FREE SHITTERS OF AMERICA

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Posted on 31st August 2015 by Administrator in Economy |Politics |Social Issues

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Via Lonely Libertarian


Leveraged Financial Speculation to GDP in the US at a Familiar Peak, Once Again

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Posted on 30th August 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Jesse

“I believe myriad global “carry trades” – speculative leveraging of securities – are the unappreciated prevailing source of finance behind interlinked global securities market Bubbles. They amount to this cycle’s government-directed finance unleashed to jump-start a global reflationary cycle.

I’m convinced that perhaps Trillions worth of speculative leverage have accumulated throughout global currency and securities markets at least partially based on the perception that policymakers condone this leverage as integral (as mortgage finance was previously) in the fight against mounting global deflationary forces.”

Doug Noland, Carry Trades and Trend-Following Strategies

The basic diagnosis is correct.   But the nature of the disease, and the appropriate remedies, may not be so easily apprehended, except through simple common sense.  And that is a rare commodity these days.

Like a dog returns to its vomit, the Fed’s speculative bubble policy enables the one percent to once again feast on the carcass of the real economy.

‘And no one could have ever seen it coming.’

Once is an accident.

Twice is no coincidence.

Remind yourself what has changed since then.  Banks have gotten bigger.   Schemes and fraud continue.

What will the third time be like?  And the fourth?

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FEEL GOOD STORY OF THE DAY: A family in public housing makes $498,000 a year

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Posted on 18th August 2015 by Administrator in Economy |Politics |Social Issues

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This doesn’t even take into account the hundreds of thousands of people in Section 8 housing who are “earning” money under the table and not reporting it to the IRS. Then there are the additional “tenants” who pay to live there, which is also not reported. This article is only the tip of the iceberg.

Via Washington Post

A public housing project in Brooklyn. (Reuters/Lucas Jackson/File)

A family of four in New York City makes $497,911 a year but pays $1,574 a month to live in public housing in a three-bedroom apartment subsidized by taxpayers.

In Los Angeles, a family of five that’s lived in public housing since 1974 made $204,784 last year but paid $1,091 for a four-bedroom apartment. And a tenant with assets worth $1.6 million — including stocks, real estate and retirement accounts — last year paid $300 for a one-bedroom apartment in public housing in Oxford, Neb.

In a new report, the watchdog for the Department of Housing and Urban Development describes these and more than 25,000 other “over income” families earning more than the maximum income for government-subsidized housing as an “egregious” abuse of the system. While the family in New York with an annual income of almost $500,000 raked in $790,500 in rental income on its real estate holdings in recent years, more than 300,000 families that really qualify for public housing lingered on waiting lists, auditors found.

(HUD Office of Inspector General)

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How Do You Spell ‘Desperation’?

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Posted on 12th August 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Karl Denninger


So China thinks that devaluing its currency, allegedly as a “one time” move, will help them eh?  They also promise to make the currency market-based (in exchange rate) going forward?

Then why not just drop the crap and allow it to be freely convertible — and quotable?

See, it’s not so simple as China would have you believe,  China’s so-called economic miracle is in no small part predicated on outright fraudulent reporting — bogus GDP claims and even worse, claims that you could defend on a definition basis but that make no sense, such as “counting” as GDP a city built with no inhabitants in it.

The truth is something different entirely.  China has a smattering of very wealthy people and a whole phalanx of not-very-wealthy.  The latter, like here, grossly outnumber the former.  China may be the world’s second-largest economy but they damn well should be given their population; they have roughly four United States in terms of persons!

Unfortunately you need to be more than a slave-labor marketplace and thus an exporter of goods made using same to nations where those labor and environmental practices would get you imprisoned to be successful in the long term.

Remember that much of the so-called “miracle” of “growth” that our firms have touted is expansion into China.  This move in the currency peg is designed to boost their exporters but will make everything made abroad more expensive.

Poof — there goes the argument that you will find your “growth” over there……

Buckle up folks; this is going to get interesting… and for our next act we will see a few amusing blowups in the energy sector among the grossly over-levered in the fracking-n-shale play department.


What’s The Carbon Footprint of The PopeMobile?

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Posted on 5th August 2015 by Administrator in Economy |Politics |Social Issues

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The Pope, it’s said, wears Prada.popemobile 1

And travels by Mercedes, too.

But apparently, he’d prefer you (and millions of other ordinary human beings) not.

Because “global warming.”

Er… make that “climate change.”

The new – more general – term for the allegedly human-caused alteration of the planet’s weather. “Global warming” had to go because global cooling was also inconveniently happening.

This was becoming globally embarrassing.

“Climate change” is much better, because it always fits. The climate is constantly changing. And would do so (and has done so) regardless of the presence of man on this Earth. But why not just blame man for it?

For everything?

Perfect!plane pope

The fact that this re-branding was necessary says more about the politics of “climate change” than its scientific validity. Despite the near-unanimity of media Tele-Prompter readers and politicians, experts in the field (as opposed to “environmentalists,” a non-degreed title anyone can claim) are far less certain about the assertion that recent changes are abnormal, much less the result of human activity – and so reluctant to endorse the imposition of extreme (and expensive) government regulations and taxes on billions of humans that will impoverish them but not the elites (including the Pope) whose super-sized carbon footprints will continue to tromp the Earth.

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HOW TO LOWER THE UNEMPLOYMENT RATE WITHOUT EMPLOYING PEOPLE

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Posted on 30th July 2015 by Administrator in Economy |Politics |Social Issues

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It’s much easier than you think. The labor force participation rate of 62.6% is at the lowest level since 1978. There are 250 million working age Americans and according to your friendly government drones at the BLS, 94 million of them are willingly not participating in the job market. According to the government, these people don’t want to work. Only 8 million out of the 250 million are actually unemployed according to the government.

The chart below reveals the fraud being perpetrated by the government with regards to the unemployment rate. The overall labor force participation rate in 2000 was 67.1%. The decrease over the last fifteen years is not warranted by demographics, economics, reason, or need. Using true inflation measures, the economy has essentially been in recession for 13 out of those 15 years. Real median household income is less than it was in 1989.

In what world would people leave the workforce when they NEED more money just to keep even? Only in a Bizarro world run by government bureaucrats protecting their politician bosses and the financiers running the show. The media mouthpieces for the status quo bloviate about retiring Boomers as the reason for the plunge in the labor force participation rate. The chart exposes this storyline as a bold faced lie. The only demographic age brackets which have shown an increase since 2000 are the over 55 year olds who have been forced to work because Bernanke/Yellen have impoverished them with 0% rates and they failed to save enough in their 401ks for retirement.

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The 2015 Untrustworthies Report——Why Social Security Could Be Bankrupt In 12 Years

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Posted on 30th July 2015 by Administrator in Economy |Politics |Social Issues

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The so-called “trustees” of the social security system issued their annual report last week and the stenographers of the financial press dutifully reported that the day of reckoning when the trust funds run dry has been put off another year—-until 2034.

So take a breath and kick the can. That’s five Presidential elections away!

Except that is not what the report really says. On a cash basis, the OASDI (retirement and disability) funds spent $859 billion during 2014 but took in only $786 billion in taxes, thereby generating $73 billion in red ink.  And by the trustees’ own reckoning, the OASDI funds will spew a cumulative cash deficit of $1.6 trillion during the 12-years covering 2015-2026.

So measured by the only thing that matters—-hard cash income and outgo—-the social security system has already gone bust. What’s more, even under the White House’s rosy scenario budget forecasts, general fund outlays will exceed general revenues ex-payroll taxes by $8 trillion over the next twelve years.

Needless to say, this means there will be no general fund surplus to pay the OASDI shortfall. Uncle Sam will finance the entire $1.6 trillion cash deficit by adding to the public debt. That is, Washington plans to make social security ends meet by burying unborn taxpayers even deeper in national debt in order to fund unaffordable entitlements for the current generation of retirees.

The question thus recurs. How did the untrustworthies led by Treasury Secretary Jacob Lew, who signed the 2015 report, manage to turn today’s river of red ink into another 20 years of respite for our cowardly beltway politicians?

They did it, in a word, by redeeming phony assets; booking phony interest income on those non-existent assets; and projecting implausible GDP growth and phantom payroll tax revenues.

And that’s only the half of it!

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CHINA JUST SHIT THE BED

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Posted on 27th July 2015 by Administrator in Economy |Politics |Social Issues

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China shit the bed overnight. The shit is now hitting the fan. Shit is fucked up and bullshit. I’m not shitting you.

Stock markets don’t fall by 8.5% in one day unless there is some major shit happening beneath the surface. A comparable drop in the US stock market would be 1,500 points. Do you think a few Wall Street assholes would shit their pants if that happened? Do you think there would be a few margin calls as that shitty scenario played out?

Here’s the deal. The Chinese authorities have attempted everything they could possibly do to stop their over-leveraged, over-bought, over-hyped, corrupt, fraudulent markets from falling. They have threatened imprisonment for selling, disallowed short selling, stopped allowing trading on thousands of company stocks, and propped up their markets with trillions of yuan poured into the gaping hole.

Between the end of June and early July, the Chinese government announced at least 40 measures to prop up the market, including an interest-rate cut by the central bank and establishing a stabilization fund to outright buy stocks. All together, Chinese authorities are estimated to have mobilized as much as 5 trillion yuan, almost 10% of the gross domestic product, to halt panic sales.

It’s all been for naught. Fear is now trumping greed. The infallibility of central bank manipulators is being revealed to be false. They are nothing but money printing academic fools doing the bidding of greedy bankers and corrupt politicians. This is only the beginning of the end. There are thousands of points to go, billions to vaporize, and millions of lives to be ruined.

Welcome to the Fourth Turning. No shit.

Chinese Stocks Suffer Second Biggest Crash In History, 1,500 Companies Halted Limit Down

Tyler Durden's picture

This was not supposed to happen.

After pledging, investing and otherwise guaranteeing the Chinese stock market to the tune of 10% of GDP, and intervening on at least 40 different occasions in the past month ever since China’s stock bubble burst in late June, with the subsequent crash nearly taking the Shanghai Composite red for the year, overnight China officially lost control for the second time, when after a weak start to the Monday trading session, things turned very ugly in the last hour, when the Shanghai Composite plunged by 8.48%, closing nearly at the lows, and tumbling some 345 points for its biggest one-day drop since February 2007 and its second biggest crash in history!

The selling was steady throughout the day, but spiked in the last hour on concerns China would rein in its market-supporting programs following IMF demands to normalize its relentless market intervention. According to Bloomberg’s Richard Breslow: “fear that the extraordinary support measures employed to hold up the market may be scaled back caused heavy afternoon selling resulting in a down 8.5% day.” Of course, one can come up with any number of theories to explain the plunge: for example the PBOC did not buy enough to offset the relentless selling.

 

The last thing the communist party and the PBOC wanted was another massive sell off after having not only fired the “bazooka” but come up with a different bazooka to halt “malicious sellers” virtually every day, including threats of arrest.

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No, Your Facebook Photos Are Not ‘Private’

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Posted on 25th July 2015 by Administrator in Economy |Politics |Social Issues

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I love it when lowlifes are brought down by their own hubris and stupidity. Hundreds of New Yawkers have been prosecuted for surprise surprise – Social Security Disability fraud. According to the libs, the astronomical rise in SSDI applicants is normal and due to the tremendous stress put upon these people by our unfair system.

They were all government union drones like firefighters and policemen. Not only are they sucking off the teat of the taxpayer with their gold plated pensions and health benefits, but they got caught sucking on the SSDI teat too.

These fuckers were so arrogant and self absorbed, they posted pictures of themselves running marathons and riding jet skis when they were supposedly too disable to work. This fucking country is starting to disgust me.

Guest Post by Karl Denninger

 

This is, IMHO, the correct decision (surprise!)

Facebook Inc cannot challenge search warrants New York prosecutors used to get information from its site on hundreds of users suspected of Social Security fraud, a state appeals court said on Tuesday, in a decision likely making it harder for New Yorkers to keep their digital lives private.

The warrants, which applied to 381 users’ photos, private messages and other account information, could only be challenged by individual defendants after prosecutors gathered evidence, the Manhattan-based court unanimously ruled.

The issue arose from an investigation into people claiming disability but posting pictures of themselves doing things like running marathons and similar.

Facebook tried to argue that the warrants violated the 4th Amendment (riiiight.)  Such a claim was farcical on its face; the reason the warrants were issued in the first place was to authenticate the postings, not know they existed.

This was not a “blanket” warrant or anything of the sort (which would be troublesome); instead what we have here are warrants aimed at a small group of people who have already put forward enough information where it can be seen by the public — on their Facebook walls!

“In many cases, evidence on their Facebook accounts directly contradicted the lies the defendants told to the Social Security Administration,” she said.

Prosecutors said Facebook pages showed public employees who claimed to be disabled riding jet skis, playing golf and participating in martial arts events.

Mariko Hirose, a lawyer with the New York Civil Liberties Union, which also submitted a brief in support of Facebook, said the court “side-stepped” an important question by ruling on Facebook’s right to challenge the warrants and not on their legality.

Horsecrap.  The reason the search warrants were issued in the first place was that specific articulated suspicion was generated by those persons that the data from their account would validate what led to that suspicion.

This is exactly what a warrant is for and meets — precisely — the definition of individual, articulated suspicion required under the 4th Amendment — never mind that it was issued by a Judge, which is also part of due process protections.

The State Court of Appeals got it right.

There Goes The Housing “Recovery” Again: New Home Sales Plunge Most Since 2014

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Posted on 24th July 2015 by Administrator in Economy |Politics |Social Issues

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Tyler Durden's picture

Despite exuberant existing home sales, new home sales crosses back below the 500k Maginot Line to 482k SAAR – the lowest since Nov 2014.

 

Once again, NARis back to its old tricks. Previous data was revised dramatically lower as June data missed expectations by the most in a year.

The West region saw new home sales collapse 17%.

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We are in 21st Year of Declining Temperatures

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Posted on 18th July 2015 by Administrator in Economy |Politics |Social Issues

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Gore-Al-1

The most amazing thing is how government is trying to claim there is global warming simply to introduce a carbon-tax. We are entering the 21st year of declining temperatures – not rising temperatures. This is like the tax on cigarettes when people have begun to smoke less, governments cry they are losing revenue so many places are now taxing electronic cigarettes. Governments are also losing tax revenue as cars have become more efficient. Sales of gasoline have declined for cars have pollution controls and get much better gas mileage with more people buying from the internet and driving to the local mall less. The solution to the collapse in tax revenues – states now are preparing to tax people based upon the miles they drive requiring odometer readings to register cars. It is never about what they pretend to care about – its is just about new schemes to raise taxes. Regardless of the truth about global warming, governments need this bogus research to raise taxes.

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Zippity Poobah

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Posted on 16th July 2015 by Administrator in Economy |Politics |Social Issues

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Section 8 coming to your neighborhood, whether you like it or not. My section 8 neighbor in Wildwood just did some time in the county jail for selling heroine in a school zone. They also appear to be housing their own tenants who are paying them to live there. Do you think they are reporting their drug revenues or rental income? Section 8 is a scam. It will ruin your neighborhood. Obama doesn’t care. You are white, therefore you are the enemy.

Via Hope n’ Change

obama, obama jokes, political, humor, cartoon, conservative, hope n' change, hope and change, stilton jarlsberg, zip code, housing, fair housing, hud

In his weekly address to the nation, Barack Obama explained his radical new citizen relocation program (euphemistically called “Affirmatively Furthering Fair Housing”) by declaring “in this country, of all countries (presumably including Kenya and Indonesia), a person’s zip code shouldn’t decide their destiny.”

Actually, we had no idea that a person’s zip code had that kind of power – or why such an important tool of success and empowerment would be entrusted to an organization as poorly run as the post office.

But Barry may have a point. After all, his own political destiny was going nowhere until, with a little wink-wink nudge-nudge financial help from convicted felon Tony Rezko, he moved into the same prestigious zip code as political activist and occasional terrorist Bill Ayres.

According to the president, “we’re using data on housing and neighborhood conditions to help cities identify the areas that need the most help.” And because he uses “help” twice in the same sentence, it sure sounds helpful. What he doesn’t mention is that once his administration has identified neighborhoods that “need help,” a punishing range of federal funds will be withheld from state coffers until racial and economic quotas – oops, goals – have been met.

Of course, all of this has been tried repeatedly since the passage of the Fair Housing Act half a century ago, and it has always failed. Adults transplanted from poorer communities don’t end up getting better jobs, and their kids don’t end up performing better in their new schools. Because in this country, of all countries, destinies are decided not only by where you are, but by how you managed to get there.

A lesson the World’s Smartest Man might do well to think about when he’s finally forced into a non-Washington zip code.