Wednesday, November 7, 2012

A NEW BEGINNING

Well let's just say that would be what the prevailing MSM would like us to believe. In fact the sell off today is just a signal for business as usual. Some will speculate that the 312 point sell off was a message to O to "tow the line" by Wall Street. Do not believe that. This is a lame duck session now and number one there is ZERO need to paint the tape for O. In fact I will take this a step further. IF you had just installed your chosen technocrat to lead the U.S. into the hard down next four years of major deleveraging and austerity but wanted the sheep to believe he was NOT in your camp then you would BLAST him with a Faux sell off........and of course the sheep will say that "O is hated by Wall Street" (and business)......but he is NOT hated by the bankers....at least the "Real Power"...the boyz that pull the strings as easily as you brush your teeth.....THEY know they need O to facilitate the move into "Austerity" or deleveraging as it should more acccurately be called. There will be angst and wringing of hands coming for many sectors as many of us wake up to find that Santa Claus has only left us a lump of coal.......or the tooth fair has taken a dump under our pillow.....or that the Easter Bunny left......never mind......you get the picture. With true pain coming do YOU really think that Mitt could have pulled off austerity with the general public.......especially if a lot of people start experiencing the real pain I believe has to come? NO.....you will probably do better with O and his "empathy" for the common man. If any of you bought the cleverly crafted election race then consider yourself initiated by right of passage. Most people bought it hook line and sinker. Now pay attention to the next move......Europe will be moving front and center to our shore with austerity hitting hard next year. I don't know when but it is in the next six months. Money printing will not keep it at bay but they will print and print hard. You have less than six months to complete your accumulation of prepping........financial and otherwise..........gl. Due to my current location  I will not bore you with charts but just let you know most of the handles are looking fine.

From Doctrader an update on Kodac bankruptcy and the effects on his family. THIS IS NOW!! NOT JUST THE FUTURE!

Kodak Bankruptcy update:

For those new to Kli's blog, a brief review. My father (now deceased) worked his entire life for Eastman Kodak, and Kodak provided for all of our needs as I and my siblings grew up. He retired with a full pension and health care benefits. My mother worked for Kodak for a shorter time period, but still retired with a small pension and health care. Of my siblings, my sister chose a career at Kodak and she too worked her entire life for Kodak. She retired just prior to the Kodak's bankruptcy.

Well, the bankruptcy ruling was announced about a week or so ago. The impact for my family:

Retirees will lose their health care.
Promised bonus money lost.
Survivor benefits lost.
Life insurance to be paid at time of death lost.
Pensions to be still paid.

So for my mother, she will lose her health insurance. She does have Medicare, but now must buy a secondary policy. The approx. $600/month survivor benefit from my father is lost. The life insurance that would be paid when my mother dies is lost. It is my understanding that she paid into this life insurance, yet it is lost with bankruptcy. The loss of the survivor benefit will be particularly painful. My father could have taken a larger monthly pension payment, but chose a smaller payment so my mother would have this survivor benefit. So, money he hoped that she would have is gone.

For my sister, the bonus she was promised at retirement (tens of thousands of dollars) is lost. Her health insurance is lost and since she is less than 65, she will have no health insurance at all. She is looking to buy a policy now. Any life insurance she paid into through Kodak is lost.

Perhaps this experience will help others that may find themselves in a similar situation. All of our situations are different, but we need to be careful when benefits are promised to be paid IN THE FUTURE. Whatever company you are working for, be suspicious about promises. My father fully believed that this would NEVER happen to a company such as Kodak, and that promises would be NEVER be rescinded. But, with just the stroke of a judge's pen, they were.

47 comments:

  1. Kli,
    What do you mean in your vix halted comment in last post?

    ReplyDelete
  2. http://www.zerohedge.com/news/2012-11-07/vix-halted

    Sub Station blew up about an hour ago out of juice again.........

    ReplyDelete
  3. good morning and hope all is well in the nature stricken New York territories........chuck do not have any idea why they would halt vix and was traveling when it happened.....but I will tell you it was very unsettling.....I have my guesses

    ReplyDelete
    Replies
    1. ya...like the fix is in the vix....

      this market is getting more crooked every day....really, how do you halt a option that measures puts and calls.....unreal...

      If we breach 1380 we could get a big waterfall, big volume hole right there on emini futures..

      Delete
  4. momos getting slapped out of PPP....only "free shares" now so letum play

    ReplyDelete
  5. The fellow over at http://forexkong.wordpress.com has had this nailed - with real time trade tweets so....its kinda hard to knock him.

    Calling for Gold to the moon, and getting short U.S.D

    ReplyDelete
  6. chuck it looks like they try to hold 1380 today......hmmmmmmmmm.........oh well i guess the gold game was just more than they could bear........heheheh

    ReplyDelete
  7. ok, we are at very crucial point here...if they can bring this above 1380 then we have a chance to see 1320 as we are below 100 hr sma and sitting on 25 hr sma....

    the vix is unreal...I can find no mention of vix options ever halted...ever.....

    these guys are taking any fun out of trading by corrupting indicators that I know I use...thus other people too, like the Libor the vix is now been fixed, something happened when that trading firm in the midwest blew up this summer....can't get my arms around it....

    ReplyDelete
    Replies
    1. I am not a subscriber to the Ann Barnhardt rant on MF Global....but I have to agree with her take on most of it......she advise just as Red does that NO ONE is safe any longer in paper trades......you are in a surreal collapse with cotton candy clouds floating in a sky of blue koolaid.....the problem is it is an illusion created by the greatest masters of illusion EVER!!

      Delete
  8. hey all..

    are you all getting feed back from this election
    are the Republican people just starting to wake up?

    from Turds site..

    I guess now the R-republocrats understand how the D-republocrats felt eight years ago.

    In 2004, George W was re-elected as POTUS. D-republocrats were incredulous. How could anyone, in their right mind, vote to re-elect the guy who:

    Failed to stop the 9/11 attacks.
    Failed to find OBL in the Hindu Kush.
    Began a war with Iraq ostensibly because of their stockpile of weapons of mass destruction.
    Did not find any weapons of mass destruction in Iraq.
    Declared "Mission Accomplished" in May of 2003 then saw the war worsen in 2004.
    Had overseen a stagnant and flat economy while turning the "surpluses" of 1999 into deficits.

    http://www.tfmetalsreport.com/blog/4301/recalling-2004

    as Kil said to Ann Bernardt site..

    she is having a melt down....as well as all the Republican's in my work place...

    are they just waking up?

    You Ready to Get Serious Now? You Ready to Listen?
    Posted by Ann Barnhardt - November 7, AD 2012 6:23 PM MST

    http://barnhardt.biz/


    Paladin....do not do it

    ReplyDelete
  9. good post Paladin...I read what turd posted yesterday and thought that he was finally "getting it" although I have written him off as essentially limited and probably hopeless...but I was encouraged by that post

    ReplyDelete
  10. Ann is blind in one eye.

    Her followers will be out in the cold after the next Storm, earthquake or Carrington Event.

    Best things to do is stay off the radar, get your affairs in order, and prepare for the harsh times or making peace with your God if fate deals you a bad hand.

    ReplyDelete
  11. who is this ann barnhardt? I have no idea about what she just wrote and you folks might find this offensive but could care less....I know one thing for sure, cons and libs are just figments of perception that brand a person behind false truths while denying them the ability to see thru the matrix....neither party could care about us...

    ReplyDelete
  12. ANN is a futures broker that burst on the scene with rants against the PTB etc............entertaining to listen to.......take it for what it is......

    ReplyDelete
  13. Early Morning All,

    Power back on again but no complaints. Far too many STILL in the dark! Odd/Even Gas rationing starting tomorrow we shall see..... Hording behavior going on with Gas is educational, it's a lesson played out in real time for anyone willing to see.

    Agreed Ann is oddly entertaining but as my Dad used to say she is a bit off the rails, does make some points though.

    Question is, in hindsight, WHEN DID either party ever care............

    ReplyDelete
  14. Found this comment on by a member over at Ricks' Pic's, I thought it worth reposting as it speaks to the truth....


    From Robert:


    "I applaud all of you for caring as deeply as you seem to.

    I concurrently question the intellectual efficacy of this care.

    If you don’t personally know a person, then why do you prefer to expend energy investing your sentiment into their personal actions?

    Find people you KNOW. Help them if they need it, and if they are willing (and reciprocal) recipients (ie: they possess the character and integrity of someone who might someday return the favor during your time of personal need).

    Obama’s actions can impact your personal prosperity ONLY if you bought into the false premise of a flawed financial system that promised you that the future would always be robust enough to offset the burdens of the present.

    You live in the here and now. Today is where you reside.

    Tomorrow is something to PREPARE for. It is not something to EXPECT (think very carefully about the difference between those two terms)

    The universe (nature, Earth, humanity, reality, God) owe you NOTHING; so you have no right to feel victimized when tomorrow comes, and your expectations are not met.

    “I paid into the system- I only want what’s mine”

    - pure heresy.

    What you pay is GONE the moment you pay it. ALL refunds are at the discretion of the recipient.

    Well, this particular recipient (the collective US citizenry) is telling you that they will NOT be returning what you provided them in good faith.

    You can waste your energy crying “Foul!” and “No Fair!” and other “Boo Hoo”s; but your energy will be as wasted as a shout of “Echo” into the Grand Canyon.

    A system that was always based on nothing more than collective faith, is failing. That is not an inflammatory personal opinion – it is a point of view based on rational examination of empirical data.

    Demonizing someone (anyone else) for their actions (however misguided those actions may seem) is merely a reflection of how little thought you have personally given to your own efficiency and harmony as a living spirit.

    Place your faith where it will not (or can not) not be destroyed by the willful actions of others…

    There are opportunities out there worthy of your faith. Nature (or God if you prefer) guarantees this as surely as they guarantee that your expectations will not always align perfectly with the realities of an unforeseeable future.

    If you formulate your personal expectations on a future based upon the perpetuation of false premises, then the burden of the consequence when those premises fail to deliver (or collapse outright) is YOURS to bear. Blaming Obama for your own failings is, again, pointless (Echo….. echo….echo…)

    You invested your faith in a faith based system; and you leveraged this faith to the point that you now face a margin call.

    Again, nobody owes you ANYTHING.

    Expecting to win, without preparing to lose, will leave you with nothing but empty “hoping for the win” in your heart.

    Hope is not enough for me. I must have faith; and right now my faith is not in the form of investable capital… my faith only exists in the form of savings.

    So I must hold onto it tightly, and find the opportunities that will reward me for my investment.

    Look into the eyes of your neighbor as they scream and curse about the insanities of a nameless, faceless “government” (while concurrently demonstrating their own insanity, and hypocrisy, in the process); and then go look into the eyes of a 6 year old as you sit across from them during a game of checkers.

    Where should your faith be invested? After all – the future belongs to THEM. Not us.

    The default, the collapse of Empire, and the associated dark ages of consequence are OURS (whether we like it or not). The following Renaissance and enlightenment will be THIERS.

    No politician is worthy of my capital, because none of them will ever reward my faith with any form of reciprocal care later in life…

    From this moment forward, think CAREFULLY about where to invest. Your future depends on it…."

    ReplyDelete
  15. If I get a chance this weekend, I will try to write about the Kodak Bankruptcy and how it is affecting my mother and sister.

    But, just to point out what Tom referenced above, you can no longer have faith in the system. Whenever possible, it would seem best to take possession of what you are promised NOW, as opposed to waiting.

    ReplyDelete
    Replies
    1. please write one Doc and I'll put it up on the main thread

      Delete
  16. Interesting post as usual Kli. What I’m trying to understand better is how we can have austerity AND this continued pace of money printing to justify a long position in PMs? Btw I have a position in PMs and looking to add more, just playing devil’s advocate I guess.

    ReplyDelete
    Replies
    1. will reply in longer post this weekend Sammy

      Delete
  17. I rode with a representative that is a client of our company yesterday. She was from Croatia that escaped thru Hungary as the Serbs were slaughtering Croatians. Her father had many friends and a Serb friend took all the possessions and money they had into Hungary as they were stripping every Croatian on the way out of their gold, money etc...

    They made it and immigrated to Germany, their now US citizens. What she said at the end was that her father told her that your friends are really resources and you can never have enough resources. Some day they can help you stay alive, provide you a meal or help you escape from ethnic cleansing....Friends are the most important resource....

    I like that definition, it seems cold but really makes sense...

    ReplyDelete
    Replies
    1. that's the ONLY reason this blog still exists

      Delete
  18. Honest,

    By NO means cold it is essential, having family, friends and neighbors of various means, talants and status to call upon and being willing to return in kind you're knowlage and talents for use to others made my experience these past two weeks far more palatable than had it been otherwise.

    ReplyDelete
  19. I would love to emigrate...just don't know where to go? Any ideas here? Besides New Zealand, it's just too far.

    ReplyDelete
    Replies
    1. If you truly want to emigrate, you should check out the Dollar Vigilante. They are very knowledgeable on how to get out of the US and many other related topics.

      http://dollarvigilante.com/

      Delete
    2. Wyoming, a third world colony with all the amenities the 1% could desire for now. No income tax, and Amazon ships packages tax free. Seems to be a top bug out spot for the wealthy.

      Delete
    3. you are such a cynic Red hhehehhehehe......I'll give you a better country and the wine and cheese is superp

      Delete
  20. David Petreus resignation smells...Green Beret I heard speak hinted at it (not the "affair", the admin. wanting to get rid of him).

    ReplyDelete
    Replies
    1. tsk tsk.......look at it this way sista.....either a) he is arrogant and/or stupid or b) they pulled out the "Colin Powel" card of persuasion (ie...see "why I had to say there was yellow cake"....anyway it doesn't really matter.......they're all evil

      Delete
    2. BTW sista.......you are correct......it was most likely the age old game......he was duped by a Mata Hari....and it was discovered......pay attention to "her".....

      Delete
  21. Thanks guys...silver, used to get those emails, will check it out. Hi, Red. I'm sure not a 1%-er so may not fit in Wyoming.

    ReplyDelete
    Replies
    1. Just more local bug out spots away from the coasts. For me Wyoming is one, followed by Colorado and then Montana (very cold).

      The logic is you want to have 2 or 3 spots you can go to safely if your primary residence is compromised by a disaster.

      Foreign countries are usually a bad idea, look at the history of Zanzibar. You stick out like a sore thumb especially if you have not made friendly with the locals for a few years.

      The hump is sometime over the next 6 weeks to 6 months, you will have a definite idea how bad things will get. Will the global prepping be all for nothing or will Mad Max/ Postman arise: That's the Quadrillion dollar question.

      The Republicans were meant to lose the race by hook or by crook, Continuity at this point in the game is critical. Gold hitting 3,500 or 10,000 will be meaningless to paper traders.

      Delete
    2. where in wyoming and what advantages over colorado......for an aging investor such as myself I see some real advantages to Colo medicinal laws

      Delete
    3. You sure you wanna mingle with all those new tourists? Hehehehe

      Delete
    4. If ya an aging herbal provider or herbal farmer, the best spot would be getting a small ranch or mobile home across the border in Wyoming across from Colorado: south of Cheyenne or Laramie depending on population density and the type of ease of access to your location, it cuts both ways. It's great if you are there , it sucks if you are trying to get there. No state income tax in Wyoming. You buy a few acres in Colorado to set up your medicinal ranch with indoor dome grow house heated by a rocket stove mass heater. The best spots in Wyoming if you are there is Cody and Thermopolis; hard to access without gasoline. The cities along the major interstates I-25 and I-80 have easy access but face a influx of refugees. The author in your video lays out the maps pretty well in his book, his prior book the secure home also provided good ideas if you have the time and resources. I just don't buy into the nuclear war survivor scenario, because you would wish to get directly hit fast; because radiation, environmental exposure, hunger, thirst, violence and disease would wipe out 80% of the survivors because of our JIT economy.

      Nuclear war does not appear to be a major concern considering the location of the new bunkers and secondary capitol being built, all on high ground and some near major nuclear targets.

      I agree with author that the more people that start to prep the harder it will be to get resources and secure choice locations. The major coastal cities are indefensible as a few puny storms have shown.

      Imagine what would happen with 20-25% unemployment simultaneously in NY, NJ, FL, CA, WA, MA and TX without any other disaster.

      The president's cabinet is resigning like rats off a sinking ship. A 1859 Carrington Event will make most of the northeast and parts of California and the Midwest to go Fukushima (the major earthquake happened happened after a major flare the prior month).

      http://news.nationalgeographic.com/news/2011/03/110302-solar-flares-sun-storms-earth-danger-carrington-event-science/

      As for the Mayan Calendar ending around 12/21/12, we will know soon if there are any impacts to the equivalent of high tide for solar flare activity. You won't have enough concise evidence to confirm until about a week before if there is a large chance of a major flare and associated earthquakes. The alignment is the rarer of the 25800 years. If the data and events are confirmed it will definitely suck but it will not be the end of the world.

      http://www.ancient-world-mysteries.com/2012.html

      Basically it is pretty much too late for most people to prepare at this point if you are in a bad location (or any location for that matter unless it is a deep continuity of government bunker), so enjoy some Dancing with the Stars and get ready for Thanksgiving and Black Friday.

      Kinda makes you wanna root for a plane Jane depression without the associated global wars.

      Delete
  22. Kodak Bankruptcy update:

    For those new to Kli's blog, a brief review. My father (now deceased) worked his entire life for Eastman Kodak, and Kodak provided for all of our needs as I and my siblings grew up. He retired with a full pension and health care benefits. My mother worked for Kodak for a shorter time period, but still retired with a small pension and health care. Of my siblings, my sister chose a career at Kodak and she too worked her entire life for Kodak. She retired just prior to the Kodak's bankruptcy.

    Well, the bankruptcy ruling was announced about a week or so ago. The impact for my family:

    Retirees will lose their health care.
    Promised bonus money lost.
    Survivor benefits lost.
    Life insurance to be paid at time of death lost.
    Pensions to be still paid.

    So for my mother, she will lose her health insurance. She does have Medicare, but now must buy a secondary policy. The approx. $600/month survivor benefit from my father is lost. The life insurance that would be paid when my mother dies is lost. It is my understanding that she paid into this life insurance, yet it is lost with bankruptcy. The loss of the survivor benefit will be particularly painful. My father could have taken a larger monthly pension payment, but chose a smaller payment so my mother would have this survivor benefit. So, money he hoped that she would have is gone.

    For my sister, the bonus she was promised at retirement (tens of thousands of dollars) is lost. Her health insurance is lost and since she is less than 65, she will have no health insurance at all. She is looking to buy a policy now. Any life insurance she paid into through Kodak is lost.

    Perhaps this experience will help others that may find themselves in a similar situation. All of our situations are different, but we need to be careful when benefits are promised to be paid IN THE FUTURE. Whatever company you are working for, be suspicious about promises. My father fully believed that this would NEVER happen to a company such as Kodak, and that promises would be NEVER be rescinded. But, with just the stroke of a judge's pen, they were.

    ReplyDelete
  23. hey doc..
    my brother work for kodak for years..as a engineer

    his contract was bought out.......it seams it was good.....he took 2 years off and spent it with his family..

    soon I will tell you all about the time I had with newmont & barrick gold..
    In Vegas they fell off their bar stools.yes they did

    paladin


    they hit the floor

    ReplyDelete
  24. and what is it .....what would make Newmont & Barack hit the floor

    as it turns out my uncle work for Newmont at their beginning

    ReplyDelete
  25. Paladin,

    Kodak is basically a 100 year old company and for nearly all of that time, it was great. I worked there one Summer myself and it was a wonderful experience.

    My purpose for writing about it is to inform others that Kodak (a once powerful company) made promises to its employees/retirees that it could no longer keep. Money/benefits that retirees have built their future upon are now gone, and the lives of those retirees will be changed.

    ReplyDelete
  26. Doc - being a cynic/skeptic like I am I abandoned the working for one company my last 12 years in the work market. I self-incorporated and used SEP-IRAs and other self funded programs to fund my retirement.

    I used any accumulated "pensions" to fund my early retirement. Next year I drain the last part of the HP (Hewitt Packard) pension and then switch over to the funds I accumulated (and control). Now that is a company (HP) not doing well - could it be another Kodak?

    I guess if we had really high rates of inflation I could be screwed (but Kli tells me that is unlikely hehehe). The only other potential problem would be long term care costs draining my funds too quickly. But, life is never without risks...

    Long story - short - I have never trusted the promises of companies or the government and always felt more comfortable being in charge of my own retirement planning and finances...

    Hope things turn out well for your mother and sister. There is going to be a lot of people belt tightening (may include me?) the next few years IMO.

    ReplyDelete
    Replies
    1. hey inlet.......good to hear from you....maybe not a hyperinflation but that's just another reason to be diversified in PMs and to hold control of your SEP but the looming issue is whether the PTB decide to go after all that SEP/401K money.....if they do then watch them convert it into buying Gov Bonds....No one really knows but the less "money" exposed to confiscation the better. Watch for worsening stagflation over the near term 2-4 years before the punchbowl is yanked.....

      Delete
  27. Hello all.

    One for U Chuck. Outside reversal on the weeekly silver....

    Breaks my heart to hear that the golden handshake has given way broken promise.

    I hear it all over folks are hurting...That sucking sound you hear...

    Here in Cali we raised taxes on ourselves....vomit... We, the people of these United States, are not to bright.

    Great thread all.




    ReplyDelete
  28. see video posted above on bugout conversation

    ReplyDelete
    Replies
    1. correction this is the full film version......VERY good discussion with didactics

      Delete
  29. Kli - the PTBs are sneakier than that. The theft of SEP/401k/IRA has been in progress for some time. Think about it...

    When Willie Sutton bank robber was asked why he robbed banks he said "Because that is where the money is". How things have changed.

    The banker's Bank the Federal Reserve is now robbing savers with near zero interest rates. Why? Because that is where the money is. It is a hidden tax. No law was passed. Still you are having the your money stolen through near zero interest rates to restore bank's balance sheets. If you had $300,000 in an IRA (or 401k) earning 6% in 2006 ($18,000 a year with nearly no risk) you are lucky if you earn half that today. That is a $9,000 or more of hidden taxes.

    Theft by the PTBs of retirement funds has been in force for a while now IMO.

    ReplyDelete
    Replies
    1. good point.....also it would mean pulling more money out of equities....

      Delete