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

17

Karl Denninger

Filed Under Intellectual Honesty | Leave a Comment

The Market Ticker blog, written by Karl, is simply fantastic.  He elegantly points out inconsistencies, lies and facts which the media forget or choose to ignore.  Karl goes above and beyond by taking the time to document his findings in plain English so that a lay person can understand the lies and distortion that have become the economy.

Two GEMS by Karl.

1)  Catches Barney Frank lying.

I’ve always said the American dream should be a home – not homeownership,’’ said Representative Barney Frank, chairman of the House Financial Services Committee and one of the earliest critics of the Bush administration’s push to put mortgages in the hands of low- and moderate-income people. – Barney Frank, boston.com article

Now watch the clip…

Quote of the clip… the last 12 seconds:

…but you’re not going to see the collapse that you see when people talk about a bubble.

Barney Frank is ideologically bankrupt, intellectually dishonest and self-serving.

He pats himself on the back when things to go right, then claims no responsibility when things blow up in his face.  Anytime people say that Barney Frank is “working on a bill”, remember this clip.  Thank you, Karl, for finding this and sharing it with the public.

2)  The truth about the overvalued stock market:

Let me note that this is all short-term trading - there is absolutely no intelligent way to INVEST for the “long term” in a market that is acting as this one has been for the last month and change.  The only INTELLIGENT thing to do as a LONG TERM INVESTOR in a market that is blowing off on a parabolic spike engendered by LEGALIZED ACCOUNTING FRAUD (the FASB “MTM” change) is to SIT IN CASH, as it is essentially impossible to know WHEN that fraud will be exposed and cause the market to return to underlying fundamental value BUT IT IS A CERTAINTY THAT IT WILL OCCUR.

Again, what does it take to get this covered on CNBC or any major news outlet?  Every CNBC guest spot ends with a BUY recommendation for some fund manager.  CNBC never mentions the P/E ratio is still over 100 for the S&P.

Karl Denninger does a fantastic job of not only understanding economics, delving into the details and reporting his nuggets of wisdom, but he also agitates for education, awareness and activism.

He takes the time to understand the issue and present the facts in a useful manner.  He does this without any allegiance to any bogus political “party”.

Takeaway: The media love to broadcast whatever sells ads (Sarah Palin news, celebrity gossip, the newest pill to pop, the latest diet miracle, etc.).  This is rarely compatible with useful, important information.

The websites on the right-side of the page have taught me more than CNBC, network news and my college finance professors combined.  Seek out the best friends possible, best sources of information possible and best “food” for your brain possible.

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

20

Model T’s and Loved Ones

Filed Under Fatherhood | Leave a Comment

I saw a beautiful Model T the other day.  This 90 year-old entry-level vehicle is shown below.  It amazes me that a caring owner can keep something this old in such good working order.

Model T2

Since America is an instant gratification society with an ever-declining attention span, I was delighted to see this piece of human accomplishment so well-maintained and well cared for.  It brought to mind some important facts.

There are many parallels between taking care of a motor vehicle and taking care of your loved ones.  For husbands and fathers, it is important to know that the values that make cars last also make relationships last.

Preventative Maintenance - The Model T obviously required an inordinate amount of maintenance over the years from its owner.  Preventative maintenace is part of being a great husband and great father.  It takes years and years of daily care and attention in any relationship to build up a level of trust.

Patience - A loving relationship requires extraordinary amounts of patience and work.  It is easier to get into flings and shallow relationships/friendships, but the rewards aren’t as great.  The rewards of an honest, patient relationship are worth it.  A high level of trust makes it easier to get through the rough patches.

Pride - The man who owned the Model T took time out of his day to explain to me the nuances of his vehicle.  He showed me the old-fashioned horn, the gears and the antique headlights.  His actions and demeanor spoke for themselves.  Pride in your loved ones comes from patience and mutual respect.  Pride is not buying an expensive ring, it is holding the door; fifty years later.

Takeaway:  There are some cars that are new and flashy that never satisfy an impatient owner for very long.  A luxurious Buick or Cadillac, well-maintained and well-cared for, only gets better with age.

Your family is with you from the time you are an infant until the time you have children or grandchildren of your own.  Treat them them with pride and your investment will last a lifetime.

Model T4

Jul

16

Don’t Give Up Your Power

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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.

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