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Inaugural Post – Cold Water In the Face

For quite some time now, especially since 2008 I have been painstakingly collecting information and gathering content with the intention of carefully organizing it into a coherent presentation. I have been asking questions and seeking answers in search of truth and clarity. I had hoped to one day have it all indexed and ready to roll out in such a manner that anyone could easily  and incrementally explore and digest the information at a comfortable pace letting each dose steep and foment before administering the next jolt.

Due to the constraints of daily life and managing its demands on time and energy I now find myself feeling like a shaken bottle of soda.

I have come to the realization that the best way to get started is not by walking around the pool carefully dipping my toes in but rather diving right in. I am simply going to throw a splash of cold water in your face! ………’a nod to the late great Joe Strummer

In subsequent posts I will attempt to backfill with the information I have cataloged while also updating the latest news and developments as they occur. Please join me and share this forum with friends and loved ones in the hope that one day we can hand off to our children and grandchildren a future in which they can enjoy life, liberty and the pursuit of happiness.

Now for the ice cold water…………..it’s time to wake up!

Since the financial crisis of 2008 there has been NO RECOVERY.

MSM

The mainstream media (MSM) has been tirelessly promoting the narrative that the economy is strengthening and all is well but a good look beneath the surface will show that such is not the case.

First off, ownership of the mainstream media is concentrated in the hands  of just six incredibly powerful media corporations. The six corporations that collectively control U.S. media today are Time Warner, Walt Disney, Viacom, Rupert Murdoch’s News Corp., CBS Corporation and NBC Universal. The purpose of the mainstream media is not so much to get the truth out to the American public but rather promote the narratives and causes to shape public opinion that will most benefit the corporations and interests that own them. It seems the main purpose of the MSM is to divide and distract the public. If you are getting your news from the TV and other MSM outlets I am sorry to say you are uninformed, ill-informed and in some cases even misinformed. This subject will be further explored in subsequent posts but for now back to the cold water splashes.

All of these points will be explored further but for now here are some facts to stir the pot and get the conversation started.

Economy

As I check over this post for the last time- the July jobs numbers are being released-fewer jobs created than expected-yet two ticks down in the headline number. Again, a decrease in the labor participation rate. Also downward revisions to the last two jobs numbers.

The bullet points below will be updated after this current round of smoke & mirrors settles.

  • The reported headline number for the unemployment rate, the U-3 rate is reported to be  7.6%  This does not include discouraged workers or those working part-time because they cannot find full-time employment.
  • The U-6 rate is about 14.3%. The U-6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but also counts “marginally attached workers and those working part-time for economic reasons.” Note that some of these part-time workers counted as employed by U-3 could be working as little as an hour a week. And the “marginally attached workers” include those who have gotten discouraged and stopped looking, but still want to work.
  • The U-9 rate is north of 20%
  • The way the reported unemployment rate has appeared to have improved has been mainly due to a shrinking work force. The Labor Participation Rate is at its lowest level in 30 years.
  • The U.S. government says that the number of Americans “not in the labor force” rose by 17.9 million between 2000 and 2011.  During the entire decade of the 1980s, the number of Americans “not in the labor force” rose by only 1.7 million.
  • The number of full-time workers in the United States is now about 6 million less than what it was in 2007.
  • 77% of the new  jobs created in 2013  have been part-time jobs
  • When you total up all working age Americans that do not have a job, it comes to more than 100 million.
  • As long-term unemployment compensation has run out for some, record numbers of Americans are now collecting Disability Benefits as well.
  • In the year 2000 there were 17 million Americans on food stamps.  Today there are more than 47 million Americans on food stamps.
  • In the 1970s, about one out of every 50 Americans was on food stamps.  Today, about one out of every 6.5 Americans is on food stamps.
  • Homeownership rate in the US has dropped to its lowest level in almost two decades after declining for several years.

The stock market is not an indicator of the well-being of the economy as a whole. As the markets set all time records the underlying economy continues to decay. The mainstream media would have you believe that the “recovery” is continuing to pick up steam as the markets continue to rise despite weak fundamental data. Anyone who is really paying attention knows that the Federal Reserve’s Quantitative Easing Policies are responsible for the current inflated asset prices and record high market indexes. This idea is even starting to get mentioned as the talking heads have a hard time explaining away the continued rallies despite weak fundamentals.

The markets are manipulated. The Fed is creating 85 billion dollars per month (that we know of) out of thin air  to prop up the markets on the backs of the taxpayers. The artificially low/zero interests rates are punishing savers while benefitting the banks.

Earlier this month the Fed Chairman’s mere mention that they may begin to taper the easy-money liquidity sent the markets reeling. There was a quick back-peddle on that notion and the banks and the markets were soon reassured that there would indeed be no taper for the foreseeable future.

The Fed Chairman claims to base his policies on the health of the labor market and unemployment rate. The chairman himself claimed that the current figure overstated the health of the employment situation.

Republicrats

If you’re looking for your “elected officials” to save the day and serve the interests of the people, don’t hold your breath. Our “selected officials” serve the interests of their “sponsors”.

Like the MSM the purpose of the Left-Right political paradigm is to keep the people separated and arguing amongst themselves, usually over the most trivial of matters, to reinforce their belief that they are making a choice. Occasionally there are those who do not quite fit into the red-blue establishment. These individuals break from the status quo script and are most often treated as outliers and portrayed as kooks.

  • There is no difference between the two sides of the political aisle in Washington. Both sides are playing for the same team who’s purpose is again to divide the public and give the illusion of choice while serving the establishment.
  • There has been little hope and no change from the last administration to the present.
  • The wars of the last administration have escalated despite promises of hope and change.
  • The current administration has continued to grow the national debt at a rapid pace. During the current president’s first term the federal government accumulated more debt than it did under the first 42 U.S presidents combined.
  • The current administration has used the IRS to target its opposition.
  • Department of Justice secretly subpoenaed the private phone records of several Associated Press reporters and editors.
  • The last point now pales in comparison to recent NSA revelations – the war on whistleblowers will be covered further.
  • For now this list will go on too long, to be continued………………………

Numbers

Just as the government adjusted the method of calculation for the headline unemployment number, now as the GDP figures have trended downward toward a negative figure they have found it necessary to likewise adjust their formulas so as to result in a more acceptable “number”. So expect to hear numbers that will sound better. As I type the talking heads are discussing GDP potential growth numbers with no mention of the new metrics. This as well will be covered in subsequent posts.

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2 comments on “Inaugural Post – Cold Water In the Face

  1. Date: August 1, 2013

    Since all that is necessary for the government to create money is for the government to purchase someone’s assets which then get deposited in the sellers bank account. The following exists with fractional reserve banking requirements of 10%. When the government buys 85 billion in bonds seller then deposits that into a bank account. This raises the reserves of that bank by 85 billion. That bank can then create 76.5 billion in loans. Once that loan is made that borrower will buy something that costs 76.5 billion and the person selling that object will deposit that into the bank. This raises the reserves of that bank and so on.

    So by the time this works its way through the economy a single purchase of 85 billion in bonds can create as much as 850 billion in new money.

    Note this is equivalent to the 2009 stimulus every month.

    So, in addition to the 2009 stimulus being spent since it was voted into law and since the spending of the federal government did not go down in 2010 from 2009 by 850 billion. That means the 850 billion stimulus is being spent every year since. So now in addition to this massive spending, we now have the federal government stimulating the economy at 850 billion a month which dwarfs the massive 2009 stimulus.

    When does it stop!

    Here are the first 5 rounds of stimulus from a 85 billion purchase.
    85,000,000,000
    76,500,000,000
    68,850,000,000
    61,965,000,000
    55,768,500,000

    after 246 loans the sum of all the loans is
    849,999,999,995

    Date: August 3, 2013:
    I decided to look up the total assets that the federal reserve has purchased and determine how much money could be created with this amount of bond purchases. I found that answer on:

    http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

    I select the chart selecting assets of the federal reserve.

    When Obama took office the federal reserve owned $512,274,000,000 of assets.
    A couple of days ago assets were $3,295,892,000,000.

    This is a 6 fold increase or 2,783,616,000,000 or 43.5% annual increase Quantitative Easing since Obama took office. With this additional purchase of federal bonds, Obama’s federal reserve has injected a potential $27,836,160,000,000 in additional new money that banks can loan out.

    For some reason the banks are not creating this money. Maybe there is no opportunity to make money. The currency in circulation from same page on the selected liabilities graph has only gone up from $892,223,000,000 to $1,197,424,000,000. A 6.58% annual increase in the amount of dollars in the economy. They have the authority to increase the money supply with fractional reserve banking by $21,208,430,000,000 a 1771% increase. This is based on sum of deposits of institution.

    This could cause price of gasoline could go from $3.70 a gallon to $65.53 a gallon.

    Hyperinflation here we come. This certainly leaves me wondering about Obama and democrats .

  2. Your vote is only counted in the case of a tie.

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