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08-09-2011, 10:52 AM #1
Now what or we all know what happens to all the horses in the glue factory
if you have 5 minutes, a worth while read as food for thought.
The Best Looking Horse In The Glue Factory
Submitted by Jim Quinn of The Burning Platform
When you watch the corporate mainstream media, or read a corporate run newspaper, or go to a corporate owned internet site you are going to get a view that is skewed to the perspective of the corporate owners. What all Americans must understand is everyone they see on TV or read in the mainstream press are part of the status quo. These people have all gotten rich under the current social and economic structure. Buffett, Kudlow, Cramer, Bartiromo, Senators, investment managers, Bill Gross, Lloyd Blankfein, Jamie Dimon, Jeff Immelt, and every person paraded on TV have a vested interest in propping up the existing structure.
The establishment will seek to blame others, fear monger and avoid responsibility for their actions. Ron Paul plainly explains why the US was downgraded:
“We were downgraded because of years of reckless spending, not because concerned Americans demanded we get our finances in order. The Washington establishment has spent us into near default and now a downgrade, and here they are again trying to escape responsibility for their negligence in handling the economy.”
The standard talking points you have heard or will hear from the vested interests include:
Stocks are undervalued based on forward PE ratios.
Ignore the volatility in the market because stocks always go up in the long run.
Buy the f$%ing dip.
America is not going into recession.
The market is dropping because the Tea Party held the country hostage.
The S&P downgrade is meaningless because they rated toxic subprime mortgages AAA in 2005 – 2007.
The market is dropping because the debt ceiling deal will crush the economy with the horrific austerity measures.
The S&P downgrade is meaningless because Treasury rates declined after the downgrade.
Foreigners will continue to buy our debt because they have no other options.
Foreigners will continue to invest in the U.S. because Europe, Japan and China are in worse shape than the U.S.
America is still the greatest economy on the planet and the safest place to invest.
Each of these storylines is being used on a daily basis by the vested interests as they try to pull the wool over the eyes of average Americans. A smattering of truth is interspersed with lies to convince the non-thinking public their existing delusional beliefs are still valid. The storylines are false.
Here are some basic truths the vested interests don’t want you to understand:
As of two weeks ago the stock market was 40% overvalued based upon normalized S&P earnings and was priced to deliver 3% annual returns over the next decade. The S&P 500 has lost 17%, meaning it is only 23% overvalued. Truthful analysts John Hussman, Jeremy Grantham and Robert Shiller were all in agreement about the market being 40% overvalued. This decline is not a buying opportunity.
The S&P 500 was trading at 1,119 on April 2, 1998. The S&P 500 closed at 1,119 yesterday. In March 2000 the S&P 500 traded at 1,527. By my calculation, the stock market is 27% below its peak eleven years ago. As you can see, stocks always go up in the long run. It is just depends on your definition of long.
The talking heads on CNBC told you to buy the dip from October 2007 through until March 2009. The result was a 50% loss of your wealth.
The government will report the onset of recession six months after it has already begun. People who live in the real world (not NYC or Washington DC) know the country has been in recession for the last seven months. The CNBC pundits don’t want to admit we are in a recession because they know the stock market drops 40% during recessions on average and don’t want you to sell before they do.
The stock market held up remarkably well during the debt ceiling fight. It did not begin to plunge until Obama signed the toothless joke of a bill that doesn’t “cut” one dime of spending. The markets realized the politicians in Washington DC will never cut spending. The National Debt will rise from $14.5 trillion to $20 trillion by 2015 and to $25 trillion by 2021, even with the supposed austere spending “cuts”.
The left wing media and the frothing at the mouth leaders of the Democratic Party have conducted focus groups and concluded that blaming the extreme, terrorist Tea Party for the stock market crash and the S&P downgrade plays well to their hate mongering ignorant base. They have rolled out their rabid dogs, Joe “gaffe machine” Biden, Howard “AYAHHHHHH!!!” Dean and John “ketchup” Kerry, to eviscerate the Tea Party terrorists.
The mainstream liberal media would like you to believe the Tea Party is an actual cohesive group that wants to throw grandmothers and the poverty stricken under the bus. The neo-cons in the Republican Party and their mouthpieces on Fox News have tried to co-opt the Tea Party movement for their purposes. There is no one Tea Party. It is a movement born of frustration with an out of control government. Ron Paul represented the Tea Party before it even existed and is the intellectual leader of the movement. His is the only honest truthful voice in this debate:
S&P’s opinion about any debt should be taken with a grain of salt. They, along with Warren Buffet’s friends at Moodys, were bought and sold by the Wall Street criminal element. Anyone with a smattering of math skill and an ounce of critical thinking would have concluded the U.S. was a bad credit three years ago. A Goldman Sachs trader had this opinion of the brain dead analysts at Moodys: “Guys who can’t get a job on Wall Street get a job at Moody’s.” Michael Lewis, in his book The Big Short, summarized the view of the rating agencies:
“Wall Street bond trading desks, staffed by people making seven figures a year, set out to coax from the brain-dead guys making high five figures the highest possible ratings for the worst possible loans. They performed the task with Ivy League thoroughness and efficiency.”
The most laughable storyline spouted by the Democrats and their lapdogs on MSNBC is the extreme austerity measures forced on the country by the Tea Party has caused the stock market to collapse. The plan “cuts” $22 billion in 2012 and $42 billion in 2013. Over this time frame, the Federal government will spend $7.4 TRILLION. The horrific spending “cuts” amount to .86% of spending over the next two years. Meanwhile, we will add at least $3 trillion to the National Debt over this same time frame. Of course, we could listen to Paulie “Spend More” Krugman and add $6 trillion to the national debt with another stimulus package. When a Keynesian solution fails miserably, just declare it would have worked if it was twice the size.
And now we come to the $100 trillion question. The establishment/vested interests/status quo declares the United States as the safest place in the world for investors. They frantically point out that people are pouring money into our Treasuries and interest rates are declining. They hysterically blurt out that Europe has much bigger problems than the U.S. and China’s real estate bubble will implode in the near future. These are the same people who told you the internet had created a new paradigm and NASDAQ PE ratios of 150 in 2000 were reasonable. The NASDAQ soared to 5,000 in early 2000. Today it trades at 2,358, down 53% eleven years later. These are the same people who told you they aren’t making more land and home prices in 2005 were reasonable. They told you home prices had never fallen nationally in our history, so don’t worry. Prices are down 35% and still falling today.
Medicare and Medicaid spending rose 10% in the second quarter of 2011 from a year earlier to a combined annual rate of almost $992 billion, according to the Bureau of Economic Analysis (BEA). The two programs are likely to crack $1 trillion before the end of the year. Medicare’s unfunded liability alone amounts to $353,350 per U.S. household. The National Debt will reach 100% of GDP in the next four months as we relentlessly add $4 billion per day to our Mount Everest of debt. Federal spending in 2007 was $2.7 trillion. Today, they are spending $3.8 trillion of your money. The country does not have a revenue problem. We have a spending addiction and the addict needs treatment. Doctor Ron Paul has our prognosis:
“When the federal government spends more each year than it collects in tax revenues, it has three choices: It can raise taxes, print money, or borrow money. While these actions may benefit politicians, all three options are bad for average Americans.”
The politicians and bankers who control the developed world have made the choice to print money and create more debt as their solution to an un-payable debt problem. Europe, Japan, the U.S., and virtually every country in the world want to devalue their way out of a debt problem created over the last forty years. It has become a race to the bottom, with no winners. Every country can’t devalue their currency simultaneously without blowing up the entire worldwide monetary system. But, it appears they are going to try. The United States will never actually default on its debts. Ben Bernanke will attempt to default slowly by paying back the interest and principal to foreigners in ever more worthless fiat dollars. This will work until the foreigners decide to pull the plug. For now interest rates are low and the U.S. is the best looking horse in the glue factory. But we all know what happens to all the horses in the glue factory – even Mr. Ed.
For the complete article with charts: http://www.zerohedge.com/news/guest-...e-glue-factory
08-09-2011, 11:10 AM #2features a sintered base
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- Impossible to knowl--I use an iPhone
08-09-2011, 11:18 AM #3Banned
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- Oct 2006
I love Maria B. Whenever she's interviewing some bloodsucker she always looks like she wants to rip off his pants and suck his cock. It's very entertaining.
08-09-2011, 11:18 AM #4
08-09-2011, 11:48 AM #5Banned
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My favorite trading floor bimbo is definitely that Greek bitch on Fox Biz Channel. What a smokeshow!
08-09-2011, 12:04 PM #6
Ron Paul 2012All the years combine
they melt into a dream
08-09-2011, 12:12 PM #7
08-09-2011, 12:58 PM #8
Deirdre Bolton, in a more MILFy way
08-09-2011, 02:59 PM #9
Betty Liu and Scarlet Fu on Bloomberg would make an interesting 3 some with certain high yield traders......Top of the Food Chain for White Trash America
08-09-2011, 04:33 PM #10Registered User
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subjective crap. If you want to post something interesting, please let us know what happened politically from 1929 to 1933. Let us know if it looks similar to today or not.
Economic projections are nice, but they are all fucking worthless. If it was at all founded on fact and science the market wouldn't crash every 7-8 yrs.
08-09-2011, 04:56 PM #11
08-09-2011, 05:11 PM #12
08-09-2011, 06:31 PM #13
To be honest, and we might be talking baby steps here, but I like that Ben said take it from here boys today. I don't like guaranteed free money in zero interest rates until 2013. Thats a ways away if you ask me to back into a corner, but at least its not QE3, which would have been the logical thing if that article was 100% correct.
Im on board with Paul, was last time as well, but to imply that going back to the gold standard as the way of doing it, eh not so much.
Heres my ideal version of compromise. End both wars. Reinstate the CCC or whatever the fuck it was and give anyone who's willing and able (and an American citizen), plus all those out of work soldiers, a job making America kickass again. Build some dams that make Hoover look like a bathtub plug. Highways 20 lanes wide. The BEST again in fucking everything. Spend some money on education, but not on bloated teacher salaries. How bout normal salaries but less kids to a classroom type stuff. You know, shit that works, not some facade so you can justify your own means.
Medicare and Medicade are fucked. The only real solution is completely 100% govt owned really, competition and simple economics go out the fucking window when its your kids, or your wifes, or your grandmas dying in your arms. I know Id lay down the farm in that situation. So everyone from the school nurse to the ortho who did your knee now works for the govt. The govt then hires some dudes from Walmart to tell big Pharma to eat a dick and play ball.
Social security turns goes private through some govt cd's at whatever you put in over your lifetime at a so so interest rate guaranteed. Say 4.5-5%. You get out what you put in essentially, and tough shit if you dont figure shit out otherwise. The govt actually makes a few bucks on this deal given your employer matches your contribution. I can live with that.
Whack the rest of it. Keep the CCC humming maintaining the kickass America again and youll go back to structural unemployment levels of 4-5%. Business will fucking love it. Predictability is key here. Keep the govt focused on the shit that makes us kickass, like good schools that produce top talent, the best infastructure known to mankind, and an efficient, no nonsense medical system. Protect those borders, but not trade barriers. The middle east can try and circle jerk on their own, thats religious maniacal bullshit thats going to go on forever. Make sure my house wont burn down and some dude doesnt jack my car and Im set. Let private enterprise figure out the rest.
I think Paul could make some version of this work.
End baked after work bored rant.
Last edited by AdironRider; 08-09-2011 at 06:45 PM.Live Free or Die
08-09-2011, 06:46 PM #14
08-10-2011, 11:02 AM #15Registered User
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You look at the great depression because only history can give real meaning to societal problems. You look at what worked, you look at what didn't, and you try not to make the same mistake twice. I believe we have made the same mistake twice...rampant deregulation and banks that don't hold enough money to pay out if shit hits the fan.
There is only man-hours and natural resources (inputs) and food/products (outputs.) Those are the real variables. Not something so arbitrary as the dollar. The dollar is just a symbol for those two things...and a broken one. If you start your conversation there, you've already lost.
THE ONLY SOLUTION IS THE 3-DAY WORK-WEEK.
08-10-2011, 01:02 PM #16
08-10-2011, 02:20 PM #17Registered User
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Unfortunately, I was right.
It's 2011 now, and I got something else to say. The 3-day work-week can save us all. Mark my words. In 20 years that statement will be nothing more than a fact of societal evolution.
Only a societal goal towards shorter work-weeks for all citizens can bring us back near full unemployment. The internet makes us too fucking efficient. The working week was once 6/7 days, children worked, and hours were long. The unemployment rate makes it blatantly obvious that there just isn't enough for people to labor over. It's a systematic problem that is more basic than the USD, and is never discussed.
Are you ready to work 3 out of 7? I know I am.
08-10-2011, 02:29 PM #18
08-10-2011, 03:03 PM #19Registered User
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Unless people are literally starving to death we obviously produce enough during with our 'underemployed' workforce. Meaning we should just change the number '40' to '24' in a few key places and kick some ass.
Did I mention....THE 3 DAY WORK WEEK CAN MAKE EVERYTHING BETTER!
08-10-2011, 05:47 PM #20
Dude, I bet you are the BEST employee. Like the one who wants to show up late and leave early, and doesnt produce shit while they are actually on the clock. Then you get canned and take 98 weeks of funemployment then find some bullshit other job and start the cycle over again.
Three day work week only appeals to slackers. Other people worth a damn have shit to get done.Live Free or Die
08-10-2011, 06:03 PM #21Registered User
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[QUOTE=AdironRider;3328795]Dude, I bet you are the BEST employee. Like the one who wants to show up late and leave early, and doesnt produce shit while they are actually on the clock. Then you get canned and take 98 weeks of funemployment then find some bullshit other job and start the cycle over again.
Three day work week only appeals to slackers. Other people worth a damn have shit to get
Dug you're lil rant about what should be done. I agree. Though I think you need to add one more thing..
..THE 3-DAY WORK-WEEK! Without that I heard CHINA will send the REPO MEN after us.
I might be lazy, but I would work 60 hours a week if I could get the rest of the US on track to work 24 hours a week. I want parents to raise their kids, you to spend more time on the hill, and world peace.
If women didn't have a strong presence in the workplace before the 70s, then it is clearly possible to decrease our working hours by at least 25%.
Furthermore, the less we work the less energy we waste...working. There are efficiency gains...which is why Britain did it in the 70s. More efficiency = less work.
Last edited by shaft; 08-10-2011 at 09:52 PM.