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The Fed owns you. F**k the Fed!

So far, I’ve been plucking the low-hanging fruit. The truth of each post is painfully obvious. And there is plenty more of that be had. I’ll get to all of it before Election Day.

But there are one or two BIG, somewhat complex issues that will require you, if you’re a responsible adult, to do a little reading or research to fully understand. It is possible that many of you already know this stuff; perhaps better than I do. (Wait. Let’s not get carried away here.)

To the threat:

I want you to sit at your laptop and cup your hands together tightly over the keyboard. Have someone fill your hands with water. Now without spilling a drop, type a comment to this post.

Stupid, right? I hope no one tried it. If you did, there’s no point in you reading any further. You’re beyond help.

Well, that type of trick has been what the GOVERNMENT SAYS is the primary mission of the Federal Reserve. Keep inflation at bay while keeping unemployment low. The two are opposing forces. Left alone without interference they oscillate against each other in a healthy fashion. You have cyclical price increases and decreases. But you don’t have a constant state of inflation, a la Fed.

Recently, the Joe Duh Regime announced that they are ‘requiring” the Fed to add “creating equity in outcome” for minorities. You know who they are. They are the people the Joe Duh Regime thinks are too stupid to compete in the world without Mommy Government protecting them. I’m pretty sure Morgan Freeman, Charles Payne and Candace Owens, among millions of other “minority” people, would laugh at that.

So, from the cheap seats, the Federal Reserve is a benign creature created to look out for your interests.

Well, boys and girls, it’s not.

In order to truly understand this YOU MUST read The Creature From Jekyll Island, by Griffin. This is a heavily documented history of the Fed from it’s founding. What you will read will astound and infuriate you. The Fed, our equivalent of the Bank of England and the European Central bank, is a creature created to seal in concrete the power of our Central government. It also provides them the luxury of throwing away money, recently many trillions of dollars; to create the illusion they are giving you things. This keeps the unwashed away from the palace gates; keeps you numb nobodies sedated with ever depreciating money.

If time is an issue, there may be a good version of Cliff Notes for Creature. The ones I’ve seen online are pretty lame. No explanation of terms, etc. But read it!

People think the Fed is answerable to the government. That’s how it was sold to congress to create it. It is actually a conglomeration of powerful banks that hold an unacceptable amount of power OVER the government and utterly over YOU.

There are others who hold Fed shares, but the big Fed powerhouses are Bank of America, JP Morgan, Citigroup and Wells Fargo. (It would be worth checking to see if Blackrock and Vanguard hold shares, considering what I posted here.) If they were the least interested in the common good that would be great. But they are not. They are interested in their bottom line, first, last and always.

Jefferson and Madison fought against establishing the first central bank because they knew from experience that ALL governments eventually treated central banks as money presses. They would abuse their offices to create mountains of debt, foisted on the people. It is a certain path to permanent inflation and a speculatory nightmare. And they were right, of course.

It’s a threat to liberty and our republic. You’ll see why in just a bit.

The book details how the Fed loans the United States and other countries insane amounts of money. How the loans are abused and how they are almost NEVER paid back. The big banks running the Fed don’t want the loans paid back for two reasons.

  1. Fractionalized Lending. The Fed, like all banks, with a bookkeeping trick, loan the same billions – or now trillions – of dollars over and over again. If you take out a loan at your bank the credit is based on the same money that has been loaned out again and again. That is why they don’t want you to ever actually pay it back. They just want you to service the interest for as long as they can possibly drag it out. So long as you do that, they have income and they own the underlying asset you borrowed against. The Fed operates the same way. And who knows how many times the times the loan money has been fractionalized. Because the Fed has never been audited. The government has no power over the Fed. They presently hold all the power over the government. And the Fed is perfectly happy to see our government and all governments just service the debt because it is ALL income for the bank. None of the loans, except for the first loan on the first non-fractionalized dollar, represent a loss for the Fed – the big banks. It’s all money in.
  2. When the government borrows money from the Fed it is printed or created digitally with absolutely no value behind it whatsoever. Every penny is fiat money. Every dollar printed devalues every dollar you earn or have. That is why the Fed NEVER loses. In fact, they will happily refinance your debt and put you in deeper hock to them. IT’S ALL INCOME.

Why do you think refinancing YOUR loans is a service advertised online and on TV? They don’t want your house and they don’t want the principal to be paid back. They want an unending stream of cash. And they hope you live a long and healthy life. Because when you croak the estate liquidates all debt. The bank’s loan is paid off. And that is what they fear.

Because of fictionalized lending, assuming your loan was the ninth on the books for those particular dollars, all but 10% of the money returned against principal vanishes. It’s gone as if it never existed. Poof.

It is impossible to know how many times the Fed has chopped up (fractionalized) the money it lends. Considering the insane amount of money that has gone out in loans over the last decade, tens of trillions, if they were only slicing and dicing 6 or seven times per dollar lent, I think our inflation rate would be approximately a gazillion percent per year. But it is not.

What happens if our dollar get so weak (Joe Duh is working on it) that nations realize they can pay of their debts or refi with China or the Saudis and let them pay it off?

Ruh-roh Shaggy!

That money only exists as a U.S. Bond. Do you think the executives at the big banks are going to take it on the chin and hand back their salaries when the money goes POOF? That wouldn’t even solve the problem. No, they are going to keep every dime.

Consider the 2008 crash. The bigs were up to their eyeballs in crap debt created with all this easy money. They decided to make some extra skim off of debt and started a casino making chips with worthless paper bundled with good stuff. The chips were called collateralized debt obligations (CDO) and credit default swaps (CDS). The dumb and the greedy couldn’t get enough of the game. The cautious thought they could use them as a hedge or a write-off. The smart few realized the chips were dangerous and they could see the end coming.

When people started calling out this activity, Glenn Beck was ahead of the game in the media, the chatter on the business channels was, “Well, It’s just big investment firms and whales playing hot potato with some shitty paper. It’s not like they are selling these things to Joe Six-Pack.”

Then, after a year of warnings from the observant, a couple of firms ended up with more of this garbage on their books than the entire net worth of their corporations. Boom.

The reason they had all this funny money and bad debt washing around can be traced back to the policies and practices of the Fed. Hey, the players were just imitating the Fed’s insane, irresponsible behavior.

What should have happened was too painful to consider.   You were told that if the banks and whales were permitted to go belly up then everyone would go broke. True, a lot of people would have taken a 1929-like hit.   But that is and was recoverable in an environment where the government and the big banks aren’t taking warm showers together all the time. It was true in 1929 and it was true in 2008. It will be true again, when they tell you it’s not. And that’s right soon. Soldier on.

So instead of letting the all the big guys go under, the government scared you with the Depression boogieman and set about making their rich friends whole. And instead of freezing the Fed and going in and auditing ITS practices, they green lighted them to print every dime needed to bail out the players at the casino. The result was huge losses for you, foreclosures among you or your friends while the players were made whole or nearly whole. It cost only $1trillion…because they all knew that was just the down payment.

Then for the next ten years the Fed held a fire sale on easy money. The players kept grinding while the rest of the economy limped along at about 1% growth.

It’s worth noting two important things here: 1. To this day the Fed still loans TRILLIONS all over the world like it was day one of the 2008 crash. A tiny fraction will ever be paid back. 2. CDOs are still a multi-trillion dollar game. But now it’s more like a money laundering scam than a mortgage scam. Hell, the government buys all the worthless mortgages now along with the good ones. And get this!  They do it with money from the Fed! You can’t make this stuff up!

It’s time to audit the Fed or end the Fed. Or both. Every time someone calls for that (Senator Rand Paul is one) the propaganda machine goes into high gear saying that we could mess up the economy if we do that. And how dare anyone suggest that the Fed would do anything to harm Americans?! Why, they are a sort of…half government…helping…patriotic…critical…ya know, the thing!

May I remind you the Federal Reserve is a band of large banks, still players all, in the casino. And THEIR interests are their only interests. Where their interests meet ours, fine. Where they collide it’s, “fuck you, we have politicians to control and empires to expand.”

It is further worth noting that your economy is collapsing around your heads. This is because, and this is just one example of MANY, the government and the Fed are printing money at an alarming rate to finance crony “green” projects. The projects will NEVER work as advertised. So, why do that, right?

Well, the big players, including Fed members have positioned themselves to get this money handed to them. Blackrock and Vanguard will get a lot of that money too. With some of it they will build windmills, hundreds of millions of acres of them. They’ll keep the rest of the money. The windward turbines, on any given farm, when the wind is actually blowing, will work. The leeward on those huge farms, from the second row back, meh, not so much. The ones at the back, ziltch.

What? Did you think the big banks and investment firms were doing this because they care about “green” energy and our precious environment? Hah! You kill me. They don’t even care if these things work. Think Solyndra, but on a multi-trillion dollar scale. All financed by the same guys (Fed members) who will be making all the money!

But they won’t lose anything on the other end when the whole thing fails. No, no! They will set up shell corporations or find a few suckers to build these tinker toys. They will “LOAN” some of the trillions, they gave to themselves, to these companies. When the wind farms, by that time covering an area wider than 5 large Midwestern states, fail…well the shell company declares bankruptcy. Now no one owns the rusting worthless hulks. They sit and rot. Problem solved…for the Fed members and other environmentally patriotic players at the casino.

As I said, the “green” thing was just an example.  There are thousands of schemes in constant motion maintained by your tax dollars that don’t make the taxpayer a single dime. In fact, we invariably lose. They are all orchestrated by the Fed, cronies and their political whores.

It’s time to put a leash in the Fed. 65.

People to be screaming at: Find your Republican SERVANTS on this link.  CALL them and tell them to get hot on this NOW!  Hell, call the Dems too.  You might find one or two who won’t get loose stools over it.









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Mask Hysteria: Why the “science” is invalid.

I was just getting to why the “science” is invalid.  It’s about methods.  If the methods are not valid, there is NO SCIENCE.

Part 3

All the government intrusion, the destruction of the economy, the endless propaganda, has been based on “science”. Really? The numbers cited to justify all this are totally invalid. I didn’t say necessarily wrong. But they are definitely invalid to the point that we don’t know the real numbers and can’t know legitimately how to deal with them.

Photo Credit: Ichkäfer Flickr via Compfight cc

The first problem is data collection. When employing REAL scienctific data collection must be uniform and accurate. In any scientific setting, data collection, whether preliminary, observed or final, must be uniform and accurate. But the data used to scare the hell out of you has been anything but.

New York City routinely added untold numbers to their COVID data collection, especially in the area of fatalities. On two days in late May New York reported that they had added over 4000 and 3000 on consecutive days to their death totals. In these cases they decided the cause of death was unknown but presumed to be COVID. And why would they do this? Well, money and politics, of course.


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In the state of Florida it was discovered that for a long and undetermined period, only positive tests were being reported. Without a full report the significance of the “positives” reported is zero. So, why would they do this? Again, money and politics.

There are many (actual numbers are unknowable) where someone tests positive repeatedly. Some professions have required frequent tests. Many employers have told people who have tested positive they can come to work when they test negative. It has been suggested that teachers test daily or every other day. Guess what they do with these repeat “positives”. You got it. They are just added to the total of positives reported.

What could possibly be the motivation for politicians to sell us such garbage in the face of a [gasp!] PANDEMIC?

Let’s get to that.


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Rocky VIII: An Economic Metaphor Part 2


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Update: 11/7/19  The tariff circus drags on.  China continues to play the US like a fiddle.  With every “deadline” China simply makes obviously empty promises and gets the date to slide further right.  Today we hear we have a the framework on terms to be negotiated and a venue.  And we are told that we won’t get the “big” deal this time around.  (big shock, right?)  Instead we will get a promise from China to buy more stuff – AGAIN!  And that will be called a deal.  (Pass the fig leafs) As I have said in many places:  When all this is over, we will ALL end up very much where we were when it started.  TARIFFS DON’T WORK. AND THEY CERTAINLY DON’T WORK AGAINST TOTALITARIAN STATES!!!  Only real free trade works across the board.  But there isn’t one politician with the sack to actually discuss real free trade.

At the moment, that doesn’t even exist in this country!

8/14/19  4:27

The markets have closed down 800+. And no, it still isn’t the Hong Kong riots that caused the drop. That is just another symptom.

In Hong Kong, as with all drawn-out protests by youth, a Lord of the Flies mentality has set in. Agitators in their little corners of the conflict are fighting for the conch by attacking police and trying to be the toughest boy scout. This will cause them to lose public support and has doomed their fight. China wins. Of course they were always going to. They won’t let ANYTHING change because of this protest. The government is not civilized and they don’t preside over a democracy.

One cop showed incredible restraint when cornered by several attackers using sticks to beat him, quite badly. He drew his weapon but didn’t fire it. If it had been me, there would be dead kids at the Hong Kong airport. That’s one GOOD cop.

But back to the real problem at hand.

Who are tariffs good for? Certainly not consumers. And they don’t help suppliers of goods not protected. As I stated in my January article, they only help the specific industries being protected, allowing them to RAISE prices with less competition, but only for a short time. Then everyone looses.


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Thanks to this ridiculous tariff scheme we STILL have silly scenarios like this one: There are tariffs on materials used to make bicycles but no tariffs on bicycles. So U.S. manufacturers of bicycles, already hampered by higher labor costs here, now must pay more for materials and parts. The result? Foreign bike manufacturers, including Chinese companies have an even greater advantage in our market. Come Christmas all the “buy American” slogans in the world will not put an American-made bike under the tree in this country. And the tariff scheme is riddled with this stupidity, as if just launching this campaign wasn’t stupid enough.

So who pulled Trump’s chain?

I don’t know who in the administration stroked Trump’s ego well enough to put him on this idiotic tariff bender, but I’d like to strangle them. We had just emerged from an abysmal 8 years of little of no growth and had just a bit of traction under out feet (even Europe was growing for the first time in a decade) when it was all wiped out with this one impetuous and utterly ill-conceived act.

Yes, many players on the world stage are corrupt and still charge tariffs to please their cronies. Hell, Europe has been enjoying tariffs we allowed since after WWII to give them a shot at recovery. And we completely dominated the world’s economy for 75 years. Europe didn’t become a dominant power. Still, tariffs are an insult to free trade and should have been done away with. But how? With US tariffs? Hardly.

In our last episode a victorious Rocky (the US economy), still injured from his rematch with Creed, is being forced to fight Clubber Lang, Tommy Gunn and Ivan Drago (trading partners) at the same time. Mickey (Trump) said it was for Rocky’s own good (national security).

At the outset, Rocky seemed to be standing his ground. Gunn (Mexico and Canada) didn’t have the stomach for a fight and knew it wasn’t in his best interest. He immediately threw in the towel because Mickey was willing to renegotiate NAFTA. It was a smart move. He leaves the ring, not a hair out of place.

But problems remain.

Lang (Europe) puts up more of a fight. He throws lots of punches at the US economy and calls Mickey a bully but then slips in a few concessions, some of them really good (like zero tariffs on cars – our biggest obstacle). Where Lang might be inclined to turn on Drago (China) in the overall fight and stand with Rocky, he can’t. Every time he tries to step in, Mickey tells Rocky to punch him on the face. Mickey says he doesn’t want parody with Lang, he wants a complete advantage. Instead of taking 80% and turning Lang against Drago, Mickey chooses to post childish and insulting tweets about Lang, pissing him off and reinvigorating him.

Despite a groin injury (zero, and even negative economic growth) Lang persists in the fight. While he isn’t as much of a threat, his continued presence in the ring makes Rocky’s real challenge more difficult. And with each punch he gets weaker, so even if Lang (Europe) does eventually try to turn on Drago, he will be too weak to help.

Drago (China’s economy) is huge, everyone says his economy is weak and he can’t stand up to a trade fight with the US. But he has something the Rocky doesn’t have. His corner is a totalitarian police state. The corner will not suffer if Drago takes hits, even severe ones. Drago’s fans will. But they will endure what they are told to endure and they will like it.

It won’t end well.

You see, ultimately, that is where controlled economies must end up. You can’t control economics like you are planning a birthday party, although idiots who call themselves economists and politicians try every day. But you can oppress people. The more control exerted over the economy, the greater the oppression must be. I give you Free College for All, The Green New Deal and Tax the Hell Out of the Rich as examples.

Where will this end? It remains to be seen. But it won’t end well. Serious and unnecessary damage has been done and it will take a while to unwind.

Leaving the ring for the real world, we have two options to fix this and move on:

  1. Real free trade

OR

  1. Demanding tariff-free trade among all our trading partners

I’ll address number 2 first.

U.S. Dominated Trade

We can start by country or by region or with all our trading partners at once. Congress passes a law that states by a date certain there will be no tariffs anywhere in trading with the United States. We send you our Spaghetti-o’s, you send us your kumquats. They are sold to our respective consumers unencumbered by tariffs. If you keep or create tariffs, you have sold your last kumquat in the US. Subsidies would have be eliminated at the same time as they are just the B side of the same 45, created to thwart competition.1

This is preferable to the existing fight and the pre-existing status quo. However, it isn’t really free trade. If trade takes place under the auspices of the US government, like it as we may, it isn’t free. Making a product and gaining market share at home or abroad is up to the companies who wish to trade, not the government!

And, oh, by the way, try to wrestle sugar or corn subsidies from the political whores on Capitol Hill or the cronies they protect. They’ll tell you the economy is too complex and you just don’t understand why we have to take the bribes we take to help market sectors. Poor, ignorant you.

Market-Dominated Trade

Number 1, above, is actually the real answer. Free trade. Really free.

Sadly for the dupes who think the government is obligated to get your rubber dogshit into novelty stores in Poland, this scenario pretty much resembles the situation we have right now, based on how ignorant other trading partners remain.

If you, unlike most politicians and career government workers, have brains and vision, you understand that having rich trading partners is better than having poor ones. So rule number one for healthy trade is don’t impoverish your customers. You are not obliged to prop them up, but you don’t kick the stool out from under them either.

Further, if Heinz wants to sell ketchup in Germany and pay a hefty tariff to do so, that is none of the U.S. Government’s business. That is 100% up to Heinz and the board of directors. It is up to that company if they wish to move into a market where they are made artificially less competitive based on price. If they didn’t think they could use the popularity of their brand and quality of their product to make money in that market, they wouldn’t send their stuff there to begin with. And if Berliners wish to pay more for ketchup or pay tax money to their own ketchup companies in the form of subsidies, that is their concern ONLY.

Naturally, if Heinz finds a political whore who will go and fight and threaten the Germans or initiate tariffs here, I suspect Heinz would make huge campaign contributions and pay tens of thousands of dollars for speeches to be made by the whore in return. But that doesn’t make it right.

The lesser of two evils? Meh, Maybe.

I support choice number 2 over the status quo. But I know choice number 1 is the best long-term answer to all of this. I hold out absolutely no hope that ANY of our politicians have the guts to start the process by winding down our existing market protections to undeserving cronies. And I also despair at Trump’s lack of intellectual curiosity on the matter.

How bloody it gets depends on how long people insist on being stupid. But when it all finally shakes out we will all be financially weaker and pretty much the same place we were relative to the rest of the world when this all started.

So, Rocky is screwed on this one. We all are. But don’t worry. You’re screwed on lots of other ways as well. Maybe next time we’ll revisit how Facebook, Google (and politicians that are supposedly “taking on the tech giants”) are playing all of you for total suckers

 


Don’t be a political pansy! Read Street Politics, the book that predicted it all!

1. But we’ll deal with subsidies in another article.  I did deal with them in my book.  See the link above.