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First_Quarter_2011_GTAA_Commodities

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Riots around the globe.

Rampant inflation globally.

It would have been easier to bail out the people and not the oligarchs of banking criminals. None of the collateral damage would have metastasized to the rest of the world.

Does it surprise anyone that the FED has failed two other time in U.S. history?  Talk about doing the same dumb things over and over and expecting a different result.

It does not work.

All people who try to get elected to government are in love with government, it’s just that the Democrats are in love with one kind of government and the Republicans are in love with another kind of government, and government is going to continue to grow until there is revulsion for government. -  Jared Dillian

HP

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Click on the Chairman to get to the story.

Musical chair, kicking the can down the road, accounting tweaks… but the game moves along.

I’m constantly reminded, that as public citizens, that lying, cheating, fraud, murder are are things that can be punishable and dealt with harshly, yet the same rules don’t apply to the state/gov.  Murder, even in mass, is considered national defense.  Spying, wiretapping, and electronic data theft is national security. I could go on ad nauseum. Everything individual persons can’t do, the nation state can and will do with gusto and hubris.

Just when we thought the FED’s balance sheet was going to implode from its malinvestments, an accounting tweak gives them a new set of lungs.

Funny how fast the tune changes when the sh*t’s about to hit the fan.

It it just me, or off-book or “covert” liabilities is exactly what Enron and Worldcom, tried its hands at so unsuccesfully?  Leave it to the FED to perfect money laundering.

Why make things more complex? Why not just declare they have the only computer program to create digital money out of thin air, and ledger it as they please. It’s not like 99.7% if the population understands how money gets created anyway, nor care.

Now, American Idol or Dancing with the Stars, that’s something to get worked up over. Don’t get me started on Facebook.

Truly, this explain why the FED continues to fight vigorously to stay independent and unauditable.

You find peace by coming to terms with what you don’t know. – Nassim N. Taleb

HP

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I read a lot of finance related stories each and every day and each source, even about the same subject offers many inconsistencies.

The constant dithering can be very confusing, especially when you have to filter out for agenda, psy-ops, spin and the sort.

Often, I just bypass the rhetoric and pay attention to the action.

Is it me, or do you folks notice too, that very few people do what they say they will do, in fact people do the opposite of what was written or said?

The game must roll right along, in search of a greater fool, I suppose.

Bill Gross, in his monthly piece, is at it again, pitching Pimco’s “safe spread.” Bill’s an excellent writer, so click on his picture above to open the pdf.

You’ll have to read it, otherwise my post will not make any sense.

“Watch your own head Bill.” Haircuts and head cuts for bondholders ahead, but “thrust” away, unless you already know about the muni bailout.

The American Republic will endure until the day the Congress discovers that it can bribe the public with the publics money. – Alexis de Toqueville

HP

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On occasion I stumble upon new and profound things that’s so captivating it causes me to think outside of my own frame of mind.

The attached video I found is about power, money, and glory at all cost, and it’s not so pretty path to attain them.

This issue hits close to home for me since being a father of two young boys, I must educate them and teach them the many mousetraps set by society to ensnare them.

Additionally, I care for my ailing father, who utilizes pharmaceuticals, not so much for a cure but to ease his pain and suffering, so the above material hits very close to home, in multiple dimensions.

Skepticism is healthy, but don’t take my word for it, try it on yourself and make your own conclusions.

HP

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I had been reading some statistical rich material and one item of note caught my attention, regarding the cost of a college education.

While the prices that the market attached to stocks, bonds, houses, etc were going down a few years ago, tuitions at Universities all over were going up. Still going up, as I write this.

As part and parcel to our credit driven economy, the sum of close to 1 trillion dollars is pledged for the experience of college, but to pay off those obligation, when one is finished, where are the jobs?

This hopium and the dislocated reality, has been fomenting in a form of a student loan credit tsunami, and we’re soon to feel the effects, much like the housing bubble, sovereign debt, and money market liquidity crisis. Each preceding event, if nothing has been learned, is that when the curtains are pulled back, the truth is, the credit economy is insolvent, more so with each subsequent crisis. While there is no relief for the pain for the middle class, we may see another too big to fail bailout for the lenders.

Why? Because the jobs aren’t there, nor will they be created, not by .gov or multi nationals who benefit greater from offshoring jobs, or offering jobs to foreign workers on visas, opposed to newly minted US grads.

Above, is the abridged version of Sir Ken Robinson’s talk regarding the need to revolutionize the educational system, to wrap this up in a nice bow. The youths of the country are another bucket of debt for the bankers trying to enslave them into a life of debt servitude.

http://www.youtube.com/watch?v=iG9CE55wbtY&feature=related

http://www.youtube.com/watch?v=r9LelXa3U_I&feature=related

http://www.youtube.com/watch?v=mCbdS4hSa0s&feature=related

“Mothers, don’t let your children grow up to be investment bankers.” Anonymous

HP

Real Returns

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The lower triangle, if you click on it will take you to the story appearing on the NY Times.

Above the triangle, in the Scribd applet, is the unabridged version.

Lot’s of good info/data for those searching for information.

Hmm, I’m gonna take a stab and say that the baby boomers are the cause for all the misery of the market.

They came, they saw, they consumed.

The poor Gen-X and Y, may end up with similar  portfolio outcome as those who got into investing in the late 60′s and early 70′s.

Well, with the national debt at $14,025,215,218,708.52, young people/workers will shoulder the burden of paying what their elders passed on to them.

I call dibs on the .52 cents.

HP

Click on the picture to be taken to Bloomberg’s site for the video.  It would be uber cool if Bloomberg would get with the program and provided an imbed function for their videos. Perhaps it would take away from the advertising space… and we certainly don’t want to miss that now, do we?

In looking for a good summary of the current head winds we’ve faced in 2010, and subsequent entropy for 2011, the above video provides plenty of food for thought. The above interview hits on all the points that I’ve been espousing, and have shared as areas to think deeply on, so pay close attention. This affects us all.

I imagine Howard’s interview won’t get him too many invites to New Year’s eve parties, since contrarians aren’t typically the type fraternizing amongst those who’ve been guiding the “invisible hand.”

Psst, Howard, didn’t you get the memo that the “stock market” is now of national security policy, and it can only close green daily.

“The problem with socialism is that eventually you run out of other people’s money to spend.” – Margaret Thatcher

HP

http://www.bloomberg.com/news/2010-12-29/dodging-repatriation-tax-lets-u-s-companies-bring-home-cash.html

It’s a perpetual cat and mouse game. Part and parcel to the shell game right?

Absurdly over-complicated because complexity is a veil allowing these corporations to conceal whatever fraud/shenanigans they wish to exploit.

It wouldn’t surprise me a bit that a few “bailed out” corporations are utilizers of theses “loop holes.”

Corporate CASH, as I understand it, is for paying the executives/directors their millions in bonuses, and filling up their defined benefit parachutes. Forget shareholders, and hiring people. Gotta pay ‘em to retain their talent, much like AIG, LEH, BS, GM…etc. right?

Heck, a CEO of an investment bank creates so much more value than a ER doctor, hence the CEO deserves to be compensated 100-1000 times more than a doctor….NOT!

Back to the topic of “Killer B” and “Deadly D”, check out the 1969 “Killer Bee” by Dodge, in the above photo.

The name of “reform” simply covers what is latently a process of the theft of the national heritage. – Aleksandr Solzhenitsyn

HP

It’s a fair question.

Every now and again CNBC messes up and brings a guest on who clearly takes the contrarian view from their own permabull thesis.

Maria, unlike some of the other hosts though, acts more diplomatic… either a sign that CNBC will be letting her go, or a sign of good breeding/manners.

Biderman’s analysis is cogent regarding the parameters of our “new normal”, and rehashes issues that we’ve blogged about.

What’s up with CNBC’s infatuation with retail investors anyway?

Haven’t they learned that retail investors is a lagging/contrarian indicator, indicative of market weakness. Managed money and insiders create the wake, retail follows, ultimately becoming the bag holder of last resort.

“The best defense against usurpatory government is an assertive citizenry.”  - William F. Buckley

HP

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Dr. Jordan B. Peterson is absolutely brilliant.

There’s a few more videos worthy of your time on Youtube, of his other speaking engagements.

If you’ve never heard him lecture, seen his videos, read his books, nor heard about him. Here’s an introduction.

Get ready for your serotonin to be raised.

HP