Saturday, November 19, 2011

Weekend Open Thread...

Weekend Funnies...

Friday, November 18, 2011

Morning Update/ Market Thread 11/18 - Legitimacy of the Fraudsters is Questioned Edition…

Good Morning,

Equity futures are bouncing higher this morning, the dollar is lower, bonds are slightly lower, oil is trying to regain the $100 mark after falling beneath yesterday, gold & silver took a tumble yesterday and are close to even this morning, and food commodities are breaking down from their recent ranges.

Since I’m talking about food commodities, I see what appears to be a very large Head & Shoulder’s pattern appearing in most. Below is a weekly chart of wheat, showing the development of that formation over the past year:

That is a huge pattern, a break below that neckline at 600ish would create a target at nearly half that level. Got to tell you, that would be a good thing, but of course it would be fought tooth and nail by those who wrongly were given the ability to control the production of money throughout the globe.

Looking at the S&P 500, it clearly broke down from that triangle yesterday, and today it is retesting the breakdown, something that is completely expected:

The meltdown of MF Global is really beginning to impact world markets. The derivative exchanges are refusing to release and guarantee funds, thus we're seeing the cost of credit start to rise sharply again and we're seeing players in the derivatives space begin to see the handwriting on the wall that says, "game over." The stock market is always the last to get the memo.

There were 245 people arrested in New York yesterday… thousands now have been arrested, harassed, and physically abused as a part of the Occupy movement. Contrast that to the treatment of those who have destroyed economies, and thus millions of lives, around the globe. No, protests are going to continue, they are JUST. It is the attempts to stop what’s coming that is unjust. Karma is something that usually catches up to people in the end, my advice to all government officials and especially to the police is that you best consider your futures and THINK long and hard about which side you are on and WHO the real perpetrators are. Because there is a comeuppance on its way, it is a classic fight between good and evil, and it is evil that is going to loose. If you examine historical examples of what happens to those who commit crimes against humanity after the revolution is over, you will want to make sure you are on the right side.

The evil I’m referring to is rooted in narcissistic greed. A few sick individuals who view the planet, and the people on it, as their personal fruit bearing garden - they think it exists just for them to walk around life taking from the planet and from others. They anointed THEMSELVES the bankers of the world and gave themselves the power to create money from nothing. No elections were held, no one voted for the IMF or the World Bank. And we all know that no one voted for the “Federal Reserve,” an agency that flies in the face of the Constitution. The people were sold out by a few narcissistic Congressmen just before Christmas Day in the year 1913. That was literally the crime of the century.

But the people are waking from their debt induced coma. It seems they have a nasty credit bubble hangover and are now pushing back against the sick pushers of usurious debt. In Europe, a few politicians are now waking up to the shame, just take a listen to the following two videos:

Nice to hear the truth, isn’t it? Powerful men are squirming in their seats. They should be, and if there is any justice in the world, they will be soon be squirming in their prison cells, cells once Occupied by protestors they rounded up and put in prison. Remember, the waves you cast in life come back to you.

Supposed “Leading Indicators,” which actually trail reality and are used to manipulate others, are released at 10:00 Eastern this morning.

All this attention on Europe diverts us away from our own horrific situation created by the very same sick and twisted individuals. How long ago was it we were bumping up the debt ceiling?
Washington, D.C. (CNN) - Congress passed a temporary spending measure on Thursday that will keep the federal government funded and open for business until December 16. The continuing resolution was necessary because the federal government is set to run out of money by midnight Friday.

Talk about sick, our nation should never have to be in debt, ever. There’s simply no reason for it. Allowing the private people who own and control the “FED” to exist was literally the treasonous act that surrendered our nation’s sovereignty. Occupy that.

Thursday, November 17, 2011

Morning Update/ Market Thread 11/17 - Occupy Money(ness) Edition…

Good Morning,

Equity futures are neutral and hanging onto the bottom of the symmetrical triangle with the dollar down slightly, bonds down, oil flat, gold & silver down, and food commodities close to breaking below their ranges. As you can see in the S&P 500 futures chart (/ES) below, prices struck the bottom of the symmetrical triangle and then bounced. This is the game that just is as computers now drive the action:

Housing Starts fell in October, but came in slightly higher than consensus, while permits rose somewhat. Here’s Econosellyouanythingsucker:
New residential construction essentially held steady in October but homebuilders may be increasingly optimistic as housing permits jumped. Housing starts in October nudged back only 0.3 percent, after rebounding a sharp 7.7 percent the prior month. The October annualized pace of 0.628 million units beat analysts' estimate for 0.605 million units and is up 16.5 percent on a year-ago basis. The dip in October was led by an 8.3 percent decline in the multifamily component, following a 35.0 percent spike in September. The single-family component rebounded 3.9 percent after a 2.6 percent decrease the month before.

By region, the decrease in starts was due to a 16.5 percent drop in the West. Other regions gained with the Northeast up 17.2 percent; the Midwest up 9.7 percent; and the South up 1.6 percent.

It is not gangbusters but it certainly is an improvement for future construction as housing permits jumped 10.9 percent after declining 5.8 percent in September. But the optimism is mainly for multifamily construction. The October rate of 0.653 million units annualized posted notably higher than the consensus forecast for 0.605 million. Permits in October are up 17.7 percent on a year-ago basis.

For the latest month, multifamily permits gained 24.4 percent while single-family permits rose 5.1 percent. On a year-ago basis, multifamily permits are up 48.0 percent while single-family permits are up 6.6 percent. Homebuilders clearly are more optimistic about the multifamily sector than single-family. Apparently, excess supply is still somewhat an issue for the single-family sector, along with continued soft demand.

Building more houses into falling prices simply makes no sense at all. And, gee, let’s put a chart to those numbers to give us a little historical perspective – you can call that “more optimistic” if you like, I call it a depression, as I note that none of the other recessions have produced numbers anywhere near these:

Housing Starts:

And while we’re looking at that obvious disaster chart, let’s point out some basic chart skills – it’s always important to consider the historical perspective. If you do not, then you might look at a chart like the one below, published by Econopretend, and conclude that the market is pretty darn stable:

Of course the housing market is stable, it went splat after falling off a cliff. Always consider the timeframe…

Jobless Claims fell by 2,000 in the prior week, not the 5,000 advertised by Econocomplicit who compares unrevised apples to revised oranges:
Jobless claims continued a recent, mild downtrend with a 5,000 decline in the November 12 week to 388,000. Initial claims have decreased three weeks in a row and in four of the last five. The four-week average dipped 4,000 to 396,750.

Continuing claims, in data for the November 5 week, dropped 57,000 to 3.608 million.

The insured unemployment rate was 2.9 percent for the week ending November 5, unchanged from the prior week's unrevised rate.

Again, shifting out to put a historical perspective on the Initial Claims number, we know that it requires a number below 350k to indicate job creation. On the chart below showing the historical perspective, I drew a red line at the 350k mark, but keep in mind that line shifts up as the population grows. In the short view of Econoday’s chart, the recent trend is that claims are coming down, but looking a the historical trend we can clearly see that the trend is up:

Initial Claims:

When I overlay the Mean Duration of Unemployment (red graph) against the Initial Claims chart (blue graph), we can see that the trend is for the Mean Duration to begin falling a year or two after the Initial Claims begins falling, and therefore it may very well be that the Mean Duration of Unemployment chart has peaked as well:

Of course this cycle is very different. The unemployed stay unemployed and then fall off the rolls expiring first normal, and then emergency benefits. Our Unemployment figures fail to track these people and don’t count large portions of the population who are out of work.

Moving on to another lesson, I’ve been using the term money(ness) a lot lately to be inclusive of all things that act like money, including actual money which is a very small fraction of total moneyness these days. A good example of moneyness is margin, like many have in their brokerage accounts.

Margin allows you to effectively own and control more (stocks, commodities, whatever) in your account than you have actual money in your account. Say you have $100k, and a 20% margin account, then you can own $120k worth of stock. Now think about this… if everyone who owned stock used 20% margin, then the market would effectively be 20% larger in dollar terms than it otherwise would be. And neither the “Fed” nor any banks had to “print” money to accomplish this. That money(ness), in effect, is created by the brokerage houses, it is a form of leverage (it is also a form of money from nothing creation and therefore should be very regulated by the PEOPLE - again, giving brokerages the ability to make money from nothing is a privilege granted by the people and can be revoked).

Now imagine that you all at once ban margin, what happens to the stock market? What happens when you offer more margin? See why it has such a powerful effect? Indeed, it was margin that helped to create the “Roaring Twenties,” which popped in spectacular and historic fashion in 1929.

Today there is a ton of margin, but there is a massive, gigantic, historic sized pile of money(ness) that we call derivatives. Derivatives do the same thing as margin, they create leverage. The failure of MF Global is a huge red flag, it is very much like the failure of New Century Financial, the first subprime lender to fail. It took the market quite a while before the subprime dominos fell from that point, I’m just saying that I smell a crack in what has become the world’s largest money(ness) bubble.

Go Occupy! Bloomberg go to hell. Please take the time to watch the following video. Think about the courage of this young man – proud of him! That is all, have a nice day!

Wednesday, November 16, 2011

Morning Update/ Market Thread 11/16

Good Morning,

Equity futures are lower this morning with the dollar higher, bonds higher, oil zooming after breaking the $100 mark, gold & silver are lower inside of their recent ranges, and food commodities are slightly lower also still stuck in their ranges.

As you can see, equity prices are still in the middle of that symmetrical triangle. Symmetrical triangles are usually, but not always, continuation patterns. This one was entered from below, so in the technical analysis world you would expect it to break higher:

Italy has named their new President – Mario Monti. He calls himself an economist and not only is appointed President, but also the Finance Minister. One of the clients he has “advised?” None other than Goldman Sachs. So, we have a Central Banker installed in Greece, and now Monti in Italy. Boy, oh boy, is it going to be tough to rout them out… I can clearly see the central banker money from nothing puppet strings from here.

The U.S. Post Office just reported losing $5.1 billion in the past year! Oh, but if only it were that good, for they actually lost $10.6 billion considering they are underfunding their retirement OBLIGATIONS by $5.5 billion:
NEW YORK (CNNMoney) -- The U.S. Postal Service released its annual financial results on Tuesday, and they're nothing to write home about.

The agency reported an annual loss of $5.1 billion, as declining mail volumes and mounting benefit costs take their toll. The Postal Service said its losses would have been roughly $10.6 billion if not for the passage of legislation postponing a $5.5 billion payment required to fund retiree health benefits.

What a country! We vilify retirees because they were made a promise and worked hard all their lives. Our “rule of law” gives ALL stakeholders priority above retires! Talk about ridiculous. This is exactly how my Grandmother was screwed out of her entire retirement – she worked at Chaffee’s Department Store for more than 30 years. One year after she retired, they filed for bankruptcy and the judge paid all creditors first, 100% of her retirement was gone. And the law, when it’s followed which is rarely these days, is still the same in that regard. Yes capital needs to be treated nicely, but so do people who slave their entire lives away. This is one aspect of the law that needs fixing – retiree plans, promises made by companies, need to 100% funded 100% of the time, and they need to be untouchable by anyone – no bankruptcy judge, no government, no one except those who earned it. Of course the government thinks they can issue credit without paying for it and somehow magically in the future it will be taken care of… oh what a disaster.

The shyster Mortgage Banker’s Association reports that Purchase Applications fell 2.3% in the past week with refinance activity falling 12.2% - here’s Econoplicit:
Mortgage application volume decreased about as sharply in the November 11 week as it increased in the prior week when rates, due to the crisis in Europe, dropped suddenly and substantially. Purchase volume fell 2.3 percent in the latest week with refinancing volume down 12.2 percent.

Rates were little changed in the latest week, at 4.23 percent for conforming loans ($417,500 or less) and at 4.56 percent for jumbo loans ($417,500 or more). The latest week includes Veteran's Day which blurs any conclusions from the data. At 10:00 a.m. ET this morning, home builders will post their housing market index.

The CPI fell .1% in October with “core” rising .1%. Remember, these figures are understated dramatically:
Consumer price inflation finally softened in October at the headline level. The consumer price index in October declined 0.1 percent, following a 0.3 percent boost in September. The October figure came in lower than analysts' forecast for no change. Excluding food and energy, the CPI rose a modest 0.1 percent, matching September's gain and the consensus projection.

By major components, energy declined 2.0 percent, following a jump of 2.0 percent in September. Gasoline dropped 3.1 percent after spurting 2.9 percent higher in September. Food price inflation softened to a 0.1 percent rise after jumping 0.4 percent. Within the core, upward pressure was seen in medical care and apparel with declines in new vehicles and used cares partially offsetting.

Year-on-year, overall CPI inflation slowed to 3.6 percent from 3.9 percent in September (seasonally adjusted) in August. The core rate nudged up to 2.1 percent from 2.0 percent the month before on a year-ago basis. On an unadjusted year-ago basis, the headline number was up 3.5 percent in October, compared to 3.9 percent in September. The core was up 2.1 percent, compared to 2.0 percent the month before.

Today's numbers are consistent with the Fed's hope for an easing in inflation. However, the headline number will be under upward pressure in November from the rebound in crude oil prices.

Inflation is the bane of the people, but the boon of the bankers. Here’s how Shadow Stats calculates inflation, the way it used to be calculated prior to all the hedonistic tweeks – gee, that’s many multiples of the advertised inflation:

The Treasury International Capital (TIC) Report came in with a large positive number in September. Econoday credits flight to safety, I credit a complicit Treasury that is falsifying accounting along with the “Fed” who has effectively taken over the Treasury Department. I don’t trust one, not one figure, that comes from either of them. Still, here’s the latest edition of Inside Pravda:
Volatility in international financial markets made for a second straight month of increasing inflow into long-term US securities, at $68.6 billion in September following August's revised $58.0 billion. These follow inflows of only $9.1 billion and $4.1 billion in the two prior months. US investors, repatriating their funds, were small net sellers of foreign securities in September.

But increasing demand for US securities is narrowly based into Treasuries in contrast to outflows for corporate bonds and especially US equities which is no surprise given the general move into safety and away from risk. Net outflows from equities were a very steep $19.2 billion in September following August's $6.5 billion outflow.

When including short-term securities the story is the same with net inflows at $57.4 billion in September vs an $89.3 billion inflow in August that follows significant outflows in the relatively quiet months of July and June. Country data on US Treasury holdings shows increases for the three major holders -- China, Japan, UK.

Here’s the entire TIC report for your fraudulent reading pleasure:

TIC Data Sept 2011

Are we having fun yet?

Get ready for some more “strength” in manufacturing numbers – I’m getting tired of talking about how our “productivity” is really a measurement of money(ness), we all know that we produce very little and that the bulk of our production has been sent overseas:
In a convincing sign of economic strength, industrial production surged 0.7 percent in October reflecting a very strong 0.5 percent rise in manufacturing output and a 2.3 percent rebound in mining output. The rebound in mining follows a sharply downward revised 0.5 percent decline in September, a revision from an initial reading of plus 0.8 percent which is largely responsible for a downward revision to total September industrial production from plus 0.2 percent to minus 0.1 percent.

But the downward revision to September is a footnote compared to October's strength in the key manufacturing component where gains were led by a 3.1 percent surge in autos as the rebound from prior Japan-supply dislocations appears to be hitting a peak. Excluding autos, manufacturing still posted a second-straight and respectable 0.3 percent gain. Overall output of consumer goods shows a very strong 0.5 percent gain in the month with business equipment output extending its long run of strength, up 1.0 percent in the month.

Other readings in today's report include a five tenths surge in total capacity utilization to 77.8 percent which is the highest reading of the recovery (prior month revised to 77.3 percent). Output at utilities had little bearing on October's results, slipping 0.1 percent in the month.

It's important to note that today's report includes only shipments which are coincident data. Government data on factory orders and unfilled orders for September, which are leading data, were mixed though ISM data on October, released at the outset of this month, point to increasing levels of orders. Despite all the troubles in the domestic job sector and questions over European demand for US goods, the manufacturing sector is once again the focal piece of economic strength.

The traditional non-NAICS numbers for industrial production may differ marginally from the NAICS basis figures.

“Convincing sign of economic strength…” Oh boy.

Again, we manufacture money(ness) and send everything else overseas. Our manufacturing base has become so pathetic that just a few airplanes can send this data jumping one way or the other, and oh yeah, we really only have one major aircraft manufacturer left, and they actually manufacture the majority of their new airplanes overseas but assemble them here – where they wind up counting in this statistic because they use the sale price without accounting for the money sent overseas to pay for the subassembly work done there.

And while I’m talking about Boeing, they continue to blackmail Washington State, now getting ready to upgrade the 737, they are threatening to leave the state to get a better deal. They would pack up their assembly lines here, build new factories, move all their equipment, and hire new employees, just to get a sweeter deal from some other state willing to buy this great deal. Completely pathetic, no state should have the ability to offer financial incentives and tax breaks to corporations, period! This is a part of separating money from politics – politicians are not supposed to be in the business of buying favors from corporations, and vice versa. The playing field will only be level when money is separated from politics.

Below is a chart showing Capacity Utilization from about 1970. Remember that capacity utilization is a comparison between what infrastructure we have in place to produce, versus how much we actually do produce. All the numbers on this chart are historically pathetic, but remember that over these past four decades that we have been massively shedding capacity! So, not only is capacity falling, but we’re utilizing it less and less which means we are likely to continue to shed that excess capacity. Again, it is going overseas – just look at the overall trend of Capacity Utilization, one of the few measurements that isn’t taken in dollars:

Now take a look at the number of Employees in Manufacturing. We currently have the same number in Manufacturing as we did in 1942!! This, despite the population doubling in size! Again, this is one of the few measurements not in dollars, but in this case in people:

Yes, we have become automated in our production, but we have also shipped the majority of our manufacturing jobs away while we concentrate on producing financial schemes designed to enslave the world in debt.

Tuesday, November 15, 2011

Morning Update/ Market Thread 11/15 - It’s Just Hard to Watch Edition…

Good Morning,

Stocks continue to move down still inside of that triangle I showed yesterday.

The dollar is higher, bonds are higher, oil is unfortunately hanging in there, so are gold & and silver, while food commodities also refuse to surrender.

The war mongers are currently deploying step #1 from their How to Start a War and profit from it playbook. That first step involves villainizing the “enemy,” and creating fear which justifies their action. Just look around the news and you will see it. Embarrassing, shameful, and disgraceful that my country, America, does so much of this. We have forgotten our basic tenants – it is the pursuit of FREEDOM that brings security, not the other way around. And just consider this; you cannot be secure when you bankrupt your nation; debt is the opposite of sovereignty; and the fact that America spends as much as the rest of the globe combined on “national defense” is what I can term only literally insane – stupid is the polite version.

Yes, it is my belief that Freedom’s Vision would put an end to this – it is the creation of sovereign money that would drive the evil from our political system, again the most important thing is WHO is in control of the production of money. The production of money corrupts those who make it, even your representatives – it is truly the root of evil, that is why your representatives must have strict checks and balances placed on them to ensure the quantity of money targets zero percent price inflation, that is how you prevent ridiculous and unnecessary wars, yet still have the ability to truly have a strong defense.

The PPI, which leads the CPI, is falling from its elevated levels. Remember, these statistics do not reflect reality in terms of magnitude, but they do reflect trend information, and it appears that the latest wave is turning back down. Here’s Econosupportthebox:
Weaker energy costs turned producer price inflation negative-at least temporarily in October. Producer prices fell 0.3 percent in October after jumping 0.8 percent in September. The October number came in lower than the consensus forecast for a 0.2 percent dip.

By major components, energy fell 1.4 percent after rebounding 2.3 percent in September. Gasoline dropped 2.4 percent, following an increase of 4.2 percent. Food costs decelerated to a 0.1 percent rise, following a 0.6 percent boost in September. At the core level, the PPI was unchanged in October, following a 0.2 percent rise the month before. Analysts expected an increase of 0.1 percent. Declines in prices for prices of passenger cars and light trucks played a key role in keeping the core flat.

For the overall PPI, the year-ago rate in October was 6.1 percent, compared to September's 7.0 percent (seasonally adjusted). The core rate in October firmed to 2.8 percent from 2.5 percent in September. On a not seasonally adjusted basis for October, the year-ago headline PPI was up 5.9 percent, compared to 6.9 percent the prior month. Meanwhile the core was up 2.8 percent on an NSA year-ago basis, compared to 2.5 percent in September.

Retail Sales in October supposedly rose .5%, this is down significantly from the 1.1% the month prior. Keep in mind that this report is extremely flawed, it measures sales in dollars and since inflation is incorrectly measured is not adjusted appropriately. Since inflation is way understated, it overstates Retail Sales. Another flaw in this report is substitution bias, that is it only measures stores that are open over the last year and fails to account for stores that have closed. This is a ridiculous measurement, and it would be a relatively easy task to make this report truly meaningful, but truth and transparency are not high on the list of those who control economic statistics:
In October, retail sales continued to gain--not at September's rapid pace but still quite healthy. Overall retail sales in October advanced 0.5 percent, following a 1.1 percent jump in September (originally up 1.1 percent). The rise in October well beat analysts' forecast for a 0.2 percent increase. Excluding autos, retail sales increased a strong 0.6 percent in October after increasing a robust 0.5 percent in September (originally up 0.6 percent). The median forecast was for no change. Gasoline sales tugged down on the core, dipping 0.4 percent, following a 0.7 percent jump the month before. Sales excluding autos and gasoline in October jumped 0.7 percent, following a 0.5 percent gain in September. Component gains were widespread.

Component gains were broad based. The strongest component was for electronics & appliance stores which surged 3.7 percent in October, followed by building materials & gardening equipment (up 1.5 percent) and nonstore retailers (up 1.5 percent). Also seeing gains were motor vehicles, food & beverage, health & personal care, sporting goods & hobby, miscellaneous store retailers, and food services & drinking places.

The largest decline was in clothing & accessory stores, down 0.7 percent, and furniture & home furnishing, also down 0.7 percent. Gasoline station sales also slipped. General merchandise store sales were unchanged in October.

Retail sales on a year-ago basis in October posted at 7.2 percent, compared to 7.9 percent in September. Excluding motor vehicles, sales were up 7.3 percent on a year-on-year basis, compared to 7.7 percent the month before.

Today's retail sales report shows a consumer much more willing to spend than sentiment surveys suggest. This is a good start for putting together estimates for fourth quarter GDP growth. On the news, equity futures improved.

What nonsense. The only value in this report is how one item is faring versus the other. The fact they mention the GDP in the same breath as this report shows you that they count on the misread of inflation to support our phony production numbers.

The Empire State Manufacturing Survey turned slightly positive from the last very negative read:
Optimism is appearing in the New York region's manufacturing sector where the assessment of general business conditions, at plus 0.61, is in positive ground for the first time since May. Really improving is the six-month outlook for general conditions which is at plus 39.02 from October's unusually low 6.74. Business sentiment, like consumer sentiment, may finally be picking up after the debt limit debacle in August.

Sentiment is lagging actual order levels with new orders, at minus 2.07, showing a monthly contraction and unfilled orders, at minus 7.32, showing a slightly deeper contraction. But manufacturers in the region see this contraction as temporary with their six-month outlooks pointing to growth for each especially for new orders.

Other data in today's report include a second month of growth for shipments but a contraction in the sample's workforce. Yet if optimism is realized, the gain for orders should trip gains for hiring. National shipment data on the manufacturing sector for October will be posted with the industrial production report on Wednesday. On Thursday, the Philadelphia Fed will post its November report.

My take is that most of these manufacturing statistics are simply measurements of inflation, not of actual production. Instead of measuring units of production, these reports all first measure the flow of sales measured in dollars. Then in this case that is turned into an index level. So if, for example, a boat manufacturer makes the same 10 boats they made this year as they did last year, but they raise their price 10%, then manufacturing is reporting as up 10%!

But NO, manufacturing was not up at all, it was flat. And this is the “miracle” that is our jobless recovery and is where the supposed gains in employee utilization magically appear… When output is measured in dollars instead of widgets, then it’s possible to have fewer employees manufacturing the same output with fewer widgets, but at a higher dollar amount as the dollar is debauched. That is America “productivity” in a nutshell – we manufacture and then measure money(ness). While there have been technological advances making employees more efficient, it is vastly overstated when considering this monetary miss-measurement effect.

Now for a pet peeve of mine that will hopefully open people’s eyes, because it doesn’t just apply to this example, it’s happening everywhere… Here in Washington State we have some of the world’s most beautiful parks. Some parks are national, some are owned by the state, and some by local governments. These parks, of course, belong to the people collectively – they have already been bought and paid for. The maintenance of the parks, then, is the collective responsibility of the people – from my perspective one of the few legitimate activities of government. To pay for the maintenance of state parks we pay both property and sales taxes.

But our state is broke. This is because they are too foolish to create a state chartered bank – instead they finance all their functions through Wall Street and the big central banks, paying interest to private individuals – all unnecessarily. And then the politicians, of course, unrestrained by proper checks and balances, begin spending money on all sorts of things where it’s not appropriate for government to be. So, as they run out of money, they turn to the things that people consider a must, the things that are the true legitimate functions of government, and they remove funding for them while charging new “use fees,” aka taxes, for people to use their own parks for which they have already paid for and were already taxed for. This is also true for national parks that now do the same damn thing.

In Washington State you now must spend $30 on an annual pass that is only good for ONE VEHICLE. If you visit the park on your motorcycle, for example, and then want to return with your kids in your van, thank you, that’ll be another $30 please. This was not put to a vote of the people of course, it was just foisted on us in a rob Peter to pay Paul scheme. I no longer enjoy my beautiful state parks and am angry every time I see one. I stopped visiting national parks a long time ago.

Of course the projected revenue from this parks money scam is not panning out like the scammers thought – gee, what a surprise:
Discover Pass doesn't raise the cash expected

TACOMA — Sales of a new Washington state park parking pass — the Discover Pass — is not raising the cash officials expected.

Lawmakers have mostly cut off parks from taxpayers’ help, whether or not the new $30 annual parking fee can fill the gap.

If the program fails, the parks agency would have to find new money or close most of the state’s 116 parks, The News Tribune reported in Sunday’s newspaper.

Some officials hope sales of the pass will improve during its first spring. But they worry people will continue to dislike the parking pass because it can’t be transferred from one car to another. That issue should come before the Legislature this winter.

“I heard from dozens of people personally that just said, ‘I’m not buying it,”’ said state Sen. Kevin Ranker, who is writing a proposed update to the law he sponsored that created the pass.

Other factors could pull Discover Pass sales numbers down or up: weather, more aggressive marketing, and an option for drivers to buy the pass when renewing their license tabs, which they have been able to do only since late August when notices went out to drivers whose tabs expired in October.

The passes brought in $6.5 million from July 1 to Sept. 30, with parks taking the biggest share at 84 percent and the rest divided equally between the Department of Natural Resources and the Department of Fish and Wildlife.

The state hopes to raise at least $64 million in the first two years. State parks officials concluded from surveys that’s how much visitors would pay.

Did you catch the part about “marketing” to up pass sales?! Trust me, you do not have to spend money to “market” our parks, you only need to do that to market your ridiculously reckless tax scheme designed to shell game our state’s budget.

The truth is that visiting parks is one of the only healthy activities left, and it is the lower income levels who use them to their advantage giving them healthy inexpensive family time and activity. Well, there are more economically disadvantaged people being created in this country everyday – throw a $30 pass on them and they will simply refuse to enter, making the parks then only for those with wealth. This is why I choose not to feed it.

Of course the threat is that they will close the parks to the people who already paid for them and indeed own them! Okay then, close away! Perhaps closing our parks will highlight the stupidity of our national money system and how it funnels wealth straight up to those who produce money from nothing.

Truly it’s just hard to watch, especially when you know it simply doesn’t have to be this way.

Monday, November 14, 2011

Morning Update/ Market Thread 11/14 - They Never Mention the Word Addiction Edition…

Good Morning,

Equity futures are slightly lower this morning, the dollar is significantly higher, bonds are higher, oil tested $100 a barrel then retreated, gold & silver are down slightly, while food commodities are now resting at the bottom of their narrow recent range. I just want to point out that the Yen has already given back a large percentage of its move on Japan’s last intervention announcement – never works, because it is their interventions that cause the problem in the first place. If they want the cycle to end, then they need to stop intervening, let rates normalize, and let or help the debt clear.

No economic data today although the rest of the week is fairly busy, but without any major releases. I’m busy with the business this week and am going to keep these updates fairly brief.

From a technical standpoint, the markets have formed a sideways triangle. The direction of break from that triangle will tell you what the next direction is, up or down.

Of course it’s a disaster either way from my perspective, if the market rises then commodities rise with it, stealing from you every time you eat or fill your car up with gas. If the market breaks lower, then its asset stripping of the people as those who make money from nothing swoop in to buy up any remaining assets. Once a nation is debt saturated, everyone in it except those who produce the debt, are slaves and national sovereignty is lost. That is why our nation operates on behalf of central banks and not on behalf of the people.

Europe is simply saturated with debt. Will the Eurozone shrink, collapse, or hold together seems to be the question? The fact is that every potential “solution” to date is actually the problem and no solution whatsoever. Just look at the chart below showing the on the books debt to GDP in red, and the total debt to GDP in blue that includes off the books obligations:

What that chart is saying is not only are we and Europe saturated with debt, but we are LIARS. We lie to ourselves, we lie to one another, we commit accounting fraud and we manipulate our statistics as not only is our debt much greater than advertised, but our GDP is as phony as the day is long. Eurozone hold together? I don’t think so. Some self-anointed bankers going to create debt money from nothing to “rescue” Europe? Laugh out loud.

No, things are going to change, and they are going to change real soon. Crackdown on the Occupy Movement? LOL to that too, forcing out protesters under the excuse of "health" concerns shows only that the police forces are paid for by the central banks. That type of move is foolish and will only generate further backlash. It's time to admit our addiction, Freedom's Vision with truly sovereign money is the cure.