Aug

23

Honesty about Costs

Filed Under Intellectual Honesty | 1 Comment

One of the biggest problems facing our country today is the lack of awareness/consciousness about how much things truly cost.

The obfuscation via government intervention in all its forms (stupendous deficits, subsidies to failed corporations/business models, pork barrel handouts) is one of the factors seducing people into a false sense of complacency that our economy is just fine.  Borrowing money to keep your bills paid might seem ok, until you realize the borrowed money must be paid back with interest.

In less government-dependent/credit-fueled times, a major decision like raising a child was saved up for and anticipated.  Healthcare was funded out of pocket or with straightforward insurance.  Retirement required savings.  Nowadays, our government promises us all these goodies with borrowed money, which we will eventually pay for with interest (assuming the dollar doesn’t collapse first).

In less government-reliant times, there were fewer entitlements, senses of entitlement or bogus lawsuits which now haunt would be doctors and entrepreneurs. Why bother using your MIT degree to start a new business when you can day trade and make the “market more efficient”… hah!

Even the stock market used to be a reasonable measure of future economic value.  Now it is a game profitable game to be played/manipulated with enormous  leverage.  The S&P PE ratio is over 100 according to S&P and the graphical evidence is stunning.  Anyone with their 401(k) invested in stocks is asking to be smoked.  Meanwhile, insiders are bailing out.

I have no desire to go back to days of extreme hardship or give up technology, but it seems the more government obfuscation we allow to seep into our lives, bit by bit, the further we get from the truth and honest consequences of our lifestyles.  A single woman with three kids who is reliant on the state for breakfast and lunch year-round is in a worse off position since the true costs of her lifestyle are not borne by her, but rather, the taxpayer, who is under increasing pressure to stop paying them.  This “help” that the State provides via welfare, subsidized housing and other giveaways are not sustainable and ultimately dangerous for its beneficiary.

If you want to ruin a man, give him everything he wants.  Never let him fail, struggle, grow or mature into a man. – Inthon.com

As a result of government encroachment on all levels of life we are living in delusion about how much things *actually* cost and how they function.  There are now entire families dependent on the government for food assistance, educational assistance, medical assistance and job placement assistance.  This is neither normal nor sustainable.

As the credit-fueled economy inevitably slows down and inflation spike or benefits are cut, there will be a lot of disillusioned, angry and unprepared people.  There have been numerous chances to come clean from politicians, media and leaders.  Instead, all we hear are happy bromides about how things will be back to normal.  The only voices sounding the alarm that the debt-fueled economy is unsustainable are drowned out.

Takeaway:  I hate to be so closed-minded as “government bad” “free market good”, but it is obvious to anyone paying attention that the more we cede our power and money to the government, the less reliant, intelligent, capable, stable and robust we are as a society.

Aug

15

Why Did We Bail Out The Banks?

Filed Under Economics | Leave a Comment

We could not have allowed the big banks to fail since they are vital to the powerful, monied interests that control elections, special interest groups and media that enrich the status quo serve the needs of the common citizen

Jul

24

What Doesn’t the FED Want You To Know?

Filed Under Economics | Leave a Comment

Heroic.

Visit msnbc.com for Breaking News, World News, and News about the Economy

The most successful heists are the ones that occur every day that we are not even aware of.  The Federal Reserve, the quasi-governmental agency run by ex-bankers, that controls the money supply, interest rates and manages the economy is an agency very few are familiar with.

Given the trillions of taxpayer dollars on the hook and the delicate state our economy is in, H.R. 1207 aims to audit the ongoing Federal Reserve activities.

For years, the author of this bill, Ron Paul, has spoken up and drawn attention to the importance of sound money (money with tangible value, like gold and silver) and an economy which is not micromanaged by ex-bankers or manipulated in a secretive fashion. Paul has always been a political outsider and it is good to finally see his attempts to uncover the truth finally gain some momentum.

Since politicians, like all of us, are self-interested, we need to exert our influence and let them know we expect this bill to pass.

Since this bill would expose a great deal of financial/governmental/corporate connections, it would not surprise me if there is another financial panic/disaster and this bill is pushed aside to give even more power to the Fed and Executive Branch.

The above video speaks volumes about the shape of our economy and the level of dishonesty that is fraught in our financial and economic system.

Takeaway:  As a man, it is imperative to be ever-inquisitive, curious and non-complacent.  Reading and questioning your beliefs can help you generate an Accurate Model of Reality and prepare better for your future.  Think for yourself and stand up for what you believe in, even if you stand alone.

hat tip:  Zero Hedge

Jul

16

Don’t Give Up Your Power

Filed Under Intellectual Honesty | Leave a Comment

As we travel down an unsustainable path of reckless borrowing, spending and wastefulness, the misdirection of party politics (liberal vs democrat, D vs R) will eventually yield to curiosity and a desire for understanding.

When you see more concern about the desire to uncover the truth than a party “winning” or “being right”, we’ll be on the right track.  The sooner, the better.

When the promises that “Government will provide (insert entitlement here)” go unfulfilled, only then will we realize that costs must be borne by individuals.  A woman with five children can, should and will pay more for healthcare, resources and lifestyle as a result of her actions.

The answer we will learn (the hard way) over the next few years is to stop ceding our power to the Fed, Treasury and governments since we can only rely on ourselves and those around us.

Hopefully, when this realization occurs, we will demand our power back instead giving away more of our rights, liberties and responsibilities.  Only then can the healing begin.

Jul

6

Chaosonomics

Filed Under Economics | Leave a Comment

Used to be we stole the trade secrets in the form of automated looms textile manufacture, or pillaged a patented steam harnessing device. This must be the ultra postindustrial state. Trade secrets are computer algorithms which make automated low latency entrance and exit to markets with no intent of ever taking delivery of any physical product nor are making purchases/sells based on any business, but are merely exploiting market rules to ratchet numerals to their gain.

How did we get here? How sick is that person who draws a paycheck and has neither produced, manufactured, distributed, or made any useful service? Isn’t that the very definition of a Babylon? An economy so distanced from agriculture, mining, manufacture that it provisions life with intangibles? Please wake me up. Please let me out of such a vacuous existence.

- Ben Frananke, Zero Hedge comment (emphasis Inthon)

“No warning can save a people determined to grow suddenly rich.” – Lord Overstone

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