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May 2009



Class of ‘09: You’re Screwed

May 31, 2009 – Comments (4) | RELATED TICKERS: GLD , JPM , GS

Bill Bonner gives the address to 2009 Graduates, they needed to hear, but didn't. Doesn't matter soon enough they will likely understand what is coming anyways.

Class of ‘09: You’re Screwed  [more]



On the Edge with Max Keiser interviews Micheal Hudson - 29 May 2009

May 31, 2009 – Comments (4) | RELATED TICKERS: GLD , JPM

FYSA- Peter Schiff was the Economic Advisor to Ron Paul. Micheal Hudson was the Econommic Advisor to Dennis Kutisnish  [more]



Vox Day - We are out of money

May 31, 2009 – Comments (16) | RELATED TICKERS: GS

Vox Day has a good write up here:

We are out of money
Steve Scully, C-Span: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

Obama: Well, we are out of money now.

The United States has been an empire in decline since the 1970s. As has been the case with every other declining world power in history, there are a variety of reasons for this decline, which is why there are no straightforward solutions for reversing it. In looking at the situation, however, it is clear that there are a number of contributing factors that are more important than others. Among them include:
1. The abandonment of constitutional money

2. The expansion of the voting franchise

3. Global military aspirations

4. Transformation of the labor force

5. Mass immigration

According to the U.S Constitution, only "gold and silver Coin" can be tendered by the states in payment of debt. Since the states are explicitly barred from coining money but the federal government is expressly permitted to do so, it is obvious that the only constitutional money is gold and silver coin, regardless of what government employees have subsequently decided. Moreover, unlike the present Federal Reserve notes, constitutional money has held its value; whereas the value of an FRN has lost more than 95 percent of its value in 96 years, the first U.S. silver dollars minted in 1794 have increased in intrinsic value, being worth 11.38 times what they were initially valued 215 years ago. Since its ability to store value is one of the four major properties of money, it's abundantly clear that the abandonment of constitutional money has come at great cost to the nation.

The expansion of the voting franchise has exacerbated the problems created by the switch to a monetary system more susceptible to manipulation. The reason the Founding Fathers created a system of strictly limited democracy was because they knew its historical flaws and wished to prevent the larger part of the masses from having a voice in their governance. The expansion of the franchise to include many parties historically denied the vote has had the inevitable, and expected, effect of permitting society's non-productive members voting themselves the right to obtain wealth transferred from society's productive members. The important point to understand here is not what one might think of the desirability of either equality or wealth redistribution, but rather its long-term sustainability. While history shows that a moderate amount of wealth redistribution is sustainable, it increasingly tends to indicate that democratic equalitarianism rapidly increases that amount to unsustainable levels.

While the global military actions of the United States initially contributed to its post-World War II prosperity, as the destruction of European and Asian manufacturing capacity gifted the U.S. economy with two decades of competitive advantage and expanding markets, since then they have been a serious drain on the nation's coffers as well as a spectacular malinvestment of human and capital resources. The genuine side benefits of defense research fall far short of making up for the decades of opportunity costs they have engendered in terms of wasted talent and investment.


IMO, the article is mostly a common sense review of the US decline. It is not new information or a profound disclosure. However, I would guess not 10 in a 100 Americans would be able to discuss the above issues with much depth.

Case in points:




Russian News Headline "American capitalism gone with a whimper"

May 29, 2009 – Comments (14)

taken from a Headliner on Drudgereport.  [more]



Michael Hudson is the Chuck Norris of Economics (PART 2)

May 29, 2009 – Comments (2) | RELATED TICKERS: GS , WFC , BAC

Some facts about Micheal Hudson:   [more]



Michael Hudson is the Chuck Norris of Economics

May 28, 2009 – Comments (1) | RELATED TICKERS: GS , WFC , C

Some facts about Michael Hudson  [more]



Faber: 100% Sure US Will Have Zimbabwe-Style Hyperinflation

May 27, 2009 – Comments (13) | RELATED TICKERS: FXI , EWJ

Many of my best ideas and beliefs are stolen from others

Recs 3  [more]



Mike Morgan vs Goldman Sachs

May 26, 2009 – Comments (1) | RELATED TICKERS: GS

FYI -   [more]



Kieser interviews Marc Faber, Gold Standard, Dollar etc.... A Song Inflation vs Deflation.

May 25, 2009 – Comments (0)

My original view was deflation, but the unchecked illegal activities make me think we will get hyper-inflation at some point in the future.  [more]



Get out of Lost Vegas, Ammo and Gerald Celente Fed Inflates 'Bailout Bubble':

May 24, 2009 – Comments (6) | RELATED TICKERS: LVS , MGM , AOBC

Pitch by: abitare 11/03/08 7:58 PMThey say the only way to win at Las Vegas gambling is to not bet. Except for Las Vegas casino stocks, which the odds are going to zero. An overbuilt and over-hyped city built on illusion of the "wealth effect" Americans are losing and will not likely return for decades.

Las Vegas will die a slow death. Every state wants gambling revenue, so will broke Americans drive / fly all the way to Vegas or drive 20 minutes to the Indian or River Boat Casino to lose their money?
Would you want to retire in 100+ degree heat?
Eventually, water, electric and food will become pricey as oil is not coming down and Las Vegas is in the middle of a NO WHERE DESERT, no water, no food near by and increased transportation costs. Cash in your chips and walk away, is my recommendation.

I told you Fools to Cash out of Lost Vegas.




Letter From A Dodge Dealer

May 24, 2009 – Comments (23)

FYI - this letter is making several top blogs, including slycapital and zerohedgeLetter From A Dodge Dealer Posted by Tyler Durden at 7:41 PM Reposted without commentary from American Thinker

letter to the editor

My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business.

We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability.

I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life.

On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory.

Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank.



This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong.

This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster.


I beseech your help, and look forward to your reply. Thank you.


George C. Joseph
President & Owner
Sunshine Dodge-Isuzu  [more]



He Speaks to Me: Deflation fare thee well – Part I: In search of real returns in an unreal world - Eric Janszen

May 22, 2009 – Comments (0) | RELATED TICKERS: FXI , GLD

NOTE: My brokerage account is 90% cash at this time. I do like ammo makers, but I am waiting for a summer sell off. I also like China and commodity producers, but it will take some time before I put money there.  [more]



Hans Rosling on the Rise of China etc.

May 20, 2009 – Comments (1) | RELATED TICKERS: FXI

Stolen from the Big Picture:   [more]



Yes, it is a PPT Rally

May 19, 2009 – Comments (4) | RELATED TICKERS: GS

I know some Bulls are getting up-ity, climbing that CAPS later on this FED/PPT rally, believeing themselves market gurus, but they are riding a rally of garbage. The fundamentals of the market are horrific and I do not care how many paid liars they line up in the media to say otherwise.   [more]



"It's one thing for a business such as a bank to fail; its another thing for the public to lose confidence in banking, or their own currency, or the credibility of all the people who work in banking, or the authority of those charged to regulate these

May 18, 2009 – Comments (3) | RELATED TICKERS: BAC , WFC , UDN

" Who knows what the point of this ludicrous exercise was? Observers in all corners of the media saw through it, and the public has only been made more cynical, and is now so furious over related stunts like AIG using taxpayer money to pay back swaps bets to Goldman Sachs that there is a whiff of revolution in the American air for the first time, really, since 1861. A lot of reasonable people see a good chance that our society will sink into disorder if these trends continue, and these fears could beat a path into radical politics, even the frightful prospect of coup d'etat -- not something that I advocate, by the way."

Aligned with Kunstler here. Fooldom knows that you cannot buy ammo. Fooldom was told before they ran out back in Feb 09.    [more]



"The Worst Is Yet to Come": If You're Not Petrified, You're Not Paying Attention

May 17, 2009 – Comments (9) | RELATED TICKERS: BAC , WFC , RGR

Fooldom knows Howard Davidowitz is right. Davidowitz nails it here:   [more]



Shorting These Stocks Is Now Verboten

May 14, 2009 – Comments (19) | RELATED TICKERS: WFC , RF , C

Zerohedge has the post:  [more]



He Speaks to Me: David Tice calls for S&P to 400 (Video) and Was Obama A Subprime Borrower?

May 13, 2009 – Comments (2)

An interview with David Tice of Federated Investors on his outlook on the market saying that this is a secular bear market. (Bloomberg News)




Is Anyone Minding the Store at the Federal Reserve? & Jim Rogers 11 May 09

May 12, 2009 – Comments (5) | RELATED TICKERS: FXI , RSX , EWS

This video is a must see. I am sorry if it is a re-post.   [more]



Fooldom Knows "The sporting goods shops around the nation are already rationing ammunition."

May 11, 2009 – Comments (3) | RELATED TICKERS: AOBC , RGR , OLN

Kunstler's Decoupling From Reality      Back in the golden age of American Flyfishing -- say around 1913 -- when technical innovation in a prissy and recondite sport was joined by a new leisure class emanating from the white glove canyons of Wall Street, some new-minted guru of angling came up with method for whipping up action on a trout stream when no fish would rise to the fly. It was really lame. The idea was to artificially create the illusion of a mayfly hatch -- that moment when the larva of, for instance, Ephemerella subvaria, the Hendrickson mayfly, swims to the surface, molts, and dries its newly unfurled adult wings in the brisk spring air. This is famously the moment that drives trout crazy, and when it occurs en masse, with zillions of mayflies "hatching" off the water, a trout feeding-frenzy can ensue. The idea with the artificial hatch was to pitch a fake Hendrickson fly made of feathers and fur in so many furious, rapid casts that the dumb trout lurking below would get suckered into a feeding frenzy -- and, shortly, into the buttered frying pan, with a nice "tuxedo" of cornmeal and bacon.
      In the annals of flyfishing, this gambit has been all but discredited, except among the mentally sub-normal who sometimes venture over from the lumpen realm of crank-and-plug fishing in search of improved social standing. But the tactic naturally transferred into the precincts of finance, where it reappeared in such disparate practices as Ponzi schemes and Keynesian "pump-priming." Now it is being employed at a scale never seen before, on an economy that is the equivalent of a great dead river poisoned by the toxic effluents of the same society that inhabits its banks (no pun intended). The dark secret of this river is that the fish who once ran there are all dead.
     Much has been made in recent weeks of "animal spirits" and the "psychology of markets" in the hopes that mere attitudes might overcome the laws of thermodynamics. Math wizardry has now yielded to self-esteem building, an understandable sequence of events, since trafficking in the mutant spawn of Wall Street algorithms has ended up completely demoralizing the United States of America. Sadly, this is a little like subjecting a man who has just watched his house burn down to twelve segments of Oprah shows about the triumphal secrets of weight loss.
      The Great Wish across America is to resume the life of comfort-and-convenience that seemed so nirvana-like just a few short years ago, when the very constellations of the heavens might have been renamed after heroic Atlanta realtors and Connecticut hedge fund warriors, and the boomer portfolios groaned with earnings, and millions of graying corporate salary mules dreamed of their approaching retirement to a satori of golf and Viagra, and the interior decorators grew so rich installing granite countertops that they could buy their own houses in the East Hampton, and every microcephalic parking valet in Las Vegas qualified for a bucket full of Ninja mortgages, and Lloyd Blankfein could dream of divorcing his wife to marry his cappuccino machine.
      The choices now are stark and the kind of life on offer by the future is rather austere. The job of the current president, and the people who work with him, is to manage an epic contraction -- let's say, to land a very large, loaded defect-ridden airplane that has both run out of fuel and suffered grievous mechanical breakdown... and to bring down that vehicle in an unfamiliar country filled with angry savages. Sadly, the new president and his co-pilots just want to keep the plane up there, circling. The president's viziers are working round-the-clock to come up with some way, some toggle-switch, that might turn off the laws of gravity (which are not unrelated to the laws of thermodynamics). But all they seem to be able to come up with are mumbled prayers that are pale imitations of the algorithms once concocted by the Wall Street engineers who designed the aircraft they're riding in.
     Well, that's enough conceits and metaphors for today.
     We've digested the so-called "stress tests" for now with nary a burp and in a few weeks General Motors will step into the dark cave of bankruptcy. All the ancillary businesses linked to the US car-makers face contraction and annihilation. A couple of things occur to me which have not even entered the national debate on these matters: 1.) the US will still need to manufacture engines and chassis for military vehicles. Do we intend to send out to Mitsubishi for those things in the years ahead? 2.) the US will need rolling stock (i.e. choo-choo cars and engines) for a revived passenger railroad system. Do we intend to buy all that from the quaint peoples of other lands? (While the US workforce instead focuses on updated releases of Grand Theft Auto.)
       At the moment, there is tremendous hoopla and jubilation over the start-up of so many "shovel-ready" highway projects around America -- as if what we need most are additional circumferential freeways to enhance the Happy Motoring lifestyle. How insane are we? Is this the only thing we know how to do?
      I remain confident that the months ahead will introduce the American public and our leaders to a range of horrors that will begin to penetrate our addled collective imagination. We're far from done with the crisis of banking and money and the related fiasco in mortgages -- which translates into the very real situation of many people become homeless. It remains to be seen what may happen on the food production scene, but the current severe shortage of capital and the intense droughts shaping up around the world will resolve into a much clearer picture by mid-summer. The price of oil has resumed marching up and has now re-entered a range ($50-plus) that spun the airline industry into bankruptcy last time around. Enough carnage has already occurred on the jobs scene that the next act among many chronically jobless may tilt toward desperation, anger, and violence. The sporting goods shops around the nation are already rationing ammunition.
     It's not just the stock markets that have decoupled from reality as we enjoy the fragrant vapors of spring -- it's the entire conscious consensus of everybody holding the levers of power and opinion. To put it as simply as possible, we're still sleepwalking into the future.  [more]



Peter Schiff Rally is an illusion & Keiser Recommends Waterboarding For Auto Executives and Bankers

May 10, 2009 – Comments (3) | RELATED TICKERS: AOBC , RGR , GLD

Peter Schiff - May 8, 2009 - The Recession Will Not End Until We Have A Real Change In Government




Modern Survival Philosophy and Time To Stock Up the Bunker

May 09, 2009 – Comments (7) | RELATED TICKERS: AOBC , RGR , GLD

Long before the stock market tanked, I was advising Fooldom to stockpile. At this point, to NOT have a decent stash, of food, guns/ammo etc... is moronic.  I think this trend is just getting started.  [more]



Taleb: Global Crisis "Vastly Worse" Than 1930s, Buy Gold and Copper

May 07, 2009 – Comments (17) | RELATED TICKERS: GLD

Taleb: Global Crisis "Vastly Worse" Than 1930s, Buy Gold and Copper  [more]



Rally of the Insolvent, Bến Tre on the Stock Market and You had better Listen to What Obama Said

May 07, 2009 – Comments (3) | RELATED TICKERS: AOBC , WFC

NOTE: I am away again. I have limited bandwidth and I am sorry for not replying to comments to my posts. I have had a few beers, so I am sorry for the grammer and spelling.   [more]



China is basically screwed...they're running out of water and food.

May 05, 2009 – Comments (14) | RELATED TICKERS: V , WFC , GS

Kustler's The Bottom   [more]



Ron Paul on Obama's first 100 Days , Secession , NATO , Foreign Policy April 30, 2009 at the RT news

May 03, 2009 – Comments (2) | RELATED TICKERS: RSX , GS

Again, RT brings you the news you can use, although RT is looking for propaganda, Dr Paul does a good job here:   [more]



Ben Tre Logic on Housing

May 01, 2009 – Comments (1) | RELATED TICKERS: AOBC , RGR

One of the most famous quotes of the Vietnam War was a statement attributed to an unnamed U.S. Air Force Major by AP correspondent Peter Arnett. Writing about the provincial capital, Ben Tre, on February 7, 1968, Arnett said: "'it became necessary to destroy the town to save it,' a U.S. major says." To this day, "Ben Tre logic" is a common saying for whenever a "logical" conclusion is to destroy something out of the perceived best interests of everyone involved.    [more]



Deleveraging? What deleveraging? Corporate leverage has risen at a faster rate than it did at the peak of the boom,

May 01, 2009 – Comments (0) | RELATED TICKERS: AOBC , RGR , OLN

NOTE: I am still long the gun makers (SWHC). Unfortunately, I think we are getting closer to seeing why, people are stockpiling guns and ammo. IMO, self defense and social unrest are reason enough to aquire a couple of guns and several thousand rounds of ammo. I know some gun nuts think it is about Obama and new taxes on guns/ammo, maybe it is that NOW, but self denfese and social unrest will likely move to the primary reason shortly. As an asset class, guns and ammo outperform 90% of the investments available to the general public, tax laws may change that.  [more]

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