Stomach Flu and Economic News

The Pimpernel and friends have all had the stomach flu for the past week. For my part I made sure that I drank lots of water and we all slept more than usual. It also made me feel more hungry than usual which I find odd. I was sort of dopey because of it all for the past couple of days. As a consequence I have not paid attention to the news as much as I usually do; but, I do have some interesting articles that I came across.

Yahoo - A Remote Control For The Body. I don't know about you; but, I don't like the idea of having somebody remote controlling my body. I was in the hospital once and they wanted to check my heart by giving me what is called a stress test; but, they didn't want me to stress myself by walking on a treadmill so they chemically induced by heart to speed up and slow down. It was strange knowing that the nurse had control over my body. A very strange experience.

Mail Online - Buying pizza? Expect a healthy reminder from Tesco: Supermarket giant will use loyalty card data to see who is eating what
. It should be so obvious where this is going to my long time readers. I have written about this a few times. Lets say you want to save money on healthcare and food subsidies for the poor. You simply track what they buy and make healthy and cost saving suggestions. This will come to America very soon.

CNBC - Texas Counties Set Example for Retirement
. Now here is another repeating of the big lie. The article states that cities and counties did not meet their obligations to put more money into public pensions; but, the fail to mention that the cities and counties couldn't because during the boom, the pensions were overfunded and they were not allowed to be. The response in many municipalities was to stop making their contributions and increase retirement benefits. There was no need to increase benefits.

CNBC - Reuters - Congress returns to U.S. public pension battle with new bill. At the bottom of the article it mentions a group called the "Governmental Accounting Standards Board" or GASB. GASB makes recommendations for how state and local governments do accounting. A few years back they changed the way pensions are reported and that change makes the pensions appear to be in trouble when in fact they are not. The trick is simple. How much money do I need to make a year to buy a house? Lets say if I make $50,000 a year I can buy a $100,000 home. My debt is $100,000; but, the total amount I will pay in mortgage payments is $300,000 because of interest and amortization. I don't show that I owe $300,000 when I go to buy a car; but, that is how they show it when discussing pensions.

Now lets ask a question. If there is no problem then why the story and spin. Look, San Bernadino declared bankruptcy and said they couldn't pay their pension obligations; but, when Calpers investigated it turned out that they could pay the costs and were hiding the money. They don't want to tell the truth, the truth is that people on average are living longer and we need people to therefore work longer.

ABC - Last Living Man Born in 19th Century Likely Has Genes to Thank. I post this story because of something that happened to me long ago. I was in college and lived in a raggedy studio across from the school. I actually slept on a cot and when I turned on the oven would watch all the cockroaches leave it. Anyways, I was sitting there one night and across the way could see the college library where there was one person reading a book in the window. It made me wonder what if you were the oldest person in the world, the last person from a long gone generation. You would have outlived all of the people on the earth that lived here when you were born. Everyone on earth changed around you and you remained relatively the same.

Detroit News - U.S. urges states not to allow general use of self-driving cars. The question is what will the regulations be. One is that you have to be behind the wheel, will biometrically identify yourself be next?

The Telegraph - No saviour in sight as world credit cycle rolls over. Here is the short on the article; but, I recommend you read it anyways. The short is that if you have high yield and high risk investments, you are going to lose big time. The economies of the west are unsustainable.

NBC - Reuters - Wealthy benefit the most from top tax breaks, government study shows. It is not about tax rates, it is about deductions.

Fox News - Could bitcoin go legit?. The blueprint for future government backed electronic currencies is being written and as you read the article notice how it says that you have to prove who you are to use the trusted bitcoins.

Mail Online - After death of cheques now CASH is in the firing line as figures show Britons did 10% less shopping with coins and notes in 2012. I never read an article which talks about why we should keep physical money. We will end up with an all electronic currency, you will not have a choice.

Now enjoy some fun stuff. Firstly, a young lady that knows how to play the guitar.

YouTube - Tina S - Van Halen cover- Eruption.

YouTube - JACK CARROLL - BRITAIN'S GOT TALENT 2013 SEMI FINAL PERFORMANCE. I just love this kid, he is hilarious.

YouTube - Owen Campbell - Angry Busker - Australia's Got Talent 2012 audition 3 [FULL].

YouTube - Anna Graceman, 11 ~ America's Got Talent 2011, Atlanta Auditions. She reminded me of someone else, she reminded me of a young girl a very long time ago who sat on my stage and sang the saddest song, she moved the whole audience and I was fortunate enough to light her. This is the song she sang. YouTube - Carly Simon - That's The Way I Always Heard It Should Be - 1971
. I saw a 13 year old girl sing that song and you could feel her pain. She sang it the same everytime, every show and every rehearsal. I didn't know her well, just another performer on my stage; but, I knew she knew the pain she sang about. She found the perfect way to express it and use it.

Now some old school fun. YouTube - The Sweet - Love Is Like Oxygen ( HQ 1080p HD Upscale ).

How surprising, confusion on the stock market.

Last Friday there was a lot of chatter about the Federal Reserve buying less bonds and easing on the quantitative easing. That caused the Japanese stock exchange to lose 10 percent and then came the three day weekend. You might have expected the Dow to drop; but, it rose supposedly because Bernake said they would keep one buying bonds. He did not say how many. Today it lost as much as it gained on Tuesday.

This is from the Financial Times - Larry Summers has an edge in the race to head the Federal Reserve. Here is my take on it, Bernake has not had the job that long and is leaving just prior or while something big goes on. He is leaving soon. There is an old joke. A guy takes over a big company and his predecessor leaves him three envelopes. The envelopes are in order and tell him to open them as he faces any crisis.

He messes up and the company loses money. He opens the first envelope and it says, "Blame the last guy that had your job". A few months later he messes up again and he opens the second envelope, it says, "Blame your employees". He makes a mistake and loses money a few months later and opens the third envelope. It says, "Prepare three envelopes". Mr. Bernake is leaving because he has run out of things to blame. His replacement will follow the exact same policies.

Yahoo - The Daily Ticker - Sallie Krawcheck: Big Banks Still Don’t Have Enough Capital. Expect volatility and when the game is over expect it to be hard to get credit. If banks have to hold more in deposits then they have less to lend, it is that simple.

Yahoo - On the Road to a Japanese Debt Crisis. This is all a joke, the point of everything in the media is to make you unsure. I will tell you how it ends and have. Don't freak out when the markets get volatile (jump and wildly up and downs). Make good long term bets and stick with them.

CNBC - Market May Be Near Top: Technician. They are telling you that the market will get volatile. They are flat out saying that the market has reached the top and will dip.

CNBC - Is the Dollar Dying? Why US Currency Is in Danger. Again, mainstream media telling you what I have been saying. The dollar is dying.

Real Currencies - The Dying Dollar and the Rise of a New Currency Order. Wake up, it is not just me that sees what is coming.

Don't buy stakes in banks, it is a trick and I don't care what they say. Here is the tricky news. Market Watch - Bank stocks lead on stronger economic data. There are people who believe that if they are going to declare bankruptcy, they might as well run up their debt just prior to. They even pay their attorney's with their credit cards. Even though the ex left me with lots of credit debt, I payed it all off. I didn't pay my attorney with other people's moneys (credit cards) and I did not declare bankruptcy (though I could have), I paid my debts. If the IMF, FDIC and Bank of England are correct about what is coming then we are eeing the rats jump the ship and taking as much as they can before they go.

Yahoo - Reuters - Nasdaq to pay $10 million to settle SEC charges from Facebook snafu. Read the article, it says that NASDAQ cost Facebook $500,000,000 in losses by a "snafu". LOL. They got fined $10 million dollars. What happened to the other $490,000,000? Oh well, people make mistakes.The system is corrupt and people who do make it on their own, like Zuckerman, get taken advantage of. Still, he made so much, he didn't care because money is not what he is about even if I disagree with him on many things.

Watch for volatility, swings in the markets, all markets. Have a great week. I have had the stomach flu the last two days. Hope it is over by tomorrow.

6 Years

I cannot believe that I began this blog six years ago. Wow. I went to look at the stats and am amazed. One little voice heard tens of thousands of times. What started as a prank, if you will, has more readers now than ever and I write less. There may only be 15 followers; but, I get over 1,500 hits a month. If I got paid a dollar for every hit each month, I still would not monetize this site, not gonna happen.

In looking at the stats I was shocked that I have been doing this for six years and people still care. Recently, one of my readers and I were talking on the phone and he told me how much he enjoyed reading my stuff. That makes me feel fantastic. I am amazed that even though I don't focus on any one issue and even though I don't have lots of pictures (I am not good at uploading or downloading them) and even though I don't even bother editing my stuff, that people still want to see what I will talk about next. I talk about what I see.

Someone recently asked me what I like the most in my life and I told them, I like writing this blog. I don't know why I am still alive, the stupid doctors have promised me many times that I should be dead and haven't gotten it right yet. Thank you to everyone who has ever read my silly little words. I look at this blog like the man looks at the woman in this video. Lets see what is behind the curtain.

YouTube - Joe Cocker - You Can Leave Your Hat On.

"You give me reason to live". Thanks.

I miss you dearest Robbie

Dearest Robbie,

I do hope you understand that most people that read my blog have no idea who you are or why I love you so. You were so supportive of me at a time when I needed some reassurance. I miss you. I am glad that you still read and enjoy my musical selections. If you are ever going to Vegas, we still have to get together so I can show you the town. Some more music for you. You may recall that I wanted to send a letter to a lady and did not. She has since passed away from some disease, this is the music that all makes me think of her. I don't even know why; but, I hope you enjoy it.

YouTube - Steely Dan - Aja (1977) Full Album

Keep watching the markets, look for confusion.

I don't know exactly it will all begin. It is not as obvious as the housing bubble or the stock crash before. There are too many balls in the air at once. What we are seeing in the media is either "everything is okay" or "the crash is coming". I don't think it is that concrete. I believe we are going to implode; but, I don't think it is all at once. It could be; but, that is not how it usually works. It crashes by industry, one goes and then another goes and then another goes. The housing bubble burst months before the stock crashed.

Here are somethings that people are saying.

Silver Doctors - Jim Sinclair: Entire US Banking System Missed a Bail-in Collapse by a Hair Tuesday!. I don't agree with everything he says and I don't believe in buying precious metals nor do I nor will I ever sell anything on the blog. I think a "bail-in" is coming because the IMF, FDIC and Bank of England have all said so; but, as I said previously, I expect a lot of volatility in the markets first.

InvestmentWatch - 100% Chance Of Stock Market Crash Coming Near Future. Listen to what the guy says all the way through. Again, I don't agree with everything he is saying; but, he states a lot of things that are underlying facts and gives the references.

InvestmentWatch - CNBC - The Venerable Jack Bogle Has Warned Us A 25-50% Downward Move Is Almost Certain. This is a mainstream media show with a respected individual saying the same thing. He says it may come in three waves. I don't know how many waves; but, it is coming.

InvestmentWatch - Basel III: How The Bank For International Settlements Is Going To Help Bring Down The Global Economy. The article has good links and I apologize for not having really talked about Basel before. He gives a decent summary of what it is, you can also go to Wikipedia. Bottom line, an international organization that has a lot more control over your sovereignty than you knew.

Huffington Post - Beware Capitalist Tools. I happen to like real capitalism so I disagree with his title. What he points out is how much the financial reporters owe to the financial industry and why they do what they are told.

FoxNews - Eye spy: Facial recognition software is coming to Google Glass
. I said Google glasses would have biometric identification, Google said it wouldn't and gosh darn, turns out that there is an app for that, how surprising. What google really meant was that the app would not be made by them and built into the system, you have to buy it from a third party. I wonder if the security setting for the glasses allows you to have it scan your iris so that nobody else can use them?

The way we are led by the nose is pretty simple. The majority that you hear all sing the same song. Everything is bad or getting better or getting worse of whatever. A few disagree and are shut down and ridiculed. Just about all have a stake in the game. The trick is to get you to stop listening to the ones that are right because money is made off of your being wrong. The stock market will come down; but, I still say if you have stock keep it and wait it out. That is also what Jack Bogle said. I gave the exact same advice as Mr. Bogle before him. Now, go look up who he is. Wikipedia - John C. Bogle. This is like an Index Fund Warren Buffet.

I cannot tell you which asset class will collapse first, it could be any of them. It doesn't really matter which comes first, they all effect one another. I cannot say with any certainty when the first will go. I happen to watch for triple witching hours on Wall Street; but, there are other key dates when long term bets need to be made. Heck, the collapses could begin in the currency trading markets if nobody wants our dollars, it could happen in the energy markets first. Lots of options.

You know what, I know what to look for possibly. If we think of the Cyprus situation, it rattled all of the European Union and is only a very small percentage of it's population and GDP. They also were described as bad people because they were laundering money for rich Russians. I think it will be the banks, they haven't changed their ways, cheated the rules on the Mortgage relief they were supposed to provide. I think it will be the banks more than the stock market that begins the ball rolling. Who would put up with another trillion dollar bail out of banks? I don't think people would, they will prefer the bail in.

The logic will please everyone. If I deposited in a bank and the bank failed, I would want to be paid before the stock holders because what they lost was not their money; but, my money. Yet, they kept the stock and gave themselves bonuses. We need a good fall guy even though all the industries are guilty. I think it will be the bankers. Heck, you have to hate them enough to become stockholders in them after breaking them up into a million pieces. Yeah, that would be the ones.

No matter how it turns out, it turns out the same. The IMF did not spend years coming up with a plan if they didn't know a problem was coming. If the banks start to fail, keep your money in the bank. If the stock market goes down, keep your money in the stock market. When whatever fails, fails, keep your money in it and wait it out. All indexes come back. Once you sell, you are stuck and they know that. Warren Buffet did not sell off during the market crash, he waited and bought.

Mr. Buffet said very rude once. He was on 20/20 I believe and he walked past a picture of lots of people in a crowd and said that he "Protected the asses of the masses" and he meant it. In my opinion, Mr. Buffet and Mr. Gates are two people who believe in individual achievement. They are two very smart people who just don't know God; but, believe in truth and freedom and prosperity for others. Neither is a selfish individual and both have pledged their fortunes to others to help them as they believe people should be helped. My deepest regret is that I believe these two men misunderstood what they were up against. What I don't think they really understand is that this game was taken out of their hands and even the hands of those who they are protecting us from long, long ago.

There is a movie coming out that I am going to see. From Yahoo, it is called, "Now You See Me". There is also a show coming out that I want to see, it is on NBC and is called, "The Blacklist".

Possible False Start to Systematic Failure in the Economy

As my readers know, the Pimpernel tries to keep up with things in the economy. Last week there were some odd things in the markets, Japan's stocks losing 10% being a big one. All weekend I have been reading stories on what is going on and the trend seems to be that even the mainstream media is reporting that this week may be important and that markets may see major corrections (losses). Here is the thing, if the stock market dropped 10%, it is still only the beginning of the real corrections. When banks fail, people should put their money in non-bank stocks. Let me repeat something I have said before, stock market volatility is to get the average person out of the market and it is a time when the average person should do the opposite and get into the market. We should be long term investors and not day traders.

Here are just a couple of warnings from over the weekend.

NBC News - Week ahead: Watching for signs of a too-strong economy

The Motley Fool - Is the Stock Market Overdue for a Big Plunge?

There have been plenty of articles warning that this week could be very volatile; but, it has also been stated that this is the week when the big players take their vacations. Whatever happens this week, if anything happens, is just the beginning of what is coming. The financial system needs to be restructured and the plan that is in congress will not do it properly. The "Derivatives" market cannot be allowed to operate without controls and the people that run the market are the same ones that just wrote the new regulations that are being voted on and they exempted themselves from regulation.

I shall tell a true story, something I actually experienced. When the housing bubble was in full swing, I was asked to meet with some mortgage brokers. I told them that the housing market was going to crash. I told them all of the indicators that are traditionally watched in the real estate market, I told them how we were going to see a severe recession. This meeting happened about a year and a half or so before the housing bubble crashed. They looked me dead in the eye, said my analysis was well thought out and then they told me that I had to be wrong because things were going so well in the economy and this was how they made all their money.

Money is a drug and those who have the most are the least likely to believe the gravy train will ever end. Our markets are run by money junkies and they will do anything to get their next fix; but, it always ends badly. Quite awhile ago I wrote about how the movie "The Hangover" was the perfect analogy for our over-indulgence since 2002. Did you really need televisions in the backseat, did you really need spinner wheels or that Lincoln Navigator? People went crazy spending money that they had not earned and that went away as fast as it came. Now is the time to check out of the room, leave the maid a nice tip and start over.

The current economic system has been unwinding for a bit, no one event does it all. The Bank of England and FDIC said they are looking at "systematic" failures. This not about a bank failing, no matter how big. It is not about stock markets crashing. It is about all of the system failing because it is all rigged.

Lets say that this week is really bad on Wall Street, it doesn't matter. The purpose of all the turmoil is to bring in a new economic and financial control system that is international in nature. That is the end game.

When "it" comes, the new economy folllows

You may think that what is happening in the worlds economies may all work out; but, it will not. The world is going to set up new rules for financial transactions and the west will be less wealthy. Warren Buffet saw this coming for over 20 years. I am going to talk about what the United States looks like after the world goes off the dollar and how we have been preparing for it.

Here is a fairly good take on what is going on by someone that I just read. Godlike Productions - The Grand Finale: Here Is What Is About To Happen To You...An Economic Love Story, or Fifty Shades of Green? While I may not agree with everything the author said, it is a pretty good summary of things.

It is very possible that we will see some big shakeups on Wall Street this week, if you have stock do not sell, hold onto it and wait out the ride. The stocks to stay out of are financial companies and banks. The FDIC and Bank of England's plans to conduct "bail ins" in the future for banks that fail means that if you have stock in those companies, you lose it. The stock will be turned over to the depositors.

We can see the warning signs. Yahoo - Reuters - Wall Street sags, but ends off session lows; HP hits 52-week high.

They are warning us all the time. The Federal Reserve - Ending "Too Big to Fail". Banks as you know them will no longer be needed in the same way and they are going to be broken up into neighborhood piggy banks.

For the past couple of years they have been printing new $100 bills and they are about to release them. NewMoney.gov - Federal Reserve Announces Day of Issue of Redesigned $100 Note. They begin circulating on October.

After the coming economic tsunami, things will be different. For people in the United States expect the following things to be the new normal.

1. Fewer and fewer people will go to true universities.
2. Fewer and fewer people will own personal cars.
3. You will live in smaller spaces or share a home.
4. The suburbs will become the new ghettos.
5. You will have to work longer.
6. You will have healthcare; but, will be penalized for personal choices like smoking, drinking and what you eat.
7. You will not get tax benefits for being married, having children or buying a house.
8, There will cease to be any anonymity on the internet.
9. You will have to report your health to your doctor or get no insurance. Mail Online - The real-life tricorder: The gadget that can measure all of your vital signs in just TEN seconds
10. It is not going to get better.

Sorry, but that is the truth. The fall has been delayed so that we can get accustomed to doing with less. Just assume that I might be right about what is coming. There is nothing you can do to avoid it. The thing to remember is that the United States has some of the best contingency planners ever. We plan for everything, all possibilities, well, most. A plan was put in place years ago, just in case our currencies ever collapsed. A plan was put in place in case the world went off the dollar standard. I assure you plans for responding already existed. Don't panic when things get weird. Don't worry that the world will end, don't worry that we will live with less.

Mail Online - Global markets plummet after US Fed threatens to cut emergency cash support to economy


Market Watch - Bernanke out by August, QE ends, rates up: Crash

Yahoo - Reuters - How the Fed could ruin your summer holiday

Wall Street Journal - New Zealand, China in Talks on Convertibility of Currencies

Sorry if this wasn't uplifting and cheerful, it is what it is. Peqce.