Tuesday, September 30, 2008

VICTORY!!!

The Big Bailout plan has been defeated.


IN YOUR FACE BANKSTERS!! HAHA!


** Ahem **

According to the Wall Street Journal:

WASHINGTON -- The House of Representatives delivered a stunning defeat to legislation designed to rescue the nation's troubled financial system, sweeping aside a call from President Bush to "send a strong signal" of confidence to markets at home and abroad.

House Minority Whip Roy Blunt (R., Mo.) spoke to reporters after the House voted to defeat the financial bailout package.

The 228-205 vote Monday exposed deep unease among rank-and-file lawmakers in both parties with what would be an unprecedented intervention in the private sector. The vote came as turmoil in financial markets widened, prompting the Federal Reserve to inject new capital into credit markets and forcing the government-arranged sale of Wachovia Corp. to Citigroup.

Monday, the Dow Jones Industrial Average plummeted 777.68 points, its biggest one-day drop in history. It ended down 7% at 10365.45, down 9.3% since crisis erupted a few weeks ago on Wall Street following the meltdown of Lehman Brothers Holdings. All 30 of the blue-chip indicator's components fell Monday.

The Bush-backed package now faces an uncertain future, though party leaders on both sides of the aisle are sure to consider revising the initiative, which Mr. Bush said Monday is needed to "keep the crisis in our financial system from spreading throughout our economy."

After the vote, House Minority Leader John Boehner (R., Ohio) said there would be an effort to bring back another bill, with further changes. "We've got to find a true middle ground," he said. "We need everybody to calm down and relax and get back to work."



There's a lot to say here, and I will leave the bulk of the commenting to the professionals.

But here's my One Dolla and Fitty cent...


A) It's official... the U.S. Stock Market has crashed. And that's not a bad thing... if you were prepared for it.

Me myself, I've been out of the broad stock market indexes since January 01. After taking profits on my oil and precious metals positions in late summer '08, I've been cruising along in cash, money market accounts, and physical precious metals ever since.

(If you haven't done so already, please visit a qualified financial adviser right now. And please don't take my personal investing methods as gospel either. See an adviser... today!)

I don't see today's market action as negative, simply because I don't believe that the Stock Market is a reliable indicator of the true economic condition of the country. Indeed, I believe that the Dow Jones and other indexes have a long way to fall before it accurately prices in a simple fact of American life... the consumers that make up 70% of the U.S. economy are broke as a muthafukin' joke!

Because of the house of cards that our economy is based on [1][2][3][4], the Stock Market is a dangerous game that is controlled by a select few power players, and has turned violently on many a banker, hedge fund manager, and individual investor, to their financial destruction.

When the stock market goes up, most people think that means that prosperity is coming their way. I strongly disagree, at the moment. If and when the vast majority of companies listed on American stock exchanges are solid companies, with solid earnings, a solid customer base, strong balance sheets, producing real goods with real value, and possess a sustainable competitive advantage over their competitors in global markets, then I will change my view.

But so long as our economy is based on Money as Debt, Credit Bubbles, and piss poor accounting methods, I will remain skeptical that the fortunes of the Average Joe are based upon the ups and downs Wall Street.

When the country as whole recognizes that economic prosperity begins on Main Street, and trickles up to the financial institutions and the global marketplace, then we will focus our efforts on producing goods and services that provide unmatched value on the world stage.

Once we as a people do the things that contribute to genuine wealth, peace, and prosperity, such as avoiding the costs and consequences of family destruction, promoting institutions that contribute to increased human wealth and well-being such as marriage, religion, and family instead of discouraging them, and developing human and other capital, by means of quality education, affordable health care, a genuine free market economy, and a robust system of Free Enterprise (as opposed to our current fascist business model), and govern according to the principles of the Rule of Law and Natural Rights, administered under a Constitutional Republican framework, then this nation will once again be the richest, the wealthiest, and the happiest nation to ever exist on God's green earth.

Only when Finance and Banking returns to its proper place as a SUPPORT function, instead of a OPERATING function (which will happen once the Debt Bubble finishes its ongoing implosion) will there be any hope of recovery, and NOT BEFORE.

B) This Market Crash might have more to it than meets the eye.


This is only speculation on my part until the data proves otherwise. But I suspect that the record free-fall of the market was, in part, driven by:

1) Lack of Plunge Protection Team support, deliberately withheld in order to put pressure on members of Congress to support future bailout efforts, which are forthcoming.

Speaking of Congressmen, please be sure to go here to see how your Representative voted, and listen to the words of Dr. Ron Paul as he breaks it all down.







Please note that the Fed pumped billions of dollars into the marketplace in spite of today's Congressional defeat. Wouldn't you agree that its time to End the Fed??

If you are of the same mind as me, please contact your elected officials and urge them to support Dr. Paul's abolish-the-Fed bill located here. There will be no true economic recovery, nor will there be a Constitutional Republic unless three things happen:


Gold (or silver) backed currency issued and managed by the United States Congress or the Treasury, abolishment of the individual Federal Income Tax, and the repeal of the Federal Reserve Act.




2) Lack of stock market buying on the part of short sellers.

Remember that short selling has been banned, and since there were no shorts buying stocks to participate in today's bloodbath, the markets were able to plunge to new lows. Methinks that some of today's losses would have been mitigated by active short-sellers scrambling about to purchase stocks to short.

Now, I could be dead wrong. But I will be looking for evidence to support my conjecture... as it makes a whole lotta sense.


C) This is a temporary victory.

The architects of the Fascist business model don't know how to take NO for an answer. I suspect that the bailout bill will be resurrected in the coming days. And only time will tell if the upcoming economic chaos (some of it genuine, some of it fabricated) will be enough to scare the Sheeple into supporting this tragically flawed legislation.


D) Peak U.S. influence has arrived.


According to Mish Shedlock:


...Peak US Influence

The US can no longer tell the world what to do and when. The sooner Congress, the next president, and even US citizens figure this out, the better off we will be. We need to start living within our means. Sadly, neither McCain nor Obama has figured this out as evidenced but the pathetic debate on economic issues...


Check out the entire piece. It's worth the read.

The moral of the story is that the American Empire is on the wane... and along with it, the fortunes of Political Feminism.

As I've posted previously, cheap money and credit are the root of all evil, and more specifically, the enablers of Tyrannical government and Tyrannical Political Feminism.

Expect both to shrink into insignificance, over the course of time.


E) What's really going on??

That's the question of the hour isn't it? And only one branch of economics has the answers.

Please visit the Mises Institute's Bailout Reader, feel free to stop by the Campaign For Liberty blog, and don't forget to direct your browsers to Goldseek.com.

Stick with these sources of info, and you'll be aiight.

No matter what happens, these are interesting times we live in...

Toku.

Monday, September 22, 2008

** URGENT! Please take action NOW **

Please read this post by Mish Shedlock of Global Economic Trends, and please do as he asks.

This is the most important finance related phone call you will ever make. If the proposed 700 billon bailout bill goes through... the consequences will be catastrophic.

If this bill passes, the United States is as good as fiscally dead. There will be no hope for redemption.

I know what some of you are thinking... why should I bother? If our government is willing to abolish all of the ancient rights of man, and dictate whom I may or may not contact, what makes you think that they won't pass this bill??

To this (very logical) point of view I would say this...

The legislation will probably pass.

However, We The People should oppose this bill because to simply lay back and do nothing would be a slap in the face to all of our ancestors who struggled to make this nation as great as it once was, and opposing this facist law would prevent us from forever looking upon our children and feeling a sharp, stabbing pain of shame and regret... that their future and prosperity was sacrificed on the alter of greed and ignorance and we meekly accepted it without a word of protest!!

Please friends... check the link, read it over, and do as the author suggests.

Thanks.

Saturday, September 20, 2008

There goes the Dollar...

Check it out...





And with this announcement, and the ban on the short-selling of stocks, expect the collapse of the dollar and the ruination of the national balance sheet to proceed right on schedule.

Damn.

P.S... this latest move all but assures that Political Feminism gets pushed to the side... big time.

Once Fedgov gives up the ghost and finds itself facing an international crisis with the Treasures and the Dollar at ground zero... Political feminists might find them selves puton tha' muthafuckin' Ho stroll...





... in order to raise cash to pay off Big Daddy Sam's Trillions in liabilities!

Ain't Life grand??


---
---

Update:





When America rejected Ron Paul, they sealed their economic fate. He was their last chance.


Toku.

Thursday, September 18, 2008

Credit Default Swaps and Option ARMS: A Killer Kombo.

Greetings...

As you might guess, your author has become a total financial junkie.

The reason is simple... I fear that we are headed towards Judgment Day.

With every bailout, bankruptcy, and foreclosure, we as a nation are walking through the minefield like a blindfolded, stone-cold drunk Wino.

We have no idea. Our Money Masters have no idea. Our politicians (except for Dr. Ron Paul) are more than useless.

We're fucked.

With that bit of positive news out of the way, there are three important articles I would like you to read, as they are all interconnected.

First up, please click here to read about AIG and the Brave New World of Credit Default Swaps (CDS).

It is thoroughly chilling, and absolutely likely that we will inadvertently step on a CDS landmine that not even Fedgov can fix without...

...printing (monetizing) massive amounts of debt. Indeed, according to AFS, the U.S. Treasury is selling 40 billion worth of bonds in order to help the Federal Reserve, a private central banking cartel repair the damage done to its balance sheet in the course of bailing everybody and their momma out, in addition to accepting toxic debt from a multitude of institutions.

Now, if the Fed, or the Treasury begins, this early in the game, to create massive amounts of money and credit to finance rescue operations for insolvent banks (like Washington Mutual, for example) and finance companies...

... imagine how insane things are going to get when the REAL mortgage crisis gets underway!!

In summary...

Please read the referenced material. I believe that if you do so, you will clearly understand what's at stake here.

My nightmare scenario goes like this...

Some direct or indirect financial complication is going to trigger a derivatives mega-event that only Fedgov (since they are the only ones with the power to create new money and credit) can handle. It will most likely occur as a bank or major financial house, crippled by the horrendous spike in defaults and foreclosures that will take place in 2009, will cause a chain reaction of derivatives obligations to be incurred that will force the government to act.

When this extinction level event takes place, it will deplete the reserves of the Fed and of the government bodies involved, (such as the FDIC) which will force the government or the Fed to create money and credit on an impossible scale.

This printing will trigger hyperinflation at worst, or seriously damage the country's economic rating on the world markets at the minimum. Once either of these occurs, its all downhill from there.

So will events transpire as I think they will??

Let's hope not. But in any event, these are the things you need to know, think about, and seek a qualified financial adviser to prepare for... in order to insure your and your family's economic survival.

One Love.

Wednesday, September 17, 2008

An Idea Whose Time Has Come.

MRAs, Truthseekers, and Lovers of Liberty:

Here is serious food for thought.

Please watch this film, and give it with your utmost attention.

The ideals expressed herein must form the bedrock of the Men's Rights Movement, effective immediately.

Understand that in the upcoming social, economic, and political realignment, there will be many competing philosophies that will seek dominance as the Western world rebuilds itself.

Men's Rights, and the core principles it stands for need to be among them; and we need to transform ourselves into serious contenders for political power at the local, State, and federal levels.

Feel free to distribute this film far and wide. All opponents of the existing Matriarchal regime need to see this film, and take all necessary steps to win elections, finance campaigns, and obtain as much influence as possible within their sphere of influence, be it in Business, Government, Religion, or Society at large, in order to batter the current fascist/corporatist/socialist/feminist regime right down to the ground!

Togakure.

The Domino Effect.

Hot off the Bloomberg press...

AIG gets PWNED by the government.

And of course, as of this moment, Stock futures around the globe are sharply up in response to the news.

As I said previously, the Stock Markets, by either Plunge Protection Team manipulation, or by the foolish belief that the inevitable downturn can be avoided, are utterly divorced from reality and NOT a good gauge of the strength or prosperity to this country.

Events are starting to move faster and faster. The system is beginning to unravel, and not even all the King's men can put it back together again.

The Earth is moving under the feet of the corrupt and slothful financial titans who hath taken advantage of the Sheeple for far too long. Their government lackeys have no idea of the upheaval that will remove most of them from power.

Some may think that this latest government take over will finally bring stability to the Markets. I disagree.

Be it today, next week, or next month, there are plenty of Dead Men Walking [a] out there that are going to show up, hat in hand, begging for Fedgov intervention; and the grisly dismemberment of any one of the major zombies could trigger a meltdown in the Quadrillion dollar (!) derivatives markets.

That is what those in the know most fear.

It ain't over.

First go the highly leveraged institutions,

Then go the Corporate Dinosaurs who are too big and too burdened to escape from the killer Meteorite that is descending upon Planet Earth,

Next go the people who are not prepared for the economic chaos that is about to unfold,

Finally, after trying to implement every conservatorship/bailout/rate cut/stimulus/ accounting rules gimmick it can think of to save the above mentioned segments of the economy, the State, which is the cause of all of this drama to begin with [b][c], will finally give up the ghost.

When the smoke finally clears, hopefully within the next two years (I'm being optimistic here), America will find itself forever changed. There is no escape. Man, WOMAN, and Child will be impacted.

Only those prepared to survive and thrive will be better off. Men, women, and children will need to come together, bury the freaking hatchet (repealing every ant-male law on the books would be a good start), and make nice nice if there is to be any hope of salvation.

Doubt it not.

Toku.

Monday, September 15, 2008

Keep a close eye on...

Goldseek.com.

They are posting up to the minute articles covering Lehman, Merril Lynch, and most importantly, the multi-TRILLION dollar derivatives market...

With some of the largest players in the U.S. Financial system either being bailed out, bought out, or filing for bankruptcy... all hell could break lose, Ladies and Gents.

In any event, don't sleep. The waters are getting more and more turbulent.

Now Hear This!

Gang,

Just two brief items for you to consider:

Item #1:

If Lehman collapses... by Nouriel Roubini.

This article is a must read. It talks about the upcoming collapse of Lehman Brothers, the fourth largest American Investment Banking house.

The economist writes:

... The Fed may delude itself in thinking – as its stress models suggest – that the systemic risk of a collapse of Lehman are less serious than those of Bear Stearns: after all Lehman is less involved into CDSs than Bear was and now both Lehman and the other major broker dealers have access to the discount window with the PDCF. A collapse of Lehman instead will have as much of a systemic effect as the collapse of Bear for many reasons: Lehman is larger than Bear was; Lehman is a major player in a variety of key financial markets; all the other major Wall Street institutions are interconnected with Lehman in dozens of different types of counterparty activities; the PDCF support of the Fed is neither unlimited nor unconditional, i.e. investors cannot assume that Lehman or any other broker dealer can borrow unlimited amounts with no conditions from the discount window. Thus, a collapse of Lehman would trigger a panic and a potential run on all sort of other broker dealers and also on other distressed financial institutions like banks (WaMu) and insurance companies (AIG) and smaller member of the shadow financial system (distressed and highly leveraged hedge funds, etc.).

The reason why Lehman is having a hard time to find a buyer is that it is most likely insolvent. If you had to mark to market the value of it illiquid and toxic assets (the $40 billion of commercial real estate assets, its remaining residential MBS and CDOs, its holdings of real estate private equity funds) Lehman is most likely insolvent (i.e. has negative net worth with liabilities well above its impaired assets). So leaving aside the potential and now dubious value of its franchise (an option to the value of a much slimmed down financial institution) no financial institution should be paying even a single penny to buy an insolvent firm. That is why all the potential suitors of Lehman (such as Bank of America and others) are waiting for the government to provide another sleazy Bear Stearns deal where the government would buy at higher than market value the toxic assets of Lehman (the commercial real estate assets for example) so as to make the net worth of the remaining institution positive and worth buying. But such action – borderline illegal in the case of Bear as pointed out by Paul Volcker – would be a scandal in the case of Lehman and severely exacerbate the moral hazard problem.

But here lies the conundrum of this Lehman crisis: no one seems to want to buy for a positive price Lehman unless there is a public subsidy (taking off their toxic assets off the firms’ balance sheet). The government cannot afford to provide the subsidy as the moral hazard problems are becoming severe. But then if on Monday no deal is done Lehman collapses and goes into Chapter 11 court and you have the beginning of a systemic financial meltdown as the run on the other broker dealers will start. Thus, what Fed and Treasury are trying to do this weekend is another 1998 LTCM bailin or Korea 1997 bailin, i.e. trying to convince all the major institutions to either support a purchase of Lehman or maintain their exposure to Lehman if no buyers is found or put capital into a bad bank that would take the toxic assets off Lehman's balance sheet.

Can this bail-in work? It is not clear as there is a major collective action problem: you can’t only convince half a dozen major Wall Street firms to maintain their exposure to Lehman or fork new money to support a bad bank full of junky toxic waste. You need also to convince all the other counterparties of Lehman (including the hedge funds and the other broker dealers and banks) not to roll off their claims and credit to Lehman. This is a much more messy collective action problem and coordination game than in the case of LTCM and Korea where the number of involved counterparties was more limited (less than 20 in each case)...


In English...

The Federal Reserve, the Treasury Department, and other concerned government agencies are caught between a rock and a hard place.

Since they recently bailed out the GSEs (Frannie and Freddie); Fedgov doesn't want to have to take over another company. It doesn't look good politically, don't ya know!

And the Wall Street firms (many of whom are in the same predicament as Lehman), aren't trying to buy into a bank that is insolvent already... unless Fedgov is willing to make a sweetheart deal akin to the Bear Sterns debacle.

However, at the end of the day, Lehman brothers is going to get bailed out by We the People. There's simply no choice. A Lehman failure would set off a vicious chain reaction that could bring the whole (extremely fragile) system to its knees.

No matter what happens, I don't expect this crisis to be resolved until there is significant blood on the streets. Nobody wants it, but that's what's going to happen.

Change is coming, whether we want it or not.


Item# 2

Is America going back on the Gold standard??

Check out this post at Itulip for more info.

Will it pass?

Not yet. But you see, the fact that a Congressman other than the Honorable Ron Paul has submitted a (less than perfect) proposal for consideration speaks volumes.

Somewhere out there, somebody understands that the future legal tender of this country will either be backed or measured by Gold.

This is yet another example that significant shifts are in the making. And they will come like a thief in the middle of the night.

Are you prepared to take advantage of the new reality? Serious students of MGTOW need to focus less on Political Feminism. Those rejects from Women's Studies class are yesterday's news.

I would humbly suggest that Men get themselves ready to ride the waves that will soon be breaking upon the shore.

The future looks bright!

Toku.

----
----

Update:

According to Bloomberg, it looks like Lehman is going to file for Bankruptcy.

What will the fallout be on the U.S. financial system?? Only time will tell.

But in the meantime... another corrupt Investment Banking house bites the dust!!

Thursday, September 11, 2008

Monday, September 8, 2008

Fannie and Freddie: The Takeover.





At the request of Russia, China, and Bill Gross (the Warren Buffet of Bond Investing)...





... the government has taken over housing via the GSEs.





More from Bloomberg.


Ramifications:

1) Add another Five Trillion dollars to the U.S. National Debt. No private money is willing to make up for the Six Trillion dollar wealth wipeout the housing market has experienced thus far.


2) Get ready for the monetization of all of that debt, which could lead to Hyperinflation (the weakening of the currency by oversupply).


3) If you have a mortgage that is handled through the newly nationalized GSEs, say hello to your new landlord... FedGov.

What did that nutty Communist Manifesto say?

... Centralization of lending in the hands of the State through a national bank with State capital and exclusive monopoly...

... We already saw above that the first step in the workers' revolution is the elevation of the proletariat to the ruling class, the fight to win democracy (remember that the United States is a Constitutional Republic, and NOT a democracy - Ed.) .

The proletariat will use its political rule to gradually tear all capital away from the bourgeoisie, to centralize all instruments of production under the control of the state, that is, the proletariat -- organized as the ruling class -- and to proliferate the mass of forces of production as quickly as possible.

Naturally, that can happen first of all only by means of despotic interventions in property rights and in the circumstances of production of the citizens, therefore, through measures that seem economic insufficient and untenable, that nevertheless will in the course of the movement grow beyond themselves and are unavoidable as a means to turn over the whole manner of production.


Well, looks like the experiment of private financing of the All-American home has come to a close.

What else will the government take over before its all over with?

Only time will tell.

Welcome to the U.S.S.A.