Archive for January 2011
Not anybody can change the mess that’s coming. Five or 10 years and the whole planet is wracked with the bust after a hyper inflationary boom.
That’s the way it looks at this point. Will the gang in power last that long?
Mean while, our store sales still down a bit off of projections but the local economy is picking up as some hiring going on. Tax checks start coming in over the next few weeks should help. One thing for Patty and me is that all our old debt is paid and we are now working on the rest of our doctor bills . Any luck and those will be all covered by July. Then I gang up on the car payment so I can start shopping for my RV next fall for our retirement coming up in a couple of years .
Of course, if they close the Suez Canal then gas hits 10 bucks a gallon or so and all bets are off. We’ll all have more important things to worry about like eating or freezing. I’m just glad there’s a half dozen fishing lakes and a million deer and elk outside my front door.
But for most people living in more civilized surroundings you’ll have to eat Mexicans or maybe gold or something, LOL.
Anyways, I’m wondering that if gold is such a great investment why is everybody on TV selling this shit, hmm?
As I have described in recent posts, we live in an economy where access to and cost of capital of outsiders is controlled and manipulated by insiders–who are using the system to subsidize their own cost of capital and to rig returns on it.
Imagine if to buy a house or car, we have to borrow at steadily higher rates, while the people who deal drugs in our community have bought the local bank and run City Hall. They rig votes with computer voting machines and campaign financing. They can borrow for no cost, access insider information and then require full bailouts any time they say they made a mistake and are in danger of losing money on the uneconomic transactions they used to rig the game for themselves. They have a government budget to fund their attorneys targeting us in court or with dirty tricks, more dirty tricks and even more dirty tricks. Without representation, through banking policies that control our local currency and inflation of our food and energy and other costs, we have to pay the price of these bailouts to ensure they can succeed at rigging things against us. Pretty soon they own the whole neighborhood and no matter what we do, we are facing an Orwellian financial headwind. The harder we work, like a hamster on the wheel, the harder we have to work.
A detailed study of our time and energy shows that, a growing number of courageous early adopters aside, many of us are still supporting the insiders, or what I call the “Tapeworm.” Many of us are still banking at their bank. We are voting for candidates which propose giving them even more power over the flows of capital in our community. We are watching and buying their media. We are investing in their bonds and stocks. Our theory is that this will make us more money. For some reason, we believe our local grocery store, our local farmland, our local gas station, our local utilities will be worth more if we finance the Tapeworm’s ownership and control of them instead of our own. We believe that we are better off lending to each other through them, paying extraordinary fees and interest rates, on the theory that we are not trustworthy but, somehow, they are.
When someone proposes pulling capital out of large banking, corporate and investment intermediaries to instead own assets directly without the Tapeworm in the middle, there arises a great debate about how we should govern resources. Hence, the alignment of a wide variety of parties about how we could directly finance and govern our resources on a diversified, cooperative basis would significantly increase the resources we could shift in wealth creating ways.
For example, one set of alternative proposals says that making money is bad and that we should embrace not-for-profit models or reject money and financial tools all together. When you dig behind many of the people and groups promoting these models, they are financed by those who would love nothing more than for alternatives to not be financially sustainable, let alone attractive to the personal and family capital of those proposing it. This leaves alternatives financially dependent on foundations or governments and that means they can be controlled. This also leaves all financial capital in the Tapeworm — it having no other place to go. What better strategy for wining the cost of capital wars than to persuade your competitors to adopt self-immolating financial and investment models?
My response to ally Caroline Casey’s statement that a new world is percolating was “yes, but can we make it bankable?” The answer is, yes, of course we can make it bankable. Who is responsible to ensure that all of our resources are being optimized? I would suggest that we all are. The question is how do we break down that responsibility so that we can each do our bit? Popular support for holding investors responsible to understand and seek positive investor and total economic returns is an important step to making it so.
Total Economic Return
An investment’s return is its total economic return. This return can be positive or negative. It can be looked at and measured from various points of view. The first portion of the return is the return to the investor. The second portion of the return involves the return to all the other affected parties in the investment‘s ecosystem. We call the net return to all other parties the return to the network. So, for purposes of definition, an investment‘s return is its total economic return, which is divided into two portions: return on investment to the investor (first test) and return on investment to the network (second test). For a graphic description of this approach, see the flash presentation on the home page at Solari Investment Advisory Services, LLC.
Traditional fiduciary principles say that investors should optimize their risk-adjusted return to investor. Solari investment strategy agrees. Our goal is to see investors achieve the best returns possible. We support doing this by adding the second test as an essential source of strategic intelligence. Think of estimating and tracking returns to the network as an essential navigation tool for the investor.
In Solari investment strategy, significantly greater intellectual mastery of how to create the greatest total economic returns than traditionally required is used to reduce and manage risk and to generate sustained individual investor returns. The Solari investment model adds a new constraint – it is the surgeon‘s motto: “Do no harm.” In other words, use best efforts to invest in enterprises and activities that have a negative network and total economic return. While it is true that theoretically the traditional fiduciary model is supposed to hold to a constraint of the rule of law, simply ensuring that organized crime is profitably managed behind the veil of national security and law enforcement has rendered this constraint almost useless.
Standards of total economic returns necessitate that investors attempt to understand their ecosystem, including the “who” and “what” of the criminality around them. No one who understood total economic returns and followed this practice nvested in the housing bubble. The financial advantage of not being part of destroying communities was not losing money when the uneconomic game came crashing down.
Got to keep the politicians in power, right? Who needs the roads plowed? Every time you drive by a road crew they’re all standing around watching one guy work. But I don’t want to sound mean to the politicians gravy train. The citizen living in these Hell holes deserve it.
Of course, only if they continue to put up with it.
It’s not as if Washington-area officials and utilities were in the dark about the potential snowstorm, although many of their constituents and customers were in the dark Thursday, with thousands likely to remain without power through Friday evening.
Whatever could go wrong in the region’s first major snow dump of the year did go wrong, from traffic gridlock and extensive power outages to slick, snow-covered city streets that even seasoned mass-transit drivers couldn’t negotiate.
And nobody was spared — the mayor lost his power and the president got stuck in traffic. Jackknifed tractor-trailers, stuck buses and hundreds of abandoned vehicles blocked major roads and impeded snowplows well into Thursday.
I thought this guy was to intelligent to be president. Of course, he does’nt stand a snowballs’ chance but it still sounds better than Romney.
So far Oba mama’s a lock!
Of the two businessmen likely to be in the field for the 2012 Republican presidential nomination, long-shot Herman Cain, savior of the Godfather‘s Pizza chain, makes the case that he is far more electable than former Massachusetts Gov. Mitt Romney, the presumptive front-runner in the race.
Mr. Cain, whose bid has generated a surprising buzz in conservative circles, said in an interview that he admires Mr. Romney‘s business acumen and supported the former governor’s failed 2008 bid, but Mr. Cain argued that he possessed a greater ability to connect with voters and make things happen.
“Romney is a successful businessman who made a whole lot of money, and my hat’s off to him. I like people to make money,” said Mr. Cain, whose varied resume includes a stint as chairman of the Kansas City Federal Reserve Bank, a widely praised turnaround job at the Pillsbury-owned Godfather‘s chain, a term as head of the National Restaurant Association and host of a radio talk show in Atlanta.
Time for a riot, right? Is Egypt the first in the area to go? Stay tuned.
Sure looked like it. Weren’t they moving last year in another big speech? Maybe another 6 years will make a difference when he wins reelection.
All I know is we’ll get a bigger better Amtrak out of it. We know how well that worked out, don’t we?
Listing nut job shooters and trying to blame your political opponents is silly.
Proof: Oswald was a Commie and shot a liberal democrat.
John Wilkes Booth was a Democrat and shot a Republican president, Lincoln.
Need more? Use Google for “left-wing assassinations.”
Now read the following and try to figure what the Hell this has got to do with anything.
A Whole Lot of Lone Nuts
01/12/2011 by Jim Naureckas
Right-wing pundits have come out vociferously against the idea that they, their colleagues and the political movement they identify with have anything to answer for in the wake of the Tucson massacre.
David Brooks (New York Times, 1/11/11) asserted that “the evidence before us suggests that [shooting suspect Jared] Loughner was locked in a world far removed from politics as we normally understand it,” rejecting as “vicious charges” the notion that the gunman “unleashed his rampage because he was incited by the violent rhetoric of the Tea Party, the anti-immigrant movement and Sarah Palin.” George Will (Washington Post, 1/11/11) bitterly denounced the “political opportunism” of “charlatans” who subscribe to the “superstition that all behavior can be traced to some diagnosable frame of mind that is a product of promptings from the social environment.” Charles Krauthammer (Washington Post, 1/12/11) insisted that “there is no evidence that he was responding to anything, political or otherwise, outside of his own head,” marveling that those who suggest otherwise would make a charge “so reckless, so scurrilous and so unsupported by evidence.”
It’s comforting to think that evil-doers exist in a vacuum, and the evil that they do has no relation to anyone else. Dismissing Loughner as a lone nut, however, is much more difficult when one considers the startling number of incidents of political violence in the last few years. From a lengthy list of violent events and reckless rhetoric compiled by the Coalition to Stop Gun Violence, I’ve excerpted the cases that involved gunfire or other overtly deadly acts; the complete timeline includes numerous other episodes in which police disrupted violent plans before they were carried out:
July 27, 2008–Jim Adkisson shoots and kills two people at a progressive church in Knoxville, Tennessee, wounding two. Adkisson calls it “a symbolic killing” because he really “wanted to kill…every Democrat in the Senate & House, the 100 people in Bernard Goldberg’s book,” but was unable to gain access to them….
April 4, 2009–Neo-Nazi Richard Poplawski shoots and kills three police officers responding to a 911 call to his home in Pittsburgh. His friend Edward Perkovic tells reporters that Poplawski feared “the Obama gun ban that’s on its way” and “didn’t like our rights being infringed upon.” Perkovic also commented that Poplawski carried out the shooting because “if anyone tried to take his firearms, he was gonna stand by what his forefathers told him to do.”…
April 25, 2009–Joshua Cartwright, 28, a member of the Florida National Guard, shoots and kills two Okaloosa County sheriff’s deputies attempting to arrest him on a domestic abuse charge. Cartwright is killed in an enusing gun battle with police. Cartwright’s wife reports that he was “severely disturbed” that Barack Obama had been elected president. Okaloosa County Sheriff Edward Spooner states that Cartrwight was “interested in militia groups and weapons training.”…
May 31, 2009–Scott P. Roeder shoots and kills Dr. George Tiller, an abortion provider, in the foyer of Reformation Lutheran Church in Wichita, Kansas. The FBI lists Roeder as a member of the Montana Freemen, a radical anti-government group. In April 1996, he had been pulled over in Topeka, Kansas, for driving with a homemade license plate. Police found a military-style rifle, ammunition, a blasting cap, a fuse cord, a one-pound can of gunpowder, and two 9-volt batteries in his car….
How could Sarah get all the way from Arizona to Connecticut?
Oh yea, Bush did it. Or maybe it was Limbaugh?
Man Stabs 4, Killing 1, After Fart Criticism
2011_01_fartstab.jpg A Bristol, Connecticut man is behind bars after a stabbing rampage that left one dead and three others injured at a party on Saturday night. According to the Hartford Courant, Marc Higgins “told investigators he became enraged because people were criticizing him for passing gas, police said… [He] stormed out of the party, came back armed with three knives and started stabbing people indiscriminately, according to court documents released Monday.”
Higgins, 21, was reportedly “chastised…for being flatulent” by another person at the party, Stacy Buccheri. The pair got into an argument, and witnesses say that Buccheri slapped Higgins, ” who smashed a beer bottle and then stormed out of the apartment. He returned about 45 minutes later, police said, and attacked several people on a porch with knives, including all four who were wounded.” Matthew Walton, 21, died from his wounds while three others, ages 18-19, were treated for stab wounds. Higgins, who was described as “very drunk” at the party by witnesses, said that Walton was a friend and that he didn’t target anyone specifically—he just started stabbing.
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