Category Archives: Government

Lying or Just Stupid?

Guest Post by James Howard Kunstler

It’s not always easy to define what exactly is wrong with America, but what ever it is, it’s huge.

— Roel Ilargi Meijer, The Automatic Earth.com

Nobody knows, from sea to shining sea, why we’re having all this trouble with our Republic.

— Tom McGuane, Ninety-Two in the Shade

Despite its Valley Girl origins, the simple term clueless turns out to be the most accurate descriptor for America’s degenerate zeitgeist. Nobody gets it — the “it” being a rather hefty bundle of issues ranging from our energy bind to the official mismanagement of money, the manipulation of markets, the crimes in banking, the blundering foreign misadventures, the revolving door corruption in governance, the abandonment of the rule-of-law, the ominous wind-down of the Happy Motoring fiasco and the related tragedy of obsolete suburbia, the contemptuous disregard for the futures of young people, the immersive Kardashian celebrity twerking sleaze, the downward spiral of the floundering classes into pizza and Pepsi induced obesity, methedrine psychosis, and tattooed savagery, and the thick patina of public relations dishonesty that coats all of it like some toxic bacterial overgrowth. The dwindling life of our nation, where anything goes and nothing matters.

Continue reading Lying or Just Stupid?

Minimum Wage in a Stacked System

Though I once had a conservative NFTRH subscriber cancel because I made fun of Sarah Palin in a blog post, and later had some clown with a blog portray me as a right wing gold bug lunatic, I am happily apolitical.  I am and always have been independent with not a whole lot of respect for either major US political party.

I get (opted in) emails from the White House, one of which announced that Senate Republicans blocked a vote to raise the minimum wage.  Last weekend NFTRH 288 paused for an interlude among its 33 pages of analysis as follows.  The parts relevant to the Minimum Wage debate are in bold…

Inflationary ‘Zero Interest Rate Policy’ (ZIRP) remains firm and certain assets and services are rising in price/cost and regular people do not stand much of a chance. Savers do not stand a chance. Asset speculators stand a chance, and those directly benefiting from policy, like higher ups at major financial institutions have it in the bag.

Continue reading Minimum Wage in a Stacked System

‘The Most Honest 3.5 Minutes of TV, Ever’

Thanks to Joe for sending this…

How Socionomics Predicted the 2012 Election

…Without Polling Anyone

From the man I always find a pleasure to listen to.  No, he’s not talking deflation this time.  Interesting stuff.  No strings attached sign up if you’re interested.  Per EWI:

  1. A 26-minute video excerpt from Robert Prechter’s April 2012 speech at the Socionomics Summit in Atlanta. He described the then-just published landmark research paper he had co-authored, which amounted to a stunning (and stunningly accurate) preview of the outcome of the recent presidential election. If you’ve wondered why Obama won/Romney lost, Bob Prechter pulls back the curtain about a truth you won’t hear elsewhere.
  2. The opportunity to join Club EWI. Sign up and you’ll be notified about the latest developments in cutting-edge stock market analysis PLUS the most up-to-date research in the field of socionomics. Membership is free, and ensures that you have access to exclusive resources, special reports and unique insights that will help you take your understanding of the markets and socionomics to the next level.

That’s it — a rare combination of value for zero cost, that’s fast and easy. It’s available until noon Eastern Wednesday, Dec. 12, exclusively via this link.

Blogger Talks With Adam at ino.com

I am posting this in case anyone wants to listen to a guy with a Mickey Fulp hairdoo talk to a nice gentleman named Adam Hewison, who is the founder of ino.com.  Picture me on Wednesday afternoon, working through technical glitches with Adam and his staff as I am looking out one eye at the HUI imploding and losing an important support level.  I actually traded during the process.  Uhhhggg, what a week.

There is nothing here that you have not digested 1000 times more intensely from the blog itself.  So feel free to skip it.  It’s actually a little embarrassing talking about myself.  But now that market management, this website and the newsletter are my only gigs, I have got to take promotion more seriously.

Ino, by the way, is a great resource for disciplined trading.  I think I am going to start putting up Adam’s videos again on occasion.

Well, there is a glitch with the YouTube video.  So here’s the original over at ino:

http://www.ino.com/blog/2012/11/an-interview-with-gary-tanashian-of-biiwii-com/

Morning Reading

Democracy Auction  Bill Bonner  11.13.12
EWI Video and Premium PDF Reports Free (1 Week Left)  Prechter, Hochberg, etc.  11.13.12
A Look in the Mirror  James Howard Kunstler  11.13.12
S&P 500 and All 10 Sectors Remain Over Sold  B.I.G.  11.13.12
Today’s News & Traders’ Blog  INO.com  11.13.12
Post-Election: Dip Buyer’s Dream of Valuation Slump?  Zero Hedge  11.13.12

http://biiwii.com/wordpress/news-analysis/

Post-Election Thoughts

The opening segment of NFTRH 212 did what an unbiased financial writer probably should not do and discussed politics.  Then 24 pages of straight analysis followed.

Financial writers far and wide are weighing in on the US Presidential election result and its implications.  So jumping into the ring, here are mine.

For the third cycle in a row I cast a protest vote. After voting for George Bush in 2000 (actually it was more a vote against Al Gore) I wrote in Ron Paul in 2004 and 2008.  This year I voted for Gary Johnson, although I do not consider myself a Libertarian.  I consider myself an independent who has long since been alienated from a two party system that looks a lot like dangerously competitive cartoons from opposite ends of a narrowly constructed ideological spectrum.

When you write a newsletter, you learn about being a newsletter writer; just like when you become a plumber, you learn a lot about plumbing.  I once made an unfavorable public blog post about what I considered to be a cartoon that went by the name of Sarah Palin and was summarily served with an indignant email and subscription cancelation from an otherwise satisfied NFTRH subscriber.  Lesson learned:  There is little place for political commentary in financial analysis.  Besides, political ideologues make really biased financial commentators; and in the markets bias just kills you.

Disregarding this for a moment, my view is that the 16 years under Bill Clinton and George Bush resulted in a rigged system that did indeed help the rich get richer, the poor get poorer and the middle class get positioned right over a trap door.

If you depersonalize it, you may see that Barack Obama was simply the agent of redistribution that was always fated to come to power in the wake of a stacked game that just kept right on giving to certain well-placed interests that used, abused and benefited from the fruits of the system of ‘Inflation onDemand’.  My public writing has been very consistent since 2004 with regard to this dynamic.

A system took hold that depended on outsourcing real and productive industries (and thus, jobs) in favor of the much easier path of leveraging the world’s reserve currency and the Treasury bond market to in essence print our way to perceived prosperity.  Privileged entities in the financial world got to use the money – compliments of bogus interest rate policies of the Greenspan and later, Bernanke Federal Reserves – before it was sliced, diced, marked up and sold to the public.

A personal frustration throughout the 2003 to 2007 timeframe was that I felt nearly alone (along with a relative few other crazies) in my negative view of what the inflationary regime would bring to this society.  My commentaries were filled with references to ‘McMansions’ and ‘60” Plasmas’ bought on credit.  My harshest commentary was reserved for a hubris-addled society that refused to wake up to its oncoming plight, not for the stooges they elected to political office.  You get the government you deserve.

Now we are here.  People are waking up and getting pissed, but where was their indignation when they were blissfully living on a precipice in the pre-2008 crash inflationary bull market that seemed to lift all boats?  Fat, dumb and happy is where many people were.

We are down the Rabbit Hole and the world has not ended my friends.   It is changing.   A rotten system is morphing, but is likely to use the same inflationary mechanics as its previous version.  The would-be beneficiaries have changed to be sure.  But it is the same system and frankly and speaking personally, I decided to play this system for all it is worth a long time ago.  If you can’t beat ‘em…

There is no place for belly aching and ideology in financial market management.  This newsletter is all about coldly managing what is, not what we want it to be.  So with that said, we happily move on to our usual programming with the political environment only to be mentioned when it is relevant to the analysis from here on.

NFTRH 212 Out Now

Two things of note happened this weekend.

  1. The threaded seal to our kitchen sink’s drain basket broke off causing what appeared to be plumber worthy situation (hence, the plumber reference in the screenshot below).  Since it was a Saturday afternoon, rather than try to find a plumber on an emergency (and premium) basis, I set out for Home Depot and got the parts and tools needed, got under there and fixed the thing.  Needless to say the feeling of self-satisfaction is palpable… YES!
  2. I managed to squeeze in a 27 page newsletter that I think did its job in fine fashion.

NFTRH 212, out now.

nftrh 212

Weekend Reading

US Stocks: Where We’ve Been, Where We Are & Where We’re Going  EWI  11.10.12
Extend and Pretend  Peter Schiff  11.10.12
Something Wicked This Way Comes?  Acting Man  11.10.12
China, Communism and Gold  Addison Wiggin  11.10.12
Obama Trumps Romney But Bernanke is the Ace to the Hole  FallStreet  11.10.12

http://biiwii.com/wordpress/news-analysis/

Morning Reading

Defending Free Markets: Who Will Step Up?  Addison Wiggin  11.9.12
Apple Walking in RCA’s Footsteps  Tom McClellan  11.9.12
Pivotal Events  Bob Hoye  11.9.12 pdf
The Democracy Fraud  Bill Bonner  11.9.12
Today’s News & Traders’ Blog  INO.com  11.9.12
Conquer the Crash: A Book You CAN “Judge by its Cover”  EWI  11.9.12 *
Over Sold Everywhere  B.I.G.  11.9.12

http://biiwii.com/wordpress/news-analysis/

* Conquer the Crash was the (personally) most influential book on the financial system that I have read.  Then came Financial Reckoning Day by Bonner & Wiggin, BULL! by Maggie Mahar.  All excellent and influential reads for me.  There were others like the entertaining and revolting Monkey Business: Swinging Through the Wall Street Jungle by Rolfe and Troob and of course, the most valuable to me as a trader, Reminiscences of a Stock Operator by Edwin Lefèvre.

But CtC scared the hell out of me in 2002 and to this day I am thankful that I read it.  Yes, my site is unapologetic as an affiliate of EWI because Prechter was a big influence, because their services are not spammy and because maybe, just maybe the hyper inflationists are wrong.  I was served so well by CtC in finding a safe bank, pulling funds out of vulnerable financial institutions and discovering something called a US Treasury ‘only’ money market fund – which I use to this day.  Along with precious metals, the advice in CtC (which also as I recall gives advice on how to best own gold) to get safe, eliminate debt, etc. has been a life saver and helped allow me to live relatively mentally healthy in spite of what I have known for over a decade was an oncoming unwinding of the system.

So I’ll get off the stump now, but I thought you should know that I do not just mindlessly hump Prechter’s stuff.  Biiwii.com has little advertising compared to most.  So I guess you can hear me out once in while when I go on about EWI or other affiliates I trust, like BullionVault for example.  ;-)