Unum Supra Multa

The Treasury Department has ordered President Trump’s name be printed on stimulus checks the Internal Revenue Service is rushing to send to tens of millions of Americans…

It will be the first time a president’s name appears on an IRS disbursement, whether a routine refund or one of the handful of checks the government has issued to taxpayers in recent decades either to stimulate a down economy or share the dividends of a strong one.

If I were a Trump loyalist, I might pee my pants over seeing his name on my  stimulus check.

This is only on checks, not on direct deposits, and will be under a line that says “Economic Impact Payment”.

As the greatest President ever (ROFL), I imagine he will one day want his face carved into Mt Rushmore and perhaps replace the Washington Monument with the Trump Monument.

I predict this check will become a symbol for the moment when America lost its way in the world. No longer a nation of laws and moral convictions, this check will mark the turning point in which American government serves the President…instead of an America in which the President supports the government of America as established by the Constitution.

When the President’s name appears on the check, you can forget “E Pluribus Unum” (Out of many, One). Instead it can be changed to “Unum supra multa” (One over Many).

God help us.



Order-to-Pay Banking: What kind of extortion is this?

Another “tool” for banks to get paid on both sides of a commercial transaction, the Order-to-Pay process sets a new scheme in motion.

a) Sell corporations on the idea that the bank will manage your supplier payments and provide liquidity to pay your bills so corporations don’t have to worry their pretty little heads on 24-hour temporary loans if funds are not there.

b) Have corporations force their suppliers to comply with Order-to-Pay so that the banking industry -in general- can extort extract funds on both sides of a commercial transaction between buyer and seller.

c) Entice corporate suppliers to sign-up with promises to pay in 15 days rather than the recent shift to 60-day terms for payables. An incredible inducement to cause a company to sign-up.

d) Oh, by the way, if you are unable to accept credit card payments direct to an account, sign here for the ability to do so and pay 3% for receiving your money that you billed the company for. Giving banks 3% of every invoice you issue to the BIG BOYS, what kind of deal is that?

e) Oh by the way, if you don’t comply with Order-to-Pay then you won’t get paid for 60-days. Period. No matter what.

And, of course, the whole thing is too good be true. We know, don’t we, that the 15 days will later shift to 21 days and then to 30 days and finally it will be back to 60 day terms for payment. Nobody wants to honor 30-day terms in contracts anymore. Why in the world would banks give you money in 15 days unless they expected to extract money on both sides of that commercial transaction sooner?

The banks are gaming the system with large corporations. You, the consumer, the small business,  will pay the BIG BOYS upon invoice (immediately) with credit cards while the BIG BOYS will eventually pay the company’s suppliers in 60 days. Wrestling the time element of money away from business and into banks is literally worth a fortune. It is insidious and breaks the buyer-seller relationship into buyer-broker-seller.

The money changers are back in the financial temple….Do you have your mark of the beast yet?

Stock Market Blues

From WIKI: “Milton Friedman‘s A Monetary History of the United States, co-written with Anna Schwartz, advances the argument that what made the “great contraction” so severe was not the downturn in the business cycle, protectionism, or the 1929 stock market crash in themselves – but instead, according to Friedman, what plunged the country into a deep depression was the collapse of the banking system during three waves of panics over the 1930–33 period.[42]

Now let me see….what kind of banking problems have we had since the Financial Modernization Act of 1999  turned conservative banks into financial institutions?

Year 2000: Bursting of the dot.com, or technology, bubble: The Internet was in style. Entrepreneurs saw potential in online business. However, online business was really in its infancy. Everyone was talking about a “new economy” which referred to an Internet-driven economy. Most of the dot.com stocks, like Yahoo.com, were listed on the NASDAQ. In January of 2000, the NASDAQ closed above 5000. The NASDAQ is now trading around 2100.

Year 2002: Stock Market Crash of 2002 : After a brief slide post 9/11, the stock market rallied, but began to slide again in March 2002. The market reached lows not seen since 1997 and 1998 by July and September of 2002. The corporate fraud scandals, such as Enron, along with 9/11, were contributors to this loss of investor confidence in the stock market.

The financial crisis of 2007–2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists the worst financial crisis since the Great Depression of the 1930s.[1] It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment.

And now we have the “Emerging Markets” problems which seems to portend other issues for money and credit.

When it comes to the Dow right now: “How low can you go?”


Alan Greenspan does not recognize the truth

…according to Richard Katz, the Editor of the Oriental Economist Report, in his recent article in Foreign Affairs.

In his recent essay “Never Saw It Coming” (November/December 2013), Alan Greenspan makes two central arguments: first, that virtually no one foresaw the 2008 U.S. financial crisis and, second, that irrational “animal spirits” were the root cause. If true, these propositions would absolve policymakers such as Greenspan of blame. But neither holds water.

The truth is that many experts worried about the U.S. housing bubble and predicted a crash, even if they couldn’t pin down its timing or severity. As early as 2002, Congress summoned Greenspan himself to discuss “the possible emergence of a bubble in home prices,” a concern he repeatedly dismissed. A year later, the economists Robert Shiller, who won last year’s Nobel Prize in Economics for his work on financial crises, and Karl Case voiced just that worry. Also in 2003, 50 of the top U.S. newspapers ran a combined 268 stories referencing a “housing bubble.” By 2005, they had run an additional 1,977 such stories.

There is more in the article.

I have described what occurred in previous posts and I won’t go thru that again. What is important about this article is that it is the first one that fully describes Greenspan’s purposeful failure to raise the alarm on derivatives and his wrong-headed view of the consequences. Malfeasance or incompetence is for someone else to decide. It is always hard to prove intent.

This is an easy read. Enjoy the flames used for the Greenspan barbecue. I have always believed that the really big bucks and power are reserved for those who sell their soul to someone or something. Perhaps in Greenspan’s case, we will never know.

What we do know is that if a process allows us to lower our standards, we will. The derivative process allowed exactly that. And the world paid the consequences. (still paying?)



What 2013 Stock Market Euphoria ?

The market rose 25-30% this year so far and there was no “Euphoria”.

The topic has been broached every month in a different business magazine since January. It started in January with Money News reporting this:”The stock market is going through a bout of irrational exuberance that spells trouble, says Marc Faber, publisher of the Gloom, Boom & Doom.”

In February, CITI reports:

Simply put, when investors are panicking, then it’s probably a good time to buy.  If investors are euphoric, then it’s probably time to sell.”The Panic/Euphoria Model has spiked to near its highs over the past three years, suggesting frothy levels have ensued,” writes Citi’s Tobias Levkovich. “While a variety of other factors are constructive for equity indices, this proprietary gauge is starting to get perilously close to euphoria, cutting above the complacency readings seen in April/May 2012. In the past, when the model reached such levels, the equity markets experienced some modest consolidation. “

Then it moved to this in April: Amid Stock Market Euphoria, The Smart Money Is Fading – Minyanville

May followed with this from The Market Oracle: “The levitating stock markets continue to seductively entrance traders, powering to new nominal record highs day after day after day.  No one believes a meaningful selloff is even possible anymore, thanks to the vast deluge of central-bank monetary inflation.  Sheer euphoria has set in as all perception of risk has vanished.  This makes these stock markets extraordinarily dangerous, they are truly at topping extremes.

And August, September, and October had the same read. You can simply run your own search to find that evidence.

I got caught up in that also. When my stock doubled, I sold, when another one rose 25%, I sold that, too. I figured that 25 and 30% gains in the market should trigger some type of correction. But there was none.

Sure, I could say ‘not yet’ but what’s the point? Fed Policy is to keep wealthy people wealthy and the QE will continue for some period of time. Why in the world would the Fed change anything until the new Chairperson Yellen is in place?

Deficits don’t matter to the Fed. They print the money; they aren’t accountable for how much is spent. They are there to keep wealthy people wealthy through one simple control: monetary policy.

I have come to believe that the US economy is an elephant and that the pundits are simply blind men who feel different parts of it and come up with different conclusions. ‘This stock is going up based upon the strength of the legs’, ‘this sector is going down because the elephant is not eating enough’, and, of course, some one is analyzing the poop of the stock market and making predictions like “the sturdiness of the poop indicates that the elephant is being fed correctly and should live a long life’  exactly at the time the elephant stumbles off a cliff and dies or is shot by a hunter who wants its tusks.

The economists try to predict how the amount of food and shade and predators are at hand to determine the size of the herd and they act like game wardens trying to control trouble if an Elephant Walk occurs.

My thoughts now are that in a weak economy and globalization (fancy term for US businesses take over the world) and a strong stock market, that the driver right now is how stock market people feel. There is no euphoria yet. The people who do this for a living are optimistic but markedly so.

The issue that the new Fed Chairperson has is how to keep wealthy people wealthy. The Sec’y of the Treasury has to figure out how to borrow money so his political party can reward the people who put them in power. The President has to figure out how to get re-elected and keep the military happy with weapons programs and military bases. The Vice President has to go to funerals and celebrate St. Patricks Day. And Congressmen have to get re-elected to keep their party in power so they can collect and grant favors to others.

It is a sucky process now. Time for change. We need a government for the people and not the politicians, a government for you and me and not the multinational corporations, and finally, we need a government for the Have Nots and not the Haves.

The Debt Bomb, Martial Law, and the Fall of Democracy

Update: The President signed the bill to keep the government running into January and February. Look for a repeat experience in 2014. I might repeat this post at the same time.

These three things appear to be linked now.

I have recently come to believe that the Debt Bomb is America’s newest weapon for world domination. It is the opposite of the neutron bomb. The neutron bomb killed people and left all the infrastructure intact but the Debt Bomb kills the infrastructure and leaves the people intact. And when there are people and no infrastructure then there is chaos in the streets. I am not the first to write about Debtonation

I believe the US will default on its obligations and cause a financial panic around the world as it chooses which creditors it will and will not pay. You can believe that it will not pay those who compete with us or move against us. It will always pay its citizens something but it will greatly reduce that amount through emergency legislation or emergency power grabbing by a clueless President. The default will last long enough to send a serious message to those who depend upon US trade and industry.

The Central Banks of Western Democracy appear to be colluding to defeat their banking rivals. Those rivals are Persian, Asian, and Communist Petrodollar systems that fund countries opposed to Euro-American domination. The Debt Bomb scenario seems to bring the world to its knees by wrecking the infrastructure of a global trading system and re-establishing a World Order with fewer players.

With that World Order will come chaos in cities around the world. Cities survive based upon the transport of goods into them like food, shelter, and medicine. When these are trucked, flown, and shipped into the cities and that transportation becomes volatile, then chaos results and refugees result and business, industry, and economies fail. And when those fail, society fails.

When society fails, martial law takes its place. The US has been putting in place the infrastructure to support federal martial law for two decades now and has stepped up its pace the last three years so much that ordinary people are remarking about it. Alex Jones and his PrisonPlanet TV have captured some people’s attention. The shredding of the US Constitution, the establishment of combat battalions in the US, the coordinated “drills” between police and military that have taken place over the past seven years, the acknowledgement of FEMA camps for housing large numbers of citizens, the billion bullet purchase by government agencies who have no police or military standing, and the establishment of a universal government surveillance system all points to the eventual establishment of Federal martial law in the United States.

With martial law in the US will come the end of Democracy as we know it. The Senate and the House have given huge powers to the Executive Branch to create rules that govern our daily lives. The only defensive weapon that the Congress has is the power to de-fund the Executive branch of the government. And that weapon is meaningless when Congress has no money in the Treasury and cannot issue bonds anymore. Congress has shown itself to be incompetent and soon it will show itself to be corrupt. When that happens, the Treasury Department will serve the President instead of legislation, the military will support the Treasury, and the President will sequester the Supreme Court until military control has been asserted over Washington , DC. The President will assert huge emergency powers to run the country up until the day the Pentagon tires of him. The purge of generals that has been taking place the last few years is to break the fraternity that would keep the Executive Branch, Congress and the Supreme Court viable. A call for a new Constitution will change our democracy forever.

The Republican and Democrat parties will be neutered and absorbed into some new political party. Because blame will fall on the two-party democracy system, a single political party will emerge under a new Constitution. The US military-industrial complex will be at the center of world economic domination.

This is the future of the US. A near term future if there are no changes in the pace of implementation. A long term future if you and I resist these changes through our democratic process. Vote independently and make your voice heard.

HR 368 rule change…Eric Cantor: unitary executive?

Just watch the video first.

This leaves Eric Cantor, as majority leader, as the only person who can unblock this stalemate. And he is meeting with the President. My guess is that they are learning ‘who has it my way or the highway’.

I think default is possible now. No one can afford to lose face in this struggle.

I am now convinced that Republicans and Democrats are stress testing our Republic, our financial system, and the world. They wish to see how far they can go to break the system. Stress testing. I just hope they do not intend to failure test the system. The difference between stress test and failure test is that stress testing has a limit at which you stop testing. A failure test is to test until the thing breaks.

Woe to all. But here we are with one day to go and nobody is worried. The plan to make the American government look incompetent is successful. When the government decides who gets paid and who does not when shut down, we will see the full power of the Executive Branch on display. They alone will decide under some Emergency Powers to choose who wil be paid and who will not. That is the beginning of the phase to show the civilian government is corrupt.

Each party will favor itself and Americans will be upset. At the right time, the military (instead of the police) will assert themselves into quelling domestic riots. That is the end of the beginning.

How companies gave you all the pension risk

Oh we thought it was such a good deal, didn’t we? Our companies trashed their old pension plans and systems in favor of these new and trendy 401K plans. What a good deal we got when the company matched our contributions to our retirement accounts!

We all went for the gold ring and came up with brass didn’t we?

Under the 401K  system, you have acquired all the pension risk. Your company is better off paying you matching funds rather than paying into a pension plan. You now have all the risk of managing your ‘investment’. They have none.

I already know people who retired and got hurt in 2000-2001 so bad they had to come back to work to make ends meet. No guaranteed pension for them anymore.

So there is no free lunch is there? How do you like having all the risk of your retirement while the stock market swings wildly over a 4-year cycle? Up and down and the only gain you have is the money you continue to invest from your paycheck.

Welcome to your Brave New World in which balancing your checkbook is difficult but investing in your retirement is a piece of cake, right?

How the Fed forces you to buy stocks

It has been a grand game hasn’t it?

The Fed keeps money cheap so your only option to make money with your money is to invest in stocks and keep it there.

CDs are practically useless as a safe income generator. Savings accounts are too.

So now you have a large 401K and are about to retire but you can’t find any place to put your money that makes sense. So you leave it in your 401K keeping the stock market buoyant.

Then the market rises to a high point. The ‘financially informed’ sell and hold cash until market drops then they buy stocks cheap and hold stock until it rises again for another selling off.

You the individual working man watch your portfolio sink and then slowly rebuild. You thank your stars that it grew again never knowing that others are manipulating the market and gaining more wealth as a result.

‘Shearing the sheeple’ it is called. ‘Thanks for letting us pull the wool over your eyes that we sheared from your back.’

This is just not going to end well for the middle class.


I want my own platinum coin

After writing yesterday’s post about the $1T coin and how silly it was, I began to think about how the US government can eliminate all the personal credit card debt in America. The US might want to do this because it will allow all of us to go out and buy more goods and services. If we do, we will boom the economy and create jobs and wealth for so many more of us.

Here’s how it might work, the White House opens a website where you can register your current credit card debt. Then the President authorizes the Treasurer to mint you a platinum coin worth two times your current debt. It sends you the coin to forward to Visa or MasterCard which they are obligated to record as paid in full. Your debt becomes a credit and you can then use your credit card to obtain more goods and services which will bolster the economy.

Your personal debt is wiped out, the balance sheets for Visa and MasterCard show massive injections of cash to pay off debt. They reserve the remainder for your next spending spree and until then they have massive amounts of cash on hand which makes them look financially sound. This in turn drives up the value of their stock and stock owners see a substantial return on investment which causes them to pay more taxes which retires the National Debt sooner than expected.

A brilliant plan isn’t it?

Where’s my coin, eh? This is a brilliant plan. More please. What could possibly go wrong?

You would vote for the political party that wiped out your credit card debt and gave you more in your account, wouldn’t you? No? Why? Because you love your debt? You are a silly person.