Nipping at our Nose

Since the season to be jolly is over, I just want to say a few tings, economically that is. For the past 16 months I have been trying to prepare folks for the impending economic “dark ages” that may be on our door step, or even nipping at our nose. I say this for what we have experience thus far, may be very small in comparison to what waits ahead for these United States of America financially.

As history has shown, most of our problems are man made and as such our days as a world dominant leader of nations are numbered for we are now basically broke, with an economyripped apart and entirely dependent on loot borrowed from other nations. Businesses will find it hard to survive. Not just Wall streets and banks but any and even the small. What has happened is that America has turned from a producer to a consumer. And as such all of us are going to have to do some serious re-evaluation of our lives and life styles for the impending implosion of what we used to take for granted. The main problem is that politicians will not be able to solve what the have let happen on their watch. Not to mention they always desire a quick fix and or the easy way out – which normally ends up being a short term fix if that.

Yep we aint even seen the start of this mess. States like Illinois, Minnesota, New York, and Massachusetts are in the process of selling and privatizing parks, and lotteries just to make ends meet. Even cities doing what they can to stay a float. Chicago is trying to lease Midway Airport for $2.5 billion, if the feds approve the deal and has already inked a deal with a company regarding parking meters. But as I said, these are merely short term fixes and may even make these municipalities loose money in the long run.

It would surprise me none if states like California, Ohio, Michigan, and Florida will be bankrupt before the end of next year. Strange aint it, that Federal municipal bankruptcy laws came about in 1934 during the Great Depression. California's unemployment rate is more than 8.4%. Michigan’s is more than 9.6% Rhode Island is above 9.3%.

Yep the shit is about to hit the fan even with the Treasury and Federal reserve throwing all but the kitchen sink at the financial markets to fight deflation while not even noticing how folk like me taking a hit. And we don’t know how many more folk like Madoff are still on the loose thanks to the Chris Cox SEC. Not to mention that we are currently experiencing asset price deflation in an econonmy that seems tto be grinding to a halt.

So a toast to the Feds, and all them other folks that have lead us to the eventual destruction of the U.S. dollar and the global monetary system upon which it’s based. For the truth is that U.S. government debt is at $10.5 trillion and our government continues to advance a policy of deficit spending. I figure the Fed’s next move will be to push for the all powerfum Amero (new currency). This will drive up oil and gold and all else meaning that investors won’t support the U.S. government’s monetary policies. So I drink again as the U.S. dollar retreats against other currencies and commodities. Wish more folks read John Moorlach, the accountant who predicted the 1994 Orange County bankruptcy. He suggest that maybe Up to 10 Municipal Bankruptcies in 2009. So hold on to your hats because folk needs to be a magic Negro to deal with what I see on the bunson burner. But me no economist, so don’t listen to me mane. Just let jack frost keep on nipping at your nose.

Fk the VP, who gone be your Treasury Secretary

Ok back on the grind but first two things I have noticed: 1] I have noticed how Obama is saying all that I wrote in my post called slacking on your macking now. 2] My Titans 3 – 0; 3] Aint no gas in GA – there is a shortage in most places except where I live. LMBAO.

Back to the task at hand. I was trying to stay away from the economy. Seems that folks don’t have worries no more. Well I don’t wanna scare anyone, but I do desire for folks to have a semi objective and non biased opinion of things the way this single distorted, sordid and diabolic mind perceives such. I mean Wall Street over the past three Sundays, that’s right Sundays has gone over a dramatic facial. Now Goldman Sachs (as I said) and Morgan Stanley (as I said) are no longer investment houses but rather regular old banks now thanks to you guessed it, basically unilateral decisions of the Feds. Yep regular banks – which have stiffer regulations when compared to investment houses.

I don’t know about you, but I would hope that I am not the only one kind of leery of having basically one man in control of making financial decisions with my tax loot. Secretary of Treasury Henry Paulson. And add to that Ben Bernanke, it makes me a bit more concerned. If it was like it was back in the day I wouldn’t be so worried. The old fed maintained T-Bills as most of its asset base. The typically matured in increments of 90, 180 or 360 days and sold at a minimum value of 10 stacks.

I know Paulson think he is doing the right thing and maybe he is, but to compare the value of a MBS to a T-Bill from the historical vantage point I maintain is feculent. Add to that, doing all of this decision making in essence to hand over a black check to these folk with out consulting congress before hand borders on treason to me. Shit, today the Dow dropped almost 400 points and Oil prices posted a record one-day gain today, going over $25 per barrel. I aint buy no oil futures, but Gold, just as the aforementioned is a commodity also [note to self last week u could get 68.78 oz of gold for 50K, today 50K gets you 58.8 oz] . Add to that the knowledge that P. Morgan Chase and American Express fell 13 and 8 percent alone today respectively.

I just say, I feel that we are bailing out folks for stupidity or even worse for making poorly thought out investment decisions. And the plan as I have just finished reviewing, I mean the planned bailout, still leaves it wide open for these institutions to load even hedge funds to dump these distressed assets on the tax payer, I mean the government.

I think we need to dig in for the last 7 weeks before the election and ask these folks some serious questions. Dang man, we know who the VP is, but on the really real, fk the VP, I wanna know who they gone pick as the next secretary of the Treasury. We got it all wrong up in this camp.