Dec

20

Harry Reid – Health Care Bill

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Bloomberg provides a telling example of what is wrong in DC.  Senate’s Health-Care Legislation Poised for Passage

Senate Majority Leader Harry Reid plans to win final passage by Dec. 24 now that he secured the vote of his party’s last holdout, Nebraska Senator Ben Nelson.

He finally struck a deal that satisfied his demand to keep U.S. subsidies from being used for abortion and won an agreement for more aid to help Nebraska provide coverage for the uninsured.

Nelson said the language satisfied him, though it drew criticism from antiabortion groups. The Nebraska lawmaker also won another prize, with additional Medicaid costs to his state being absorbed by the federal government.

The agreement came late on Dec. 18 over a handshake.

“It was a pretty powerful moment,” said Reid, a Nevada Democrat. “That’s what this place is built on, handshakes legalized bribery.” (emphasis Inthon)

Upon closer inspection of its “accomplishments”, we discover our government is a transparent kickback machine; something which is manipulated and used to advance one’s career and line one’s pocket.

Governments disintegrate when citizens and lawmakers reject individual, familial and community responsibility and instead believe in the goodness of “free money” (printed up or borrowed, of course) and citizens and lawmakers feel no sense of self-ownership.

What hope remains for the future when there is no incentive to encourage individual responsibility and self-ownership?

Governments stop functioning and cannibalize themselves when politicians shift from representing an informed group of constituents to becoming professional raiders for their financial backers (unions, other politicians or corporate interests).

Takeaway: Have no faith in national politics or national politicians.  Self-reliance and community reliance are more robust and sustainable.

Dec

1

Goodbye from Nassim Taleb

Filed Under Intellectual Honesty | 1 Comment

A gem from Nassim Taleb, a trader who predicted the crash and sees more difficulties ahead:

What I am seeing and hearing on the news — the reappointment of Bernanke — is too hard for me to bear. I cannot believe that we, in the 21st century, can accept living in such a society. I am not blaming Bernanke (he doesn’t even know he doesn’t understand how things work or that the tools he uses are not empirical); it is the Senators appointing him who are totally irresponsible — as if we promoted every doctor who caused malpractice. The world has never, never been as fragile. Economics make homeopath and alternative healers look empirical and scientific.  (emphasis by Inthon)

No news, no press, no Davos, no suit-and-tie fraudsters, no fools. I need to withdraw as immediately as possible into the Platonic quiet of my library, work on my next book, find solace in science and philosophy, and mull the next step. I will also structure trades with my Universa friends to bet on the next mistake by Bernanke, Summers, and Geithner. I will only (briefly) emerge from my hiatus when the publishers force me to do so upon the publication of the paperback edition of The Black Swan.

Bye,
Nassim

Bingo.

I would go one step further; rather than blaming the Senators, blame the voters who elected these Senators (all of whom are ignorant of the dangers of fiat currencies, central planning and central banking).

The U.S. has never been this fragile.  An economy reliant on consumption, cheap energy/commodities, easy credit, entitlements, corporate welfare and social welfare is not durable or sustainable.

The years ahead will require deleveraging on a large scale and small scale.  Those grounded with an awareness of our current unsustainability will be more apt to mentally weather the future slowdown/economic pain.

Takeaway: Borrowing money to spend on entitlements, wars and handouts cannot go on forever.  Prepare yourself for the consequences of our current financial immaturity.

Sep

22

SEC, Where Art Thou?

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It should boggle everyone’s mind how easily bloggers are able to catch obvious fraud in the financial markets while the SEC and other regulatory bodies are looking the other way.

Here are some gems just from the last week alone:

  1. Perot Systems FrontRunning – ZeroHedge.
  2. Blatant reinflation of housing bubble – Denninger.
  3. Corruption at HUD – Karl Denninger.

The SEC was not able to catch a ponzi scheme even after Harry Markopolos delivered it to them on a silver platter. 

Paulson and Bernanke have been incredibly incorrect on their assessment of the health of the US economy.

Choose your sources of information/facts/news very carefully.  Stick with those that are honest enough to state their opinions openly and publish their predictions.

Read what you disagree with before drawing your conclusions.

There is a difference between loyalty and blind loyalty.  Blind loyalty to anything (religion, government, ideology, spouse) is deadly.

Takeaway:  Perpetual reliance on someone else’s seal of approval will rot your brain.  Complacency kills.

Sep

10

Elizabeth Warren grills Timothy Geithner

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Beautiful.  Minutes 3 – 4 are the best.

Anytime you feel sympathy and/or hope for Obama, just remember he appointed this dirtbag and re-appointed Bernanke.

Amazing how Mr. Hope and Change is opposed to auditing the Fed and fully supports those who fed us a massive spoonful of corporate welfare.

Takeaway:  Governments are power structures which are abused/manipulated.  Giving up power/money to the government to fix our economy, environment, schools or anything is a mistake.  Audit the Fed.

Sep

7

Obama’s School Speech

Filed Under Intellectual Honesty | 1 Comment

Even though I think Obama is leading our country down the wrong path (like those that preceded him), I have no problem admitting when he does something right.

I was delighted last night to read his speech to schoolchildren and see what a thoughtful, intelligent speech it was.  I encourage you to read it, no matter what your political leanings.

Highlights:

  • Here in America, you write your own destiny. You make your own future.
  • Maybe you’ll decide to stand up for kids who are being teased or bullied because of who they are or how they look, because you believe, like I do, that all kids deserve a safe environment to study and learn.
  • Michael Jordan was cut from his high school basketball team, and he lost hundreds of games and missed thousands of shots during his career. But he once said, “I have failed over and over and over again in my life. And that is why I succeed.”
  • Asking for help isn’t a sign of weakness, it’s a sign of strength. It shows you have the courage to admit when you don’t know something, and to learn something new.
  • I expect you to put your best effort into everything you do.

It’s rare for a politician to speak of personal responsibility and any effort to broadcast this message, however diluted, should be welcomed.

Obama is a disaster with his economic advisers, but a masterful speech giver and motivator.  He understands the power of making a positive impression.

Neatness and presentation count in all aspects of life.  Be Prepared.

Takeaway:  Successful men aren’t symbols of your inferiority, they’re examples worth engaging.  Learn from everyone around you; even those you hate.

“Every man I meet is my superior in some way. In that, I learn of him.” — Ralph Waldo Emerson