Tuesday, June 28, 2016

Venezuela - China Protects Investments

Earlier I showed a picture showed of a soldier guarding a near-empty grocery store, and I noted how that store was inorganic to Venezuela… the Washington Post adds detail I only guessed at:
Sira has long been a proud “Chavista,” convinced that government spending could create a more equal society. Chavez’s government, flush with oil money and billions of dollars in foreign loans, gave her theMadre de Barrio subsidy for mothers in extreme poverty. Another program helped residents to finish houses under construction. Youths from her community received scholarships.
“I always lived for the revolution,” she said.
But many of the welfare programs started by Chavez have dried up, and the nearest store has little more than two-liter bottles of Pepsi and packs of Pall Mall cigarettes. Under Chavez, the government established anetwork of government-run supermarkets that sold basic foods at subsidized prices. But inflation has put even these bargains out of reach for many people. A single kilogram of yucca — about two pounds — now costs about one-third of the weekly minimum wage.
So the article goes on to describe the riots at the trough, the rising crime, and the political backlash. Low oil prices are blamed, but this is absurd.  How do low oil prices cause the failure of toothpaste to appear on the shelves?  Only if oil paid for everything, and there was no organic economy, and in fact, that is what occurred. The number of people in Venezuela who accept the free ride is far more than lower oil prices can support. Ever widening claims on an ever narrowing productive base.  
Exactly what we have in USA.

Lower prices of any commodity normally means little to an overall economy, unless the entire economy is based, foolishly, on the commodity.  The small business productive, organic economy was wiped out when the Hegemon buried the economy in below-cost subsidized everything.  The organic economy died out.  Now people, according to the article, travel a half-day to grab rice from the road, upon a rumor that turns out to be untrue.  If you feel you have claim on assets, and entitlement due you, this is your future.

Venezuela cannot recover because those who would lead the recovery, the small business person is wiped out.  Those who suffer most are the ones who expect the small business person to lose money for the privilege of serving the customers.  It is difficult to reason with the entitled.

Now comes China, accused of holding talks with Venezuela's opposition party, to explain their actions:
With Venezuela facing a deep economic crisis and political stalemate, Beijing's loans to Caracas have become a heated topic of discussion at home and abroad, especially after the Western media reported that China recently sent an "unofficial envoy" to meet with Venezuela's opposition party. Such reports are not confirmed by Chinese Foreign Ministry.
As to China loans to Venezuela, well, Venezuela is "good for it."
The debt problem Venezuela faces is a result of its liquidity crisis, not solvency crisis. This means the huge loans China has given to Venezuela, contrary to what some claim, are retrievable. Besides, Venezuela's abundant resources and China's comprehensive national strength are enough to ensure the long-term safety of these loans.
Indeed, Venezuela now lacks the capability to repay foreign loans. By the end of September 2015, its foreign debt had reached $148.83 billion, of which $65 billion were loans it had taken from China since 2005. Compounding the problem is the fact that Venezuela has only $15.6 billion in foreign exchange reserves.
Well, yes, to get repaid, Venezuela needs to sell oil, and that requires infrastructure.
But China has to specify that some of its loans to Venezuela are meant for the latter to maintain oil and gas production and exports, and promote the formulation of some corresponding management methods. Under pressure to repay the principal and interest amounts for its imports and matured debts, Venezuela has used a very small part of its oil export revenue to maintain oil production and transport facilities. So, to ensure Venezuela's largest source of fiscal revenue is not interrupted and prevent a lose-lose scenario for both creditor and debtor, it is necessary for China to specify that some of its loans are meant for Venezuela's oil production and export.
O dear, the government took the loans meant to maintain oil export infrastructure and spent it on keeping the false economy alive a bit longer.  Fiesta!  So China is finding socialists yet again unreliable, and is working with the opposition party with a view to protecting Chinese accounts receivable.

So it is in USA, we have wiped out our organic market, and let rot our infrastructure to produce.  From Boeing to the military Google to the welfare mom and the disability scammer, the claim on the asset base far exceeds the capacity of the asset base to satisfy those claims.

Steer clear of the entitled poor and suffering, their lot is self-inflicted.  Don't work for Boeing or Google or take money from the Hegemon, start up your own business and work with the others who will organically sell toothpaste when there is none to be found at Safeway or other Hegemon run entities.
With the deepening of its economic and social crisis, Venezuela is likely to grant foreign capital, including Chinese capital, access its oil and gas production and transport to help create favorable conditions for possible debt-to-equity deals with China, its largest creditor.
Yes, China needs oil. Venezuela owes on loans it never needed to take.  But there you have it.  Asset prices fall, the loan principals and interest stay fixed.  Precisely the fix into which most Americans have put themselves.  Get your debt to zero.  WE are in deflationary times.

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Monday, June 27, 2016

1% Down $2 Trillion and Counting, Good News on the BPound

Yay! In THEIR economy, the "assets" just dropped by $2 Trillion from which to pay on obligations, which only continue to increase in THEIR economy.

NEW YORK (Reuters) - The $2.08 trillion wiped off global equity markets on Friday after Britain voted to leave the European Union was the biggest daily loss ever, trumping the Lehman Brothers bankruptcy during the 2008 financial crisis and the Black Monday stock market crash of 1987, according to Standard & Poor's Dow Jones Indices.
Next the pound has been hammered:

As the chart shows, today’s massive drop sent the Pound to its lowest level – around 1.36 to the Dollar – in 31 years. ... During those 30 years, the level (Bottom $1.40) never faltered. That changed today.
But for whom is this move a pounding?  Say an American is planning to buy a Morris Mini for $14,000, well, the price just dropped to $13,600.  Say a Brit wants to buy an American tractor for $13,600, well the price just went up to $14,000, so a domestic UK tractor starts looking better price wise.

When their banks stocks crash, this is good news to us.

Those with trillions in derivatives care much about these changes, but anyone in an organic economy could care less.  Therefore, the 1% billionaires want a reset.
(Reuters) - Billionaire investor George Soros on Saturday called for thorough reconstruction of the European Union in order to save it, even though he warned that Britain's vote to leave the bloc makes "disintegration of the EU practically irreversible."
Soros, who warned of financial meltdown if Britain voted to leave the EU before Thursday's referendum, also said the effects of the decision will likely damage Britain.
"Britain eventually may or may not be relatively better off than other countries by leaving the EU, but its economy and people stand to suffer significantly in the short to medium term," he wrote in a commentary on the website Project Syndicate.
If you are at the trough, there will be short and medium term pain.  If you are not, then it is all lifestyle.  Are there enough people who know who to do business to revive the UK tractor industry?

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Sunday, June 26, 2016

Battle Lines Bein' Drawn

It seems the politics worldwide is now an awareness that the hegemony has been up to no good the last 40 plus years at least, at least its most virulent form.  What is ending it?  Since lending credit is the heart of the damage done, there was never any rational limit to what damage could be done.  So only an irrational limit would put an end to it, perhaps something like "sins are unto the fourth generation."  Since the debts we have racked up cannot be paid until the 4th generation, perhaps all this is just the irrational limit.

My favorite Old Testament passage is probably the Hegemon's as well, 1Samuel 8
But when they said, “Give us a king to lead us,” this displeased Samuel; so he prayed to the Lord. And the Lord told him: “Listen to all that the people are saying to you; it is not you they have rejected, but they have rejected me as their king. As they have done from the day I brought them up out of Egypt until this day, forsaking me and serving other gods, so they are doing to you. Now listen to them; but warn them solemnly and let them know what the king who will reign over them will claim as his rights.”10 Samuel told all the words of the Lord to the people who were asking him for a king. 11 He said, “This is what the king who will reign over you will claim as his rights: He will take your sons and make them serve with his chariots and horses, and they will run in front of his chariots. 12 Some he will assign to be commandersof thousands and commanders of fifties, and others to plow his ground and reap his harvest, and still others to make weapons of war and equipment for his chariots. 13 He will take your daughters to be perfumers and cooks and bakers.14 He will take the best of your fields and vineyards and olive groves and give them to his attendants. 15 He will take a tenth of your grain and of your vintage and give it to his officials and attendants. 16 Your male and female servants and the best of your cattle[c] and donkeys he will take for his own use. 17 He will take a tenth of your flocks, and you yourselves will become his slaves. 18 When that day comes, you will cry out for relief from the king you have chosen, but the Lord will not answer you in that day.19 But the people refused to listen to Samuel. “No!” they said. “We want a kingover us. 20 Then we will be like all the other nations, with a king to lead us and to go out before us and fight our battles.”21 When Samuel heard all that the people said, he repeated it before the Lord.22 The Lord answered, “Listen to them and give them a king.”
Knowing that people will give up almost everything to have someone else "fight our battles" the Hegemon offers to do so and then takes their sons to fight the battles anyway.  This event took place about 400 years after Moses, and Israel went downhill thereafter, including civil wars and captivities, never to quite recover, to this day.  But then that was part of the deal.  And not the line above:
18 When that day comes, you will cry out for relief from the king you have chosen, but the Lord will not answer you in that day.
So after 40 years of enjoying false economy detritus on credit, baneful food, empty education, whimsical medicine, cracker box housing, fun-time voluntary terror wars everywhere, and aspirations constrained to pixillations, charged off to the next generations, anyone actually think voting Brexit will change much?  Think the Hegemon will just go away?  Still thinking "If we can just get the right people in office?"  God Himself anointed Israel's kings, and everyone of them would disgrace a trailer park, because they were human.

On the one hand is the Hegemon who controls the levers of AN economy (never say THE economy) and can place what pixels it so chooses on smartphones, etc.

On the other hand there is the vast swarms of people who feel entitled, from those who works for 40 years and expect the credit tallied in their pension to be money, to those who are scamming the disability system for a free ride and believe their own lies.

Well, that is just about everyone isn't it?

The working poor know they are being abused, and they say so, on their smart phones.  They will tip the scales in votes, since the Hegemon cheats enough only to win elections, never pays for a landslide.  But votes do not matter, it is just a question of allocating diminishing returns among the growing claims.

Cell phones contain rare earth materials extracted from the Congo in fun-time terror regimes when we simply could have traded for them.  No, we need an "Africa Command."  So for anyone to be carrying a smartphone and claiming to be a victim of injustice is a dolt.

This most virulent strain of capitalism has had a 40 year run.  The damage has been done, and now it is a question "who pays?"   The Hegemon still controls the conversation. On one hand he has a flashy economy, on the other he directs the thoughts of the incensed masses.

Step aside, do not get in that fight.  If you think you are entitled to anything, let it go, give it up.  Of course building an organic business will be tough, but not as bad as fighting at the empty trough.

Self-employment is about personal transformation. Anarchy means no + king. Time to escape the chaos to anarchy.  Get started now.

Michael Jackson tried to talk about this 20 years ago, but the video he made in Brazil was banned from USA airplay.

So Jackson made another with Spike Lee in USA… it was banned too.

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Saturday, June 25, 2016

Did Queen Elizabeth Engineer Brexit?

The betting houses reportedly had odds on "remain" in the EU for one reason: they assumed the election would be rigged.  It probably was, but not enough for remain to win.

The EU makes possible all of the unsupervised mischief that intelligence agencies can get into, a brotherhood of worldwide mayhem-makers, and in the case of the UK, the MI5 would have the job of rigging the elections.  Before the vote, people were pretty sure rigging was taking place.

The Queen of England has been pointed in her questions about "what good is being in the EU?" a political question she is not really supposed to ask.

First note this:
She’s not even allowed to vote. But she’s broken protocol to express her opinions before, and she almost certainly has thoughts on the Thursday vote that’s left the British economy in freefall. Should the queen have stepped into the EU debate sooner?
Freefall?  You mean a few billionaires lost some money?  Note all of the "fear brexit" talkers have one point of view, what is best for the 1%.  This will not change.  All politicians worldwide will now blame all economic problems on Brexit.

The Queen broke protocol by making comments on Brexit:
However, she made headlines earlier this month when biographer Robert Lacey wrote in the Daily Beast that the monarch had been asking her friends to “Give me three good reasons why Britain should be part of Europe.”
For economic recovery, a breakdown of the hegemonic mega-state is necessary, a breakdown of the empire.  Security services love empires, for the work is all fun and no responsibility.  The 1% exist because of the empire, and the security services are the fun-time "security guards" to the hegemon.

Note in the USA, the First Job of the Secret Service is to fight money counterfeiting.  Second job is personal security of the president.  Odd, no?

In the UK, it was MI5's job to stop Brexit.  So what happened?  Did the Queen command (she does not invite) the head of MI5 and his key associates over the Buck-house for tea and to talk about Corgis during the crucial vote tabulation times?  Prince Phillip and all the top military men sure wanted an independent Britain. Did she step in somehow and stop election rigging?

Incidently, the current head of the EU is JC Juncker, who lost his job in charge of money and intelligence due to an intelligence scandal in Luxembourg, and from there he went on the his current job as president of the EC.

The more poor the more Brexit.  The more rich, the more remain in the EU.  Well, the EU created way too many poor people in the UK.  If Brexit holds, the UK can begin the process of rebuilding the UK economy, which naturally means the one percent will see their nominal holdings dwindle.

Another interesting set-up:  The City of London is an autonomous region wherein resides the 1% economic pirates that pillage and burn worldwide.  The last mayor was Boris Johnson, as wily a politician as ever there was one.  Johnson was pro-Brexit and may replace David Cameron as Prime Minister. The new Mayor of London, Sadiq Khan, is anti-Brexit and hopes to still keep London safe for the 1%'rs.

Just watch as every time there is "bad news" coming from Brexit, listen to the news.  It is bad news for the 1%.   Good news for humanity.

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Friday, June 24, 2016

Brexit Means Reviewing Rules and Regs of Last Forty Years

If Brexit holds, then one little noted aspect is the UK will need to review all of the reules and regs it brought upon itself by being in the Eurozone.
In Whitehall and Westminster, there will now begin the massive task of unstitching the UK from more than 40 years of EU law, deciding which directives and regulations to keep, amend or ditch.
Well, those forty years of rules and regs went hand in glove with the 40 years of economic engineering that ruined the economies.  I've said wistfully in passing we'd need to roll back all rules and regulations passed in USA since 1970 for our economy to recover.  In the UK this is now mandatory,  How did they get so lucky?

Those who lost are screaming bloody murder because their meal ticket is gone.  Those who won now have the problem of resurrecting an organic, true economy.  Do enough people know what needs to be done to do it?

In any event, the Hegemon now has to deal with powers reduced, and perhaps further exits, as its system fails.  THEIR economy, THEIR system is failing, not THE system.  Any system is just an agreed on assortment of patterns and practices, which the hegemon gets backed by the force of law.  Their system is over, the UK will be negotiating its own independence, the hegemony has that much less credit to call on.

Be part of the renaissance, start your own business.

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I Tried To Shake 'Em

About 3 years ago or so, any blog that did not tow the party line found its hits drop by about 2/3rds, as reportedly google changed its algorithm which directed people to what sites they may prefer.  It was well noted at the time. Now it does not matter much to me how many hits I get, since this is where I rough draft what I may be using in a book someday.  Few readers, lotsa readers, who cares?

About six months ago I wrote blog post on a Hebrew scholar who could find no support for intellectual property rights in the Bible.  The title was "IPR is not for Jews."  The post to over 50 times the normal hits.  I assumed these were Jews interested in the topic.  A daughter of mine, who produces media at a high level and is familiar with all things internet, laughed and said "No, that spurt was neo-nazis, not Jews."


Indeed, in the coming weeks, the comments section got busy with all manner of sympathetic defenses of the nazis, and arguments as to where the nazis were quite good, or misunderstood.  Perplexing, since if I don't like democrats or republicans, how does anyone think I might begin to see the nazi point of view?

Anyway, at the same time my daily hit counter rose 10 times and stayed there.  Forensically it is nonsense, about 145 hits per hour, every hour for eight hour stretches per day.  From all over the world, but mostly USA.  That is programmed intervention.  Who and why?  Haven't a clue.

I don't like manipulation, so I decided I would try to shake them, just post nothing for a week, ignore my blog for a week.  Give them no new fresh meat to work with.  So today I returned to the blog, and guess what?  They have just been hitting the last posts I put up, a week ago.

I guess there is no shaking them, the few who do read my blog, well, I am back, and as to those who are pushing my numbers up, I hope you enjoy some new content.

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Thursday, June 16, 2016

Chiseling in Plain Sight

Market makers are specially licensed brokers of Fed bonds.  They promise to move bonds the Feds offer one way nor another, through their contact worldwide.  Chiseling is carving off a piece for yourself anytime you can.  "Constant" also falls within "any time you can."
In terms of yield, the entire top to bottom move for the entire day was around 5 basis points. Had the Fed really said or done something, action could easily been  triple that if not more.
Priced in volatility is expensive for this reason, even though in most cases nothing unexpected is said or done, other than market makers purposely running stops in both directions.
To constantly be chiseling, to be noted in casual observation by Mish, and of course never noted by porn-addicted captured SEC regulators, is just one of the countless reasons that whenever we look around, anyone making money us cheating, lying, and no one plans to do anything about it.  More of the same.

Get your own business going.

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Wednesday, June 15, 2016

Secret Medical Experiments on Newborns

No one was executed for the crimes of the Tuskegee Experiments, let alone imprisoned.  So they go on today, 2014.
Because premature babies have immature lungs, they usually require treatment with supplemental oxygen to survive and to prevent brain damage and other problems caused by oxygen deficiency. In many cases, premature babies also need to undergo intubation (insertion of a breathing tube into the trachea, the main airway leading to the lungs) and treatment with a ventilator (an automated breathing machine). More than 50 years of medical research have demonstrated that for premature babies, treatment with too little oxygen can cause brain injury or death, whereas treatment with too much oxygen can lead to damage to the retina of the eye and blindness.
Yes, just ask Stevie Wonder, it happened to him.  Never mind, just keep doing it. Why do secret, pointless, harmful human medical experiments go on in USA?  Because they can.

Read the article, they even cheated on their own mad-scientist experiments on newborns.

It does no good to complain.  Just like the Tuskegee experiments, plenty of doctors complained, but nothing came of it.

No one is ever prosecuted when doing hegemon research projects.  In capitalism, there is no mechanism for curbing state abuses.

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Monday, June 13, 2016

Forty Banker Suicides

The headlines say "banker" but it never is, it is people working in banks who know too much.  It is never a top banker.
Three bankers in New York, London and Siena, Italy, died within 17 months of each other in 2013-14 in what authorities deemed a series of unrelated suicides. But in each case, the victim had a connection to a burgeoning global banking scandal, leaving more questions than answers as to the circumstances surrounding their deaths.The March 6, 2013, death of David Rossi — a 51-year-old communications director at Monte dei Paschi di Siena, the world’s oldest bank — came as the institution teetered on the brink of collapse.
Rossi was found dead in an alleyway beneath his third-floor office window in the 14th-century palazzo that served as the bank’s headquarters.
In the early Sixties, there was a series of world leaders who all sought independence, freedom, prosperity, justice… Kennedy, Hammerskold, Lumumba, Diem, politicians all, who were murdered. And then domestic as well… MLKing…

It seems if you work under the hegemony and try to do what is right, well…  defenestration for you!

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Sunday, June 12, 2016

Internet Trends Nonsense

Mary Meeker was a stock analyst disgraced in the 1999-2000 stock boom/bust.  She is back, this time as a "internet trends" maven.

Now, apparently, she is preaching to the choir, since the comments section is full of adoring admirers.  There wasn't a sentence of her talk that I would not challenge, for instance, internet is now 10% of retail.  Prove it.  As one who gives all day public lectures, I also understand the technique she is using, the drone on talk, a quasi-hypnosis technique, where people just take in highlights, and see what they already hope one slides.  It's a replay of Apple's 1984 ad, except it's missing the mallet-thrower.

People must be stating that which I thought only I was saying out loud, they internet marketing does not work by any measure.  She said "internet advertising does work…" (emphasis hers, the lady doth protest too much methinks) and goes on to point out a vineo (or something) that got 10 million views.

Views aren't sales.

Her examples are all government programs, like google, or if not, simply survivorship bias victims.

Mary Meeker is still in the business of telling the delusional what they want to hear.  Before millions put their lifesavings where she said they should and lost much, there was a worldwide settlement fund set up.  Today she plays it safer, she simply tells them to drone on, everything you hope is coming your way anyway.

Huge applause.  Demands for more.

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