Search This Blog

Friday, October 31, 2014

New Ebola Facts & Government Non-Apologies

"It is easier to apologize than to make things right, and for those with Ego, easier to avoid than ever admit.."  -- Unknown

We were going to do another 'This Week in Apologies' but sometimes one has to be careful not to belabor a valid point

Besides, its actually more interesting the people and entities that refuse to apologize when they should vs those who quickly do when there's no need.

Like Wal-Mart being forced to quickly apologize for having a 'fat girl' section on their online site when it comes to selling Halloween costumes
Yet the President doesn't have to apologize for putting the safety of Americans at potential risk of Ebola secondary to political correctness and prevention of demonizing the black race i.e. West Africans.

The government pretty much tells everyone to 'Keep Calm and Carry On'; an insipid worn-out phrase we poked fun of and mocked previously..

OK then..  So why are government agencies scrambling to buy hazmat suits?
Lakeland Industries, who make the suits announced recently an order was put in by various government agencies that totaled..   Wait for it..

1 million hazmat suits

This on top of the 160,000 suits ordered by the State Department ordered the previous month..

Who do you think those suits are for..  You and We?

Or They?
Then the government continues to push the narrative that it is extremely difficult to catch the disease and compare it to HIV where you have to be infected through transmission of bodily fluids and the like..

Yet, according to the NY Post, the CDC admitted yesterday the following:

"Ebola is a lot easier to catch than health officials have admitted — and can be contracted by contact with a doorknob contaminated by a sneeze from an infected person an hour or more before,..

“If you are sniffling and sneezing, you produce microorganisms that can get on stuff in a room. If people touch them, they could be” infected, said Dr. Meryl Nass, of the Institute for Public Accuracy in Washington, DC."
But gee... We thought you can only get Ebola by having sex with an infected person or sharing their hypodermic needle, etc..

"Nass pointed to a poster the Centers for Disease Control and Prevention quietly released on its Web site saying the deadly virus can be spread through “droplets.”

“Droplet spread happens when germs traveling inside droplets that are coughed or sneezed from a sick person enter the eyes, nose or mouth of another person,” the poster states.

“The CDC said it doesn’t spread at all by air, then Friday they came out with this poster,” Nass said. “They admit that these particles or droplets may land on objects such as doorknobs and that Ebola can be transmitted that way.
Dr. Rossi Hassad, a professor of epidemiology at Mercy College, said droplets could remain active for up to a day.

“A shorter duration for dry surfaces like a table or doorknob, and longer durations in a moist, damp environment,” Hassad said."

So before yesterday we're told its impossible to get Ebola through anything airborne..  Now we can touch objects that have duration periods of up to a full day..

And still no White House apology for minimizing the situation
Yours truly was at the doctor's office yesterday afternoon and someone in the waiting room coughed..

And without hesitating a moment, I covered my mouth, ran to the front desk where masks were provided for free and put one on, sitting for the duration with it on while not giving two shits how I was perceived by the strangers in the room

Did this woman have Ebola?  Ehh.. Probably not..

But my personal fear of getting it trumps my need to be respectful or politically correct to this woman's feelings, someone who quite frankly should have been wearing the mask herself even if it was just a common cold
So right now its still an academic topic for people for the most part..

Its killing people over "there" and really not a big deal here..

And then one day when its found out that a couple dozen people to attended the same movie theater or a few hundred people who attended the same outdoor sporting event contracted it..

And then it will become real for people and self-preservation will trump the need to be fair to those of West Africa and people working there who wish to fly here and enter as if coming from Hawaii or Ireland
And the concept of a 21 day 'involuntary quarantine' will move from a civil discourse on Constitutional rights vs public safety to populace demand and public policy.

And we wager we'll still get no apology from the President.

Nor does he seem to have to apologize for a coward working in some official capacity for the Administration calling the leader of one of the US' staunchest allies 'chickenshit', much less make any effort to publicly name the prick in question

Apologizes are saved for irrelevance and triviality..
Like sports governing body FIFA apologizing for organizers of the 2018 World Cup including Crimea in the map of Russia (which is idiotic because Crimea IS now once again part of Russia-- that is fact)

Or someone botching the singing of the National Anthem during a sporting event (which is also idiotic because unless its competition between teams of competing nations, there's no reason to interject jingoistic nationalism into any sporting event)

Or when an Israeli official dares to mock or degrade the 'Honorable' Secretary of Defense John "I married for money" Kerry for a two-faced diplomatic strategy in the Middle East..

Then let the apologizes fall like rain from the heavens.

Thursday, October 30, 2014

Oh Gold.. How You Took Them All For Fools...

We feel empathy for people who bought gold three years ago yesterday..

Well as empathetic as one can feel for either greedy people who needed to expand their profit portfolio or innocent suckers who bought into the Lie that gold was a great investment because it was tangible, etc etc,,

On October 29, 2011 one ounce of gold which has the weight of a couple oreo cookies, was valued at $1,901.35 so obviously using simply math, if one purchased 10 of those itty-bitty bars or coins on that day, $19,013.50 was spent..
On October 29, 2014, gold closed at just around $1,206 and as of this writing is trading at $1,196.14

This means in a span of 36 months, $705.21 was lost per teeny weeny bar or coin  ($7,052.10 for ten bars/coins)

Let's say you bought a new or used car and took out $7,000 for 36 months while paying the rest of the car's sale price as your down payment..

Guess how much interest you would have paid based on 5% int..?

So in other words, if someone on Oct. 29. 2011 bought a car and paid the full amount without taking on a loan, he/she would have Saved $700 and the clever-clever investor who bought gold that day Lost $700

Now to be fair, we're sure the price of gold will eventually rise..

Perhaps to $1250..  Maybe to $1300..
Because if you're ever expecting it to go up to $1900+ again, you better hope and wish and pray for a full-blown financial panic

You better close your eyes tight, grip your Holy book and make it a daily ritual of asking and begging..

Only when people are genuinely scared about the state of the economy and imminent collapse and deeply fearful they will lose every other investment they have i.e. stocks, home, etc.. will they clamor aboard the gold bullion 'boat'

We honestly never understood why anyone wanted to buy gold, especially those they acquire in certificates rather than real physical in-hand possession..

We've yet to ever see our local supermarket, gas station, fast-food restaurant, home improvement store or turnpike toll booth accept gold as payment..   Ever...

So possessing it is one thing but ultimately the itty bitty bars and coins have to be converted back to the same ole' worthless cash

And then there's the assumption someone in time of trouble will just automatically give you fair market value..
~ A typical gold brick weighs one troy oz. or 27.5lbs which is the equivalent of 440 individual mini-bars or coins..  If one ounce of gold is selling for $1200, then a brick would go for $528k

Let's say gold is trading at $2100 officially and the nation is topsy-turvy, do you really think you'd be able to walk into a gold-buyer and get $2100 when its obvious you're desperate to sell?

Think how pawn shoppes work..

We've always said and will continue saying the best way to make sure you are ahead of the financial game is to avoid borrowing and lending at all costs as realistic and practicable to your personal situation.
~ Confederate gold..  Smelted, its worth the same as any other nation's..

If you are looking to buy a car, buy one you have the means to pay in full at time of purchase unless the vehicle is so exceptional or an offer so great it was too good to pass up..

Don't charge on credit cards what you know you can not pay in full when bill comes

Avoid mortgages at all possible..  You may not have anything at the end of a rental period but at least you have flexible mobility to relocate based on where jobs are or other personal factors..
Put yourself in the position where as few to no one can profit off you.

Because if gold today was magically $3k a bar and you sold them for a nice profit, guess where that money is now going?

Paying car and credit card interest and toward the mortgage...

And oh yes.. paying tax on your investment profit..
~ Commemorative 1/4oz 2014 Sochi Winter Olympics gold coin

But we don't want to end this posting on a downer..     We feel how your suffering after following the crowd and parting with your precious money so irresponsibly..

So let us tell you of a great investment opportunity which is sure to recoup your investment 3 to 5 times over in mere months,,,

What do you know about um.. bridges?
PS:  Yesterday's post was a very important one to understanding why the Financial System and Fed is SO Corrupt and why ultimately you all will suffer economically for it..

We see not many have read it compared to other lighter fare we submit..

Big mistake..  Don't skip it..  Don't be intimidated by it..

We made it easy to understand & Knowledge is Power.

Wednesday, October 29, 2014

Why the US Can Never Go Bankrupt & How Modern Banking Really Works

When talking on the US economy and more specifically the massive debt load burden it holds, some like to mention of an ultimate 'endgame' where  magically creditors call in their loans and 'the gig is up' as it were for the Fed..

It is a nice fantasy to imagine this occurring followed by a lot of formerly super-wealthy people full of desperation collectively jumping off large bridges

But unfortunately that isn't the reality of things.

The following info we try to explain as clearly, concisely and slowly as possible for the every-day layperson to understand..   Don't be intimidated.. Just read slow and try to picture what we're expressing..
Truth be told, and we wish it weren't so, the evil evil Federal Reserve can never run out of money..

For instance when former Fed Chair 'Bastard' Ben Bernanke was in power and did an interview with 60 Minutes as a fluff piece to calm investors fears, Benny was asked, "Is that tax money that the Fed is spending"?

To which Bastard Ben replied, "It's not tax money..  We simply use the computer to mark up the size of the account"

In other words, a couple presses of the keyboard.. a '1' here, a few 'zeroes' there and Ta-Da..
As long as someone at the Fed has a finger and they have a key to stroke, they can't possibly run out of money..

Second, there is this statement from the St. Louis Fed:

“As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.”

And as long as the US remains the reserve currency the rest of the world depends on, this unfortunate statement on the government is Fact.
Government can never run out of dollars. It can never be forced to default. It can never be forced to miss a payment. It is never subject to whims of “bond vigilantes.”

Thus, there is no need to balance the budget - it is mere myth or rather a political parlor game used to rile or scare the poop out of the public every election cycle..

None of what we're talking about will make true sense unless you understand how modern money works

So its probably best to start with the banking system.
OK, so a firm approaches a bank and says it would like a loan,..

Where does the bank get the money?”

It creates it out of thin air, out of nothing.

The 'money' used to provide the loan is keystroked it into existence.

It creates a loan (an asset for the bank) to the firm and offsets it with a deposit (a liability for the bank).
So now, the firm gets a credit (an asset) and an offsetting debit (the loan), and no prior deposits are needed.

Loans create deposits and the bank lends its own IOUs.

Now can they ever run out of their own IOUs?

Of course not.

This is important. If you don’t get this, banking will forever remain a mystery

The firm then takes the loan and uses the proceeds to hire people from community households. People i.e. employees then use the funds (salary) to buy the product from the firm, and the firm uses the money to repay on the loan.

It’s a super-simple model when one understands it...

So let’s add another bank and a central bank to make it more realistic.
Let's say the firm and employee X use different banks...

The banks have to clear with one another. They do this through the central bank by using the IOUs of the central bank — called reserves.

So what happens if Bank 1 is short reserves to clear the account?

The central bank creates reserves so that Bank 1 can clear with Bank 2.
And can the central bank run out of reserves?


Deposits create reserves. So the central bank will accommodate the demand for reserves by creating them in loans.

Banks repay those loans to the central bank by returning the reserves back to them.

Now, how about the government?
The U.S. government spends its currency into existence.

Huh?  What exactly does that mean?

The government spends first and then collects taxes and taxes are what give the dollar value.

As explained once by a credit theorist named Alfred Mitchell-Innes: “A dollar of money is a dollar, not because of the material of which it is made, but because of the dollar of tax which is imposed to redeem it.”
When someone says the country is bankrupt, that simply isn’t true.

The Treasury spends dollars into existence through the central bank which is the Fed.

They in turn credit the accounts of banks, and banks credit whoever is getting paid.

Taxes reverse the process. Banks then debit accounts, and the central bank debits the banks.

So you see, the government cannot run out of credits.
Money, then, is simply the way we keep score in a modern economy.

Banks are the scorekeepers.

Now you have some understanding of modern money.

And so when someone says the country is bankrupt or that it relies on the Chinese or Japanese to finance it, you’ll know that simply isn’t true.

It is just part of kabuki theater by people in positions of finance and/or political power with agendas based on populace fear.

Tuesday, October 28, 2014

Chris Christie, the Cowardly Cur

Politicians are cowards..

No matter how much tough talk and bluster, ultimately they all succumb to something..

In some cases its money as in Wall Street donors threatening not to support re-election and in rare cases. its a rarity called a woken-up populace who makes it known they want a policy decision reversed..

And then there's what happened in NY and NJ
Seems both are afraid of the White House and have changed their policy involving the quarantine of people coming from West Africa as quick as an impotent lion turns into a pussy.. cat.

We understand why New York capitulated to the will of Obama..  Democrat Governor.. Democrat President..  etc..etc..   We get it..

"The Obama administration has been privately attempting to convince the governors to reverse the mandatory quarantine policy decision" -NY Times

As for the fat fudge packer from New Jersey.. Chris Christie..  the one who dares to call himself 'Republican', cowering to the Administration is mind-boggling
Perhaps Christie needs one of those posters that reads "Keep Calm and Always Ignore the President"

Here's what Christie's spokesman said 24-36 hours ago:

"New Jersey is not changing its quarantine protocol..    A New Jersey resident with no symptoms but who has come into contact with someone with Ebola such as a health care provider would be subject to a mandatory quarantine order..."

Then Christie himself directly said on Sunday: "I don't think when you're dealing with something as serious as this you can count on a voluntary system."This is the government's job...  The government's job is to protect safety and health of our citizens...  I have no second thoughts about it."

Then after some behind the scenes White House manipulation..
~ Remember there is no vaccine and no cure for Ebola..

"New Jersey Gov. Chris Christie said Monday that the state will release the quarantined American nurse who had been confined in a hospital isolation tent upon arrival from West Africa despite showing no signs of Ebola."  -- USA Today

Nice going tubby..

Even though two state governors have allowed themselves to become politically impotent by the will of the Great 'O', the Pentagon is still going through with their quarantine

They are just smart enough to not use the Q word and instead call it a "controlled monitoring"
~ Liberia.. October 10, 2014

From CNN:

"Army Major General Darryl A. Williams, commander of U.S. Army Africa, and approximately 10 other personnel are now in "controlled monitoring" in Italy after returning there from West Africa over the weekend, according to multiple U.S. military officials.

The American personnel are effectively under quarantine, but Pentagon officials declined to use that terminology...

They will be monitored for 21 days at a "separate location" at the U.S. military installation at Vicenza Italy, according to U.S. military officials... 
The troops are being housed in an access controlled location on base, and are not allowed to go home for the 21 day period while they undergo twice daily temperature checks."

There are currently 3,000 US soldiers in West Africa "fighting" the disease

At least some American entity cares about the safety of Americans at home and is taking the prudent step of 'better safe than sorry'

We know some disagree with us on this point but we state it again more emphatically than ever..
You have a black man in power who cares more about not offending black Africans and upsetting black Americans apathetic as it is to vote in the midterms coming up shortly, than making sound judgments and policy into action to protect Americans from being exposed more than one reasonably must..

Illinois Gov. Pat Quinn and Florida Gov. Rick Scott announced similar 21-day monitoring programs over the weekend.

Wonder if they will be joining the Cower Club

Remember, the Federal Government doesn't really care if you're alive or dead in the grand scheme of things..  Its #1 goal is maintaining control and calm while diminishing panic
When the shit hits the fan as it were, its the local officials.. Governors and Mayors who will be on the policy front lines..

One more thing..

New York City mayor Bill DiBlasio - Democrat, called the quarantined nurse a 'hero'..

Sorry Mayor but a big F-U on your word choice!

Another example of the absolute cheapening of vocabulary and the true meanings of words
~ Now THAT is a hero..  sandwich..

How is this woman a hero?

Because she as a health care worker puts her life at risk to treat people who are sick which incidentally is her job?!!

Because she's angry she was quarantined for public protection after being in a highly infected area among diseased black Africans?
Because she's another sue-happy person who now plans to take the State of NJ to court?

So what about this woman makes her a 'hero'?

Yep, politicians are utterly worthless. 

Monday, October 27, 2014

How Does a 19-63 NBA Team make a $40+ Million profit?

~ Give yourself a Very Big hand if you can name just one of these players..

Professional sports franchises are very lucrative and very profitable..

And you don't even have to put a competitive team on the field (or court or ice rink) to make lots n' lots of money which frankly is not deserved to most owners..

We're going to look at the Philadelphia 76ers as our example..

Last year they tanked the entire season, meaning they intentionally put the worst players and the most inferior product out there on the court with the goal of always losing and getting the #1 pick in the draft lottery..
It didn't work out even with a 19-63 record, as the Cleveland Cavaliers lucked out with the #1 pick and the Sixers drafted 3rd..

So once again this year the Sixers are employing the exact same strategy since their top draft pick is lottery protected..

That means if they made the playoffs this year, that pick would end up going to the Miami Heat..  Miss the playoffs and the Sixers keep the selection.

But you'd think there'd be financial repercussions from all this intentional losing and making the local fan base completely disillusioned to want to see this collection of crap play live..
Wrong..  Sixers owner and billionaire Wall St Vulture/Venture Capitalist Josh Harris made a profit from last season


Let's use this years' figures as the example..

The entire roster will cost the Sixers $34 million in salary for the 2014-15 season..  The salary cap is $63 million..

This means Philadelphia's owners will be spending $29 million Less than most other teams in the league
Currently each NBA team gets about $28 million from national TV rights annually..  You add that figure to the $30 to $40 million a large market team gets for corporate advertising, and you have around $58 to $68 million for each NBA franchises..

You subtract from the $35 million the Sixers are paying in salary and you're looking at a profit of $29 to $39 million and without a single person attending a game.

Then you have local TV and cable rights along with overall NBA revenue sharing and division of tickets, and each team makes a fortune..

The average NBA ticket draw per game is $750k..  Figure the away team gets a portion of the gross..  maybe 35%..
So on average, the Sixers would get $262,500 per full contest..  And when multiplied by 41 away dates, you're talking about $10.76 million in revenue playing on the road...

Add everything up and don't forget merchandising, and you're looking at the Sixers making as Profit a total of $40 to $55 million dollars.

For a terrible unwatchable, unlikable team that will ultimately be gutted and sold to the highest bidder

Because as long as the overall value of the NBA goes up, all its franchises, even the shitty ones go up in value too..
~ Philly Good ole' Days..  Dr J; 1977

Forbes in January of 2014 set the Sixers' valuation at $469 million..

Only three years ago Harris and his consortium of profit-seeking drek bought the franchise from Comcast for $280 million..

If the weasel sold the team today, Harris would make a profit of nearly $200 million on a basketball team that since the 2011-12 season has gone 88 wins - 140 losses; a .386 winning percentage

And that is why all the NBA owners came down so needlessly hard on former Clippers owner Donald Sterling this past summer...  No one and nothing threatens their cash-cows
~  Wilt Chamberlain; late 1960s

The NBA is a horrible product..  Only 4-5 teams have a realistic chance of winning the championship and because all player salaries are guaranteed and all trades involve a 15% cap differential, that means very infrequent movement...

Often the only way mediocre to bad teams have any shot at a future is an outright fire sale dump like Philly is doing and hoping by going terrible for a few years, this will parlay itself to success later on?
~ The Great AI; Allen Iverson - early 2000's

Will it work?  Who knows..

But that  Wall Street vulture owner of the ballclub will be make large profit hand over fist no matter, and the stupid simpleton Sixers fans will still keep attending live.