Friday, December 22, 2023

An interesting Solution

Judges at various levels in the United States are making political rulings that show no show no bearing to the laws of the land.  These judges can keep on making rulings and causing a lot of grief.  Not everyone in court can afford to contest these judge’s ruling.

What would happen if a higher court or the Supreme Court ruled against a judge and stated that any other rulings by this judge in the future, would have no merit or judicial enforcement in the court system. This would be a way for the courts to clean their own house. The judge would be out of a job.

It's an interesting solution, could it work?

Wednesday, November 01, 2023

The Interest Rate Conundrum

Everyone in the United States (I exaggerate) refinance their homes when interest rates hit 2.25% and of course, this was a new 30-year loan that made payments lower, but longer.  And they probably refi-ed so they could take more money out and enjoy life.  Now interest rates have jumped to 6 %---and for some, up to 8%. Many people now find it hard to afford a home.

The banks loaned money at 2.25% long term to homeowners for 30 years.  Now, the banks’ depositors want higher interest rates. Depositors can withdraw their short-term savings and deposit them elsewhere at a higher rate.  The problem is the banks cannot cover the spread.  Essentially, they are bankrupt. They loaned hard money at 2.25% long term, for 30 years, and cannot afford to pay the depositors current rates.  You cannot make a promise long term if the short term makes it impossible.

The government lowered the interest rates artificially to lower the payments on the national debt.  This robbed retired savers of their retirement interest income. Everyone refinanced, and the new problem, inflation crept in.  Raising interest rates only makes it worse. And that is where we are at.

This happened once before with the Savings and Loan collapse of the 1990’s. Of course, no one remembers back that far. Do they? That problem was a minnow, this one is a whale.

Friday, October 06, 2023

The New Bill of Rights for the US of A

 If you are broke and own nothing, you can do whatever you want within reason.  You can shoplift up to $999 per day, every day.  Use the streets as a public toilet. Camp wherever you want. And beat up and threaten any one of your choosing. And if you are an illegal alien, you can drive drunk or beat your wife with a coat hanger and get no jail time.  To add injury to insult, since there is no bail, the perpetrator can return, to beat the crap out of the person who turned him/her in to the police.  And if you are a witness, you get a free swimming lesson in the bathtub or some hot lead air ventilation.

 But if you have a job and pay your taxes, God help you, if you don’t pay that your speeding ticket.  Own a home, you are a sitting duck, the government can tax you to death.  If you have some money, you can be sued for frivolous offenses.  The police will not waste their time arresting a deadbeat or a drug addict. The offender gets released back on the street.   But look like a regular citizen, they can milk you for any offense of the law.

 These new ideas of bail reform (no bail) are destroying our system of law and order. If I can plunder $900 dollars a day and not go to jail, what is that in real wages?  That is $328,500 a year.  I could bore you with what it costs for a working stiff, paying taxes, to afford cocaine, but the point is, he doesn’t have the time to really get involved in drugs like a homeless person can.

So, remember, as a tax paying citizen, you have rights:  the right to pay taxes and the right to obey the laws or be fined by the courts. Be silent and make no waves.

 If you are a dead beat, the laws don’t apply to you.  Do what you want. You have no money and are therefore of no interest to the government.  A sad perspective on life, isn’t it?

Friday, June 23, 2023

Can we spend beyond our means forever?


 Can we spend beyond our means forever? Let's see, 31 trillion dollars times six percent is 1.86 trillion.  That’s the interest on the nation debt.  Add 5 trillion. Recalculate,  now we are at 2.1 trillion in interest on the debt.

The real problem, taxes are not really covering what we are spending.  The National debt is funded by banks that have money deposited in them.  This money is from retirement funds.

You have to admit that retirees have saved for retirement for a lifetime and the money is there, they saved it.  One problem, the banks have loaned the money to the Treasury.  I’m not sure of the amount, but it must be between 31 trillion and 52 trillion.

It’s like Social Security, the money was collected and borrowed from the fund to finance the debts of the federal government. There is an IOU that’s declares, the money has been deposited to the SS fund. The trouble is, it has been borrowed by Congress and has been spent.

Basically, we have to ask one question, “How can our retirement and savings be there if it has already been spent?”

Technically it is there, because people only draw out small amounts and the government can cover the withdrawals.  The Ponzi scheme is getting some sunlight.  At what point does the house of cards collapse?

The retiree is not going to draw out their  whole retirement amount, the tax rates would forbid it.  But what if I told you, the money wasn’t there for everyone, It has been spent and you will not be able to recover it.

The Weimar Republic in 1923 ruined the monetary system of the German Republic. People’s savings were destroyed.  History doesn’t remember much, but people well off, were left with nothing, their savings were gone.

Old people were reduced to scrounging trash cans for something to eat.

This could happen again only this time it will be in the USA.  It kind of sucks, doesn’t it?

Thursday, February 02, 2023

The Unseen Catastrophe

 Congress has been printing money at a spendthrift rate.  Interest rates were low, and now they are rising.

The national debt is at 31 trillion.  The big thing for Congress is, what is the interest payment for the next fiscal year?  What are the implications.

As the interest rates rise, so does the interest on the national debt. The thing to remember is, most people in Congress have not had any education relating to economics. The other thing to remember is that most voters have no idea of what economics is all about. We have a lot of people that think everything is normal and today will be like yesterday. So, what this boils down to is the fact that we could have a meltdown.  

It is kind of like Southwest Airlines.  Everything worked until it didn't.  

If /When the interest rates hit 8% the government cannot pay the interest.  What happens at that point? Your 401K is dust.  They have borrowed everything you have saved and spent it.

Can you spell Zimbabwe? 

Remember eggs don't cost more, your currency buys less.

The idea that costs are rising is absurd.  It just takes more dollars for the purchase.  The government has pissed in the whisky. They have printed what they could not tax out of us.

At some point, when they can't pay the interest on the national debt, the real problem begins. Insolvency.

Precious metals could save your retirement.

I've seen cigarettes go from 25 cents a pack to $10--tell me I am wrong.

Monday, October 31, 2022

The claim "Democrats vote early"

Every wonder why when it comes election time, you hear the phrase “Democrats vote early?”  It’s treated as a known fact.  There is no way statistically, that that statement can be substantiated. Most would agree that it would probably be about a 50-50 split.

Let’s look at the term “early voting.”   This has to involve a paper absentee ballot.  Early votes are those cast before election day. The regular votes are tallied and then the paper ballots are counted. 

If one accepts the premise that Democrats vote early, it is no surprise to see Democrats rise past their Republican counterparts when the absentee ballots are counted.  The conclusion “Democrats vote early” is valid.

What you could be looking at is election fraud.  Why would more people vote Democrat than Republican in just the absentee ballots? Nobody raises that question, after all everyone knows Democrats vote early.

Any good statistician could, after looking at the polling numbers of the live voters, could project out the totals for the mail in ballots.  From there, the election commission or whatever it is called can create the necessary winning ballots.  Many ballots mailed out, are not returned and some of the voters are dead or moved.  So, in an election where say there is about one million voters, there is about 5% to 20% not returned. Skimming one or two percent of the vote, could determine the winner.  No one will know. Democrats always vote early. 

Also with absentee ballots, you can sell your vote for cash.  $200 dollars for groceries for your kid or vote, make the decision.  Millions of dollars are spent on these elections, and it is not all going to advertising. $200 a vote buys 5,000 votes with just one million.

We need to get rid the idea that “Democrats vote early” and end absentee ballots.

Sunday, October 09, 2022

Do things really cost more?

The mentality of the population in the USA thinks that prices are rising.  Things cost more. It is kind of laughable. The actual fact is, the dollar is worth less than it was yesterday.

 Things are not more expensive; the dollar has lost value.  $20 used to fill a gas tank in the 1960’s.  Now in 2022 20 gallons of gas costs $120. 

 The fact to realize, is that things don’t cost more, your dollar buys less.  Politicians’ blame this price rise on the gas refiners and the stores.  How dare you gouge the consumer!                    

What we are really looking at is an erosion of value of the dollar---it doesn’t buy as much as it used to.

 The concept to look at is: a rise in prices doesn’t mean the item is more expensive. The dollar doesn’t have the purchasing power it once had.

Friday, April 08, 2022

The Hidden Truth of the 2020 US Election.

The US is splitting apart.  On one side we have the Republicans, and on the other side we have the Democrats, News Media and Internet.  Normally the Republicans and Democrats balance each other out and the independents decide the elections.  Now we have CNN, MSN, The New York Times, The Washington Post, Facebook and Twitter solidly on the side of Democrats.  These internet conglomerates censor the news by blocking users from distributing content that they deem misinformation or by omission, failing to report the news.  Basically, this is censorship.  The news medias, through their biases, are influencing the thoughts of the country.  The funny thing is, these people probably only represent about 5 percent of the population. 

Most voters begin to think about elections a week before the event.  A majority of American voters don't follow politics, have no memory of the performance of their candidate over the last 4 years.  The news media and social media will guide them in choosing a candidate. 

Our last election had flagrant voter and media fraud.  The Democrats, the news media and the internet giants like Facebook and Twitter censored all of it.  They were against Trump. They censored the Biden laptop that exposed the corruption and graft in the Biden family before the election. It is now slowly coming to light.  People don’t fully appreciate how powerful censorship by omission is.  This helped swing the election to Biden.  You can see the newspaper bias when you read “Trump falsely claims that he won the election.” The word “falsely” doesn’t belong in the sentence.  That is for the reader to decide. Including the word, makes the sentence an opinion.

 A lot has been discussed about the convenience of mail in voting.  If you lived in a country like China or Russia, would you want mail in voting?  Fill the ballot out wrong and you might end up in a gulag rehab camp.  

 Democrats and Republicans vote the party line most of the time.  With mail in votes, you also have included people who would not make an effort to vote in person.  These are the votes to focus on.  10 million dollars will buy a lot of advertising and it is always questionable how effective it is.  Take the same 10 million and send out couriers to purchase those blank ballots. Figure they would pay up to $200 per ballot. Imagine a courier is given 2,000 dollars and told to show up with 10 ballots filled out with their parties’ candidates selected, that’s not hard to do. You knock on the voter’s door and offer to help them fill out the ballot, give the voter $100 and drop it off for free. Such a deal.  If you are poor, $100 is something tangible that can be spent.  It is only one vote, no big deal, take the money.  If you are the courier, any part of the $200 not given to the voter for their ballot, is the couriers, free and clear. 10 million dollars could buy 50,000 votes.  Zuckerberg spent 420 million on the 2020 election. 

 The Democrats want voters to be able to vote without having a voter ID.  They also want them to vote absentee without any identification. In California, if you get mailed a ballot, you can vote.  That mail in ballot is worth money, you can sell it. By forcing the voter to vote in person, the ability to buy votes disappears.  If you have a city of 100,000 voters, figure 60 percent will vote. With mail in voting, many of the ballots of people who have moved or have died get returned to the election board. Those returned absentee ballots are blank checks.  Who’s to say how many were returned to the election board? No one will know if those “votes” somehow get submitted and counted, especially if there is no voter id or signature required.  This is what the Democrats want to do in every state, unrestricted no ID voting.

The Democrats in the past have been the party of repression.  After the civil war, The Democrats took over the south. They passed laws to keep blacks from voting, referred to as “Jim Crow" laws.  They also formed the Klu Klux Klan that went around terrorizing and killing blacks. They were for segregation in schools. Times have changed, the Democrats used to represent the working man, now they represent big money and labor unions.

The thing not fully comprehended by outsiders, is the fact that many election districts have ways of keeping the local people in power.  A city that is run by Democrats for 50 years is kind of an indication that something is not right. It doesn’t matter how you vote; the same party gets reelected.  In that case, people stop voting, they consider it a waste of time. Think about it, if a city doesn't update the voter rolls, a lot of ballots get returned by the Post Office.  Who is to say that post office returned 100 or 10,000 ballots? Wink Wink, most voter fraud is at local levels.

The super-rich people in this country are now aligning with the Democratic party.  They are trying to fragment the rest of the population, by tearing down our historical statues and rewrite our history with critical race theory.  I don’t think we are ready for this. This isn’t what Democracy is all about.  Live and be free, not live and fear the "woke" people. 

Something is not right. And the further we go in time; more things seem to be falling apart. Biden is destroying the fabric of our democracy and everything else to boot. Obama’s quote about Joe Biden, “Don’t underestimate Joe's ability to F things up,” rings true.

 

To be continued

Wednesday, March 09, 2022

The Ukrainian Dilemma

The Ukraine is a peaceful country and yet it has been attacked by Russia that has nuclear weapons.

It's definitely not a defensive move by Russia.  If the world lets this go without stopping this horrible rape of an innocent country, the other adjacent countries are next. It has nothing to do with Nato.  It has to do with human decency.  We must stand up to atrocities not turn a blind eye to them.

Let's take a stand, support the Ukraine and strike anyone who wishes them harm.  How can Russia say we risk world war? Putin is the one risking world war. He is threatening  that because he is vulnerable.  We can attack his forces in Ukraine with impunity; they shouldn't be there.

Poland, give them the planes now, the USA has no balls under Biden.  Europe is next, if Putin is successful.  Putin needs to be stopped in the Ukraine.  A country will only go nuclear when the homeland is threatened. Putin is bluffing with a bad poker hand.

Tuesday, December 21, 2021

The Money In the Bank

When one thinks of all of the money in banks all over the world, it has to be the savings of individuals.   A lot of it is retirement savings. There are a lot of people borrowing these dollars, governments, investors, stockbrokers, etc. Banks, brokerages and investment firms are the conduit for these transactions.  The whole thing almost collapsed in 2008.  Congress came to the rescue and saved the banks.  Ever wonder why?  The United States government is the biggest borrower from the banks.  If they go under, the whole system collapses.  The government would be insolvent.

Back in the 1960’s, Congress was spending so much that the Social Security Trust Fund wasn’t generating enough cash for them to borrow from.  Well, they figured a way to get access to more money by passing the IRA and 401k plan.  It sounded like a retirement savings plan.  It kind of was.  The neat thing about it is that you could not withdraw the funds until you were 65 and then you paid taxes on it.  So, if something went seriously wrong, the saver could not cash out without a severe tax penalty. This meant that there would be no panic selling on Wall Street.   This restriction allowed the government to borrow hard dollars earned today and give back inflated dollars when people retired.  This was a lag time of about 40 years.

The thing I look back to in history is the Weimar Republic of Germany in the 1920’s.  People saved for retirement and then their monetary system collapsed.  The old were hit the hardest. These were the people with savings in the bank.  These were the people who were trashed.  They lost everything.  The real thing not realized is that when you get old, you become invisible. Governments know that old people are expendable when it comes to their savings, in 10 years, they are dead and soon forgotten.  These people saved and played by the rules and then in retirement, they get shafted.  No one will get voted out of office or go to jail for this crime. Nobody right now, comprehends how bad Congress has screwed up government financing. It has been going on for years.  We are talking at least 60 years.  This isn’t a Democrat or Republican thing; it involves all of Congress.

What you have to look at is this.  All of your savings could end up as a big zero.  Just like Zimbabwe, 4 billion dollars for a cup of coffee.  The 401K has no investment advantage in today’s world. It offers a negative return on investment over a span of 40 years.

Precious metals on the other hand, were not that great when interest rates were high.  Why buy metals when you other investment could return 10-20% interest?  Parking savings into precious metals has no downside at this time.   There is no interest lost from taking possession of precious metals, in today’s world. Inflation over time, is very cruel to people saving for retirement.  Bear in mind that a person’s age defines their present perception of inflation.  To a person entering retirement, inflation has stolen their savings. When they started saving, 50 years ago, interest rates were around 5 to 9%. A million-dollar nest egg would have provided $50,000 to $90,000 in interest every year. Not in today’s world, the interest is about $10,000 per year.  This is not what was envisioned when they started their IRA.  If you’re 25 years old, an IRA appears to be a fool’s dream.  There is no reward for saving money, compound interest is no longer the “8th Wonder of the World.”

Monetary survival of your assets is your goal.  With interest rates so low, precious metals have command of the playing field.  Governments over time cannot control the value of their currency.  Real estate is often used as a good store of value that survive the curse of inflation.  The trouble is, their high visibility to be taxed, not to mention rent control.  It still has had a very good return over a timeline of 20 years.  Gold, silver and platinum are my favorites.  If you hold all three, you can play the metals market. You can trade from one market to the other.  The nice thing about precious metals is that they are not visible to the banks or to government.  That can be to your benefit if you end up in a rest home.  I have my son and wife on our bank safety deposit boxes, only two keys. So, there is no probate problem in this case.

The reality of what we are looking at in the current financial markets is rather unusual.  Probably the right word would be absurd. No one is going to save money in a bank paying 0.05 % interest.  Are investors accepting a contradiction of economic principles?  I think not.  But the problem is this, the investor doesn’t know what to expect from this sort of convoluted banking, involving our government debt. This hot mess cannot be financed by zero interest rates without savings coming from somewhere.  We could be facing the biggest banking collapse in history. 

The only plausible source of funds that I can come up with is the 401K retirement plans along with other pension plans.  The real question to ask, is who is holding on to all of these real estate loans at 2% when the interest rate jumps to say 4%? The rule of 72 states, divide the interest rate into 72 to get the time it takes to double your money.  72 divided by 2% interest, is 36 years. That’s a few years short of retirement. 72 divided by 4% interest, is 18 years, means your savings could quadruple by the time you hit retirement age. What is not sold to anyone at the present time is that at 1% interest, you wait 72 years for your funds to double.  Nobody will accept those terms if it is pointed out to them.  If everyone was to spend their paycheck now for immediate gratification; the banking system goes poof.

The economic rules are in place, and the system violates every one of them.  I'm debating now, do I buy gold or platinum?  I'm not trying to make money; I am trying to keep what I have already earned.

Merry Christmas everyone and have a Happy New Year

Jim in San Marcos