Robbed Blind by A Lipstick Wearing Pig

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Davos's picture
Davos
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Robbed Blind by A Lipstick Wearing Pig

 

Robbed by A Pig Wearing Lipstick

"No one in this world, so far as I know -and I have searched the records for years, and employed agents to help me - has ever lost money by underestimating the intelligence of the great masses of the plain people." ~ H.L. Mencken



Each and everyday I'm amazed by the sad amount of truth held within this statement and today it dawned on me how a Keynesian mentality has been adopted and has twisted reality and made robbing the masses possible.  

Confusion and sexing up the ugly: 

Today, on a blog I used to hold in high esteem was an article entitled "Who's Afraid Of a Falling Dollar?" 

Me. 

That's who. 

And it should scare you also!

First we need to take the lipstick off the falling dollar pig and understand what it means. If you have $100,000.00 in your account and the dollar falls in value that $100,000.00 might buy you only $25,000.00 worth of assets. 

Would you put your money in a bank that offered you a falling balance? Open an account today with your life savings of $100,000.00 and tomorrow your balance will be $25,000.00.

The incredible part about the article is that it was written by a senior fellow at an institute that is trying to save Social Security. 

Sorry Grandma, your $500.00 Social Security check that used to buy you a month's tuna caught by Japanese fishermen had a really bad fall and now you'll have to eat saltines all month long. 

No more tuna for you.

"A lower dollar is good news for US exporters and foreign importers and bad news for foreign exporters and US importers." 

Really?

Well bad news here. We import 2/3rds of our oil. 

Sorry, when you fill up your SUV with your falling dollar you are now on the cusp of bankruptcy because that dollar had a bad fall and only buys 1/4 the amount of gas it used to. When you go to the store and purchase food that has been shipped a minimum of 1,500 miles and farmed in a petrochemically dependent fashion your going to be in the same line as Grandma buying saltines.

Bon appetit mon ami(e).

Confusion and sexing up inflation:

"The fear is that a falling dollar would be inflationary." Right here I am reassured that the author must a.) be Keysnian b.) have taught economics c.) has worked for the "Federal" (a very private bank) Reserve. 

Or, d.) all of the above.

Inflation is defined as the size of the monetary supply. The Keynesian economists have convoluted this. The bottom line is if you have a trillion in 100's and you create another trillion bucks while you have 2 trillion the reality is that the 2 trillion has a value of 1 trillion. Your 100's are worth 50.

Your dollar fell.

Hard.

He then quotes two recent "Fed" papers. Well, I have short funny video for you. Here is the Chairman of the Fed who got it 100% wrong.  

"I don't buy your premise."

"We've never had a decline of houses in a nationwide basis." 


Confusion and sexing up unemployment:

"With US unemployment currently at 10 percent, there is no chance that inflation will rise in the near term." 

Really?

First if you go to http://www.shadowstats.com and pay John Williams 89 bucks he will show you that unemployment is at 22%. He corrects the BLS's Birth Death Model, their Seasonal Adjustment and even is kind enough to count the U3 and the U6 numbers and add them up into one nice percentage.

Something the BLS seems challenged by.

And by what economic model is unemployment a factor in inflation? Zimbabwe had an unemployment rate north of 90% and here is a copy copy of a dinner receipt.http://www.investmentpostcards.com/wp-content/uploads/2008/06/zim-1.jpg  Dinner for one: 1.2 billion.

I suppose that isn't inflation even by a Keynesian perspective?

I could go on for hours. 

"Articles" like these contribute to the success of the robberies committed on the American people each and every day. The give validity to Mencken's pathetic realization. 

Worse, when good blogs publish bad articles smart readers get confused by qualifications and titles and prestigious think tank associations. Comments like: "Zimbabwe is a case of corruption so naked that it defies comparison. Even comparing it to the US is the height of silliness, since the US spent the last year with NEGATIVE YoY price changes."

Corruption so naked that it defies comparison?

Really?


According to Table 3 http://www.occ.treas.gov/ftp/release/2009-34a.pdf (from our Treasury) 200 trillion of this toxic mess reside here in US banks. Tyler over at ZeroHedge pegs ran a piece pegging it at 1,600 trillion. The subprime mess was 1.5 trillion. It blew up the economy. We now have wave two of the Alt-A and Option Arms rolling to shorehttp://www.cbsnews.com/video/watch/?id=4668112n Another 1.5 trillion. A lot of this consists of NINJA loans. Those are no income, no jobs, no documentation. I suppose putting down you make 100k when you don't have a job doesn't defy corruption?

Or maybe we want to discuss the stellar way these loans are given AAA ratings?  http://www.cnbc.com/id/15840232?video=1145392808&play=1

Naked Short Selling is another great topic while we are on the Bernie Madoff Zimbabwe discussion. http://video.yahoo.com/watch/5022020/13357762

Or we could discuss how we hang those out to dry http://www.pbs.org/wgbh/pages/frontline/warning/view/for uttering regulation and oversight.

Defies comparison?

Yeah.

The bottom line is that we have become numb to what "experts" and reporters tell us. 

A recent piece in Bloomberg discussing raising the debt limit is proof. "Tactics such as tapping federal retirement funds would free up roughly $150 billion - about the same amount as the interest payments that come due on Dec. 31.

As one fellow blogger that I have the utmost respect for put it: "Did you catch the bit in boldface about 'tapping' federal retirement funds for short-term cash flow? Sounds so casual, so innocent, don't it? Think about it, though. Unlike private pension funds, whose trustees have a fiduciary duty under the ERISA Act to safeguard the interest of beneficiaries, fedgov pension funds are mere slush funds for politicians to grab at will. Under the sordid conflicts of interest which are tolerated within our imperial government, the managers of Social Security and federal retirement funds subserviently hand over their reserves to our insolvent government in ad hoc, 'we'll pay you back when we can afford to' transactions. In a private-sector pension fund, such malfeasance would land them straight in jail.

But then, government is all about granting itself the right to commit acts which are illegal for its subjects -- such as the Federal Reserve's 96-year-long currency counterfeiting operation. When the sovereign itself is dishonest, openly bilking its own pensioners, it is idle to talk of 'reform.' Organized crime is not amenable to reform. Either you end it, or you trust your security to the nebulous notion of 'honour among thieves.' Good luck with that!"
 


 

docmims's picture
docmims
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Re: Robbed Blind by A Lipstick Wearing Pig

Wait a minute,  I thought we should all be worried about global warming.   I thought paying General Electric and Goldman Sachs their CapNoTrade fees was going to save us all.  Now I get this curveball.  I am so confused.

Doc -- just one of the great masses

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Re: Robbed Blind by A Lipstick Wearing Pig

Davos, that is, in my humble opinion, your best of many fine posts. My hat is off to you, sir.

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Davos
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Re: Robbed Blind by A Lipstick Wearing Pig

Thanks BSV it was MachineHead's quote that made it good, nothing I did :)

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Re: Robbed Blind by A Lipstick Wearing Pig

Outstanding post and it hits home!  Sometimes that feeling of helplessness creeps back in and I want to curl up and suck my thumb.  With the corruption of money and the herding and culling of the masses taking place before our eyes I wonder "when will an awakening take place?"  I hope it's real soon.

Thanks for the post Davos!

rowmat's picture
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Re: Robbed Blind by A Lipstick Wearing Pig

"Gimme your money!... This is a lip-stick up!"

docmims's picture
docmims
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Re: Robbed Blind by A Lipstick Wearing Pig

Mmmm.  I need some barbeque after that last picture.Wink

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Re: Robbed Blind by A Lipstick Wearing Pig

Davos,

That you tube clip of Ben is priceless!   I especially like looking at the GOLD ticker while he is talking.

Our leaders are either blind, clueless, or liars.  None of these options makes me feel optimistic about our future.

Thanks!

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Re: Robbed Blind by A Lipstick Wearing Pig

+1 !!

PS:  Davos, where was the "Who's afraid of a falling dollar" piece written?

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Re: Robbed Blind by A Lipstick Wearing Pig
Farmer Brown wrote:

+1 !!

PS:  Davos, where was the "Who's afraid of a falling dollar" piece written?

Hello Farmer Brown: Here. Usually the site is top notch. Take care

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Re: Robbed Blind by A Lipstick Wearing Pig

Davos,

A superb piece, (you're probably aware?) Tyler has it as a guest post on Zerohedge, where I read it earlier. I agree with everything in it!

DavidC

Davos's picture
Davos
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Re: Robbed Blind by A Lipstick Wearing Pig
DavidC wrote:

Davos,

A superb piece, (you're probably aware?) Tyler has it as a guest post on Zerohedge, where I read it earlier. I agree with everything in it!

DavidC

Hello DavidC: Thanks, I came here before going to my inbox and reading Tyler's mail. Take care

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Re: Robbed Blind by A Lipstick Wearing Pig

Great job Davos. Once again you have articulated the frustrations of the many, and unified us in battle. Thank you, thank you....I can breathe a little easier after reading this....Jeff

Davos's picture
Davos
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Re: Robbed Blind by A Lipstick Wearing Pig
JAG wrote:

Great job Davos. Once again you have articulated the frustrations of the many, and unified us in battle. Thank you, thank you....I can breathe a little easier after reading this....Jeff

Thanks JAG: Seeing the Fed post on a blog that I had a lot of respect for is like watching a mugging and just sitting on my hands. 

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Re: Robbed Blind by A Lipstick Wearing Pig
Davos wrote:
DavidC wrote:

Davos,

A superb piece, (you're probably aware?) Tyler has it as a guest post on Zerohedge, where I read it earlier. I agree with everything in it!

DavidC

Hello DavidC: Thanks, I came here before going to my inbox and reading Tyler's mail. Take care

 

Whoa.  Guest post on ZH?  NICE.  Congrats, Davos!

Viva -- Sager

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joemanc
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Add Krugman to the insane asylum

Davos - You may want to add that nobel winner Krugman to your list of inmates in the asylum. He is unbelievable:

Quote:

Proposed extensions of Godwin’s Law

Godwin’s Law — which says that in any sufficiently long online discussion, someone will compare his opponent to Hitler — is often interpreted to mean that if you do, in fact, start making Nazi comparisons, you’ve lost the argument and can no longer be taken seriously. I’m all for that. (Does this mean that we should no longer take any significant figure in the Republican Party seriously? Yes, it does.)

But there are a lot of moral equivalents of Nazi comparisons, and they should receive the same treatment. I propose that we officially declare that anyone who

1. Responds to calls for more government action in some area — employment creation, health care, whatever — by invoking the example of the Soviet Union

or

2. Responds to suggestions that moderate inflation and/or dollar depreciation is acceptable by invoking the example of Zimbabwe

or

3. Responds to any demonstration that projected debt levels, while high, are within the range advanced countries have successfully dealt with in the past by invoking the example of Argentina

be summarily consigned to the outer darkness.

Make it so.

This guy is a complete and utter moron. If the White House actually listens to him, then we are all sunk.

http://krugman.blogs.nytimes.com/2009/11/16/proposed-extensions-of-godwins-law/

Davos's picture
Davos
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Re: Robbed Blind by A Lipstick Wearing Pig
SagerXX wrote:
Davos wrote:
DavidC wrote:

Davos,

A superb piece, (you're probably aware?) Tyler has it as a guest post on Zerohedge, where I read it earlier. I agree with everything in it!

DavidC

Hello DavidC: Thanks, I came here before going to my inbox and reading Tyler's mail. Take care

 

Whoa.  Guest post on ZH?  NICE.  Congrats, Davos!

Viva -- Sager

Thanks for the kind words Sager, I didn't expect ZH to run it, it was a nice plus as was Tyler's comment via email. FSN put it up as well. Take care

Davos's picture
Davos
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Re: Add Krugman to the insane asylum
joemanc wrote:

Davos - You may want to add that nobel winner Krugman to your list of inmates in the asylum. He is unbelievable:

Quote:

Proposed extensions of Godwin’s Law

Godwin’s Law — which says that in any sufficiently long online discussion, someone will compare his opponent to Hitler — is often interpreted to mean that if you do, in fact, start making Nazi comparisons, you’ve lost the argument and can no longer be taken seriously. I’m all for that. (Does this mean that we should no longer take any significant figure in the Republican Party seriously? Yes, it does.)

But there are a lot of moral equivalents of Nazi comparisons, and they should receive the same treatment. I propose that we officially declare that anyone who

1. Responds to calls for more government action in some area — employment creation, health care, whatever — by invoking the example of the Soviet Union

or

2. Responds to suggestions that moderate inflation and/or dollar depreciation is acceptable by invoking the example of Zimbabwe

or

3. Responds to any demonstration that projected debt levels, while high, are within the range advanced countries have successfully dealt with in the past by invoking the example of Argentina

be summarily consigned to the outer darkness.

Make it so.

This guy is a complete and utter moron. If the White House actually listens to him, then we are all sunk.

http://krugman.blogs.nytimes.com/2009/11/16/proposed-extensions-of-godwins-law/

I'm not going to argue the utter moron part! We should chip in and buy him a helmet.

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nkdroth
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Re: Robbed Blind by A Lipstick Wearing Pig

Outstanding post and it hits home!  Sometimes that feeling of helplessness creeps back in and I want to curl up and suck my thumb.  With the corruption of money and the herding and culling of the masses taking place before our eyes I wonder "when will an awakening take place?"  I hope it's real soon.

I think people are starting to wake up slowly...Maybe they feel helpless too nk:)

 

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