Sunday, November 10, 2013

THE LAST WEAPON

Tapering is the last weapon the Fed has to combat the reality of money printing. Did you ever wonder why there is so much discussion BY THE FED on tapering. Its actually quite simple, and that is because without tapering then everyone would realize there is no escape mathematically from the literal counterfeiting the Fed is engaged in now. One can argue the first QE was necessary to maintain the system and allow a foothold to be gained for some kind of attempt at recovery (I disagree). However, no one can make a case for the following barrage of QE. It has created a monster that can only end in a debt collapse and/or fiat collapse...take your pick.  
So why the taper talk? ...... Without taper talk, the illusion the Fed has any control of the creation of money out of thin air...ie debt..........would evaporate and a virtual panic would ensue. Of course the smart money already knows this and has been taking the necessary precautions for this eventuality for several years and are accelerating (see Asia's accumulation of gold and hard assets). Arguments are made daily (and accelerating) by Western economist and money managers for the success of QE. In fact if you have followed this chatter, you would notice it has noticeably increased as the (rigged) numbers on the economy grow weaker and weaker.... We have been promised by the Fed better GDP numbers going forward for several years and THEIR numbers are actually more and more disappointing. We have had job predictions each year that have only resulted in fewer and fewer BLS jobs.....an that is THEIR BLS numbers. These numbers when parsed are horrific. Millions of working age Americans falling off the payrolls due "giving up" looking for work. Many of these are Americans with degrees in engineering, computer services, skilled manufacturing, that were the lifeblood of a healthy economy. Instead we have high paying government jobs that have supplanted these. Not only that we have had government (malinvestment) money that is being diverted into the remaining "private sector" job market that is creating the distortion/illusion of a "recovering economy".  I know this because I am a recipient of this money and am amazed daily by how it continues to flow......but I know it will stop.....many do not.

Malinvestment is a natural result of money printing since its NOT true capitalism directing the money flow, but government. They will always misallocate capital, creating bubbles that weaken and destroy countries eventually. The U.S. just happens to have had the World's reserve currency for over 70 years and could withstand the previous bubbles. 

Back to taper. Taper talk is all that's left. One can argue there will be no taper. I'm not sure. They may try a "faux taper" but that would be risky for them and mathematically it would be laughable. BUT.....they will talk taper to keep the illusion they can escape the money printing (counterfeiting) .  This is why gold has been kept down. Volker famously noted after he was out of the Fed that he should have suppressed the price of gold in the late 70s while he massaged the interest rates. This time THEY did. Unfortunately for a lot of people/Western nations there will be hell to pay when they lose the dollar status because there is no gold to back it. Germany has a very strong currency but it has no gold now and it knows its in deep trouble. Anger is building between Germany and the Central bankers so stay tuned for that resolution in the next few years. 

Enjoy the illusion......I have. gl







93 comments:

  1. "people are walking like zombies looking for food"

    http://www.zerohedge.com/news/2013-11-10/typhoon-death-count-surpasses-10000-people-walk-zombies-looking-food-martial-law-imm

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  2. http://www.zerohedge.com/news/2013-11-10/dummies-guide-what-jobs-report-really-means

    Pretty sad state of affairs....

    The numbers in the Phillipines are horrific now, I can't fathom what they will be like when all is tallied....

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  3. I was wrong.....they are buying the farce

    http://www.zerohedge.com/contributed/2013-11-10/once-again-retail-investors-are-piling-bubble-near-top

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  4. http://www.zerohedge.com/news/2013-11-08/whopping-932000-americans-drop-out-labor-force-october-labor-participation-rate-drop

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  5. http://globaleconomicanalysis.blogspot.com/2013/11/ecb-caught-using-fictional-rating.html

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  6. Listened to the Financial Sense radio show this weekend. They said that once a catalyst for Gold occurs, Gold will rise to $5000/ounce. The timeline--"couple years" they said.

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  7. yes Doc......that would be based ONLY if they prevent severe/hyperinflation.....ie. based upon a relatively "controlled" decline in the dollar.......if inflation OR the dollar reserve status is lost then ALL bets are off in its price in dollars......it could easily be 20K/oz......but yes in today's dollars 5K is reasonable

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  8. Bought a large lot of GLD $170 calls for Jan 15 after a lot of thinking this past week. I'm not good enough to trade this chop and I've made a little bit but not worth the stress. So I figured why not just buy GLD LEAPS and see what happens. They actually move quite well despite being so far out and I'll profit with a move up in miners regardless. We'll see...

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    Replies
    1. That's actually a good way to leverage up on a strong move on Gold over the next year. I see 127 contracts traded so I'm guessing you are all or a large piece of that volume. I'm going to take a look at something similar, either using gold or silver and perhaps take a look at a leveraged ETF to get even more bang for the buck. The danger with those are the price erosion so maybe DUST puts make sense even though that's a miner play rather than straight on the commodity.

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  9. http://blog.milesfranklin.com/lower-the-price-the-greater-the-demand-is

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  10. this has been a coordinated and carefully calculated move to hold headline gold price down......for me its been a gift, in spite of my miner portfolio being slaughtered. How long they can let physical gold transferred to the East baffles me but they could do it longer than a leveraged player stays solvent. The big commercials are net long on the COMEX so my guess is the turn is near.....should be some good volatility....but I have to say thanks for the cheap physical.

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  11. Miners hanging in with spot prices lower. Still like PPP on pullbacks. Chart looks good to me. GL everyone.
    Hope everyone remembered to think of the Veterans today.

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  12. http://www.zerohedge.com/news/2013-11-11/10-uncomfortable-truths-about-growing-unemployment-crisis-america


    "Did you know that there are more than 102 million working age Americans that do not have a job?"

    "But aren't things getting better?  After all, the mainstream media is full of headlines about how "good" the jobs numbers for October were."

    "The really frightening thing is that the Federal Reserve and the federal government have supposedly been doing all they can to try to "create jobs" and they have utterly failed.  In fact, this is the first time in the post-World War II era that we have not seen an employment recovery following a recession.

    And now the next wave of the economic collapse is rapidly approaching.  What that hits us, millions more Americans will lose their jobs."

    So the truth is that this is just the beginning of the unemployment crisis in America.

    Yes, things are bad now, but soon they will get much worse.

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    Replies
    1. that truth seems a little gloomy to me ....quit reading Zero Hedge you truth seeker.....hehehhe......now go eat your GMO take your flu shots.............

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  13. Learn something new every day....

    http://visual.ly/10-corporations-control-almost-everything-you-buy

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  14. Re: Flu Shots...http://www.newsmaxhealth.com/Headline/influenza-virus-flu-vaccine-Peter-Doshi-Ph-D-/2013/05/16/id/504942
    Unfortunately, I have gotten one since I had pneumonia. But risk of Alzheimer's seems worse than risk of flu. Anybody know how to get mercury out of one's system naturally?

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    Replies
    1. Cilantro / Coriander - fresh

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    2. Sister,
      As a general rule, single dose vaccines do not contain any mercury (as Thimerosal). It is the multi-dose vials that tend to contain it (ie., most flu vaccine is bought as a ten dose vial because it is less expensive). It is the ten dose vial that contains some thimerosal as a preservative.
      So, if someone wants a Flu shot, they can call around a try to find a single dose vaccine.

      Certainly the Flu Vaccine as become very controversial and it has become powerfully promoted. Here in good old New York, the Flu Vaccine is mandatory for all hospital workers. Those that refuse, need to wear a mask during the entire flu season.

      I did read somewhere that the bottom-line for some Pharmacies has improved due to Flu Vaccine sales. So, I suspect it will continue to be strongly pushed & mandated. Personally, I buy less Flu Vaccine each year since more and more people are getting their shot at the pharmacies.

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  15. http://www.decodedscience.com/flu-shot-ingredients/24623

    Flu Shot..... You first! I'll stick with my Vitamin B, C & D thank you very much :)

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  16. http://www.zerohedge.com/news/2013-11-11/what-confidential-1974-memo-paul-volcker-reveals-about-americas-true-views-gold-rese

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  17. I added to AUQ...think its one of best plays for miners with 4% yield, just increased production at thier big mine in Mexico and opened up new mine...
    Should see some big benefits next year with new hois/shaft DD required...

    Still holding MSTX...but losing faith...can't keep above 20/50 for a week..
    Bought ISR...CEO bought in, sales could be finally positive, great technology, now can they get revenue in geer...have plenty of time for rise north...patient..

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    Replies
    1. i didn't have the heart to hold mstx very long.......look at goro too on miners

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    2. sometimes you have to grin and bear it.....you win some, you lose some...
      MSTX-FDA gave them orphan status this afternoon...spike tomorrow...pay off...

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  18. I remember in 2010 as silver and gold had moved up smartly that I really didn't have enough physical......that I was caught short due to the rapid move in gold and silver and would not buy much due to its cost and lack of fiat......the pull back has been a major gift for me and I know that many of you view this with trepidation, but if you had fiat, you had an opportunity to buy the physical. If you are still holding out for much lower prices on silver and gold then I hope you get your wish. This could be a protracted bottoming process in metal but as usual catching bottoms is not usually something the boyz will allow the retail peeps to do........so good luck to you in that endeavor.....they've given me a discount and I took it......if they discount it further then I'll continue to take it........

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  19. Across the state, food banks and other related programs aiming to feed the needy are worried the supply to meet the uptick in need during the holiday season won’t meet the growing demand for food caused by the expiration of SNAP benefits.

    “People are scared to death of the lack of food availability,” Martin said.

    Martin called Joshua’s Storehouse a reliable barometer for measuring the rate of need in Casper. The number of people using the food bank skyrocketed before the reduction in SNAP, he said.

    Fewer than 2,000 people used the food bank in October 2012. Last month 2,500 people went there for help.

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  20. http://stockcharts.com/h-sc/ui?s=SSRI&p=D&yr=0&mn=6&dy=0&id=p47306078752&a=242315566&listNum=1

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  21. Foxes guarding henhouses worsens as Massad nominated to take over as Chairman of the CFTC. "I'm Your Puppet" comes to mind!

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  22. Thanks Doc and Red. I get my shot at my former employer...first year I've had quite a bit of swelling and soreness...not sure what that means but I do sign a waiver of sorts.

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  23. Replies
    1. yup......just ordered physical silver...;-)

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    2. these beatdowns just seem less and less effective with the miners showing seller exhaustion....no comfortable trying to swing trade here yet....so I'll just hold and watch

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  24. • Thimerosal is a mercur y-containing compound that
    prevents the growth of dangerous bacteria and
    fungus. It is used as a preservative for flu vaccines
    in multi-dose vials, to keep the vaccine free from
    contamination. Thimerosal is also used during the
    manufacturing process for some vaccines to prevent
    the growth of microbes.
    • In 1999, as a precautionar y measure, the U.S.
    Public Health Ser vice recommended removing
    thimerosal as a preservative from vaccines to
    reduce mercury exposure among infants as much
    as possible.
    • Today, except for some flu vaccines in multi-dose
    vials, no recommended childhood vaccines contain
    thimerosal as a preservative.
    • In all other recommended childhood vaccines, no
    thimerosal is present, or the amount of thimerosal
    is close to zero.
    • No reputable scientific studies have found an
    association between thimerosal in vaccines
    and autism.
    • There are two different compounds that contain
    mercury: ethylmercur y and methylmercury. The low
    levels of ethylmercury in vaccines are broken down
    by the body differently and clear out of the blood
    more quickly than methylmercury

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  25. its NEVER a good time to buy gold......must read....

    http://www.tfmetalsreport.com/blog/5236/its-never-good-time-buy-gold-ever

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  26. I guess we know for sure which way Russia is leaning...and now that there is this kind of $ involved, there's no coming back.

    http://www.reuters.com/article/2013/10/22/china-russia-energy-idUSL5N0IC10F20131022

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    1. it appears they are trying to set it up for a slaughter with all the media attention. I listened to a guy on bloomberg or cnbs this am talking about it on satellite and was astounded about his explanation of it when asked about it as a "gold like" currency substitue.....he essentially said it all depended upon its "cryptography"......R U kiddin me!!!!!............They can blow this out of the water a hundred ways to tomorrow.......so watch out......unless THEY control it......they will destroy it

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  27. Kliguy, I think this is where the markets diverge from reality and why we are in no man's land, couple this with TBTF, the PPT buying the indices with money created out of thin air, changing the rules on the fly, black box treasury auctions, bought and paid for regulators, LIBOR and on and on. Seems like we've turned into England where we are just a financial central hub where money makes more money, yet we no longer produce much quality as the petroleum bread and circus empire moves onward, where short term gain eclipses any long term costs and all the risk gets socialized. Look at the Monopolies everywhere. Makes you want to stay out of the casino altogether.

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    1. staying out of the casino as red and joe clearly stated years ago is the smart play. Jim Sinclair say's to get out of the "system" altogether. Unfortunately for us, England may be "the best case scenario" analogy..... I'm afraid our fate because of the evil we've been part and parcel to will come to our shores MORE so than the Nazi fire bombings and the IRA "terrorist" attacks......... We have "reaped" a lot and now we will find out what the consequences are. Our masters certainly have something very interesting in store for us. Bread and circus seems to still be working but it also is losing its effectiveness.....you can feel it clearly now......especially in specific locales. Timing is still uncertain.......so I will play the "ant"......

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    2. I know many grasshoppers who will be shit out of luck when it all goes down.

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    3. coming soon to a theater near you

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  28. No way they allow this to continue for very long...and I wonder if the 'Chinese investors' buying it are actually Chinese gov't.

    http://money.cnn.com/2013/11/12/investing/bitcoin-record-high/index.html?source=cnn_bin

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  29. I'm not convinced of seller exhaustion in the miners. They've taken huge beatings, therefore I suspect there will be plenty of tax-loss selling towards the end of the year to write off. Which won't help prices much. The intention is being able to buy it all back after the first of the year for about the same price, if they still want miners at all. Now, assuming they all buy back exactly what they sold, there will be a little jump after the first of the year, but I don't look for any significant trend turn until later in 2014.

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    1. also....in a longer term down trend (as this has been).....seller exhaustion can be a "process"......as the bottoming process is established

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    2. and again I am speaking about miners.......physical metal prices STILL are being guided by the war between physical buyers and paper sellers.....

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  30. It seems wise to hedge at this point. More downside seems pretty likely.

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  31. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/12_The_World_Is_Now_Entering_A_Period_Of_Historic_Chaos_%26_Crisis.html

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  32. http://freepatriot.org/2013/11/07/welfare-criminals-to-lose-food-stamp-benefits-over-looting-during-ebt-blackout/

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    1. Yes bud......but my greater concern was the "bumrush" on the TRILLIONS that the bankers looted from our future....and our kid's futures......and the ease at which "good conservatives" allowed BOTH administrations to strip us of our rights. The whole notion of "I got mine now you get yours" has allowed the destruction

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    2. on topic... I had a close friend bud that you remind me of and we had this discussion 30 years ago when Reagan started adding deficits that were percentage wise even worse than what the deficits to total debt are today. I asked him how he could justify that as a conservative......his answer was that our economy could handle it. He went on in life and made many millions and his son is WS banker making many millions now......EVERY administration since Carter has fostered the bankers effort to strip the country of its values and treasury.............but his only outrage was at O........amazing how successful the bankers were in dividing the peeps......I have to hand it to them.......it works every time...human behavior is so predictable......my friend's and yours very predictable by them.........hehehhehehhehe......but what was even more interesting was how they managed to manipulate those like myself. You see bud, I knew what Reagan's crew was up to, and Clinton's and both Bush's......what I didn't know was how they were giving me another game........the game of "picking between the lesser of two evils" ...... you see bud....even though I knew they stunk.....both sides.....I thought I still had a "choice"....a choice between the lesser of two evils.....hehhehhehhehhee.......simply put bud.....I was a schmuck....a sucker...... a "dupe".......hehhehehehehe........ so bud....keep hating those nasty, terrible "robbers with their EBT cards".........lets hope they didn't get more food than they deserved.

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    3. I like how all these bills have great sounding titles but the juicy stuff is not until you get into the fine print, as they say, the devil is in the details.

      "In 2010, President Obama signed into law the Healthy, Hunger-Free Kids Act. The bill added $4.5 billion to child-nutrition programs over the next decade, put in place nutrition standards for school lunch programs and vending machines, and implemented training for the cafeteria workers who feed 31 million students a day through the National School Lunch and School Breakfast programs.
      The bill was also, however, a potentially good development for mega bank JP Morgan Chase. Why, you may be wondering, would one of the nation’s biggest banks benefit from a bill meant to feed poor children? A closer look at the legislation reveals the answer. The bill mandates that “all state agencies implement Electronic Benefit Transfer (EBT) systems by October 1, 2020” for those receiving money through the Women, Infants, and Children (WIC) program. And which company administers nearly half of all states’ EBT programs? You guessed it: JP Morgan Chase."

      Isn't that like another TBTF betting on the economy to tank while selling bad paper to it's clients?

      Divide and Conquer, Problem Reaction Solution, you gotta make em beg for it. They have had centuries to map out human behaviour so they can profit from every angle of it, a "for profit" prison system is a really bad warning sign for a society. But like they say, picking the lesser of two evils is still picking evil hehehehe. Stealing a $100 is a crime, stealing a billion is just policy and puts you in line for the Treasury. You really can't make this stuff up.


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    4. Yes.....it took me years of confusion and bewilderment to recognize the "Con".........and yes I was a mark...now I relax and just acknowledge to people that I was a mark but at least I've taken the "twelve step" program and can relax now.......and Yes hickory......the truth is MUCH stranger than fiction. Who would a though the "conspiracy" was not NEARLY as bad as the truth/facts were.

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    5. "good conservatives" from the 80's......

      Where?

      btw: I wonder how ole JC is doing..... He only comingled a couple o' 100 million of client funds and is free as a bird and your celebrating a few jerks losing ebt privlages..... Jezzz Louise!

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    6. JC did as he was told.........now he's doing as he is told.....and that is keeping his mouth shut

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  33. I'm right there with y'all. Altho I had a healthy mistrust of gov. since the Vietnam 60s, I didn't realize who was pulling the strings. I do have one friend who moved to NZ. Trying to get an update from him, none is forthcoming, hope he's ok.

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  34. Almost invariably I favor Kli's fundamental economics-based conclusions over Bud's, however here I couldn't disagree more with you Kli.
    Again, sometimes a cigar is just a cigar. Trying to blame every bill passed, every military action, car crash and issuance of flatus on big bankers is a bit too much. Keep in mind there are others that like to pull strings and come with large bags of money. But back to the facts.
    Reagan's deficits to GDP ratio averaged about 4%. Obama's deficits have averaged over 6%----go back and get the GDP and deficits (I did to be sure) and check. The total national deficit under Reagan was about 1.6 trillion in 8 years. Deficit in 5 years of Obama has been about 8 trillion. Oh, and Reagan essentially forced the collapse of the Soviet Union, freed East Germany, Poland, etc, and united the entire Western Hemisphere. Obama...? The most divisive president in modern times, but that's his intent. Right out of Saul Alinsky's Rules for Radicals. Also take a look at the value and moral degradation in the Obama years vs strong family values promoted by Reagan.
    And Carter??? Take a look at the Dept of Energy and Dept of Education budgets, (HUGE) which he created---yep, more black hole centralized big government to swallow money we have to borrow from the bankers. Centralizing money and power and control in D.C. is exactly the opposite of what our founders intended. Carter inflation rates were about 14%---you couldn't even get a fixed rate loan, you HAD to take an ARM. The only time un/under-employment was even close to Obama was during Carter administration. He was a weak Pres without any leadership skills (sound familiar?). I will say he was at least benevolently incompetent vs our current malevolently incompetent leader.
    Reagan was the ONE AND ONLY period of time in my lifetime that we were not in the process of losing our freedoms and the essence of America. Time has slipped by and memories fade, but this was the only Pres that went about real tax reformation and shrinking of government. He actually did a lot of things that took guts and made a lot of hard choices that few of our current politicians have the nerve to do. Reagan's economic policy was to reduce the growth of government domestic spending, reduce the federal income tax and capital gains tax, and reduce government regulation. Sure, he upped military spending, but crushed the Soviets in the arms race and broke their financial backs. And I could argue that one of the 4 ONLY things that the federal government should do is military. Kli may despise everything having to do with our military, but defense department should be the duty of any country's federal government, ignoring all the political digression. (The other duties a federal government being diplomacy, trade and border---otherwise, leave it to states and local to administer their varying local situations and needs).
    Prior to the Reagan administration, the United States economy experienced a decade of rising unemployment and inflation---the infamous stagflation oft spoken about on this site. Reagan enacted lower marginal tax rates in conjunction with simplified income tax codes and continued deregulation. His 1981 tax cuts (the Tax Reform Act of 1986) eliminated deductions, lower marginal rates for the wealthy, and significantly raise taxes on those earning less than $50,000---and why so hard on the "poor" folks? Because if you are paying taxes, you have skin in the game and aren't just voting yourself money out of somebody else's pocket. And you are motivated to pay attention to the issues. Wiser decisions are made instead of a generation of idiots buried in TV shows, cell phone apps, video games that can't see a bigger picture than the local watering hole. Why lower taxes on the wealthy? Because a single millionaire spends more on products and services than a town full of EBT parasites. Bucks back into the economy, creates jobs.

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    1. was not comparing deficit to gdp ......deficit/total debt........ but the point is this until Reagan we had been keeping the deficit spending and his spending was NOT conservative.. OUR military has become nothing more than a tool for global government/corporatocracy......and has been.........see Smedley Butler. EBT has two separate recipients.....those that need and those that "use".......but the PTB WANT a nice large population DEPENDENT on welfare programs...that I would imagine you agree on. As far as "paying attention to issues" the Orwellian "newspeak" began in the 80s with the "new group" that infiltrated Reagan's group...the "neocons"....Reagan himself was an affable buffoon riddled with senility and nothing but a tool for the puppet masters just as GW was. Clinton and Bush senior were much more attune to what was "really" going on but made sure they didn't cross their masters. One can believe anything they wish as far as the ideology that's dished out by both sides but when I see politicians wearing the lapel flag pins and hiding behind the patriotic military mantra it seems just a little insincere.....call me suspicious but Eisenhower's exit speech warning about the Military Industrial Complex just doesn't seem like a "softy liberal commie" knocking the military......The neocons and MSM pedaled the mantra our military spending destroyed Russia but you may want to research the accuracy of that statement. Some very good work using the CIA and Pentagon's own assessments showed the Soviets were "done for" structurally in the 70s......its all a fallacy that the peeps bought in to and apparently still do........believe what you wish......but you've buying a pig in a poke..

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    2. BTW when I use "bankers"........I'm not referring to the Dimons and Blankfeins etc....These are a multi generational cabal thats existed for centuries and they are the very tip top of the pyramid

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    3. and BTW you are NOT expected to believe that nor would I blame you

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  35. .....food they deserve? My forefathers (and probably Kli's) were independent and proud people, which is how this country got so far so fast. Now it's all about what you can get for free. Rule was, and should still be: if you don't work, you don't eat. Yes, life MUST have the possibility and fear of failure. Who has the right to decide that taxpayers involuntarily have to pony up for free food, health care, cell phones, housing, .....? Taxpayers have to buy food for their own families----43 million MORE people we're obliged to pay for their food, too? Disgusting. THAT'S a policy that keeps people down, dependent and poor. Shut it all off for all but the bottom 10%. I guarantee you that 90% of the EBT people can earn their own way. Maybe you'd think otherwise, but I've lived in 3rd world countries and know what true poverty and subsistence is. And these people still find something productive to do to get by. The motivationally bankrupt parasites in this country have NO idea. I see the EBT crowd in line at checkout, morbidly obese on the toil of others, buying Monster energy and candybars with EBT so they can buy cigs with their cash. Total disgrace to humanity.
    You cannot give something to somebody that they did not earn without first taking it from somebody who earned but did not receive.
    And yes, sometimes you must choose the lesser of two evils. No candidate will be perfect for everyone, or perhaps for anyone. Which means you HAVE to make a choice. That is otherwise known as "compromise." Just because no candidate is perfect for any given one of us doesn't mean there is no choice. Of course both parties have pissed me off at times too, but the only schmuck is the one sitting on the sideline not taking part in the process, for better or worse.
    But I've probably got it all wrong.

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    1. wish it were so simple to divide EBT recipients into 90% don't need.......unfortunately however its more complex and devious......dependency on government makes the recipients more "compliant" and supportive of government. I don't know what percentage "need" EBT but I can tell you I have daily contact with many of this class and its sad to say the "welfare state" is alive and well and after multiple generations of programs that I believe must be PURPOSELY developed to propagate this reverse Darwinian process I believe our Country is close to being finished. Welfare COULD be administered to get people back on their feet but the jobs out there now are NOT plentiful in many areas.....Welfare unfortunately is administered to maintain a welfare class.......when the real "shutdown" comes the only welfare will be what you have prepped for..... that is if you survive the first strike

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  36. Think

    http://www.shmoop.com/reagan-era/economy.html

    Not everything is/was as advertised.... With the benefit of hindsight you may see the seeds planted back then brought us to where we are today....

    btw: Recovering Reagan Republican not necessarily a mark but more like a duped Dipchit!

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  37. Think,

    This country got so far so fast not solely on your 'forefathers', but just as importantly on immigrants who built everything you see around you with their hands, then used the hard earned money to invest in businesses and real estate, that's what helped to grow the economy for the past 100 years.

    You had an interesting line..."Why lower taxes on the wealthy? Because a single millionaire spends more…."
    WRONG! Are you telling me that the spending of 1 CEO has the same stimulating effect on the economy as the 100 underlings that work ‘beneath’ him and together make the equivalent of his pay!? Let’s see here, the CEO goes to the Bugatti dealer and forks over $2.5 million for a Veyron. On the other hand, the 100 employees walk into 100 different dealerships (Audi, Toyota, Ford, Jeep, Honda, etc.) and purchase 100 cars for a price tag of $25K each. You’re saying that the 1 car manufacturer (Bugatti), the 1 dealer, the 1 salesman, the 1 gas bill, the 1 set of tires, etc. etc. etc. has the same impact on the economy as 100 salesmen making the sale, 100 dealers paying their rent, 400 sets of tires!? Come on…this trickle down sh*t never worked, not now, not ever. Sure it was easier to mask it back in the 80s given that we actually had some real growth in the economy. And let’s say this CEO now decides to purchase a $5 million painting with his ‘discretionary’ income. The 100 employees on the other hand go on vacations, buy computers, and so on. Do you really believe this is equally stimulating? The middle class drives growth…look at the situation we’re in right now, the middle class is gone!

    As for your opinion on welfare, I agree that many take advantage of the system and that we need to find a way to improve it, however, we do need welfare. If someone you care about lost their job, even yourself, wouldn’t you want ‘society’ to help you through that difficult time? Should we just let people starve? It needs to be reformed, but given the current state of the economy, you take away gov’t help, and you’ll have a mob of people at your doorstep with pitchforks looking for dinner. The strongest, most sustainable economies around the world have MUCH better social programs than us; I don’t think that’s a coincidence.

    I agree with many of your other thoughts though, very interesting back forth with Kli too, entertaining and educational, so thanks for posting.

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  38. I appreciate the responses, Kli, Tommy, Sammy. Kli, I am aware of the bankers you refer to. An interesting legend back to the 1700's involving the bauer/roths,illuminati....don't know how much of that I actually believe but I know that's whom is referred to on this blog frequently. But like I said, very interesting. Indeed Reagan was sharp his first term and a half but I'm aware that he lost his mental edge the last year or two of his 2nd term. I agree that "after multiple generations of programs that I believe must be PURPOSELY developed to propagate this reverse Darwinian process I believe our Country is close to being finished." You get 51% on the dole, which has clearly been the Dems plan, and next stop is socialism. Idiots haven't noted how well that worked in USSR, China, Cuba, Europe....but I've lived in many of these places. I am not what I'd call a fanatic doomsday prepper, but fortune favors the prepared so I hope for the best however my plans include preparing for the worst. If you know my posts, I pretty well subscribe to the type of preparing that Kli promotes on this blog.

    Sammy--not thinking big enough. And not so apples and oranges with your choice of purchase---rich guys with big operations HEMORRHAGE money on a daily basis....a painting or Bugatti is not the main drivers spreading bread and butter around. Do you know what it takes to build and maintain a mansion, collection of cars, art, accountants, managers, technicians..... I have a friend with a large estate like that and he has famously called it "like a living organism, and it's wounded a lot.."

    Read what I wrote---I wasn't talking about middle class, I specifically compared the EBT crowd to the millionaire. The EBT crowd ain't buying 100 Audis, Fords, Toyotas.... I speak to the EBT (among others) people on a regular basis and they drive 1986 pickup, 1991 Geo,....riding on bald tires with 2 gallons in the tank. The millionaire build a 15,000 ft home on 20 acres, hires multiple levels of contractors, craftsmen, lanscape, nanny, housekeeper, gardner.... BTW, the Bugatti salesman is high middle class just based on commission himself and probably buys all that too. Set of tires costs $75,000 for Bugatti----allows development of top tier technology that DOES trickle down to the $400 set of tires the crowd buys. How do we have many of these technological advances? First put on flagship models or race technology that was initially unobtainable to the masses but now commnplace.

    And emphatically NO, I have no expectation of strangers feeding me were I to fail. If I had catch food by hand with a knife and live under a bridge I would. Yes, let them starve---believe me, the hungriest vagrant in the USA is nothing like in other countries. There are still food kitchens and such---sure one meal a day sucks, but you CAN get by. Not a person in this country that hasn't traveled to 3rd world countries has a CLUE how un-harsh I am.

    But my starvation wouldn't be necessary, because I've lived my life not torching my bridges with family, friends and neighbors and I know they would help me, as I've helped many of them, essentially supporting one down on her luck niece for 2 years. How do think this damn species dominated the earth before all the welfare programs?!? You were a good productive and socially responsible citizen in your micro or macro community---neighborhood, your church/religious community, your tribe/clan, and that group all looked out for each other. Like the Amish and primitive tribes still do today. They don't take welfare---if they're hurt, neighbors bring food until they heal. If the barn burns down, the men all show up on a designated Saturday and build a new one. I stand by the fact that you could cut welfare plans by 90% and still be helping the ones that actually need it. We have spent $10 TRILLION on the "war on poverty" since it was first declared and exactly what progress have we made? WORSE than ever. As Deion Sanders would say, C'mon, man!

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  39. BTW, I'm not foolish enough not to question established belief processes/mantras. For instance, I agree that the Soviets were structurally bust in the 70's and had no hope, just as socialism/communism never does. The arms race was just the coup de gras, the last few bales on camel's back. Sped up the demise. Towards the end, they were parading painted WOODEN missiles down the streets in the parades, not even able to TRY to make a real one. We are staring down a similar road now. However, not every single thing is occult mastermind plot of deception. Really, sometimes a cigar really is just a cigar. Light the sucker and put your feet up.

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  40. One last thing. The forefathers I spoke of are exactly who Sammy speaks of---"the immigrants that built everything around me with their hands and invested...." We are saying the same thing. But there was no welfare at all when they got off the boat at Ellis and they knew they HAD to build their own lives or they WOULD starve in the gutter. That's exactly my point.

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  41. Think, I believe you need to get with the program around here. You see, every single person who's on some form of government assistance (EBT program, welfare, SSD, Section 8 Housing, free medical care, free Obama phones, free anything) is a good, decent, honest, hard-working person who's fallen to hard times thru no fault of their own. They bear zero personal responsibility for the situation they find themselves in, so we, the middle class, need to help them out. It's all the fault of the evil banksters. Those half million dollar homes they purchased with zero down and 2% teaser ARMs, why the banksters held a gun to everyone's head and forced them to buy more homes than they could afford. And all those people who took out home equity loans and used their homes as ATMs? You guessed it, the banksters made them do it. What about all those young people going to Marxist indoctrination centers known as the American university system and major in English and Women's Studies, while taking on huge amounts of debt and then finding their useless degrees can't help them land any decent jobs? Yep, the banksters, it was all the banksters fault.

    You were wondering about that well dressed, able-bodied guy getting out his nice car and buying himself $200 worth of groceries using his EBT card? Well, he deserves it, that's for sure. We, the hard working, tax-paying members of the ever- shrinking middle class owe these people and need to take care of them from cradle to grave. I finally understand it all now.

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  42. Bud .....I may not agree wholly with Think's analysis......but at least he attempted analysis.......on the other hand it really doesn't help to mix your analogies between the ME generations and the "welfare class"......the irony of the ME generation is they are recieving some of the BIGGEST government subsidies Bud........and guess what Bud ...YOU have too in the past.....and that is the mortgage interest deduction.......so Bud you and many of us have lived off the governments teet.......we just don't like to admit it.......

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  43. BTW this discussion is important.......whether it changes minds is NOT important, but whether you think about belief systems that we have all been indoctrinated by is more important. As far as the illuminati/top of the pyramid is concerned, its not important whether you believe it, it tends to challenge your beliefs that you have any control and upsets people so its NOT acceptable. gl

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  44. Bud,

    Question:

    What’s the difference between the EBT hoard that raided Wally World and Hank Paulson and his hoard that raided the US Treasury?

    Answer:

    NOTHING…… They both stole from the productive in our Country the ONLY difference is the EBT hoard will lose their free chit privileges yet HP and his hoard will still be able to buy their “Bugatti’s & Living, Breathing Mansion’s” Hehehehe (Very true btw, a true money pit)

    Funny thing is that there was so much outrage, including your's over the Wally World incident yet in the general population its nothing but crickets when it comes to those that have completely a$$ raped us without the courtesy of a reach around……

    Think,

    You bring up a valid point regarding what is missing in our society and that is FAMILY. In the past it was generally an accepted premise, when one is down on their luck that you went to FAMILY first, then you went to your Church and other Charitable Organizations that had been set up to support the Community, however enabling and/or freeloading generally was not tolerated. Unfortunately that is no longer the case; the family unit is no longer valued, God has been removed from the public square and has been replaced with the State and whatever is trending in Pop Culture. You don’t need to be a Bible thumper to recognize that the Ten Commandments are a pretty good set of guideline for managing one’s daily affairs.

    The bottom line as a population we have lost our moral compass and those in leadership are relishing it as they continue the a$$ raping of the general populace…

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  45. the loss of family was designed decades and decades ago and is now complet......just as the loss of community was designed.......ALL for central/global control of the populations as they integrate us into a globla community....Will it work? answer......it has so far

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  46. let me rephrase that.....WILL they be successful with their plan??? They have so far....

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    1. Agreed the destruction of the family unit started back in the late 60's and yes their plan has worked unfortunately and far too many look to the State/Collective for guidance but when you boil all societies ill's down to a common denominator, it is the lack of a traditional family unit, plain and simple and of course the moral guidance/support that said family unit provides. IMHO

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  47. this won't show up on NBC nightly news

    http://www.zerohedge.com/news/2013-11-13/vietnam-shows-how-clean-banking-system-ex-banker-faces-death-penalty-fraud

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  48. Tom the "raid" the bankers perpetrated was over 17 Trillion......and most of it directly into their reserves and the equity market. They gave a whole new meaning to "Corporate Welfare" ...what is troubling is the notion this "helps" business when in fact......it strengthened only the largest banks and corporations (malinvestment) while creating an anchor around the neck of small banks and businesses. Loans to smaller companies are almost non existent now so their growth is restrained. Also burdensome regulations that the Large company CEOs sometimes complain about are in fact an age old method to really restrain their up and coming small company competition. If you don't know how that works from a nuts and bolts perspective then you don't need to be reading this blog.

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    1. Yup, I got mine but on a larger scale, if your in a small business good luck getting a loan.......

      Hmmmm now who owns NBC, hehehehe your so right!

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  49. clarifying ........on the nuts and bolts sentence.....I know YOU (Tom) know how the regulatory game is played.......you and I are in it......hehehheheh

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  50. “I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.”
    ― Smedley D. Butler, War is a Racket: The Antiwar Classic by America's Most Decorated Soldier

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  51. Tom,

    You left out that "we are locking up all the men in prison" when you spoke about family. And those of us that are "free" have been basically neutered.

    There was a time that the "Needs of the many outweighed the few". But now we live in a different time where that has been reversed. So, whether it is the bankers, corporations, our ourselves as individuals, our priorities have been guided by selfishness whether we actually realize that or not. Self interest lives within all of us. And for those of us that have "woken up", now find ourselves entangled within the system.

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  52. yes Doc......"I got mine.....now you get yours".......we're all guilty to some extent

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  53. http://globaleconomicanalysis.blogspot.com/2013/11/small-business-optimism-sinks-on.html

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  54. Here is another nuance on the welfare state to consider

    http://www.bloomberg.com/news/2013-11-13/how-mcdonald-s-and-wal-mart-became-welfare-queens.html

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  55. Speaking of family values......

    http://www.fitsnews.com/2013/11/12/missed-brosurance-heres-hoe-surance/


    Heheeeee........ however no mention of the never ending burn of Herpes and not to mention all those lovely erupting pimples! Bawaaaaaaaa

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  56. Everybody is nervous... crucial points on the metals and dollar. Which way will we swing? :)

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  57. I'll take some more physical thank you

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  58. Well, there's something we can agree with, the destruction of the traditional family unit, the foundation of any stable society. It has been on-going and progressing like clock-work for the past 40 or so years, and probably too late to turn that tide.

    And I never said the international banking cartel and their lapdog politicians who do all their dirty work are without blame. We essentially have two parasite classes, the elites at the top who are stealing our future away, and the EBT crowd at the bottom who want their free stuff. The group getting squeezed in the middle is powerless for the most part, but not entirely blameless. Personal responsibility means don't play their games, stop living beyond your means, stop voting corrupt politicians into office, basically, stop feeding this beast that is sucking us dry.

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  59. On that point Bud we certainly do agree!

    http://www.akdart.com/culture2.html

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  60. The Federal Reserve with ZIRP are screwing older people who were depending on a reasonable rate of return on savings to supplement/complete their retirement income, but instead of $25,000 on their half million of savings the get $2,500 a year.

    So what happens to the difference between $25,000 and $2,500. It goes to subsidize Ibud's mortgage payment by reducing his interest rate. So where does Ibud get off bad mouthing the EBT crowd while he gets his record low mortgage rates at the expense of older citizens who worked hard and saved to try and have a comfortable retirement? Of course he will never admit the advantage he receives from FED/Government actions....

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  61. gold moving up hard after hours.....maybe we found out how it breaks HUBZ......

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    1. Hard to trust these after hours move. Love how they parked it right at $1285 which keeps everybody guessing haha :) I'm hoping for a big up day tomorrow but we shall see...

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  62. It must suck to be you Outlet, a miserable, bitter, hateful, hostile man living out the rest of his days. What a terrible way to live one's life.

    I sleep like a baby, knowing full well that my 15 year mortgage (of which I have about 7 years left), didn't really give me any significant advantages financially, except maybe the first 3 or 4 years for that interest deduction. Now that I'm paying more in principal, the deduction is negligible. And considering nearly 50% of my earnings go to taxes to feed your favorite EBT crowd, your bogus arguments have no legs to stand on. I'm not even counting how much $$ and food (with 100% employer match) I have donated to my local charities over the years, knowing they help people who truly need it. The holidays are approaching. I've done well this year financially, and once again intend to help the less fortunate. You should consider doing the same, it might help with all that bitterness and anger you're carrying around.

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  63. Re: family. Here's what our government has been promoting for 40 years or more. It's just getting more in-your-face: http://www.huffingtonpost.com/2013/11/12/obamacare-ads-colorado_n_4261448.html
    Your tax dollars at work. What a message for our young people. It's so demeaning to women it's unbelievable.
    But I know I'm OLD.

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  64. PMs moving on Yellen 'leak'...basically she stated the economy is not doing as well as she's like (no kidding)! So QE forever, nothing to see here, record highs in stocks, painting sold for $140 million today, pink diamond sold for $80 million, things looking great for the 1%...waiting for the trickle...

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