just throwing you the "bone" and that bone is not for you to knaw on if you know watz i mean...They control all and the "solution" will probably only push back a little. The real "solution" will flatten the entire ponzi. and its not in our control. Imbalances must be corrected and there is only one powere capable of correcting this one. And morla I am not "religious"...hhehehe

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  37. Real capitalism in action which has nothing to do with those who believe harmony between justice and capitalism can exist MEANs, 5 people, 5 apple, the one with most power can take all 5 apple if he can and screw the rest, the survival of the fittest thru concept of me, me, me and screw every one else is TRUE CAPITALISM.

    Joe

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  38. Yup...exactly. True Capitalism is winner take ALL.....

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  39. including complete control of congress, executive branch, and supreme court....

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  40. Morla,

    A true example of capitalism is what kli and Red do. Kli is a vulture whom by any means necessary can accumulate and grab all the golds in state of kansas and Red does the same thing in Colorado. Every one else can bitch about it but rules are manipulated and bent to protect the powerful. Welcome to the game!

    Joe

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  41. By the way, for those of you who say our system has served the most who live here well overall and therfore it has been good, my response is why do you think we have all the military bases in the world. As a country we consume 25% of the world's energy and we have only 2% of the world's oil reserves. At the end of WWII the rest of the world was in turmoil and we became the master and master writes the rule, one rule applies to powerful and seperate rule to others. That means most had a good life here not because we are great and our shit does not stink. It's called rape other country's resources so you can have a good life here. Now others are growing and want the same thing we have had, the cycle continues.

    Joe

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  42. Joe, do you have a blog? Have you written any books? I am in awe of your knowledge. You are using history to predict the future and it all make sense.

    I have a couple questions for you.

    1) Will we see a world currency in the next 30 years?

    2) Will the development of other countries lead to peace or war?

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  43. Jay ..you will NEVER see a book from Joe. That I will GUARANTEE. Now to the rest of your questions he will have to answer.

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  44. jay,

    As far as blog, when ever I get a chance I co-author here with Kli including essays. I trade the market not because I need to make a living, it's a challenge to me and gets my juices going. As far as world currency is concerned, it very much depends on how powerful the BRIC ( Brazil, Russia, India, China) countries become. From economic point of view we are in a real slide due to huge debt/deficit, lack of manufacturing,,etc, how ever from military point of view we are still very powerful and no other country on earth comes even close to our spending and muscle we use. The problem is when economically a powerful country like ours goes into real decline, it would be just a matter of time before it affects military as well. No empire in the world has been able to hold on without strong economic backing. So it's realistic to assume that Dollar won't stay as the world reserve currency 30 yrs from now especially the way central bankers keep devaluating the purchasing power of the dollar. The development of other countries won't lead to war with the exception of China and Russia. I see Russia more of the trouble especially the fact that putin is really upset about NATO operating in his back yard after the fall of the soviets. Chinese are building their economy and accumulating hard assets right now and currently it's not in their benefit to challenge us directly although you hear about economic barking. You are not going to see direct war between us and china or russia, how ever thru establishing proxies both russians in shorter term and chinese in the longer term will challenge us in the resource heavy areas of the world including middle east.

    Joe

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  45. Jim met Joe .....Jim you sized Joe up why do you think he won't write a book....any thoughts...

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  46. confused reader here, wasn't it kliguy that said joe would NEVER write a book? why would he be asking jim this question. are jim and kliguy the same poster?

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  47. yup thats correct I said Joe would NEVER write a book.....and on the net you NEVER know if the guy is legit...but thats the problem with posters with NO verification...so believe what you wish. BTW I maintain Joe will never write a book...so figure that one out yourself...confused reader

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  48. kli, when I met joe last night for dinner I expected to see a scholarly middle aged man that looks like a professor, man o man was I wrong about looking like a professor. I was a blue collar worker all my life but I am not stupid. He is middle aged and a scholar but he does not look like what I imagined at all and I have a very good guess what his real profession is. He has the combo of physical power and the high intellect. I asked him about his profession and he looked directly into my eyes and with a smile said think of me as an engineer who solves problems most can not.

    Joe

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  49. kli,see joe's response above, I am not going to reveal the conversation we had last night at dinner, it's private.-jim

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  50. My dear friend kli, curosity can kill the cat buddy,heheeee!

    Joe

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  51. Anon,

    Jim, kli, and I are three different individuals. Kli is playing a fun game tonight, nothing to read between the lines. It's all fun and games.

    Joe

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  52. anon, it would be fucking great if I was kli, Joe, immred6, and analyze.-Jim

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  53. good game tonight....kept me entertained at work....its the INTERNET...don't forget..

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  54. All,

    Kli, Jim, and I had some fun and it's important for all of you to focus on the CONTENT of what kli's blog is about, for example the question Jay had in regard to economy,,etc and not lose focus by trying to figure out who each individual is or is not since that's not important. As kli correctly mentioned it's internet and do not get confused or concentrate on who is who, that has no significance in your lives.

    Joe

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  55. I know they can't protect us just by enforcing our laws, but I don't consider it utopian to hope they might someday give it a shot. It's happened before, governments have legitimately tried to help their people.

    Just because the boat is sinking for sure doesn't mean no one on board is idealistic enough to grab a bucket and try anyway. Some people actually believe that Justice is more than something we made up. If some politician or bureaucrat can manage to even slow the beast down slightly that would make a material difference somewhere.

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