Alea Iacta Est - "The die has been cast" - Julius Ceasar, after crossing the Rubicon River on his way to conquering RomeI really wanted to go into a rant about how our economy and political system is in a serious state of collapse. The economic numbers released yesterday and this morning are proof that I'm right in my assessment of the economy. The Syrian situation is all the proof we need that our Government knows I'm right (the old attempted "divert the public's mind from the problems at home").
Quietly yesterday afternoon the Government released the August spending defiict. It surprisingly came in on the high side at $148 billion, well in excess of July's unexpectedly large deficit of $97.6 billion. And I'll note for the record that media was pretty quiet about reporting the number. YTD the total deficit with one month left in the fiscal year is $755 billion. To be sure it will a be bit less than last year and it will fall short of the trillion dollar mark, but keep in mind that embedded in this number is close to $100 billion of non-recurring payments from Fannie Mae, Freddie Mac and taxpayers (the December tax revenue jump from investment gains taken before the Jan 1 capital gains increase). In addition, revenues are higher this year, not because of a better economy, but because of a higher payroll tax rate. Finally, we know that Jack "I'm Robert Rubin's New Butt Boy" Lew, the new Treasury Secretary, has explicitly stated that he has played games with the budget in order to avoid running out of money now that the Government debt issuance has exceeded the so-called debt ceiling limit. The Government spending will experience a "snap-back" affect - at least from an accounting perspective - in the next FY from these "games."
Today retail sales for August were reported. They came in below expectations, and well below expectations if you strip out auto sales (which are inflated by easy credit) and inflation. You can read the details here: LINK and here: LINK. Essentially clothing sales and building materials (I told you the housing bounce is over) are dropping and restaurant sales - the beacon of disposable income - are plunging. In addition, consumer confidence was reported and it had its biggest miss vs. expectations on record and it has plunged back to its January level: LINK. In short, consumer spending is contracting (expect for student loan and auto debt recipients) - the economy is in trouble and the people on "main street" know it.
So much for my not ranting (but I kept it brief). The good news for gold investors is that since the Lehman crisis in 2008 it turns that gold and silver have been the number 1 and number 2 best performing investments: Gold and Silver #1 Since Lehman Collapse. I bet that surprises everyone who is reading this. Despite this nasty two-year correction, if you invested every penny in gold and silver, you have outperformed every other possible asset class. And get ready for the next move higher in gold and silver, because our system is in worse shape and further along its collapse than it was in 2008. Goldman Sachs knows this and that's why - despite their analyst report that says gold could still go lower here - Goldman Sachs - the firm - became one of the largest holders of GLD during the 2nd quarter of 2013. That just goes to show that anyone who follows the advice of the Taxpayer-supported big Wall Street banks is a complete idiot.
This brings me to the intended topic of my post today. I happened to catch the 1957 Frank Sinatra classic "Pal Joey" with Rita Hayworth and Kim Novak last night. I have to say, there's nothing like a cheeseball 50's musical to make you think back to what this country was like when it truly was an "exceptional" place to live and in which to be a proud citizen. I'm not going to elaborate beyond that because I want everyone to enjoy this number from the movie - but I will say that it really angered me that our country has devolved into a cesspool of unfettered corruption that's led by a gang of Democrats who are war-mongering, lying, cheating, stealing neocons and their figurehead is a useless Chicago-system politician who is better equipped to pimp hookers on Chicago's South Side - ENJOY:
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people forget the obamacare taxes which started 1 year ahead of the costs--I think the taxes are to be around 300 bil for this year--
ReplyDeletethat certainly helped .
Great article. Your comment about the democrat hoodlums is about right. It only leaves out that the republican hoodlums are just as bad! I met a new friend from Nigeria a few weeks ago. He is an IT man and installs computers in large banks. His work for 30 years has been worldwide. Europe and Asia both. he finally got to end up here in the States- the one place on earth he longed to live his life in. The land of the free, America. His life long dream. he told me compared to Germany, England, France, China, Japan, and other countries he has worked in that he couldn't believe how many liars and cheats there were here. He says the rest of the world hates us and knows this, too. Wow, liars and cheats as seen through the eyes of someone that has dreamed all his life of being here from an uncivilized area such as Nigeria!
DeleteTell ya what, when I lived in NYC, some of the brightest dudes I came across weren't the gear-head MIT geeks on Wall St. but were the taxi drivers from Nigeria who were earning a living while they got graduate degrees from good grad school programs in NYC. They were all very insightful and articulate. They certainly spoke with more correct English than most people under 50 who grew up here.
DeleteDave I was doing a piece on the CBO's BS projections of a 643 deficit (May) and I wondered where you got the 755 billion fig with a mo. left to go.
ReplyDeleteThanks
$755 billion was in the bloomberg report this a.m.
DeleteThe, USA a Narrowing - (Oscar "Facebook" Insurance)
ReplyDeletePublished on Sep 12, 2013
The US gets narrow!; Less Less and Less desirable, and more more and more undesirable expansions.
http://youtu.be/Gf9omQzti9g
in time we'll all be choking....
When things start to get dicey in the sea of finance it won't take long for all to realize that their circumstances will have to be handled like they were on board their own vessel navigating horrendous odds.
ReplyDeleteHaving physical silver in ones possession is like having a fully functional lifeboat on board the ship of each individual group or family ,for which it stands for.
Start with getting pre 1965 dimes , quarters , and 1/2 dollars (Franklin's). This form of 90% silver will help in buying food and other assets and can come in handy with bartering activity.
To be self reliant will be the name of the game.
US citizens don't do bartering, they do greed. If you do $600 worth of work for them, they will try to trade you a $25 wal-mart gift card for it or try to get it for free (not kidding!). I will NEVER do it again!
DeletePeople who come from other countries will tell you that they do fair trading in their homeland and are going back there, too. They hate the back-stabbing and "everyone-for-themselves" mentality here.
Really think that the debt ceiling "issue" will be used as a tool to "force"-total sarcasm, the Fed to scale back only because it will have run out of 'things' to buy. We already know the worlds balance sheets are nothing more than re-hypothecated garbage. However this is the perfect scenario for the system to sit back and let it happen while huge sums of money are made simply because " we just couldn't come to an agreement on debt ceiling". That will allow the Fed the cover it needs to taper simply because it has nothing left to 'buy'.
ReplyDeleteIt wont last long though as they can't really have the worlds largest levered hedge-fund (Fed) in position where actual losses happen.....even if they send the bill to treasury.....
BTW, also saw movie I have never seen all of before......Giant
ReplyDeletePedro?.......Not Pedro?
We're Pedro now.
Dave, Dude, tell me how you really feel about our current situation and this time don't hold back. I try and catch an old flick on TMC just to get an idea of what America was like back in the day. I must say it looked like it was a lot of fun and people were very nice. Women looked like women and men were men. I hope when the dust settles maybe people will rethink whats really important. Let's hope for the best and prepare for the worst.
ReplyDeleteThis country could have been saved from collapse up until Nixon closed the gold window and Watergate happened. Some historians might say Viet Nam was the pivotal point, or maybe even 1913 (the Fed) but I think it was still savable up until 1972-ish
DeleteYeah, and I think the Syria threat is the new pivotal point. Obama is in different league to Putin. Putin is a master of chess game than amateur Obama, not to mention Putin also has black belt. Snowden and Syria, so far it is 2:0 to Russia. Also the mishandling of Syria has catalysed the paradigm shift in power, follow with economic landslide.
DeleteAs for the debt ceiling, it will pass. These Wall Street politicians only care for themselves, they look at the 99% with contempt. With great power comes with great defection, look at Greenspan.
BTW, I love the good old Sinatra, Andy William, what a golden era.
How can you tell that the US is not savable? Just look at the streets! There are too many fat and lazy people in this country! Do you think a country of bright future can be full of fatties? By and by, I suspect that Dave and most of the commentators here are also overweight...
Delete
ReplyDeleteMorgan Whistleblowers Confess Bank Manipulates Gold & Silver
Bart Chilton continues: “And, as you know, I’m prohibited from actually saying much. That said, I will not let September go by without speaking out if the agency doesn’t do so.”
Now, since the original CFTC Meeting, I’ve provided a very large amount of detailed evidence to the agency. And what isn’t known, however, up until now, is during that time I was also contacted by two JP Morgan employees who told me they had a large amount of documented evidence of market trading abuses in gold and silver by their bank (JP Morgan).
Now, it was my understanding that this covered the same time period of metals abuses that I had prepared in my submissions. And for their own protection I directed them to a law firm specializing in whistle blowers so they could formally provide this evidence under the Dodd-Frank Whistleblower Provision directly to the CFTC.
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/13_Morgan_Whistleblowers_Confess_Bank_Manipulates_Gold_%26_Silver.html
don't tell fleck, he'll just deny.....
Dave, we live in a corrupt corporate state. Both parties are full of corrupt corporatists on the take. In 1980, 3% of elected officials took jobs with lobbying firms after they left office. Now, that has grown to 42%. Presidents get lavish libraries built for them by undisclosed "donors". I guarantee Obama will have the biggest one.
ReplyDeleteMy point is that the #1 problem infesting Washington DC is systemic corruption and the "bought-and-paid-for" culture that dominates it. Self-interest has surpassed the national interest in terms of policy setting by our "public servants". They are virtually bribed through the backdoor with the promise of large contributions or cushy jobs after they leave office, which buys their support of corporate-sponsored policies. The Syria crisis has commercial motivations. Read this rant from David Stockman...
http://www.zerohedge.com/news/2013-09-04/david-stockman-end-american-imperium
We are doomed as a society until the corruption and money in politics/DC is expunged. The people need to wake up to start the change, and a leader needs to emerge who the people can trust and get behind who runs on an anti-corruption platform. That 3rd party candidate would get more votes than Ross Perot. The people are sick of war and corrupt politics 24/7.
I'll stop there.
Greg Palast: A Memo that Confirmed Every Conspiracy Freak's Fantasy
ReplyDeleteIn this video Luke Rudkowski interviews investigative journalist Greg Palast about the secret memo he uncovered. The End Game memo uncovered how top US Treasury officials secretly conspired with a small cabal of banker big-shots to benefit themselves. The memo indicates high level politicians like Larry Summers, who is most likely going to be appointed the next chairman of the Federal Reserve by Obama.
http://youtu.be/ogc-LRWByhY
Obama is better equipped to pimp hookers on Chicago's South Side? That's an insult to pimps and hookers everywhere, Dave.
ReplyDeleteWall Street Banks Obtain Market Data Ten Minutes Before Everyone Else
ReplyDeletePublished on Sep 13, 2013
A news scandal shows the markets are rigged
http://youtu.be/8jzViZOderc
I'm 41 and single with no kids. I haven't dated in two years, and have put every penny towards insulating myself from the coming collapse. I'm better prepared than most I think. What I have a problem with is visualizing me having a happy life. If I talk about the shit storm that's coming people perceive me as being negative. It's really hard when all of you're daily interactions are with people who refuse to see reality. I'm not a negative person - I'm a survivor.
ReplyDeleteI feel alone. I'm pissed that I'm probably going to go through life never getting to experience being a father. I want kids but I need to have them in a secure environment - where they have the possibility of achieving their dreams. I don't know if I'll be able to save myself so how can I consciously bring kids into this world. The thought of this brings tears to my eyes every time. I can't imagine what life is going to be for the average family of four who makes 50k a year with no savings. The whole situation is so tragic.
A solitary path can sometimes be a lonely one, but no price is too high to pay for the privilege of owning yourself. Keep doing what you're doing, anonymous, but don't be too hard on yourself and do try to smell a flower or two as you meander along life's pathway. There are enough crazy people in the world who will gladly walk all over you, don't help them do it. You're among friends here. Peace.
DeleteI was married for 22 years. You're not missing anything. What you are having is "romantic and pleasureable" thoughts of being married and raising a family but too much of this comes from movies and television, not from reality. It's very hard work and draining. alot of fighting and arguements as well. If you're not on the same track, the train will wreck and all your hard work will go up in smoke. You could try for a tea-party type as they may tend to see things your way. You may end up with someone who will take you to the cleaners (and there is a lot of them out there) so I have retired at 55 from dating/relationships. I know a 69 retiree who is getting hit on by girls wanting him as a sugar daddy. Everyone keeps saying about meeting the "right girl" but that is just their television talking - the same set that says "It's a recoveeeeery!". I'll win the lottery before that happens.
DeleteAll you need is some common sense and a big coffee can of Navy Salt (in case you get any...well, you know.....mood swings).
You sound like a great guy - awake and intelligent. There is a world of possibilities.. including the fact that there are out there awake single moms, with kids that need protecting. I believe there is a thread on Chris Martenson's Peakprosperity.com that relates to something like, "preppers without partners". I had my kids long before I woke up... and I can definitely understand your thinking about having kids now with such uncertainty.
DeleteI found the link.. here it is; http://www.peakprosperity.com/group/preppers-without-partners
All the best to you, 1Kg Lunar Dragon
The Day America Died was the French Intelligence interpretation and in beginning to believe it.
ReplyDeleteCOMEX Deliverable Gold Bullion Has Plunged By 78% in 2013 - Claims Per Ounce Highest On Record
ReplyDeleteThe last time that the claims per ounce were nearly this high was in the late 1990's. At that time the central banks had to intervene to keep one or more bullion banks from faltering. It occurred during a period of coordinated bullion selling from the central banks into the market under the Washington Agreement, culminating in the notorious gold dumping known as Brown's Bottom. At least the Germans still have a receipt. That selling failed to hold the line, and shortly thereafter gold began its great bull market run.
"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it."
Sir Eddie George, Bank of England, reportedly in private conversation, September 1999
The first chart below shows that rather nicely. Nick Laird, the maestro of charts from Sharelynx.com, was kind enough to go back and pull all the available data. It helps to complete the picture don't you think?
http://jessescrossroadscafe.blogspot.com/2013/09/comex-deliverable-gold-bullion-has.html
What you are seeing is the end of a debt based system's timeline, and the emergence in the East of an equity based system. When the debt collapses (from lack of support and acceptance) then physical gold will be the basis of a free market equity system.
ReplyDeleteIt won't be an investment, it will be true wealth, revalued to its relative systemic worth as an anchor to the system, and a settlement of debt, not just another paper rollover.
Apple’s Fingerprint ID May Mean You Can’t ‘Take the Fifth’
ReplyDeleteThere’s a lot of talk around biometric authentication since Apple introduced its newest iPhone, which will let users unlock their device with a fingerprint. Given Apple’s industry-leading position, it’s probably not a far stretch to expect this kind of authentication to take off. Some even argue that Apple’s move is a death knell for authenticators based on what a user knows (like passwords and PIN numbers).
While there’s a great deal of discussion around the pros and cons of fingerprint authentication — from the hackability of the technique to the reliability of readers — no one’s focusing on the legal effects of moving from PINs to fingerprints.
Because the constitutional protection of the Fifth Amendment, which guarantees that “no person shall be compelled in any criminal case to be a witness against himself,” may not apply when it comes to biometric-based fingerprints (things that reflect who we are) as opposed to memory-based passwords and PINs (things we need to know and remember).
The privilege against self-incrimination is an important check on the government’s ability to collect evidence directly from a witness. The Supreme Court has made it clear that the Fifth Amendment broadly applies not only during a criminal prosecution, but also to any other proceeding “civil or criminal, formal or informal,” where answers might tend to incriminate us. It’s a constitutional guarantee deeply rooted in English law dating back to the 1600s, when it was used to protect people from being tortured by inquisitors to force them to divulge information that could be used against them.
http://www.wired.com/opinion/2013/09/the-unexpected-result-of-fingerprint-authentication-that-you-cant-take-the-fifth/
ZH had a post today about mens clothing sales--mens Warehouse and Jos A Bank--sales way down.
ReplyDeletethen you look at walmart and TGT and no great shakes there either. Macys was weak, and is a disaster. I think only Tiffanys is strong--figures--Manhattan and DC are strong-the epicenters of arrogance and corruption.
Once again, I am directed here, when I try to post a comment on Harvey Organ's blog.
ReplyDelete