Bits Bucket for December 14, 2013
Post off-topic ideas, links, and Craigslist finds here.
The Housing Bubble
Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole.
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Name:Ben Jones
Location:Northern Arizona, United States
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Dectaper or notaper?
no taper
for ever
YOLO!
–Janet Yellin
Tom Aspray, Contributor
I provide financial market analysis.
Markets
12/13/2013 @ 7:03PM
The Week Ahead: Is This the Next Taper Stopper?
The stock market stabilized late last week but the damage was done by mid-week as the technical deterioration had given advance warning of the market’s decline. Last Monday’s feeble reaction to the powerful gains on the jobs report was disappointing and short-term sell signals were generated.
The financial media is attributing the stock market decline to the growing consensus that the Fed may announce changes in their bond buying program at the conclusion of this week’s FOMC meeting. Thus, the dreaded tapering is again the focus of many analysts.
In August, I explained my view that more taper tantrums would be bullish, and the stock market’s correction ended about two weeks later. Since then, the improvement in the unemployment numbers has convinced some that the Fed can now justify tapering.
Though it has not been widely discussed, it is my opinion that fear of deflation is likely to keep the Fed from changing its policy now. Last week’s Producer Price Index reflected almost no inflation at the producer level, and this Tuesday, we get the Consumer Price Index.
The WSJ chart shows that the CPI is in a solid downtrend as it shows lower highs and lower lows (lines a and b). The chart also includes what the Journal refers to as the Fed’s “preferred measure of prices, known as the personal-consumption expenditures deflator.” On a year-to-year basis, it reflected a rise of only 0.74% in October.
If the Fed waits until the inflation rate is high enough so they are no longer concerned about deflation, it could be several years before they start tapering. Though this is not grasped by many investors, market historians are only too aware of what happened in Japan.
The monthly chart of Japan’s Nikkei 225 goes back to the 1980’s and shows the reversal from the December 1989 high at 38,957 as the BOJ raised rates in an effort to stem the parabolic rise in real estate prices. As indicated on the chart, they started to realize that deflation might be a problem in 1990, but when the economy improved, they became nervous in 1997, causing another plunge in stock prices.
The NK225 made an initial low in May of 2003 as it was down 78.6% from the highs. A lower low at 7021 was made in early 2009. Though Japan’s bubble was not exactly like ours, it does demonstrate that a deflationary spiral is very difficult to overcome.
…
Taperless Crater.
The Trader | SATURDAY, DECEMBER 14, 2013
Stocks Tank 1.65% on Taper Fears
By AVI SALZMAN | MORE ARTICLES BY AUTHOR
The stock market registered the steepest weekly loss in three months. Also, time to check out of Hilton’s new shares?
After months of heatstroke, investors surrendered to frostbite last week, getting cold feet when faced with the prospect that the Federal Reserve soon will taper its bond-buying program, which has kept interest rates low and the economy and stock market humming. The Dow Jones Industrials and Standard & Poor’s 500 each fell 1.65% on the week, the biggest declines in three months.
“You’re not seeing aggressive selling,” says Daniel McMahon, director of institutional equity trading at Raymond James. “You’re seeing a dearth of buyers. It’s more a matter of everyone adapting a more defensive position.”
The Dow shed 264.84 points on the week, to 15,755.36, the largest point and percentage decline since the week ended Aug. 16. The S&P 500 dropped 29.77 points, to close at 1775.32, worse than any week since Aug. 30. The Nasdaq Composite fell 61.55 points, or 1.51%, to 4000.98.
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Brace for a December Taper? Ex-Fed Official Kohn Sees Early QE Cut
By Matt Egan
Published December 13, 2013
FOXBusiness
Federal Reserve Building Draped in Trees (Fed)
Reuters
While most of Wall Street is banking on a March taper, former top Federal Reserve official Donald Kohn believes the central bank may dial back monetary stimulus next week.
Kohn, who was a final contender to replace Ben Bernanke as Fed chief, represents one of the highest-profile Fed watchers to predict a cut to quantitative easing, the central bank’s $85 billion monthly bond-buying program.
On Thursday, Kohn told clients of political consulting firm Potomac Research Group that it’s a close call but chances are now 60-40 that the Federal Open Market Committee trims QE on December 18.
The former Fed vice chair said the final piece of the puzzle may have been Thursday’s solid retail sales report, which suggests the stronger labor market may finally be producing healthier spending. Kohn also cited the compromise on the budget deal, a sign the political stalemate in Washington is finally breaking.
…
Taper not equal to tighten. The USA is many years away from seeing Volcker policies like in the 70s. I say five years.
Whac, in the 70s there was NO taper. The USA.went from easy money to tightening in months.
The USA.went from easy money to tightening in months ??
Thats inaccurate….Loan rates in the late 70’s were around 10%…I hardly consider that “easy money”…Volcker took them to 16% in the next 18 months….Prime rate was 18%+…
Well there was absolutely no taper. Savings accounts in the 70s yielded 5and a quarter percent typically and we took that for granted. I was too young to be concerned about loans anyway those days. You don’t do a loan then 5.25% savings accounts is easy money.
They need low interest rates.
They want to avoid wild swings in the market and massive bubbles.
How to get both.
Continue with QE while talking about ending QE. Using the press to put out story after story about ending QE.
We are Japan
Does anyone think real estate and the economy and the government won’t collapse if interest rates rose to even 6%. QE to infinity and beyond.
The only way to break a bubble and not destroy other parts of your economy is to massively tax away the greed profit on that asset bubble class - only.
December 13, 2013, 12:26 PM
Former Fed No. 2 Kohn Says He Would Wait Until 2014 to Taper
By Pedro Nicolaci da Costa
If former Federal Reserve Vice Chair Donald Kohn were still on the central bank’s policy-setting committee at its meeting next week, he would recommend policy makers hold off until next year before pulling back on their bond-buying program.
“I think I would wait, but it’s a close call,” he said Friday during a question-and-answer session with The Wall Street Journal’s David Wessel at a George Washington University conference on the Fed.
…
So he would wait at least 2 1/2 more weeks? That is a bold call.
Hah!
I don’t think he or anyone else remotely familiar with the Fed’s operation believes anything more than the most tokenish of tapers could be in the works within the foreseeable future.
And we will pull it back by one billion to 84b a month.
FX: Will Bernanke be Santa or the Grinch?
The big question for the financial markets next week is whether Fed Chairman Ben Bernanke will be Santa or the Grinch. Depending on when Janet Yellen decides to take office (Bernanke could step down early), next week’s monetary policy meeting could be Bernanke’s last. He faces a tough decision that involves not only the economy but also his legacy. During the global financial crisis, Quantitative Easing was introduced as a way to provide longer lasting support to the economy and the record-breaking moves in equities are the fruits of this policy. However as his tenure at the Fed draws to a close, the rally in stocks is stalling because Bernanke could start the process of ending the program he first introduced in 2008. This would allow Bernanke to see the QE program from start to finish and make his involvement on both ends an important part of his legacy. If he chooses to do so, it could come at a cost for equities and Treasuries – a consideration he will weigh carefully if he doesn’t want to be known as the Grinch who stole Christmas.
…
I say “Santa”…I think the markets are saying it also…1.6% drop last week is a pittance compared to what they have made…Ben isn’t going to leave on a sour note…He will leave the dirty work to Yellen…
there will be an increase in tapering before anything else.
If spending is the same and tax revenues don’t increase how do you really taper? The govt has to pay its bills with QE cash or taxes.
There’s got to be some pain for a taper to happen. Pain is an incentive. If there is no incentive for a taper then there will be no taper.
The irony here is there will be a LOT of pain if there is no taper but this pain will not happen right away, instead it will happen down the road a bit. And since our society has somehow been contitioned to ignore what may or may not happen down the road, actions that should be taken now will instead be promised to be taken somewhere down the road.
Bottom line, we are a nation of idiots.
There will be the mother of all pains down the road with no taper. All we can hope that we will be dead by then.
“Bottom line, we are a nation of idiots.”
Whatchoo mean “we”, paleface? Sincerely, Tonto.
Blame those who are against a meritocracy for the coming idiocracy. We’ve been promoting based on group allegiance for years.
Personally I think things are working out just fine. Folks on this boad need to learn how to kick back and just relax for a bit.
Minnie the Moocher
Minnie the Moocher, my girlfriend. We are both takers, which make for an interesting relationship.
Luckily there are enough givers out there in the land (willing givers and othewise) to take up the slack.
A lot of people on this message no doubt think of me as a flake but to think this is a sure sign of ignorance on your part. I happen to be a victim - one of many victims - of an illness rightfully termed as “affluenza”.
Go here to look it up:
http://en.wikipedia.org/wiki/Affluenza
I anticipate many apologies from the bulk of you readers and I will probably decide to accept most of them. Then again, maybe not; I may instead allow you people to wallow in your guilt.
If you bother at all to go to the link be sure home in on the part about using this horrible affliction known as affluenza as a legal defense.
Oh, the pain!
Whatchoo mean “we”, paleface? Sincerely, Tonto.
El Tonto no comprende español, I guess.
no taper
for ever
–Yellin
There will never be a taper. The inflation engine will roar back. one necessary ingredient is wage increases of 4% annual. Without it there is no inflation like we saw in the 70s.
But the birth dearth and retiring boomers combined will cause a shortage of STEM professionals. Boomers are working longer though. Not retiring in droves. In three years the leading edge of the boomers will be 70. In 20 years the trailing edge of boomers will be 70. The labor shortage of high skilled professionals could be gradual. Also in the next twenty years the STEM professionals in other nations will see their own pay increase. China has a built-in shortage of labor about to happen, thanks to its decades-long one child policy. They only recently relaxed the law. I think because they see labor shortage ahead.
One of the biggest reasons for stagnant wages is not merely the off shoring of labor. You have to look at the big picture. The big picture is something the leftist types do not want to see. It is the freeing up of economies all over the world. This freeing up caused tens of millions of people to become capitalists and Improve their own skills to compete with us. If many people chose to keep riotarded economics, Riotard would never have moved to Brazil. It would be too third world.
The freeing up of worl economies meant the U.S. labor force had to either compete back or not work at all. I remember how our American cars lasted five years and went to the junkyard after that.now American cars are built better and last longer.
There are more years to go before world equilibrium of labor skills and costs are achieved. But once there, market economies will have a much stronger lock on most of the world and shake off the state.
Wage increases of 4 % annual seem like candy crapping unicorns to me now. I can remember it being common in the not too distant past. I just can’t imagine it today, and I’m trying.
Also what about the last few years where there has been no Increases at all, how long before that is made up to get back to even?
Then why do we tolerate functional illiteracy in America…..we have millions of wasted lives…but i guess its racist to say this.
The freeing up of world economies meant the U.S. labor force had to either compete back or not work at all
“The freeing up of world economies ment the U.S. labor force had to either compete back or not work at all.”
” … compete back or not work at all.”
You guys take door number one, I’ll take door number two.
And if foreign countries allow slave labor and pump toxins into the air and sea and steal intellectual property then we should continue to trade with those countries right. ??
And if opening the door to trade allows foreign countries to accumulate manufacturing STEM and military might and that get’s used against us and our other allies that play by the rules then we should continue to trade with these countries.
The real joke is that technology will eventually hammer these countries as well. More and more tasks will fall to computers and robots and eventually the foundation will crumble and even those near the top will fall.
Under the soviets (pure command economy and no capitalism) they had the Chernobyl disaster. The Volga river was polluted and the Soviets were proposing to do a big project with that river that western environmentalists were even more worried about…then the Riotard curtain collapsed.
The Chernobyl disaster had nothing to do with the economy.
wow…. just wow.
You honestly believe that a graphite control reactor had nothing to do with the economy? Such a dangerous reactor would not be allowed to be built in the West or at least allowed to stay operating.
“One of the biggest reasons for stagnant wages is not merely the off shoring of labor. You have to look at the big picture.”
Don’t forget that Japan has embarked on a huge QE program of their own, which is going to devalue the Yen meaning cheaper prices for their manufactured goods, and it will likely strengthen the dollar meaning reduced exports and lower wages. Currency wars affect wages too.
There is no STEM shortage, nor will there be one in 4 more years when another 200,000 graduates hit the streets looking for jobs.
China relaxed the one-child policy when all those precious little boys grew up and had to fight over who got to bang the few women who had made it past the abortion stage.
There may not be a shortage of young STEMs, but there will be a huge shortage of older STEM experts. HBB, and most websites, have this notion that IT is the only STEM out there. But wait until the physical stuff starts breaking and all the experts in that particular metal alloy, or welding technique, or polymer, or drug, or hydrogeology, or electric cables, or were around when a system was designed, are retired or dead. I expect to see much more rehiring and double-dipping. Many times the old guys are the only people who have the expertise.
‘HBB, and most websites, have this notion…’
I don’t even know what stem is, and don’t care enough to look it up.
It means all the students that are not majoring in GLBT studies and similar degrees.
But wait until the physical stuff starts breaking and all the experts in that particular metal alloy, or welding technique, or polymer, or drug, or hydrogeology, or electric cables, or were around when a system was designed, are retired or dead. I expect to see much more rehiring and double-dipping. Many times the old guys are the only people who have the expertise.
There are robots for that. The old guys are as good as dead unless they can computer program.
STEM = Science, Technology, Engineering, Math
STEM =
Science, Technology, Engineering, MathSausage, Tomato, Eggplant, Mustard.Ambition, Detraction, Uglification and Derision.
Zero chance of the Masters doing this, pretty much ever. Junkies don’t give up their smack. They’ll announce something at some point that they’ll call a taper, 5 or 10 Bill a month reduction, then it’s on to infinity and beyond with more gogo juice.
The Fed is fighting a massive credit contraction by trading cash for putrid debt . They can stop when the debt stops stinking and shrinking. The irony is that the cash they give the banks for bad debts isn’t being loaned out to the public. The public has a declining ability to repay debt. The money is on the gaming tables, which makes our food more expensive, which makes us less likely to service our debts. Kind of a negative feedback loop.
“The irony is that the cash they give to the banks for bad debts isn’t being loaned out the the public.”
Why should banks loan money to the public? What, do you think banks are, charities or something?
Let the public go out into the world and earn their own money. Doing so will build some much-lacking character within the ranks of the masses.
When some members of the public get some money then send them to me and I will float them loans. Until then I won’t.
Let us take a look at this:
If banks were to loan money to people who had no money then the likelyhood of the banks getting paid back would drop down and become way low. Even IF the no-money guys could convince the bank to give them loans the interest rate would be very high and this high interest rate would INCREASE the likelyhood that the loans would not be paid back.
But, on the other hand, if guys who wanted a loan had LOTS of money then the likelyhood of the bank getting paid back RISES, and because the likelyhood rises the interest rate that would be charged to these lots-of-money guys would be very low. And because the interest rate would be very low these lots-of-money guys can buy up lots of low return things and still make money because their cost of money would be low. And if they can make money on low return things they will edge out from the market those guys who cannot make money on low return things - which happens to be the no-money guys.
Nifty, eh?
“The irony is that the cash they give the banks for bad debts isn’t being loaned out to the public. ”
The banks already did loan the money out, in 2004-2007. They are taking the money to fill the hole they already dug. It’s kind of like when Bush gave everyone $300 and the money disappeared into a black hole of credit card bills. It wasn’t just housing demand that was pulled forward during the credit expansion, it was every demand.
It really is not like that. Everyman did not pay back their loan. The Fed paid it.
Taper? BWAHAHAHAHAHAHAHAAAA!!!
Wall Street’s Best Minds | WEDNESDAY, DECEMBER 11, 2013
Will Bitcoin Undermine the U.S. Dollar?
By REBECCA PATTERSON | MORE ARTICLES BY AUTHOR
A digital currency beyond the reach of central banks is gaining acceptance. What does this mean for the dollar?
Editor’s Note: Patterson is chief investment officer with Bessemer Trust.
Bitcoin, the digital currency launched in early 2009, is being accepted by an increasing number of vendors worldwide, from car dealerships and online travel-planning firms to wine merchants and charities. Even though its value has swung wildly in recent days, each bitcoin has skyrocketed in value for the year overall, climbing from around $13.50 last Dec. 31 to above $1,000 as of yesterday, according to data from bitcoincharts.com.
But will bitcoin’s growing acceptance undermine the U.S. dollar? The short answer is no.
Certainly, there are investors out there who worry about the dollar, and especially how unintended consequences from easy monetary policy and massive government debt might undermine the U.S. currency. How could it be that the Federal Reserve’s balance sheet has risen by more than 300% since 2008 and the dollar has not been debased?
Frankly, the dollar has never displayed a strong, consistent relationship with the Fed’s balance sheet or the growth in, or the absolute size of, the U.S. federal debt. Instead, the dollar is driven mainly by trends in a country’s balance of payments—that is, the current and capital accounts. Dollar weakness occurs most frequently when the U.S. current account deficit is widening (Americans are selling more dollars to pay for foreign goods than they receive for U.S. goods sold overseas) and/or when a lot of U.S. capital is heading abroad (to buy foreign stocks, bonds or for direct investment in foreign companies). U.S. monetary and fiscal policy influences these flows, but to different degrees at different points in time.
Whatever the reality, perceptions of the dollar do seem to have deteriorated in recent years, in part because of U.S. policy. If dollar-wary investors were switching over to bitcoins, we would expect to see signs of stress in currency markets. That’s not the case today. In fact, the trade-weighted dollar has strengthened about 4% in the first 11 months of 2013, while implied volatility in major currency pairs has held well below historical averages.
Maybe the dollar is not under threat from bitcoins now, but could it be in the future? Financial markets teach you to “never say never”—over the centuries, dominant currencies have come and gone. One cannot rule out the possibility that the dollar someday loses its status as the world’s reserve currency, or at least has to share that global stage.
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“Just for the record; there is no shortage of housing. Not in California, not in Tokyo, not anywhere. And there will come a day (again) when the media will tell us, ‘there’s a glut of houses for sale in….’, and regale us with sob stories, ‘I was doing great until the economy went south and my income went away and I can’t get rid of this damned house!’”
~Ben Jones, August 8, 2013
This false notion…. this lie….. that there is a shortage of housing in the US is laughable considering there are tens of millions of excess empty houses out there. A sea of them. And it’s growing. Day by day.
Realtors are liars.
China sees serious property bubble in smaller inland cities: Citibank
December 13, 2013, 5:02 PM
AFP/Getty Images
Tourists in Ordos, China
China is seeing a serious property bubble in many smaller inland cities, due to severe oversupply issues and persisting structural problems, according to Citibank researchers.
The bank says the overall property market in China remains robust, especially in major metropolitan cities, provincial capitals, and key cities in the provinces.
However, many smaller inland cities in northern, central and western China, where local economies rely on resource production or manufacturing, “confront serious bubbles and have become veritable ghost towns,” Citi analysts Oscar Choi and Marco Sze said in a research note released this week.
Ordos in northern Inner Mongolia province, Yingkou in northeastern Liaoning province, and Tangshan in northern Hebei province are “worst in the pool” in terms of oversupply issue and troubled economies.
“The local property bubbles are more structural, not only reflected in oversupply, but also weak demand, decreasing population, weak local economies and deteriorating living environments,” the note said.
However, the analysts argued that the concern for a nationwide housing bubble may be exaggerated and it is “unlikely” that a bubble burst similar to what happened in the U.S. after the subprime mortgage crisis would be repeated in China.
…
“‘The local property bubbles are more structural, not only reflected in oversupply, but also weak demand, decreasing population, weak local ecnonomies and deterorating living environments’, The note said.”
Lol. Other than these rather minor issues the market is doing just fine.
All real estate is local, too.
Yep…
And materials and labor are global.
Yep…the global money has nothing to do with it, right?
All real estate is local, too.
What is the thing realtors say all the time, Alex?
Mel Watt: A New Captain For America’s Housing Market
by December 13, 2013 4:00 AM
3 min 24 sec
Rep. Mel Watt, D-N.C., listens as President Obama announces his nomination to head the Federal Housing Finance Agency. Watt was nominated in May, but Republicans blocked his confirmation until this week.
Jacquelyn Martin/AP
Seven months after his was nominated, the U.S. Senate this week confirmed former Rep. Mel Watt, D-N.C., to head the agency that oversees Fannie Mae and Freddie Mac, the giant companies that control much of the mortgage market.
The vote occurred after Democrats changed the rules on filibusters — now the Senate can confirm presidential nominees with a simple majority.
For people who watch the U.S. housing market, Watt’s confirmation is a very big deal that could mean easier credit.
Most Americans probably don’t realize that these two hugely important companies, Fannie and Freddie, are actually controlled by a bureaucrat in a little office in Washington.
That one bureaucrat has a lot of influence when it comes to the housing market.
…
If one decides to become an efficient parasite in order to make a good living in this world then here is a few helpful thoughts I would like to offer up:
The efficient parasite should avoid killing the host, but at the same time the efficient host should not be all that concerned with the host’s well being. The host needs to be kept healthy enough to allow producive extractions but there should be as little expenditures of resources as possible that flows from the efficient parasite to the host. The efficient parasite should be able to extract from the host all that can be extracted then, if the host becomes too weakened to make any furthur extractions, the efficient parasite should be able to move on to another host.
Better yet, the efficient parasite should have numerous hosts from which, from each host, he can make numerous extractions. The more hosts the better. If a host becomes too weakened to make furthur extractions not worth the effort then the host should be discarded.
Most importantly, the efficient parasite should not expend its energy in combating the host, instead the efficient parasite should spend its energy in enticing the host. By offering to the potential host the opportunity of willingly to become a host the efficient parasite will relieve itself from a lot of needless expenditures of energy and resources as opposed to what would be expended if he were locked in combat with the host.
What is especially amusing to me are those who consider themselves to be efficient parasites but actually are not - they may be parasites but they are not what I consider efficient parasites.
Take realtors, for example. Definitely they are parasites but not necessairly efficient ones. This is because they will work their tails off to get a one-time extraction from the host. They do this in part by bring the host to me - the efficient parasite - who not only gets to enjoy receiving a one-time, large extraction from the host in the form of a fee as the realtor does but I also get to enjoy monthly extractions from the host in the form of numerous (VERY numerous if I can work it out) monthly payments.
And the best part of this is I do not have to do all the work of hustling up the host - the realtor does this hustling for me. All I have to do, after the host is brought to me, is provide to the host a sheet of paper with a dotted line at the bottom for him to sign.
As a sweetner to the deal for the dotted-line-signing event I just might even decide to loan to the host, at NO EXTRA CHARGE, my ball-point pen.
The Vampire Squid is a parasite, then? Nice metaphor.
HA still doesn’t get quality of locations nor build. Those 1890 snd 1790 houses lasted FAR longer than the garbage he builds. Look at New Orleans in the wake of Katrina. The old 1850 to 1900 shotguns lasted many decades even in the neglect of poverty. The new garbage built to replace them is of HA quality and will be falling down in 30 years or less.
18th and 19th century firetraps?
Donkey….. you have some strange notions. :clapping:
LOL. Any one who has ever owned a century old house begins to understand the constant and expensive struggle against the effects of time, weather and changing technology that is depreciation.
BTW, if they were worth soooooo much, poor people were living there just why?
Poor people dont live in Rye NY nor Concord MA. the point about New orleans is that those old houses lasted far longer than the new cr*p replacing them will. HA quality that is.
I guess you’ve never been to either city donkey because there are plenty of poor there.
You bought a run down 100 year old firetrap. I’d be defensive too.
Hahahaha… laughable.
Laugh or cry…. it’s a death trap and you’re on the hook for it.
https://s3.amazonaws.com/storage.filemobile.com/storage/6871847/15
These new ones in New Orleans may last…they are building them 12′ off the ground now.
They won’t flood. They’ll fall apart long before then.
Just like your death traps.
Old houses are horribly insulated money pits. They are cold as hell in the winter, and hot as hell in the summer, which makes them much more expensive to live in. It takes some serious cash to fix that. No problem you say?
Ok, since all of the framing will be exposed after tearing out the old lathe and plaster, might as well upgrade the substandard electrical system at that time. That old knob and tube wiring has to go- you’ll need a whole new electrical panel and mast. And, at that point, we should just put in all new light fixtures. Cheaper now than down the road. Oops, you must have had a roof leak at some point. You see this rotten wood in the header, here? We’ve got to fix that. A little bit of structural work, no problem. I wouldn’t be surprised if there’s rot at the sill plate, too. We’ll have a more detailed conversation about all this structural stuff after we find the extent of the rot around all the old windows after all the exterior walls are bare. Say, since we’re talking about proper insulation, do you want to just replace all the windows now? Oh, what’s this? Man, these old pipes are in baaaaad shape. Hmmm, while we’re here, might as well address this now, or it’s really gonna cost you if we’ve got to tear these walls out again. Going to have to replace at least 50% of the plumbing, if not more. Might as well redo the fixtures while we’re at it. Chuh-ching!
Say, this isn’t looking so good, you’ve got rotten wood all around this tub area, and also in the kitchen sink area. Going to have to pull the bathtub out, and remove all the kitchen cabinets, replace some sub-floor and underlayment, maybe do a little floor joist work (assuming that crumbly foundation doesn’t start barking). Say, do you really want to put this crappy old tub back in after we’ve taken it out? I mean, look at it, it’s decrepit! Might as well remodel this whole bathroom and bring it out of the Stone Age. And, by god, those kitchen cabinets may be “charming” at first glance, but they are woefully inefficient inside what with all that ugly old school 2×4 framing, not to mention they will likely split when we try to carefully remove them to fix that rot. You’re going to want to just remodel this whole kitchen. Might as well do the floors at the same time, wouldn’t you say? I mean, you don’t want to put new cabinets on top of this ancient, discolored laminate flooring. Cheaper to do it now rather than later. And, you’re not going to want to re-use these old appliances with your new kitchen. You should start shopping around to see what you like.
You know, working on this attic insulation, you’re going to need a new roof. Let’s just get bids now. You’ve also got 100 years of bat guano in the attic. This may be a health hazard. We’ll have to look into that. What’s that, you’ve had enough and can’t take it anymore? Well, I mean, we can’t just stop- we’ll need to at least finish the insulation, electrical, drywall, windows, floors, kitchen, bathroom, and structural repairs to get the house back to livable. We should be able to come in under $200k, hopefully, but there may be cost overruns. It’s a real charming house, though, don’t you think?
We should be able to come in under $200k, hopefully, but there may be cost overruns.
That house needs a bulldozer overrun, not a cost overrun.
That’s what you get with a pre-WW2 balloon framed shack. You think a stick framed house is a money pit?
‘The White House—having canceled Americans’ old health plans, and having botched the system for enrolling people in new ones—knows that millions of Americans will enter the new year without health coverage. So instead of actually fixing the problem, the administration is retroactively attempting to force insurers to hand out free health care—at a loss—to those whom the White House has rendered uninsured.’
LOL, it’s a mess for sure, but then again, the insurers did it to themselves over a long period of time.
Don’t get me wrong, I loathe and despise the whole concept of O-Care, but the idea of insurances companies pitting their shants kind of gives me a bitter chuckle.
‘gives me a bitter chuckle’
Hilarious. Since insurance is basically a little commune, guess who’s going to get zapped by this? Somebody else involved.
This such a crock. Cancel their insurance! Give them the insurance back!
“guess who’s going to get zapped by this? Somebody else involved.”
Not sure who is going to get zapped, but the article says Aetna and Humana will cave and pass the costs onto the consumer. Always the consumer. Except at some point the teat runs dry. And from the numbers being reported for the holiday shopping season thus far, the milk just ain’t flowin’ like it used to.
Effort by somebody needs to be put into reloading this dry tit.
Think of the children.
Oh, and for the first time I saw one of those hellcare.gov “I’m Covered!” commercials on the tee-vee. If that didn’t send me into a fury. No wonder we have budget problems. Millions of $$ being spent to put lipstick on the pig.
Let ‘em eat Monsanto engineered grass.
‘pass the costs onto the consumer’
Even if the consumer doesn’t want to be a consumer. For instance, I’m required to have workers comp, general liability and commercial auto for the foreclosure work I do. It’s way too much insurance for the type of work I do. And my premiums always go up. I asked the agent once, “I’ve never had a claim, so what gives?” I was told I’m in a pool, and that’s why it goes up. No discount for running a safe operation, comrade.
Many years ago, Texas had a problem with workers comp insurance. Rates were skyrocketing because trial lawyers were suing everybody for dubious injuries. Nothing was being done about it, and at the same time there were an unusually large contingent of trial lawyers in the Texas legislature.
It got so bad, businesses were at risk of shutting down. The state was in a spot, so they capped the lawsuit payouts and said no more lump sum judgements. Lo and behold rates headed down.
Yep…California had the same problem Ben but bigger…Insurance rates were going through the roof…They were just raping the contractors…State runs the comp program now…
“Even if the consumer doesn’t want to be a consumer. For instance, I’m required to have workers comp, general liability and commercial auto for the foreclosure work I do. It’s way too much insurance for the type of work I do. And my premiums always go up. I asked the agent once, “I’ve never had a claim, so what gives?” I was told I’m in a pool, and that’s why it goes up. No discount for running a safe operation, comrade.”
+1 California is terrible regarding insurance.
Go test for the contractor’s license. Over 50% of the material is accounting and record keeping so that you can “contribute” to the system; the PTB own the system, and we’re allowed to work in it. Our forefathers left GB and Europe for this very reason.
I always enjoy a private chuckle when someone with no previous experience says it’s easy to be in business.
“the PTB own the system, and we are allowed to work in it.”
This statement is quite accurate. I enjoy reading such statements so early in the morning because these statements read like …
… they read like victory.
It took us a long time to get here, but … hey, here we are.
And victory wasn’t all that hard to achieve. All that was needed was to discover what it was that people wanted then manage to find a way for them to get it.
God’s work: No want shall ever remain unfulfilled.
The fertilizer plant owner in West Texas sure enjoyed the lack of insurance requirements for owning a fertilizer plant. He made a lot of money over the years.
From a Drudge link:
Undocumented immigrants are expected to make up a larger share of Connecticut’s uninsured population next year, putting “new financial pressures on safety-net hospitals” that provide emergency care to everyone, state and national health experts predict.
The Affordable Care Act (ACA) provides coverage options for legal immigrants, but those in the U.S. illegally cannot apply for Medicaid, even if they are poor, or buy coverage at Access Health CT (the new insurance marketplace), even if they have cash. That means undocumented residents without coverage will continue turning to local emergency departments for care at a time when Connecticut hospitals face the loss of millions of dollars in federal and state subsidies to help defray the cost of uncompensated care.
“This is a global problem that isn’t going away. This population (of undocumented residents) is not being addressed by any state or federal initiatives. It’s operating under the radar screen,” said William Gedge, senior vice president for payor relations for Yale New Haven Health System, the state’s largest provider of uncompensated care. The system includes Yale-New Haven Hospital, Bridgeport Hospital and Greenwich Hospital.
The dilemma sheds light on the uncertain future of the so-called safety-net hospitals in Connecticut and the nation as health care reform unfolds. Often located in urban areas, safety-net hospitals treat a disproportionate number of low-income, uninsured, and otherwise vulnerable populations, including undocumented residents. Federal law requires hospitals to provide emergency care, regardless of a patient’s ability to pay or immigration status.
Experts say that workers and visitors to the state’s two casinos contribute to the caseload.
Disney was one of Obama’s top contributors.
Which entertainment and media corporation wasn’t?
“…guess who’s going to get zapped by this?”
You and me, of course, and everyone else who’s not in the top 1%. Was it ever a question?
I think HHS has the authority and the funds available to assure cooperating insurance companies suffer no harm through the first three years of Obamacare implementation.
OBAMACARE GOLD, SILVER & BRONZE
“The Gold Plan… that’s when you have to sell your wedding ring in order to pay the deductibles.
The Silver Plan… is the color of your hair by the time you finally get signed up for it.
The Bronze Plan… that’s the color your finger is going to be after you give yourself a prostate exam.”
–Larry the Cable Guy
I like it.
This was meant to respond to the post above but I am not all that tore up about me getting to have my own thread, especially since this thread is given to me free of charge.
If I had my way then everything would be given to me free of charge.
Are you an enlisted or commission officer in the Free $hit Army?
The terms “enlisted” and “commissioned” suggest some sort of commitment. I am against a commitment of any kind unless it totally benifits me.
An army benfits - who? Who does an army benifit other than those who are placed in charge?
I like the “free $hit” part but as for the rest …well, I think I’ll take a pass. I am glad somebody is fighting the fight, I am also glad that I am not in the fight. But I do support the victors, who ever they may end being, for to the victors go the spoils.
The spoils, this is what I am into.
LOL on that. I think Messiahcare re instituted the draft for the FSA.
“Household Formation Is Cratering“
http://realmoney.thestreet.com/articles/08/21/2013/household-formation-cratering
This is part of the cratering demand metric…. which in part leads to the accelerate supply metric….
Housing Advice: You’re throwing good money after bad if you have a mortgage. The money is gone forever.
I work with ALOT of people in their 30’s that say. “we’re not ready to have kids.”
Uh, you’re 34.
Ain’t it great? Extend your childhood for as long as possible and then when it becomes time to have kids you not only get to play the role of their parents you can also, at the same time, play the role of their grandparents.
I guess those 15 year olds having kids are doing it right?
The 15 year olds are at the other end of the spectrum. At their end they can be both a parent and an older sister.
Maybe they’ll share the same music, the same clothes, hey, maybe even share the same boyfriends.
It is NOT a normal situation where people live in houses that they could not afford to buy. That is the definition of a structural imbalance in the market when it occurs at more than de minimus levels. It is also a sign that a crash will occur eventually.
I didn’t want to have kids until my 30s. Wasn’t financially related, I just wanted to enjoy my 20s.
“I didn’t want to have kids until my 30s. Wasn’t financially related, I just wanted to enjoy my 20s.”
+1 I lived for the moment back in my twenties. I had more than enough friends who “didn’t pull” to know that I didn’t want to go in that direction.
It is the opposite where I work. No, we are not Mormons. The CEO is a liberal. Out of seventeen engineers, thirteen are married, two have girlfriends, one is divorced and one never married. Of the thirteen, all have kids or planning for kids.
38 year old in next cube, his wife gave birth a couple weeks ago to another kid. Twenty-something married engineer congratulated him and derogatorily called people who do not have kids “selfish” - well I am selfish but I do not negatively affect anyone by my selfishness. This type of selfishness is a win-win for society. Most childless people are this selfish.
If you don’t want kids, why even bother marrying?
So you won’t have to leave the house in order to pick a fight?
No reason to pick a fight…only the fools do it. Plenty of fish in the ocean.
“No reason to pick a fight …”
It helps with one’s blood circulation.
But then again I guess one can get the same effect from paying attention to the news.
But then again I guess one can get the same effect from paying attention to the news.
This is not the good way to get your blood circulating.
It’s your business as long as you aren’t freeloading off society what you do. Have kids, don’t have kids, whatever. Live your life.
But my advice is to find love and happiness. I never realized the amount of love and happiness possible until I had kids.
“I never realized the amount of love and happiness possible until I had kids.”
I’ve heard that from people who really enjoy being parents, and, honestly, I believe what you’re saying. Caveat is, that’s for you, not for society as a whole. Most anonymous surveys back up the fact that children do not, on aggregate, make couples happier.
There are people who I knew in high school/college who I thought to myself “they are going to be great parents”. That was maybe 1 out of 10 people.
I’m not going to restart the long discourse that I posted a few days ago about this topic, but, in summary, I think I’m too much of a pessimist to have children. The world isn’t a very good place today and it continues to get worse everyday for the majority of the population. Yes, if you happen to be born very smart (top 10% or so), ambitious, with parents that can give you some help along the way you could wind up with a great life. But the statistics aren’t in the favor of the child born today in this country; they will most likely live less well than their parents (as many of my generation live less well than our parents (the boomers) did) and struggle more to find a path in life.
I was exceedingly lucky. Born with a good intelligence, with an insatiable interest in an emerging technology (computers) to parents that had the ability to make my life comfortable and pay my way for most of my schooling. Good neighborhood, very low crime.. Even a white picket fence every now and again.
However, of my generation (in my family, there were about 15 of us born across aunts/uncles/cousins/etc in the 1973-1983 time frame) I’m the only one who is “more successful” than my parents. And it’s not like my family is a bunch of dregs; a few nurses, lots of college degrees, plenty of legs up given to them by their parents. Yet, most of them couldn’t possibly afford the houses the grew up in, the cars their parents drove, the vacations their parents took them on, etc…. And this is a self-selected group of middle/upper-middle class children who were given just about every leg up you can get in the world.
If I had a child today, there’s very little chance that they’d be able to live the life that I’ve led unless, they too, happen to be lucky enough to ride the wave into the “next big thing”. I’m just not sure that I want to do that to another person; shoot, even with all my successes and satisfaction being in a field that I love, great wife, good income; I’m sometimes annoyed that my parents did it to me.
I have a brother who, by virtue of being born 4 years later than me, while probably smarter, didn’t hit the wave just right and has struggled for years to find a good job. IMHO, it’s like playing Blackjack with the cards stacked against you; you might win, but, if you don’t the best part of your life (materially) will be the 18-30 (LOL) years you spend in your parents home growing up. After that, it’s all downhill.
I can say that all my siblings and I were also brought up very well by two loving parents and on one income. The oldest took honors classes in high school and was most likely to succeed. At this point she is a single mother of two adult children and she is low income. One sister is earning in the 6 figures probably close to what I’m making but manages to not save money. Another sister earns half that and has no savings. That one, and myself, we agree with you. It is too volatile a world to bring up a kid.
Myself and my siblings are certainly living a lower standard of living than our parents were. I would be living a much lower standard of living if I was a father (probably would be paying alimony by now and left with half of my assets).
It was far easier when all the other countries were those that Riotard favors (from afar of course until they modernize, then he moves to a former socialist one) - socialist and full equality of outcome, open sewers and shanties are all common under socialism - when only the U.S. was free. This made the Greatest Generation have so high a standard of living that there was no need for two breadwinners and one could stay home and raise the kids.
I have relatives who barely make ends meet, home schooling their kids. Probably three sets of second cousins are doing the home schooling. They are all very religious and do not like the public school system for its values that the government wants to brainwash their kids with. These people never take vacations unless you consider a road trip to the next town a vacation.
Twenty-something married engineer congratulated him and derogatorily called people who do not have kids “selfish” - well I am selfish but I do not negatively affect anyone by my selfishness.
Why do you care what they think?
I should not care. But even I am not Spock. I am human and can have feelings hurt. I worked with those people for years but while competing against their company as a more independent contractor.
But I am not sure if it was a careless brain fart on the 20-something or if it was meant for me to hear. It was early morning when very few people were around and they know I am situated in the next cube. I heard the 20-something loud and clear. I think it was a careless brain fart. But it is the general feeling among my colleagues that somehow it’s more important to pop out more humans than to create useful products to make life easier for the humans already existing. These colleagues are supposed to me men.
The Los Angeles company where I worked is different. If you are not married and if you don’t have kids you are still considered cool. But at my new place I’m not considered cool. I’m shunned. And most of the colleagues are into Playstations or Xboxes. I am bored with such games and always have been. Had access to computer games for three decades but hardly ever kept me interested. My only game interest is Sudoku. It’s like I’m generations and cultures distant.
The author of the article is worried about the effect on the American economy. Again this is the fallacy of acting like a horse and wearing blinders. There is a larger economy out there than just the USA’s. Many countries are thriving.
I’m going out on a limb but I predict the real Arab Spring will happen this century and more of their nations will go secular. They will be in 20 or 30 years what India is today. South Africa will also go the same way, and be a burgeoning economy.
There are a lot of awesome products being developed in developed Europe, emerging Europe, Latin America, Asia, Australia, and New Zealand.
I help the French wine industry and the Airbus consortium quite a bit with my Bordeaux fixation and by mostly flying Airbus jets.
Those worried that America is declining can do very well by investing internationally. Over 20% of my stock mutual funds and stocks are international. I’m working on pushing that up to 25%.
I predict the real Arab Spring will happen this century and more of their nations will go secular. They will be in 20 or 30 years what India is today.
The “Arab” countries are doomed, banana republics with no bananas, or in Saudi Arabia’s case, running very low on bananas.
Anyone seen X-GSfixr lately?
http://www.foxnews.com/us/2013/12/14/son-accused-wichita-airport-bomb-plotter-calls-him-really-happy-guy-report-says/
Anyone seen Lola lately?
Seriously yesterday’s bits was 56 posts. Was there a glitch or an anti-shill experiment?
heh….. the liars and pimps are $hitting all over themselves to provide self-cover after getting exposed day after day in the last month.
Anyone seen Lola lately?
“As gays and lesbians rack up victories in their quest for marriage equality and other rights, transgender Americans are following in their path—hopefully, but less smoothly.
There have been some important legal rulings and political votes in recent months bolstering transgender rights. But those have coincided with an upsurge of hostility from some conservative activists and an acknowledgement by transgender-rights leaders that they face distinct challenges in building public support for their cause.”
http://www.denverpost.com/breakingnews/ci_24724508/many-hurdles-ahead-transgender-rights-movement
I don’t understand what Lola’s issue is. I absolutely have no problem with gay, lesbian or transgender folks.
What about bi-?
whatever gets it for you.
For me, it was holiday madness. We had 20 kids at our house making gingerbread houses. A lot of fun, a lot of craziness. Good kids, relatively controlled madness for 6 year olds and younger.
I think that’s him.
“really happy guy?” all of Xs posts are grumpy.
Hmm, ISTR he only had daughters, no sons.
People don’t lie on the internet?
Well what do ya know?
‘A Kansas man who prosecutors say sympathized with violent terrorists was arrested Friday as part of an FBI sting after he drove a vehicle loaded with what he thought were explosives to a Wichita airport… An undercover FBI agent befriended Loewen, striking up conversations about terrorism and Loewen’s admiration for those who plotted against American interests.’
‘The case appears to be similar to a string of investigations conducted by the FBI since the Sept. 11, 2001, attack. The FBI sting operations have prompted controversy over whether the law enforcement tactics involved entrapment of suspects and intruded on civil liberties. One involved an undercover agent who pretended to be a terrorist, provided a teenager with a phony car bomb, then watched him plant it in downtown Chicago.’
Fxr made some comments, that of I supervised him, would have resulted in a referral to EAP for depression. Although he regularly admires the military, military history, and military apparatus (mostly the science behind it), I never took any of it as being sympathetic to terrorists or lending to violence.
I think Fxr is simply tired of being screwed over.
Also, FBI giving teenagers bombs, seriously?
Also, we’re all going to owe him an apology when he comes here and sees that we’re debating whether or not he’s a terrorist.
Jeebus, it was a joke, for cryin’ out loud, him being in Ks and in the aircraft biz and all.
I was more curious if he might have known the guy or ever worked with him and might have had some insight or something.
I like fxr. He has some good insights. Another one of those men getting screwed over all the time, but trying to hang in there.
Also, we’re all going to owe him an apology when he comes here and sees that we’re debating whether or not he’s a terrorist.
I don’t think anyone can make it out of a terrorism charge.
There are a few dozen inmates still stuck at Gitmo because we can’t find homes for them.
X-GSfixr mentioned Hawker Beechcraft a lot…
We would be better off forgetting him. Hope he didn’t/doesn’t incriminate this blog.
I never knew him. I know nossink, nossink!
Nothing about this person, with the exception of his age and his craft, is anything like Fixr.
Yes, and I don’t recall if he was in Kansas or in Nebraska. I thought KS and now I seem to recall he said something about Nebraska. Like I said: IT WAS A JOKE, FOLKS!
Jeebus.
Bag —-> Cat
http://www.bloomberg.com/news/2013-12-13/service-spending-lag-called-culprit-in-slow-u-s-growth-economy.html
From article that should soon link: “The steep rise in spending on durable goods has largely been fueled by a surge in loans to purchase automobiles.
Outstanding automotive loan balances climbed to a record-high $782.9 billion in the third quarter, $103 billion more than the same three-month period in 2012, according to seven years of data from industry researcher Experian Automotive. Thirty-day auto loan delinquencies fell, and six-day delinquencies were unchanged from last year’s third quarter. ”
Is it because the economists want to be cheerleaders for this administration or is it because they sit in ivory towers and lack common sense that causes them to ignore the obvious? The article states how low income growth has been and then talks about how much debt has increased. So why can’t the economists see that if someone goes in debt with that seven year car loan they will not have money to spend on services or have money to move out of their parents’ basement. They keep predicting a surge in consumer spending but with what? Without wage growth there cannot be a sustained growth in consumer spending.
“Without wage growth there cannot be a sustained growth in consumer spending.”
Well, there is always borrowing. What one doesn’t earn he can perhaps borrow. Assuming, of course, he will have something of value to put up as collateral such as a rare blood type or maybe some healthy body parts.
(Or maybe several young, sweet and tender, teen-aged daughters.)
If I can’t buy a new house at least I can buy a new car?
I use “buy” loosely.
Joe, I don’t want to move to a dying blue state with high paid teachers. I want a cheap house in a red state.
Also, smartphone providers, despite the scorn of my colleagues, I will use a flip phone for eternity if you don’t lower your prices.
I want cheap everything. I am cheap.
The word is “THRIFTY”
exactly.
It’s not the phone, it’s the “plan” that kills you. Ditch the big carriers and go with budget ones.
Exactly. Who in the f**k wants to pay $60 per month for 4GB of data? Absolutely INSANE.
Puerto Rico seems to becoming a cheap place to retire.
I thought retirement meant you’re too old to work…..
Retiring means moving?
Yes. Soon healthcare will mean traveling to Mexico, Thailand or India.
“Soon healthcare will mean traveling to Mexico, Thailand or India.”
I sure hope not. Do you remember that scene in Casino where the restaurant owner spits in the cops sandwich? “Nothing but the best for our finest!”
Yes, retirement means moving. Moving somewhere, anywhere that can be afforded. Most retirees have less than $50k!
Strange. Anyone retired(too lame to work) that I know still live in the same place they’ve always lived.
retirees not getting a pension from the govt will have to make due with alpo.
Comment by Blue Skye
2013-12-14 08:17:35
The Fed is fighting a massive credit contraction by trading cash for putrid debt . They can stop when the debt stops stinking and shrinking. The irony is that the cash they give the banks for bad debts isn’t being loaned out to the public. The public has a declining ability to repay debt. The money is on the gaming tables, which makes our food more expensive, which makes us less likely to service our debts. Kind of a negative feedback loop.
————————————————————————————
You’re one of the few that understand.
Also~
-There’s $2 T in reserves on member banks books.
-There’s $2 T in reserves on corporate books
-There’s a an economy contracting(we all know the reasons)
-There’s a central bank pushing warehouses full of fresh currency(no takers)
-There’s collapsing demand for everything
-There’s paid hacks in every media outlet denying the above
Got deflation?
Also -
- A one trillion dollar deficits per year as far as the eye can see
- The total deficit has doubled under obama
deflation is coming…
It’s here.
Don’t forget retirees earning jack$hit on their savings.
Don’t you have to have income to have an inflation?
Who’s that genius trying to create inflation while depriving income for a large segment of population?
“Don’t forget retirees earning jack$hit on their savings.”
+1 It’s better to cash-flow rather than savings.
And, as far as I am concerned, the beauty of it all is:
(ta da)
ALL THIS MONEY BELONGS TO SOMEBODY ELSE!
http://goldnews.bullionvault.com/jim-rogers-us-gold-121220132
Thought I was going shopping this morning, do something productive to start the day, but we have that rare “black ice” this morning; the kind you can barely stand on. Talk about dangerous driving conditions.
car wrecks = economic stimulus!
Now get out there and drive!
Break some windows and dig some ditches while you are at it.
Shopping - consuming is productive?
“Shopping - consuming is productive?”
I do the shopping for all of our heavy items; wife’s long lean limbs are not well suited for lifting tasks.
When’s there’s black ice about, the most productive thing you can do is — stay off it!
I’m sure there will be plenty of assholes doing 75mph without so much as a care in the world.
You can guarantee it.
doing 75mph and then winding upside down on the median.
IMF Wants a 71 Percent Tax Rate
Kurt Nimmo
Infowars.com
December 13, 2013
Romain Hatcheul’s largely passed over article on the Wall Street Journal’s website was revisited yesterday by Simon Black over at the Sovereign Man blog. Black spells out the latest IMF scheme to steal wealth from the producers and enslave billions of people: a taxation rate over 70 percent.
“The IMF’s team of monkeys has been working around the clock on this one, figuring that developed nations can increase their overall tax revenue by increasing tax rates,” Black writes. “They’ve singled out the US, suggesting that the US government could maximize its tax revenue by increasing tax brackets to as high as 71%.”
Black notes that the latest criminal plot by the “grand wizards of the global financial system” is telling. It “might be the clearest sign yet that the whole house of cards is dangerously close to being swept away.”
Can a person still be considered “free” when 71% of what s/he earns is taken away at the point of a gun by a bankrupt, bullying government? Or are you merely a serf then, existing only to feed the system?
Hatcheul explains that taxation schemes like the one cooked up by France’s socialist government – a 75% tax on income above one million euros – will not produce the result desired: the wealthy will avoid taxation, as French actor Gérard Depardieu did when he turned over his passport and became a tax exile. French billionaire Bernard Arnault applied for Belgian nationality in response to socialist thievery and penned a piece titled: If U.S. Had 75% Tax Rate, You’d Leave Too.
Hatcheul:
Of course these measures won’t return the world’s top economies to sustainable levels of debt. That could be achieved only through significant economic growth (the good way) or, as the IMF puts it, “by repudiating public debt or inflating it away” (the bad way). In October the IMF floated a bold idea that didn’t get the attention it deserved: lowering sovereign debt levels through a one-off tax on private wealth.
Think Cyprus.
The IMF is suggesting government should go into your bank account and clip what it deems appropriate and give it to the bankers. Hatcheul says the internationalist loan sharking operation is looking at 10 percent of bank held savings.
“From New York to London, Paris and beyond, powerful economic players are deciding that with an ever-deteriorating global fiscal outlook, conventional levels and methods of taxation will no longer suffice,” he writes. “That makes weapons of mass wealth destruction – such as the IMF’s one-off capital levy, Cyprus’s bank deposit confiscation, or outright sovereign defaults – likelier by the day.”
Old fashioned taxation is out. Expect outright grand larceny at the local bank enforced by the government.
Even if this highway robbery is limited to a few million rich people – and it won’t be, only a large and unprecedented fleecing will satiate the thieves – we can expect the economic results to be significant.
Stealing from producers who create wealth and prosperity will result in lower standards of living for all except the mega-rich who, of course, never pay a dime in taxes (and the really insidious ones employ government to steal even more from you to pay for their monopolistic enterprises and cover their financial market gambling loses).
The latest IMF scheme is the result of a century of brainwashing that insists taxation is part of a social contract between individuals and government. The internationalist banksters now insist we no longer have use for the social contract concept. In order to prop up a corrupt financial system, outright robbery will be required.
This is part of the reason we have a militarized panopticon police state in place. Burglars usually arrive armed and will easily resort to violence if their plans are challenged or resisted.
This article was posted: Friday, December 13, 2013 at 7:38 am
“Can a person still be considered ‘free’ when 71 percent of what s/he earns is taken away at the point of a gun by a bankrupt, bullying government? Or are you merely a serf then, existing only to feed the system.”
In general I like this concept. I like the part about 71 percent earnings being taken away ‘to feed the system’.
The part I don’t like is what they term “the system” and the using the “point of a gun”.
The only point that should be used is the point of a ball-point pen and they only system that should be supported by 71 percent of a worker’s wages is the banking system.
We’re not there yet but we’re gettin’ there, and gettin’ there is half the fun.
Hope and Change
“The teenage gunman who entered Arapahoe High School on Friday afternoon and shot two fellow students with a shotgun was outspoken about politics, was a gifted debater and might have been bullied for his beliefs, according to students who knew him.
Arapahoe County Sheriff Grayson Robinson identified the gunman as Karl Pierson, an 18-year-old student.
“He had very strong beliefs about gun laws and stuff,” said junior Abbey Skoda, who was in a class with Pierson during her freshman year. “I also heard he was bullied a lot.”
In one Facebook post, Pierson attacks the philosophies of economist Adam Smith, who through his invisible-hand theory pushed the notion that the free market was self-regulating. In another post, he describes himself as “Keynesian.”
“I was wondering to all the neoclassicals and neoliberals, why isn’t the market correcting itself?” he wrote. “If the invisible hand is so strong, shouldn’t it be able to overpower regulations?”
Pierson also appears to mock Republicans on another Facebook post, writing “you republicans are so cute” and posting an image that reads: “The Republican Party: Health Care: Let ‘em Die, Climate Change: Let ‘em Die, Gun Violence: Let ‘em Die, Women’s Rights: Let ‘em Die, More War: Let ‘em Die. Is this really the side you want to be on?”
http://www.denverpost.com/news/ci_24721367/arapahoe-high-gunman-held-strong-political-beliefs-classmates
Karl Rove wrote that facebook entry imo.
Hope and Change
“The map of Colorado flashed on MSNBC Friday, Dec. 13, told the story: on the image of the state were highlighted locators for the Century 16 multiplex in Aurora, Columbine High School, Arapahoe High School and, just for context, Denver. This is how the national media sees us. This is the geography of violence.
Moments after the Arapahoe H.S. shooting, Tom Costello, formerly of KUSA, now an NBC News correspondent, told the MSNBC audience that, “there is conflicting information but what we do know is that Colorado is suffering again.”
The media recounting of anniversaries and school protocols and police response times began anew. Within a couple of hours, certainly before the second official press briefing, talking heads were on the screen debating gun control.
http://blogs.denverpost.com/ostrow/2013/12/13/another-colorado-shooting-how-the-national-media-see-us/17265/
Redneck state.
This is the geography of violence.
No, this is the media promoting mass hysteria, individual lunacy, and recruiting the next mass shooter by glorifying his deeds.
apt summary
Boy, talk about a gloomy Gus
Dollar crisis and the coming collapse of US global hegemony
By Colin Todhunter
The US is bankrupt. Yet Uncle Sam continues to stride the world stage and can simply print more money to get by because the dollar is the world’s reserve currency. Remove it as the reserve currency, and the US will no longer be able to remain supreme or fund its wars by relying on what would then be a worthless paper currency. Today, more than 60 percent of all foreign currency reserves in the world are in US dollars, and the US will attempt to prevent countries moving off the dollar by any means possible.
The US economy is in terminal decline. The only way to prop it up is by lop-sided trade agreements, by the global seizure of food via seed monopolies and the control of GM crops and their imposition on countries, by waging war to secure resources and by ensuring the dollar remains the world reserve currency. Humankind currently faces a number of serious problems. But the biggest of all is that the most militarily powerful (nuclear-armed) empire the world has known is in decline and is trapped in a cycle of endless war.
http://english.pravda.ru/business/finance/17-05-2013/124594-dollar_crisis-0/ - 57k -
Why am I getting health insurance ads in California at the top of HBB…IN SPANISH? I don’t frigging know spanish. Just happen to be “in California”
they want your cash so they can give some more freebies to the constituents of CA.
Why do people go to malls to shop when they can just order stuff via the internet? Save on gasoline costs and long lines and stuff being out of stock, etc. Sure, you might have to plan ahead in order to get stuff before Xmas, but that is life.
I don’t know, AB. You have a valid point. I hate physically going shopping. The traffic, the search for spots to park, and the department store furnaces are probably set to 98 degrees. When I lived in New Jersey, even in a January evening, I would walk from parking lot to mall in a t-shirt when I absolutely had to go to a dam mall.
I hate shopping. I cannot stand the term “consumer.”
But when I buy, it’s either a need or something to invest in.
If I had expert knowledge on cars for example, I would be seriously into classic mustangs - ‘67 era. Tangible asset.
Wiki “currency” - my goodness. Well written Wiki
http://en.wikipedia.org/wiki/Currency
http://www.kitco.com/ind/Brecht/2013-12-13-Get-Ready-For-Some-Gold-Volatility.html
“What are the big picture macro factors gold traders need to remember here?
1. Tapering is not tightening.
2. Tapering is coming, either in December or early 2014.
3. Expansive monetary policy is not the only reason investors purchase gold.
4. There are a bevy of risks lying ahead for the Fed with its “exit” strategy from these historically significant monetary policy actions.
5. The gold market is close to major multi-month chart support. ”
1. Tapering is not tightening.
Who here said that same remark?
2014 is the year I return to buying physical platinum bullion in my mix of buying physical gold bullion. 100 oz of Gold will be a milestone I will probably meet in 2016.
In the longer term, buying American farmland is on my agenda. 10 acres of of crops in the southern midwest and 10 acres of productive farm/ranch land in the far north.
Tangibles. A great way to diversify from stocks.
I like copper and silver Bill. I also like the idea of trading the gold/silver ratio and the leeway it has as allowing one to stay in a precious metal holding but incrementally grow the ounce count of it by trading on the highs and lows.
Washington State #obamacare exchange raids enrollees’ bank accounts.
By: Moe Lane (Diary) | December 12th, 2013 at 09:15 AM |
Heck of a job there, Governor Jay Inslee (Democrat). Heck of a job.
Shot, December 10, 2013 (all bolding mine):
Four of the states with their own exchanges – Connecticut, Kentucky, Rhode Island and Washington – have sites that have run especially smoothly, becoming models for states such as Arkansas, Idaho, Illinois and New Mexico that are planning to launch their own sites in 2014.
Chaser, December 10, 2013:
For the second week in a row, the Washington Healthplanfinder website is down, and it’s causing problems for people who are dealing with billing issues. Some of them say the website is mistakenly debiting their accounts.
Shannon Bruner of Indianola logged on to her checking account Monday morning, and found she was almost 800 dollars in the negative.
[snip]
The Bruners enrolled for insurance on the Washington Healthplanfinder website, last October. They say they selected the bill pay date to be December 24th. Instead the Washington Healthplanfinder drafted the 835 dollar premium Monday.
But don’t worry: the Washington state exchange is on the case! …If you define that as ‘the website’s down, the helpline is down, and the only way to get in touch with Healthplanfinder is via Facebook.’ Which is apparently how you have to define that, given that USA Today seems to think that Washington State has an Obamacare exchange that’s running ‘especially smoothly.’
[pause]
Look, I understand that back seat drivers are the worst thing ever and all, but: why does Washington State have a Obamacare exchange website where you can’t access their plans, but they can access your bank account just fine? Or am I answering my own question, simply by asking it? I think that I might be answering my own question.
http://www.redstate.com/2013/12/12/obamacare-healthplanfinder-jay-inslee-raiding-bank-accounts/ - 117k
China ruling slams geoduck industry in WA state:
China has suspended imports of shellfish from the west coast of the United States — an unprecedented move that cuts off a $270 million Northwest industry from its biggest export market.
China said it decided to impose the ban after recent shipments of geoduck clams from Northwest waters were found by its own government inspectors to have high levels of arsenic and a toxin that causes paralytic shellfish poisoning.
The restriction took effect last week and China’s government says it will continue indefinitely. It applies to clams, oysters and all other two-shelled bivalves harvested from the waters of Washington, Oregon, Alaska and Northern California.
“It’s had an incredible impact,” said George Hill, the geoduck harvest coordinator for Puget Sound’s Suquamish Tribe. “A couple thousand divers out of work right now.”
The U.S. exported $68 million worth of geoduck clams in 2012 — most of which came from Puget Sound. Nearly 90 percent of that geoduck went to China.
Geoduck are highly prized in China, where the clams sell for retail prices of $100 to $150 per pound.