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Thumbs Down For the Fed

Wednesday, August 11, 2010, 4:09 PM

There were a number of quite interesting developments in the market today (Wednesday, August 11th), and I want to focus on those instead of my usual macro view.

The stock market sold off heavily today, presumably in response to the Fed’s recent statement, which admitted two things:  (1) US economic growth is weaker than previously thought (dollar negative), and (2) the Fed is going to renew its efforts at monetizing US government paper (dollar negative).

Anybody following today's nonsensical markets knows what happened next:  The dollar rallied.  A lot.

Actually, the dollar initially sold off yesterday afternoon right after Fed the announcement, but quickly reversed and went up from there.  Adding to the confusion, falling Treasury yields often provide a headwind to any potential dollar gains.  Instead, we saw the two-year Treasury hit a record low of 0.48%, even as the dollar jumped like a penny stock.

Throughout all of this, the ten-year note has consistently dropped in yield since the beginning of April.  Based on this chart, it looks like the ten-year yield is in a well-defined channel and is not at all confused about what's going on: deflationary weakness dead ahead.

Another telling bit of strangeness in the markets today is that the price of gold did not fall nearly as far as I expected. For the past two months it has sported a very strong negative correlation with the USD index meaning that the +1.35 climb in the USD should have brought down the price of gold by $20 or $30 or more. Instead December gold jumped back up over the $1200 mark right before the open of the US gold market, which is more or less where it finished the day, losing relatively little all things considered.

The Fed Statement

For an economy that is supposedly in recovery, investment professionals sure attached a lot of importance to seeing the Fed open up the Quantitative Easing (thin-air) checkbook one more time:

The day before the meeting:

“Markets have been increasingly pricing in additional quantitative easing measures as soon as today,” said Jim Reid, strategist at Deutsche Bank. “The worst near-term development for markets is thus likely to be a meeting that suggests that no additional measures are currently needed. To sustain current levels, the Fed may need to at least signal that they are at least moving towards extending QE at a later meeting.”

(Source - FT.com) 

The day after the meeting:

“We’re in a worldwide soft patch and investors wonder why the Fed didn’t do more,” said James Swanson, chief investment strategist at Boston-based MFS Investment Management, which oversees about $197 billion.

(Source - BusinessWeek) 

The traders may have a point here. Given the obvious economic weakness, as exemplified by the expected downward revision of the 2Q GDP by nearly half to 1.3%, and given the fact that monetary policy (quantitative easing) has a rather well-known and leisurely time lag built into it, the Fed might have missed a chance to be proactive here.  Now they either have to wait another six weeks for the next meeting, when things might be a tad sketchier, or they have to risk appearing panicky with a mid-meeting announcement of some sort.

Either way, I am both concerned and amused that we've arrived at a point in history where the "value" of entire multi-trillion dollar markets is rather dramatically dictated by people's perceptions of how much thin-air money is going to be sent screaming across the fiber optic cables by Fed staffers’ operating keyboards.

Where We Go From Here

While the speculating world waits for the Fed to dump more liquidity into the markets, the rest of us are free to note that the real economy is not responding.  Unfortunately, for legal and political reasons, the Fed is only willing to try 'unconventional' measures that follow the convention of shoveling new money and liquidity into the banking system, specifically to the largest banks in the system.

The problem with this is that most job creation and recovery starts with small- and medium-sized businesses, which are still not in a borrowing mood.

These businesses are both concerned about the future (as they should be) and reeling under a perverse mixture of government disincentives best measured in the thousands and thousands of pages of new rules, passed by Congress this year, with which they must comply.  Additionally, and as if business during a downturn wasn't hard enough, the combined efforts of state and local governments to raise new fees to cover budget gaps have largely fallen on businesses.  The combined costs associated with the new health care bill, increased Medicare and capital gains taxes, hikes in unemployment coverage rates, and higher state and city taxes have hiked the effective tax rate from 40% to 50%, which amounts to a 25% gain for small and medium business.

In Manhattan, Robert Schwartz, the CEO of a three-unit shoe store chain, said he has never seen the tax burden this bad.

"This has been as hard as we've been hit in my 36 years of running this company," said Schwartz, owner of Eneslow Shoes, which employs 50 people, including part-timers, on annual revenues of under $10 million. "It's a tough economy and our costs continue to rise."

Schwartz, who says he's putting his salary back into the business in response to the environment, adds that overhead from taxes and other outside charges have become unbearable. "I certainly don't think the new health care law will save me any money," he said. "Now New York City wants to develop this paid sick leave legislation that would give employees up to nine paid sick days. It's ludicrous. It takes the oxygen out of the blood."

(Source

The only people who are completely confused by the weak hiring picture have never owned a business, and many of them apparently work in DC.

That's one end of the economic spectrum.  On the other end, we have DC so entrenched in a deficit-spending mentality that I read three articles this past week describing looming budget 'cuts' at the Pentagon, when what was actually proposed was a 1% increase.  You know things have gone off the rails when an increase is described as a cut.  The July fiscal deficit for DC, -$165 billion, was hailed for being "$15 billion smaller than last year," although $12 billion of that came from a reduction in spending, leaving an anemic $3 billion increase in revenues to point the way forward.

These data points indicate that our economy is going nowhere at present and will most likely be in full-blown retreat by the 4Q if not the 3Q.  Congress will not be in a position to extend any new stimulus before the elections, due to political wrangling (heck, they could barely renew the extended unemployment coverage), and the Fed seems stuck in a wait-and-see mode.  Both stimulus and QE take time to work their magic.  The prior efforts have worn out and are no longer contributing to our economic buoyancy.

My advice still mirrors that of Will Rogers of old:  Don't worry about return on capital; worry about return of capital.  While I do not have a magic ball, I view the risks in the stock market as completely asymmetrical.  Lots of potential downside compared to relatively little upside.   If you can't afford to lose it, don't have your money in this market.  It's eating dedicated professionals alive while going nowhere.

Unfortunately, my prognosis calls for more economic weakness, further house price declines, and future panicky efforts at stimulus and easing, which will elevate the risk of a fiscal and then a currency crisis.  Forewarned is forearmed.  Be safe and be well.

Your faithful information scout,

Chris Martenson

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34 Comments

Ken C's picture
Ken C
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Re: Thumbs Down For the Fed

Chris,

"My advice still mirrors that of Roy Rogers of old: don't worry about return on capital, worry about return of capital."

 

I thought that it was Will Rogers that said that.

 

Ken

 

cmartenson's picture
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Re: Thumbs Down For the Fed
Ken C wrote:

Chris,

"My advice still mirrors that of Roy Rogers of old: don't worry about return on capital, worry about return of capital."

I thought that it was Will Rogers that said that

Ken

Ooops!  You are right.  That one slipped through.  Thanks for catch  - embarrassing!  Fixed.

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Re: Thumbs Down For the Fed

You know at times like this "Roy" brought a welcome smile to my face.

Thanks

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Jager06
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Re: Thumbs Down For the Fed

I think there will be a lot of room for small businesses moving forward.

Small businesses that provide fresh milk, a local cobbler, a small textile producer, the chicken and egg farmer, the orchard owner and the vegetable grower. Maybe localized professional private policing and prison services. Any business that provides value, knows the names of their customers, provides a staple that is not dependant on petroleum, and can be relied upon even in the absence of other infrastructure will grow.

I could use the credit in my business for expansions, I simply choose not to. And I will not expand my company to beyond 48 employees, since 50 seems to be the magic number for government intrusion. In spite of it all we are experiencing 30% growth in same store sales and net increases in the 900% neighborhood.

Efficient, valuable, necessary, life sustaining, petroleum and debt free I think are the business basics to watch going forward.

Ken C's picture
Ken C
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Re: Thumbs Down For the Fed
cnbbaldwin wrote:

You know at times like this "Roy" brought a welcome smile to my face.

Thanks

 

Indeed, I can even imagine him singing "Happy Trails". Except now he would be  saying goodbye to our stock market.

 

 

 

earthwise's picture
earthwise
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Re: Thumbs Down For the Fed
Jager06 wrote:

I think there will be a lot of room for small businesses moving forward.

Small businesses that provide fresh milk, a local cobbler, a small textile producer, the chicken and egg farmer, the orchard owner and the vegetable grower. Maybe localized professional private policing and prison services. Any business that provides value, knows the names of their customers, provides a staple that is not dependant on petroleum, and can be relied upon even in the absence of other infrastructure will grow.

I could use the credit in my business for expansions, I simply choose not to. And I will not expand my company to beyond 48 employees, since 50 seems to be the magic number for government intrusion. In spite of it all we are experiencing 30% growth in same store sales and net increases in the 900% neighborhood.

Efficient, valuable, necessary, life sustaining, petroleum and debt free I think are the business basics to watch going forward.

Very astute observation, methinks. When the fluff is stripped out of the economy, those producing value at the very basic level will endure.

earthwise's picture
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Re: Thumbs Down For the Fed
Ken C wrote:

Chris,

"My advice still mirrors that of Roy Rogers of old: don't worry about return on capital, worry about return of capital."

 

I thought that it was Will Rogers that said that.

 

Ken

 

Hmmmmm..........funny?  I thought it was Ginger Rogers.  Oh well.

JAG's picture
JAG
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Gold in Deflation

Dr. M,

Thanks for the free report.

In 2008, gold took a significant hit during the market crash, though it did recover quickly in response to unprecedented QE. If another market crash were to occur this fall, do you think gold would behave the same?

Besides relative price action, what kind of early signs would you expect to see if gold was to do well in a deflationary market (and economic) environment?

Thanks for your time.....Jeff

 

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Re: Thumbs Down For the Fed

Pioneer's picture
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Re: Thumbs Down For the Fed

this may be a little irrelevant, but actually smiles are always helpful and clear our view of the world's shennanigans:   Wil Rogers doing rope tricks, from You-Tube - watch it through, 9 minutes  - amazing!

Wil didn't need a lot of money or oil or anything to smile and make others smile.

enjoy!

earthwise's picture
earthwise
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Re: Thumbs Down For the Fed

 

Okay, I know this is sidetracking this thread but I just couldn't resist.

More from Will Rogers:

This country has come to feel the same when congress is in session as when a baby gets hold of a hammer.

.

Mr. Fri's picture
Mr. Fri
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Re: Thumbs Down For the Fed
cmartenson wrote:

I view the risks in the stock market as completely asymmetrical. Lots of potential downside compared to relatively little upside. If you can't afford to lose it, don't have your money in this market. It's eating dedicated professionals alive while going nowhere.

This is what really bothers me.  For those of us who played by the rules and put our "retirement" savings into stock portfolios, what do we do now?  Sure, we can have 50% in gold and 50% in cash but there's got to be a better strategy out there.  If the professionals are confused, what chance does the average Joe have? 

Mr. Fri's picture
Mr. Fri
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Re: Thumbs Down For the Fed
cnbbaldwin wrote:

You know at times like this "Roy" brought a welcome smile to my face.

Actually, with the way things are, I was thinking more of Rob Roy. Laughing

Mr. Fri's picture
Mr. Fri
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Re: Thumbs Down For the Fed

Oops, double post.

ao's picture
ao
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Re: Thumbs Down For the Fed
Jager06 wrote:

I think there will be a lot of room for small businesses moving forward.

Small businesses that provide fresh milk, a local cobbler, a small textile producer, the chicken and egg farmer, the orchard owner and the vegetable grower. Maybe localized professional private policing and prison services. Any business that provides value, knows the names of their customers, provides a staple that is not dependant on petroleum, and can be relied upon even in the absence of other infrastructure will grow.

I could use the credit in my business for expansions, I simply choose not to. And I will not expand my company to beyond 48 employees, since 50 seems to be the magic number for government intrusion. In spite of it all we are experiencing 30% growth in same store sales and net increases in the 900% neighborhood.

Efficient, valuable, necessary, life sustaining, petroleum and debt free I think are the business basics to watch going forward.

Jager,

Congratulations on your success.  That's quite an accomplishment in this economic climate.  Just curious ... what small business are you in?  The majority of small business owners that I know are either struggling to stay even, slowly losing ground, or in danger of going belly up.  The food based businesses you mention above are likely targets for the food safety Nazis (ultimately sponsored by your friendly local Monsanto, ADM, etc.) unless they are flying under the radar.  And if they're flying under the radar, they're most likely out of compliance with some regulation and given what I see going down, they will be ferreted out eventually by the data miners.  In almost every area of business, the government is in the process of contracting out "bounty hunter" duties to private businesses that are sniffing under every rock for additional sources of revenue.  Fines can be staggering for the slightest infractions, real or perceived, and the legal fees involved in contesting them can be devasting as well.  Our government is in the process of cannabalizing its own citizens (particularly the productive ones without political power) and it isn't pretty.   

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Re: Thumbs Down For the Fed

AO

I've got to second that sentiment.  I'm a physician with a large group and we're seeing increased probing by such government funded "bounty hunters" who search through your billing records and patient records in the hopes of finding any discrepancy.  The laws and regulations regarding Medicare and Medicaid billing are so tortuous that errors are inevitable.  Fraud and honest mistakes are regarded alike and the cost to fight such accusations is prohibitive.  The general attitude among the docs I work with is that the hassle factor is just not worth it.  We sincerely like taking care of people, but when the government is looking over your shoulder while reducing your reimbursement and increasingly involved in your daily decision making--well, it kind of sucks the joy out of doing what we do.  I think we're going to see a decrease in the availability of quality physicians over the next several years. 

I also own a small farm and I can attest to the intrusion there as well.  The USDA has a program called NAIS which would have required record keeping of every animal on your farm.  The expense and hassle would put many small producers out of business.  Fortunately the program is being "revised" because of fierce opposition, but I'm sure it won't go away easily. 

I think as we see the unfolding of the "three E's"  increased government intrusion in our daily lives seems likely.  Interesting times indeed. 

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Re: Thumbs Down For the Fed
solarphil wrote:

this may be a little irrelevant, but actually smiles are always helpful and clear our view of the world's shennanigans:   Wil Rogers doing rope tricks, from You-Tube - watch it through, 9 minutes  - amazing!

Wil didn't need a lot of money or oil or anything to smile and make others smile.

enjoy!

solarphil

Thanks for the link.  His rope tricks were incredible.  Picked this one up while I was there.  An actor recreating Will's words.  Nothing much has changed in 80 years. 

 

V's picture
V
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Re: Thumbs Down For the Fed
cmartenson wrote:
Ken C wrote:

Chris,

"My advice still mirrors that of Roy Rogers of old: don't worry about return on capital, worry about return of capital."

I thought that it was Will Rogers that said that

Ken

Ooops!  You are right.  That one slipped through.  Thanks for catch  - embarrassing!  Fixed.

Actually I believe it was Mark Twain

V

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Re: Thumbs Down For the Fed

Welcome exsanguination. I agree with you about the latest changes to medicine 100%. It is becoming more onerous each day to provide care to human beings, what with the "bounty hunters" you describe and the ever increasing paperwork burden coupled with reduced reimbursement rates. Unfortunately,  due to the economy a fair number of my patients are converting to state Medicaid plans from private insurance. Our group foresees a time soon approaching where there won't be a choice regarding whether we accept Medicaid or not because that is where most of the patients will be. And this coming in a city that is being hailed as recession proof by some observers. But cheer up:  I heard on the radio news today that the expected 200,000 primary care provider shortage predicted for 2025 will be managed by increasing the number of Nurse extenders. It is expected to be very cost effective since their training is much shortened compared with allopathic physicians. Hmmm.....                                                                                                       

V's picture
V
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Re: Thumbs Down For the Fed
Mr. Fri wrote:
cmartenson wrote:

I view the risks in the stock market as completely asymmetrical. Lots of potential downside compared to relatively little upside. If you can't afford to lose it, don't have your money in this market. It's eating dedicated professionals alive while going nowhere.

This is what really bothers me.  For those of us who played by the rules and put our "retirement" savings into stock portfolios, what do we do now?  Sure, we can have 50% in gold and 50% in cash but there's got to be a better strategy out there.  If the professionals are confused, what chance does the average Joe have? 

AH slight miscalculation with profound consequences Mr. Fri. There are no rules. The financial markets stocks bonds etc. is a casino with the real name of TEGWAR. The exciting game without any rules. The average Joe has only one role and that is to be separated from his money by any means necessary. This is not a game of chance.

V

ao's picture
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Probing attacks

Exsanguination,

I hear you.  Unfortunately, the productive American middle class is doing exactly as your name says.  This situation is literally a war.  TPTB launch an offensive, armed with weapons such as legislation, regulation, and litigation.  The citizens either recoil from the shock of it and are driven back or gather their forces, offer resistance, and stop the attack ... temporarily.  Probing attacks occur repeatedly all along our lines.  Where little or no resistance is offered, our lines buckle and the intrusion into our territory grows.  Where resistance is offered, the attack pulls backs and then moves off to a new area to outflank the resistance, only to return later to probe the line again in this area and resume the attack when weakness is sensed.  The pattern repeats itself again and again.  We've been fighting a defensive war which, unfortunately, is ultimately unwinnable.  Only taking the offensive will yield victory.

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Jager06
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Re: Thumbs Down For the Fed

ao,

I am in the retail shipping business. If a customer comes through our doors more than twice it is a trend, and we do our best to greet them personally, using their name.

We provide access to the big three shippers, office supplies and commercial bulk mail rates and services for anyone who wants to mail more than 250 pieces at a time. And we customize, wedding invitations to lost dog fliers, we will help with it or make it for you. Our computers handle the package routing by providing the customer with 28 price points and delivery options each time they put a package on the scale. We have lowered prices twice since opening the doors 18 months ago.

I am trying to position us to provide all LOCAL shipping and mail services as a courier service as well, but that is still in the works. We see the nails in the coffin of the postal service. Now its a matter fo trying to figure out how to help people without the federal system if there is a decrease in postal services.

 

Jager

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Re: Thumbs Down For the Fed

Speaking of poorly timed business taxes...the UK seems to have a special ability:

Companies that fail to register their energy use by next month will be hit with fines that could reach £45,000 under the little-known rules.

Those that do participate in the Carbon Reduction Commitment (CRC) initiative by declaring their energy use will face charges for every ton of greenhouse gas they produce.

These payments are expected to average £38,000 a year for medium-sized firms, and could reach £100,000 for larger organisations.

Surveys have shown that thousands of businesses are unaware they are supposed to be taking part, or even that the scheme exists at all.

Business leaders criticised the CRC — which was created by Labour but implemented by the Coalition — as “complex and bureaucratic”. One accused ministers of swinging “a big hammer” at companies and questioned whether it would have any environmental benefits.

Of about 4,000 organisations estimated to qualify for the scheme, only 1,229 have registered to date, leaving thousands at risk of fines.

Missing the Sept 30 deadline will mean an immediate £5,000 fine, and £500 for each day after that, up to a maximum of £45,000.

(Source)

I would be very interested to see exactly how such charges will reduce greenhouse gases.  The cynic in me suspects that the fees will mainly expand a government bureaucracy while shrinking private hiring more or less by equal amounts.  

I'm sure the best of intentions were in play, and all that, but the effect here is most likely just another transfer of wealth from the private to the public sphere at an exceptionally poor time in the economic cycle.

Still, I don't know much about the program so if anyone form the UK can describe how these carbon fees will actually go towards reducing carbon, I would very much appreciate an education on the matter.

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Re: Thumbs Down For the Fed
Ken C wrote:

Chris,

"My advice still mirrors that of Roy Rogers of old: don't worry about return on capital, worry about return of capital."

 

I thought that it was Will Rogers that said that.

 

Ken

 

 

Actually it was Mark Twain (Samuel Clemons). 

I am more concerned about the return of my money than the return on my money

Ken C's picture
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Re: Thumbs Down For the Fed
Morpheus wrote:
Ken C wrote:

Chris,

"My advice still mirrors that of Roy Rogers of old: don't worry about return on capital, worry about return of capital."

 

I thought that it was Will Rogers that said that.

 

Ken

 

 

Actually it was Mark Twain (Samuel Clemons). 

I am more concerned about the return of my money than the return on my money

 

I checked into this and discovered the following from a page about Will Rogers quotes:

http://www.willrogerstoday.com/will_rogers_quotes/quotes.cfm?qID=3

About half way down the page of quotes this appears:

(This is NOT an authentic Will Rogers quote, although it is often attributed to him: I'm not as concerned about the return on my money as I am the return of my money.)

I have seen this quote attributed to Will on many occasions.

 

Will Rogers was a really interesting guy but as it turns out in this case  he must have been copying something  from Samuel Clemons.

 

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Re: Thumbs Down For the Fed
cmartenson wrote:

Still, I don't know much about the program so if anyone form the UK can describe how these carbon fees will actually go towards reducing carbon, I would very much appreciate an education on the matter.

I'm not from UK but this is what I found on good old Wikipedia:

Quote:

Organisations qualifying for CRC would have all their energy use covered by the scheme, including emissions from direct energy use as well as electricity purchased.[5] Such organisations - including hotel chains, supermarkets, banks, central government and large local authorites- mostly fall below the threshold for the European Union Emissions Trading Scheme, but account for around 10% of the UK carbon emissions.

Although mandatory, the Carbon Reduction Commitment will involve self-certification of emissions, backed up by spot audits, as opposed to third-party verification. Emission allowances are to be auctioned rather than grandfathered (as was the case in the initial stages of the EU Emissions Trading Scheme). The policy sets out plans for the revenue generated by the auctions to be recycled back to participating organizations by the means of an annual payment...

Participants in the Carbon Reduction Commitment will also be able to purchase (but not sell) emission allowances from the EU Emissions Trading Scheme at a price that is the higher of the EU ETS price or the minimum CRC floor price.

http://en.wikipedia.org/wiki/Carbon_Reduction_Commitment

Sounds like a basic cap and share plan that seeks to disincentivize businesses from consuming too much energy and allows them to offset consumption by purchasing allowances. On the one hand, it doesn't appear that much of the money raised will be lost to government bureacracy and I'm glad something is being done on the important issue of carbon emissions. On the other, this could certainly put a large economic strain on private businesses that are already struggling, but then again maybe businesses that can't afford to control their energy use are the ones that shouldn't survive.

 

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Re: Thumbs Down For the Fed
Jager06 wrote:

I think there will be a lot of room for small businesses moving forward.

Small businesses that provide fresh milk, a local cobbler, a small textile producer, the chicken and egg farmer, the orchard owner and the vegetable grower. Maybe localized professional private policing and prison services. Any business that provides value, knows the names of their customers, provides a staple that is not dependant on petroleum, and can be relied upon even in the absence of other infrastructure will grow.

 

Sorry the new gov't regulations don't allow for this.  Your fresh milk and eggs must pass gov't inspection and you must comply with all labor laws.  Please make sure you provide the mandated health and workers comp insurances for all your employees as well as pay employment taxes and file the necessary paperwork for your employees.  Also make sure you provide humane and sanitary conditions for your livestock and accept unanounce inspections of your operation by the benevolent government workers at the FDA.

Thank you

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kineneb
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Think out of the box

Best to join the underground economy, and use cash/barter for exchange.  When the Big Guys do not play by the rules, why should we, if it is to our detriment?  Seems to me that opting out of the system may be the only way to survive.  Timothy Leary may have been right all along: "Turn on, tune in, drop out."

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Montana Native
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Re: Think out of the box

"Turn on, tune in, drop out."

Heres a funny little song by Cracker that came out a year or two ago on that subject.

V's picture
V
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Re: Probing attacks
ao wrote:

Exsanguination,

I hear you.  Unfortunately, the productive American middle class is doing exactly as your name says.  This situation is literally a war.  TPTB launch an offensive, armed with weapons such as legislation, regulation, and litigation.  The citizens either recoil from the shock of it and are driven back or gather their forces, offer resistance, and stop the attack ... temporarily.  Probing attacks occur repeatedly all along our lines.  Where little or no resistance is offered, our lines buckle and the intrusion into our territory grows.  Where resistance is offered, the attack pulls backs and then moves off to a new area to outflank the resistance, only to return later to probe the line again in this area and resume the attack when weakness is sensed.  The pattern repeats itself again and again.  We've been fighting a defensive war which, unfortunately, is ultimately unwinnable.  Only taking the offensive will yield victory.

Brilliant ao I wish I had your writing skills

V

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Re: Thumbs Down For the Fed

"Also make sure you provide humane and sanitary conditions for your livestock and accept unanounce inspections of your operation by the benevolent government workers at the FDA."

docmims,

I know you are kidding.  :) FDA is agent of the corporations, not the animals or the consumers, so they are not concerned with sanitary and humane conditions. They just want to eliminate perceived threat to the corporations IMO.   Nonetheless, anitary conditions sound like a good idea to me if I am going to let my family by Jager's eggs.

take care

Denise

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Jager06
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Re: Thumbs Down For the Fed

Ha!

I've got you all fooled. I won't sell the egs. I will bundle them in lots of 6 and trade them as a future contract for 12. Then I will scramble 4 of the remaining 6 and serve them in the diner, charging for 6 of course, in return for labor on the nighbors farm, which I will be paid in vegetables for. The remaining two eggs will auctioned as souvenirs to unsuspecting tourists, with good luck promises of producing 3 chickens per egg. Of course the ability to retire will be destroyed when they realize all those eggs are much less than what they were promised. So I will purchase misery index eggs, rotten hollowed eggshells rejected by non farm workers, which can be used for fertilizer and trade them back to the neighbor for vegetables until I own the soil of his garden. If I own the soil then I own the property and the government will be so amazed by my trickery I will be listed Too Crazy Too Fail, and given subsidies while largely being left alone to corner the local farmers market.

Is it Friday yet?

Jager

 

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V
Status: Platinum Member (Offline)
Joined: Dec 14 2009
Posts: 849
Re: Thumbs Down For the Fed
Jager06 wrote:

Ha!

I've got you all fooled. I won't sell the egs. I will bundle them in lots of 6 and trade them as a future contract for 12. Then I will scramble 4 of the remaining 6 and serve them in the diner, charging for 6 of course, in return for labor on the nighbors farm, which I will be paid in vegetables for. The remaining two eggs will auctioned as souvenirs to unsuspecting tourists, with good luck promises of producing 3 chickens per egg. Of course the ability to retire will be destroyed when they realize all those eggs are much less than what they were promised. So I will purchase misery index eggs, rotten hollowed eggshells rejected by non farm workers, which can be used for fertilizer and trade them back to the neighbor for vegetables until I own the soil of his garden. If I own the soil then I own the property and the government will be so amazed by my trickery I will be listed Too Crazy Too Fail, and given subsidies while largely being left alone to corner the local farmers market.

Is it Friday yet?

Jager

 

Are you looking for investors. If so sign me up. Best ideas since Ponzi.

V

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