Penn Jillette has a tendency for strong language but it lays it all out on the table as well as anyone.
Saturday, December 31, 2011
Wednesday, December 28, 2011
20111228 What Will Cost More in 2012
www.dealnews.com has released its predictions of the eleven items most likely to see measurable preice increases in 2012.
By Laura Heller, dealnews writer
End of the year sales are still going strong, and in this environment it's difficult to imagine not being able to find an excellent deal on the necessities. But sales end and economic trends change, and sometimes even minor shifts can spell big price hikes.
It's inevitable that as the new year creeps closer, we begin to muse about what's to come in the next 12 months. So dealnews is taking a look at what price adjustments consumers can expect to see in 2012. This week, we read the economic tealeaves to see what will be more expensive in the year 2012. Some increases seem almost customary, like ever-rising gas prices, while others, like a potential 25% hike on tap water, are more surprising.
1. Domestic and International Airfare
Greater demand and fewer available airline seats will likely lead to higher ticket prices for flights next year. American Express predicts prices within North America will increase up to 5% for economy seating, depending on the length of the flight, and up to 7% in business class. Things look more bleak for European travel. A new "green tax" implemented by the EU is aimed at reducing emissions, and it will levy a fee of roughly $15 per passenger, each way, for flights to the U.S. Fees on shorter flights within the EU will be taxed slightly less.
2. New Digital Camera Models
Smartphones have quickly replaced budget friendly point-and-shoot cameras, so manufacturers and retailers are focusing more on higher-end digital SLRs. This year, consumers may have a hard time finding a newly-released digital camera with an inexpensive starting price, as the market is moving towards more feature-rich products. "Lower cost products just won't come to market and those that will be out there, will be priced more and more for profitability," says Stephen Baker, Vice President of Industry Analysis at the NPD Group.
3. Hard Drives
There's been a shortage of hard drives thanks to epic flooding in Thailand in 2011, and some retailers have actually been rationing hard drive–based products. As a result, we've seen fewer hard drive discounts. Expect continued shortages throughout the first quarter of 2012, which is when experts predict that production will begin to catch up to demand.
4. Desktop Computers
The consolidation of desktop features into monitor-integrated units — many with touchscreens — will drive desktop prices up in 2012, according to Baker. Expect average selling prices to increase roughly 30% on new desktops.
5. Food for Home Preparation
If your grocery bill seemed higher in 2011, you weren't imagining things. Most retailers have reported that food prices are rising and those increases are being passed along to shoppers. Food costs rose 6% last year and will likely go up at least 2% more in 2012. Increases are likely to affect food eaten at home, rather than restaurants where those costs are easier to absorb when combined with sales of liquor, says Harry Balzer, Chief Industry Analyst for the NPD Group.
6. Mobile Device Data Plans
Data plans in the past have had a tendency to decline, but as carriers build out 4G services, and move away from unlimited plans, data is set to become more expensive in 2012, according to Ross Rubin, Executive Director of Connected Intelligence at the NPD Group.
7. City-Enforced Fees
As municipalities look for ways to make up for budget shortfalls, fees for everything from dog licenses to vehicle registration and parking rates are going up, as is enforcement of fine-related infractions. In Chicago for example, a non-registered dog can elicit a $500 fine, while parking fines in Portland are going up 18% as the city tries to make up a $16 billion transportation budget deficit.
8. Water
Most communities in the United States will face water rate hikes this year, even places that are rich with the natural resource. Water rates in the greater Chicago area will increase by as much as 25% next year, while the parched high desert Denver market is set to rise an additional 5.5%. Like the above-mentioned fees, this increase is mostly a result of cities needing to increase revenue to balance their budgets.
9. Gas
Fuel prices began inching up just before the holidays, and 2012 is looking to be another budget-breaking year at the pump, with prices once again topping $4 per gallon.
10. Gold
The precious metal is poised to achieve its 11th straight year of growth. Gold prices bounced around a lot in the second half of 2011, but analysts expect it to rise roughly 12% in 2012. It's a conservative estimate and a lot lower than the 17% annual growth rate of the past decade, but most believe gold will be more expensive. Take that to the bank.
11. Shipping
Unfortunately for avid online shoppers, the U.S. Postal Service will raise rates by an average of 4.6% next year, while both FedEx and UPS are hiking small package rates by 4.9%. Personal shipping will certainly cost more and it's anybody's guess how long retailers can continue the ubiquitous free shipping offers as rates rise.
By Laura Heller, dealnews writer
End of the year sales are still going strong, and in this environment it's difficult to imagine not being able to find an excellent deal on the necessities. But sales end and economic trends change, and sometimes even minor shifts can spell big price hikes.
It's inevitable that as the new year creeps closer, we begin to muse about what's to come in the next 12 months. So dealnews is taking a look at what price adjustments consumers can expect to see in 2012. This week, we read the economic tealeaves to see what will be more expensive in the year 2012. Some increases seem almost customary, like ever-rising gas prices, while others, like a potential 25% hike on tap water, are more surprising.
1. Domestic and International Airfare
Greater demand and fewer available airline seats will likely lead to higher ticket prices for flights next year. American Express predicts prices within North America will increase up to 5% for economy seating, depending on the length of the flight, and up to 7% in business class. Things look more bleak for European travel. A new "green tax" implemented by the EU is aimed at reducing emissions, and it will levy a fee of roughly $15 per passenger, each way, for flights to the U.S. Fees on shorter flights within the EU will be taxed slightly less.
2. New Digital Camera Models
Smartphones have quickly replaced budget friendly point-and-shoot cameras, so manufacturers and retailers are focusing more on higher-end digital SLRs. This year, consumers may have a hard time finding a newly-released digital camera with an inexpensive starting price, as the market is moving towards more feature-rich products. "Lower cost products just won't come to market and those that will be out there, will be priced more and more for profitability," says Stephen Baker, Vice President of Industry Analysis at the NPD Group.
3. Hard Drives
There's been a shortage of hard drives thanks to epic flooding in Thailand in 2011, and some retailers have actually been rationing hard drive–based products. As a result, we've seen fewer hard drive discounts. Expect continued shortages throughout the first quarter of 2012, which is when experts predict that production will begin to catch up to demand.
4. Desktop Computers
The consolidation of desktop features into monitor-integrated units — many with touchscreens — will drive desktop prices up in 2012, according to Baker. Expect average selling prices to increase roughly 30% on new desktops.
5. Food for Home Preparation
If your grocery bill seemed higher in 2011, you weren't imagining things. Most retailers have reported that food prices are rising and those increases are being passed along to shoppers. Food costs rose 6% last year and will likely go up at least 2% more in 2012. Increases are likely to affect food eaten at home, rather than restaurants where those costs are easier to absorb when combined with sales of liquor, says Harry Balzer, Chief Industry Analyst for the NPD Group.
6. Mobile Device Data Plans
Data plans in the past have had a tendency to decline, but as carriers build out 4G services, and move away from unlimited plans, data is set to become more expensive in 2012, according to Ross Rubin, Executive Director of Connected Intelligence at the NPD Group.
7. City-Enforced Fees
As municipalities look for ways to make up for budget shortfalls, fees for everything from dog licenses to vehicle registration and parking rates are going up, as is enforcement of fine-related infractions. In Chicago for example, a non-registered dog can elicit a $500 fine, while parking fines in Portland are going up 18% as the city tries to make up a $16 billion transportation budget deficit.
8. Water
Most communities in the United States will face water rate hikes this year, even places that are rich with the natural resource. Water rates in the greater Chicago area will increase by as much as 25% next year, while the parched high desert Denver market is set to rise an additional 5.5%. Like the above-mentioned fees, this increase is mostly a result of cities needing to increase revenue to balance their budgets.
9. Gas
Fuel prices began inching up just before the holidays, and 2012 is looking to be another budget-breaking year at the pump, with prices once again topping $4 per gallon.
10. Gold
The precious metal is poised to achieve its 11th straight year of growth. Gold prices bounced around a lot in the second half of 2011, but analysts expect it to rise roughly 12% in 2012. It's a conservative estimate and a lot lower than the 17% annual growth rate of the past decade, but most believe gold will be more expensive. Take that to the bank.
11. Shipping
Unfortunately for avid online shoppers, the U.S. Postal Service will raise rates by an average of 4.6% next year, while both FedEx and UPS are hiking small package rates by 4.9%. Personal shipping will certainly cost more and it's anybody's guess how long retailers can continue the ubiquitous free shipping offers as rates rise.
Friday, December 23, 2011
Thursday, December 22, 2011
20121222 Fifty Statistics to Make You Sad at Xmas
Here are the 50 economic numbers from 2011 that will shock you (via www.theeconomiccollapseblog.com):
1. A staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty.
2. Approximately 57 percent of all children in the United States are living in homes that are either considered to be “low income” or impoverished.
3. If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to 11 percent.
4. The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.
5. One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.
6. There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.
7. Since December 2007, median household income in the United States has declined by a total of 6.8 percent once you account for inflation.
8. According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million.
9. A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.
10. According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
11. Back in 1980, less than 30 percent of all jobs in the United States were low income jobs. Today, more than 40 percent of all jobs in the United States are low income jobs.
12. Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. In July, only 81.2 percent of men in that age group had a job.
13. One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
14. The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.
15. According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.
16. As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all U.S. adults were married.
17. The U.S. Postal Service has lost more than 5 billion dollars over the past year.
18. In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.
19. Nevada has had the highest foreclosure rate in the nation for 59 months in a row.
20. If you can believe it, the median price of a home in Detroit is now just $6000.
21. According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant. That figure is 63 percent larger than it was just ten years ago.
22. New home construction in the United States is on pace to set a brand new all-time record low in 2011.
23. 19 percent of all American men between the ages of 25 and 34 are now living with their parents.
24. Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
25. According to the Bureau of Economic Analysis, health care costs accounted for just 9.5 percent of all personal consumption back in 1980. Today they account for approximately 16.3 percent.
26. One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
27. If you can believe it, one out of every seven Americans has at least 10 credit cards.
28. The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
29. It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.
30. The retirement crisis in the United States just continues to get worse. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
31. Today, one out of every six elderly Americans lives below the federal poverty line.
32. According to a study that was just released, CEO pay at America’s biggest companies rose by 36.5 percent in just one recent 12 month period.
33. Today, the “too big to fail” banks are larger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.
34. The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
35. According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.
36. If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.
37. A higher percentage of Americans is living in extreme poverty (6.7 percent) than has ever been measured before.
38. Child homelessness in the United States is now 33 percent higher than it was back in 2007.
39. Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
40. Sadly, child poverty is absolutely exploding all over America. According to the National Center for Children in Poverty, 36.4 percent of all children that live in Philadelphia are living in poverty, 40.1 percent of all children that live in Atlanta are living in poverty, 52.6 percent of all children that live in Cleveland are living in poverty and 53.6 percent of all children that live in Detroit are living in poverty.
41. Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
42. In 1980, government transfer payments accounted for just 11.7 percent of all income. Today, government transfer payments account for more than 18 percent of all income.
43. A staggering 48.5 percent of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30 percent.
44. Right now, spending by the federal government accounts for about 24 percent of GDP. Back in 2001, it accounted for just 18 percent.
45. For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars. That was the third year in a row that our budget deficit has topped one trillion dollars.
46. If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
47. Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars. When Barack Obama first took office the national debt was just 10.6 trillion dollars.
48. If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
49. The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.
50. During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.
Of course, after going through all these numbers, the obvious question is, “how has it come to this?” The Economic Collapse has a simple answer:
. . . the heart of our economic problems is the Federal Reserve. The Federal Reserve is a perpetual debt machine, it has almost completely destroyed the value of the U.S. dollar and it has an absolutely nightmarish track record of incompetence. If the Federal Reserve system had never been created, the U.S. economy would be in far better shape. The federal government needs to shut down the Federal Reserve and start issuing currency that is not debt-based.
1. A staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty.
2. Approximately 57 percent of all children in the United States are living in homes that are either considered to be “low income” or impoverished.
3. If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to 11 percent.
4. The average amount of time that a worker stays unemployed in the United States is now over 40 weeks.
5. One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers.
6. There are fewer payroll jobs in the United States today than there were back in 2000 even though we have added 30 million extra people to the population since then.
7. Since December 2007, median household income in the United States has declined by a total of 6.8 percent once you account for inflation.
8. According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million.
9. A Gallup poll from earlier this year found that approximately one out of every five Americans that do have a job consider themselves to be underemployed.
10. According to author Paul Osterman, about 20 percent of all U.S. adults are currently working jobs that pay poverty-level wages.
11. Back in 1980, less than 30 percent of all jobs in the United States were low income jobs. Today, more than 40 percent of all jobs in the United States are low income jobs.
12. Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. In July, only 81.2 percent of men in that age group had a job.
13. One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
14. The Federal Reserve recently announced that the total net worth of U.S. households declined by 4.1 percent in the 3rd quarter of 2011 alone.
15. According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.
16. As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all U.S. adults were married.
17. The U.S. Postal Service has lost more than 5 billion dollars over the past year.
18. In Stockton, California home prices have declined 64 percent from where they were at when the housing market peaked.
19. Nevada has had the highest foreclosure rate in the nation for 59 months in a row.
20. If you can believe it, the median price of a home in Detroit is now just $6000.
21. According to the U.S. Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant. That figure is 63 percent larger than it was just ten years ago.
22. New home construction in the United States is on pace to set a brand new all-time record low in 2011.
23. 19 percent of all American men between the ages of 25 and 34 are now living with their parents.
24. Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
25. According to the Bureau of Economic Analysis, health care costs accounted for just 9.5 percent of all personal consumption back in 1980. Today they account for approximately 16.3 percent.
26. One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
27. If you can believe it, one out of every seven Americans has at least 10 credit cards.
28. The United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
29. It is being projected that the U.S. trade deficit for 2011 will be 558.2 billion dollars.
30. The retirement crisis in the United States just continues to get worse. According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
31. Today, one out of every six elderly Americans lives below the federal poverty line.
32. According to a study that was just released, CEO pay at America’s biggest companies rose by 36.5 percent in just one recent 12 month period.
33. Today, the “too big to fail” banks are larger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.
34. The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
35. According to an analysis of Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 35.
36. If you can believe it, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.
37. A higher percentage of Americans is living in extreme poverty (6.7 percent) than has ever been measured before.
38. Child homelessness in the United States is now 33 percent higher than it was back in 2007.
39. Since 2007, the number of children living in poverty in the state of California has increased by 30 percent.
40. Sadly, child poverty is absolutely exploding all over America. According to the National Center for Children in Poverty, 36.4 percent of all children that live in Philadelphia are living in poverty, 40.1 percent of all children that live in Atlanta are living in poverty, 52.6 percent of all children that live in Cleveland are living in poverty and 53.6 percent of all children that live in Detroit are living in poverty.
41. Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
42. In 1980, government transfer payments accounted for just 11.7 percent of all income. Today, government transfer payments account for more than 18 percent of all income.
43. A staggering 48.5 percent of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30 percent.
44. Right now, spending by the federal government accounts for about 24 percent of GDP. Back in 2001, it accounted for just 18 percent.
45. For fiscal year 2011, the U.S. federal government had a budget deficit of nearly 1.3 trillion dollars. That was the third year in a row that our budget deficit has topped one trillion dollars.
46. If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
47. Amazingly, the U.S. government has now accumulated a total debt of 15 trillion dollars. When Barack Obama first took office the national debt was just 10.6 trillion dollars.
48. If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
49. The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.
50. During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.
Of course, after going through all these numbers, the obvious question is, “how has it come to this?” The Economic Collapse has a simple answer:
. . . the heart of our economic problems is the Federal Reserve. The Federal Reserve is a perpetual debt machine, it has almost completely destroyed the value of the U.S. dollar and it has an absolutely nightmarish track record of incompetence. If the Federal Reserve system had never been created, the U.S. economy would be in far better shape. The federal government needs to shut down the Federal Reserve and start issuing currency that is not debt-based.
Thursday, December 8, 2011
20111208 Strange Bedfellows
It is no secret that I am not a fan of the group Anonymous. My problems with them go well beyond my not being able to play Bad Company 2 online for over a month when they crippled the Playstation network. They actively call for distruction and murder. They want to tear down the system in the most violent of ways without thought to what comes next.
HOWEVER, we have now found a point of agreement. Congress has just tossed out the bill of rights and no one else is talking about it. Even if you love Obama and want to make him dictator, will you like the guy who comes next?
As for myself, I was informed almost three years ago that I was on a government watch list with a file at Homeland security. While my taxes are paying for the feds to monitor what I am saying, at least I have the freedom to say it. Now the government has defined a potential terrorist as a person who has more than seven days of food stockpiled and is giving the military to lock up American citizens indefinitely without charges if they are a potential terrorist.
And now, my enemies who are in agreement with me:
HOWEVER, we have now found a point of agreement. Congress has just tossed out the bill of rights and no one else is talking about it. Even if you love Obama and want to make him dictator, will you like the guy who comes next?
As for myself, I was informed almost three years ago that I was on a government watch list with a file at Homeland security. While my taxes are paying for the feds to monitor what I am saying, at least I have the freedom to say it. Now the government has defined a potential terrorist as a person who has more than seven days of food stockpiled and is giving the military to lock up American citizens indefinitely without charges if they are a potential terrorist.
And now, my enemies who are in agreement with me:
Wednesday, December 7, 2011
20111207 Bob Bertsch Goes Galt
Article from Kennewick, Washington:
Kennewick construction company auctions itself off
By John Trumbo, Tri-City Herald
KENNEWICK -- It took Bob Bertsch 25 years to build his construction business and just a day for it all to go away.
Bertsch's Kennewick-based Ashley-Bertsch Group went on the auction block Friday at 9 a.m. By 4 p.m., Booker Auctions had sold off almost two dozen vehicles and trailers, tons of power tools and supplies, even the gas-fired fireplace in the office.
Bertsch, 65, said he is down-sizing because the tax burden got too expensive to stay in business.
After a quarter of a century of building a successful enterprise at 5903 W. Metaline Ave., Bertsch sat back and watched as about 200 people bid on what was left of his company -- boxes of electrical parts, a drafting desk, high-end office furniture, TVs, computers and even the phone system.
Anything that could be carried away, was.
"I am tired of carrying all the tax load," Bertsch said. "I renew 13 licenses here every year just so I can spend money in this city."
Bertsch makes no attempt to conceal his frustration with the costs government imposes on small businesses like his.
"Government is killing small business. We used to have 24 employees at our peak. Now, all of those people who used to work here are in unemployment lines," he said.
Seeing all his life work and hard-earned gain sold off wasn't easy, Bertsch said, but the sale was successful enough to ease the hurt.
"I wasn't as emotionally attached as I thought I'd be," Bertsch said at the end of the day while sitting in what used to be the company's conference room in the 5,000-square-foot office building.
Most of the auction action took place inside and outside a 4,000-square-foot warehouse.
The buildings and 3.2 acres of property already had been sold. The Kennewick School District paid $960,000 and plans to expand the Tri-Tech campus on Kellogg Street to the site, Bertsch said.
Bertsch, who is a commissioner for the Benton Public Utility District, said selling off the company's assets doesn't mean he is retiring.
"I like what I do. All of my work has been relationship-based, with mostly referrals and negotiated jobs," said Bertsch, who expects he will be doing much of the same in his home-based, husband-and-wife operation.
Bertsch told a friend at the auction he is selling out because government was taking more out of his business than he was.
But auctioneer Merle Booker said Bertsch's wife put it differently.
"She said Bob told her he was shedding his skin," Booker said. "I'm not retiring. Just slowing down.
Kennewick construction company auctions itself off
By John Trumbo, Tri-City Herald
KENNEWICK -- It took Bob Bertsch 25 years to build his construction business and just a day for it all to go away.
Bertsch's Kennewick-based Ashley-Bertsch Group went on the auction block Friday at 9 a.m. By 4 p.m., Booker Auctions had sold off almost two dozen vehicles and trailers, tons of power tools and supplies, even the gas-fired fireplace in the office.
Bertsch, 65, said he is down-sizing because the tax burden got too expensive to stay in business.
After a quarter of a century of building a successful enterprise at 5903 W. Metaline Ave., Bertsch sat back and watched as about 200 people bid on what was left of his company -- boxes of electrical parts, a drafting desk, high-end office furniture, TVs, computers and even the phone system.
Anything that could be carried away, was.
"I am tired of carrying all the tax load," Bertsch said. "I renew 13 licenses here every year just so I can spend money in this city."
Bertsch makes no attempt to conceal his frustration with the costs government imposes on small businesses like his.
"Government is killing small business. We used to have 24 employees at our peak. Now, all of those people who used to work here are in unemployment lines," he said.
Seeing all his life work and hard-earned gain sold off wasn't easy, Bertsch said, but the sale was successful enough to ease the hurt.
"I wasn't as emotionally attached as I thought I'd be," Bertsch said at the end of the day while sitting in what used to be the company's conference room in the 5,000-square-foot office building.
Most of the auction action took place inside and outside a 4,000-square-foot warehouse.
The buildings and 3.2 acres of property already had been sold. The Kennewick School District paid $960,000 and plans to expand the Tri-Tech campus on Kellogg Street to the site, Bertsch said.
Bertsch, who is a commissioner for the Benton Public Utility District, said selling off the company's assets doesn't mean he is retiring.
"I like what I do. All of my work has been relationship-based, with mostly referrals and negotiated jobs," said Bertsch, who expects he will be doing much of the same in his home-based, husband-and-wife operation.
Bertsch told a friend at the auction he is selling out because government was taking more out of his business than he was.
But auctioneer Merle Booker said Bertsch's wife put it differently.
"She said Bob told her he was shedding his skin," Booker said. "I'm not retiring. Just slowing down.
Tuesday, December 6, 2011
20111206 Big Statism is Osawatomie
The following was printed today in New Republic and written by Michael Knox Beran:
Big Statism in Osawatomie
December 6, 2011 1:10 P.M.
By Michael Knox Beran
He’s been Lincoln, FDR, and Reagan; today, President Obama travels to Osawatomie, Kansas, to unveil his latest persona: Teddy Roosevelt, who delivered his “New Nationalism” manifesto in the town’s John Brown Cemetery in August 1910.
Obama would do well to be cautious in inviting comparison to the popular image of the “Rough Rider.” The president whom Matt Drudge delights to picture on his vacation bicycle, safety helmet in place and a Dukakis-in-the-tank grin on his face, does not compare favorably as an action hero to the man who fought at San Juan Hill.
But where economic policy is concerned, Obama and the “New Nationalist” Roosevelt are not so far apart. At Osawatomie, the former president lamented the “absence of effective state” in America and advocated a policy of paternalist “control” of the nation’s commerce. President Obama, too, wants more “effective state” in America. The difference is that in 1910 government spending amounted to about 8 percent of GDP. A century later it comes to around 40 percent. The country today has too much state, not too little.
H. L. Mencken’s analysis of Teddy as a Big State Man is worth pondering. The “America that Roosevelt dreamed of,” Mencken wrote
was always a sort of swollen Prussia, truculent without and regimented within. . . . He didn’t believe in democracy; he believed simply in government. His remedy for all the great pangs and longings of existence was not a dispersion of authority, but a hard concentration of authority. He was not in favor of unlimited experiment; he was in favor of rigid control from above, a despotism of inspired prophets and policemen. He was not for democracy as his followers understood democracy, and as it actually is and must be; he was for paternalism of the true Bismarckian pattern, almost of the Napoleonic or Ludendorffian pattern—a paternalism concerning itself with all things, from the regulation of coal-mining and meat-packing to the regulation of spelling and marital rights.
There is more than a whiff of President Obama in this, for he too is a Big State Man. And as such he is out of step with the time. A century after Roosevelt called for more government control at Osawatomie, the dead hand of Big Statism is destroying the economies of the West and bankrupting the treasuries. Yet President Obama and his party stubbornly resist policies to restore a more reasonable balance between state power and private enterprise.
The remedy for pernicious concentrations of power is free competition. That was true in 1910, although Roosevelt didn’t realize it; what the country needed then was not state control of commerce but an effective anti-monopoly law. (Although the Sherman Act had been on the books since 1890, anti-trust law was in its infancy.) Today, too much power is concentrated in Washington and on Wall Street, and the two concentrations reinforce one another. Wall Street helps fund the campaigns of politicians in both parties, and in exchange the politicians give Wall Street regulation that insulates the biggest banks from competition by subsidizing their failures. The remedy here, too, is not more state control, but more competition and more free, unsubsidized enterprise.
Big Statism in Osawatomie
December 6, 2011 1:10 P.M.
By Michael Knox Beran
He’s been Lincoln, FDR, and Reagan; today, President Obama travels to Osawatomie, Kansas, to unveil his latest persona: Teddy Roosevelt, who delivered his “New Nationalism” manifesto in the town’s John Brown Cemetery in August 1910.
Obama would do well to be cautious in inviting comparison to the popular image of the “Rough Rider.” The president whom Matt Drudge delights to picture on his vacation bicycle, safety helmet in place and a Dukakis-in-the-tank grin on his face, does not compare favorably as an action hero to the man who fought at San Juan Hill.
But where economic policy is concerned, Obama and the “New Nationalist” Roosevelt are not so far apart. At Osawatomie, the former president lamented the “absence of effective state” in America and advocated a policy of paternalist “control” of the nation’s commerce. President Obama, too, wants more “effective state” in America. The difference is that in 1910 government spending amounted to about 8 percent of GDP. A century later it comes to around 40 percent. The country today has too much state, not too little.
H. L. Mencken’s analysis of Teddy as a Big State Man is worth pondering. The “America that Roosevelt dreamed of,” Mencken wrote
was always a sort of swollen Prussia, truculent without and regimented within. . . . He didn’t believe in democracy; he believed simply in government. His remedy for all the great pangs and longings of existence was not a dispersion of authority, but a hard concentration of authority. He was not in favor of unlimited experiment; he was in favor of rigid control from above, a despotism of inspired prophets and policemen. He was not for democracy as his followers understood democracy, and as it actually is and must be; he was for paternalism of the true Bismarckian pattern, almost of the Napoleonic or Ludendorffian pattern—a paternalism concerning itself with all things, from the regulation of coal-mining and meat-packing to the regulation of spelling and marital rights.
There is more than a whiff of President Obama in this, for he too is a Big State Man. And as such he is out of step with the time. A century after Roosevelt called for more government control at Osawatomie, the dead hand of Big Statism is destroying the economies of the West and bankrupting the treasuries. Yet President Obama and his party stubbornly resist policies to restore a more reasonable balance between state power and private enterprise.
The remedy for pernicious concentrations of power is free competition. That was true in 1910, although Roosevelt didn’t realize it; what the country needed then was not state control of commerce but an effective anti-monopoly law. (Although the Sherman Act had been on the books since 1890, anti-trust law was in its infancy.) Today, too much power is concentrated in Washington and on Wall Street, and the two concentrations reinforce one another. Wall Street helps fund the campaigns of politicians in both parties, and in exchange the politicians give Wall Street regulation that insulates the biggest banks from competition by subsidizing their failures. The remedy here, too, is not more state control, but more competition and more free, unsubsidized enterprise.
Thursday, December 1, 2011
20111201 Adam Breaks It Down
Adam Corolla went to the L.A. auto show and somehow the conversation turns to OWS and he goes off. He manages to break the situation down very nicely.
WARNING: ADULT LANGUAGE
WARNING: ADULT LANGUAGE
Tuesday, November 22, 2011
20111122 The Percentage Game
Recently there has been a lot of talk dividing Americans into different groups or “percents”. The top 1% controls the wealth. The top five percent pay 85% of the taxes. Prior to this past year, the divisions predominantly centered on quintiles. The top 20% owns everything. The bottom 20% has nothing.
All the talk has gotten me thinking about my own position in the big scheme of things. I was born into a household that would have been in the fourth quintile. (60% had more; 20% had less, the rest were even.) When I ventured out into the world, I was definitely in the bottom 20%. I had a student loan, a minimum wage part time job, two roommates and was surrounded by people in the same situation. So I became acquainted with people who were actively trying to move up the ladder and who were able to connect me with people in the first, second and third quintile so that I could start learning from them.
My job moved me from the fifth quintile to the fourth and held out hope for the third but that was the end there. Of course, there were other jobs that I could have taken and that could have moved me up the socio-economic ladder, but I had my eye on more successful people and tried to make decisions based on what they would do.
Today, I live comfortably in the top quintile. I do not belong to the one percent or the ten percent, but I have not worked in years and plan to never work again. I do not need a handout and do not anticipate ever needing a handout. As I said, I am comfortable and I wish to stay that way. I have tried to look ahead and foresee what kind of calamities might be down the road so that I can plan for them. I would not say I go around predicting doom, but I plan for it so if something bad happens, I can go on and remain comfortable. When the hurricane hit this past September, I evacuated when the police showed up at the door saying the earthen dam up in the hills looked like it might fail and after the storm was over, I came back threw away everything that was destroyed and began repairing and replacing. Many people in the area and in my own neighborhood lost their homes. I took precautions years ago so if I lost my home, I could move on and never need to rely on others. This left me in a position to help those who needed it.
The point is, I started in the last quintile and moved myself to the top quintile. A few weeks ago, I had the opportunity to hear Thomas Sowell speak. He stated that this was the normal state of being for Americans throughout the history of our country; that we each find ourselves moving through different quintiles as we pass through life.
The protesters who have been part of the occupy movement are upset that some people have more and they act as though we each live out our lives at one level and never move out of it. They appear to believe that the rich have always been rich and the poor have always been poor.
That is actually truer today than it has ever been in our country and current trends are making it even more so. I may be part of one of the last generations who had the ability to climb the ladder. Under the guise of being kinder and gentler, our government continues to enact policies and create programs which have the stated purpose of helping the less fortunate but which, in reality, lock people into position. These policies have the tendency to ensure that those who have power will always have power. It becomes increasingly difficult for a startup to come along and grab market share or otherwise threaten the status quo. As such, it becomes more and more difficult for anyone to pull themselves up and move up the ladder.
As power consolidates into an elite class, it becomes increasing possible and even wise to punish those who do not conform to the kinder, gentler, keep them in their place mentality. We leave in the power to take the top down while killing the opportunity to bring the bottom up. This will continue to consolidate power into a smaller, more centralized elite class. This trend, if allowed to continue, can only lead to one eventual situation. We will have a small group of rulers who move power through themselves generationally (an aristocracy) and a very large population of people equal in their lack of assets (a surf class). We bring ourselves back to a feudal state and usher in a dark age. It was called “the American experiment” for a reason.
The Occupy movement is populated by people who are looking for a way to bring about change in a positive way, however it is run by individuals such as Van Jones who want to solidify a position for themselves in a post republic era.
Check out: Anthem by Ayn Rand and any YouTube video of Thomas Sowell. Also check any speech given by Van Jones to a closed audience which would not be attended by someone not already a believer in the new world order.
All the talk has gotten me thinking about my own position in the big scheme of things. I was born into a household that would have been in the fourth quintile. (60% had more; 20% had less, the rest were even.) When I ventured out into the world, I was definitely in the bottom 20%. I had a student loan, a minimum wage part time job, two roommates and was surrounded by people in the same situation. So I became acquainted with people who were actively trying to move up the ladder and who were able to connect me with people in the first, second and third quintile so that I could start learning from them.
My job moved me from the fifth quintile to the fourth and held out hope for the third but that was the end there. Of course, there were other jobs that I could have taken and that could have moved me up the socio-economic ladder, but I had my eye on more successful people and tried to make decisions based on what they would do.
Today, I live comfortably in the top quintile. I do not belong to the one percent or the ten percent, but I have not worked in years and plan to never work again. I do not need a handout and do not anticipate ever needing a handout. As I said, I am comfortable and I wish to stay that way. I have tried to look ahead and foresee what kind of calamities might be down the road so that I can plan for them. I would not say I go around predicting doom, but I plan for it so if something bad happens, I can go on and remain comfortable. When the hurricane hit this past September, I evacuated when the police showed up at the door saying the earthen dam up in the hills looked like it might fail and after the storm was over, I came back threw away everything that was destroyed and began repairing and replacing. Many people in the area and in my own neighborhood lost their homes. I took precautions years ago so if I lost my home, I could move on and never need to rely on others. This left me in a position to help those who needed it.
The point is, I started in the last quintile and moved myself to the top quintile. A few weeks ago, I had the opportunity to hear Thomas Sowell speak. He stated that this was the normal state of being for Americans throughout the history of our country; that we each find ourselves moving through different quintiles as we pass through life.
The protesters who have been part of the occupy movement are upset that some people have more and they act as though we each live out our lives at one level and never move out of it. They appear to believe that the rich have always been rich and the poor have always been poor.
That is actually truer today than it has ever been in our country and current trends are making it even more so. I may be part of one of the last generations who had the ability to climb the ladder. Under the guise of being kinder and gentler, our government continues to enact policies and create programs which have the stated purpose of helping the less fortunate but which, in reality, lock people into position. These policies have the tendency to ensure that those who have power will always have power. It becomes increasingly difficult for a startup to come along and grab market share or otherwise threaten the status quo. As such, it becomes more and more difficult for anyone to pull themselves up and move up the ladder.
As power consolidates into an elite class, it becomes increasing possible and even wise to punish those who do not conform to the kinder, gentler, keep them in their place mentality. We leave in the power to take the top down while killing the opportunity to bring the bottom up. This will continue to consolidate power into a smaller, more centralized elite class. This trend, if allowed to continue, can only lead to one eventual situation. We will have a small group of rulers who move power through themselves generationally (an aristocracy) and a very large population of people equal in their lack of assets (a surf class). We bring ourselves back to a feudal state and usher in a dark age. It was called “the American experiment” for a reason.
The Occupy movement is populated by people who are looking for a way to bring about change in a positive way, however it is run by individuals such as Van Jones who want to solidify a position for themselves in a post republic era.
Check out: Anthem by Ayn Rand and any YouTube video of Thomas Sowell. Also check any speech given by Van Jones to a closed audience which would not be attended by someone not already a believer in the new world order.
Saturday, November 19, 2011
20111119 Barnhardt Goes Galt
The following was posted by Ann Barnhardt of BCM (Barnhardt Capital Management). She is, is her own words, “an old-school commercial hedge broker specializing in cattle and grain.” After sending the post she shut down her firm. There is no word on whether John Galt was in the room at the time. In her words:
BCM Has Ceased Operations Posted by Ann Barnhardt – November 17, AD 2011 10:27 AM MST
Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,
It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.
The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.
Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.
I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses. I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.
Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse. So, using the MF Global customers as an example, any funds that were withdrawn from MFG accounts in the run-up to the collapse, either because of suspicions the customer may have had about MFG from, say, watching the company’s bond yields rise sharply, or from purely organic day-to-day withdrawls, the bankruptcy trustee COULD initiate action to “clawback” those funds.
As a hedge broker, this makes my blood run cold. Generally, as the markets move in favor of a hedge position and equity builds in a client’s account, that excess equity is sent back to the customer who then uses that equity to offset cash market transactions OR to pay down a revolving line of credit. Even the possibility that a customer could be penalized and additionally raped AGAIN via a clawback action after already having their customer funds stolen is simply villainous. While there has been no open indication of clawback actions being initiated by the MF Global trustee, I have been told that it is a possibility.
And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.
Remember, derivatives contracts are NOT NECESSARY in the commodities markets. The cash commodity itself is the underlying reality and is not dependent on the futures or options markets. Many people seem to have gotten that backwards over the past decades. From Abel the animal husbandman up until the year 1964, there were no cattle futures contracts at all, and no options contracts until 1984, and yet the cash cattle markets got along just fine.
Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.
To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers. Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.
As for me, I can only echo the words of David:
“This is the Lord’s doing; and it is wonderful in our eyes.”
With Best Regards-
Ann Barnhardt
“I am going to head out of town for a few days, but will be checking email and messages,” Barnhardt wrote, after describing her letter as “going Galt” — a reference to Ayn Rand’s “Atlas Shrugged.”
“Thanks to one and all for the kind support and prayers. Please be assured of mine in return, for all of us.”
BCM Has Ceased Operations Posted by Ann Barnhardt – November 17, AD 2011 10:27 AM MST
Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,
It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.
The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.
Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.
I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses. I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.
Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse. So, using the MF Global customers as an example, any funds that were withdrawn from MFG accounts in the run-up to the collapse, either because of suspicions the customer may have had about MFG from, say, watching the company’s bond yields rise sharply, or from purely organic day-to-day withdrawls, the bankruptcy trustee COULD initiate action to “clawback” those funds.
As a hedge broker, this makes my blood run cold. Generally, as the markets move in favor of a hedge position and equity builds in a client’s account, that excess equity is sent back to the customer who then uses that equity to offset cash market transactions OR to pay down a revolving line of credit. Even the possibility that a customer could be penalized and additionally raped AGAIN via a clawback action after already having their customer funds stolen is simply villainous. While there has been no open indication of clawback actions being initiated by the MF Global trustee, I have been told that it is a possibility.
And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.
Remember, derivatives contracts are NOT NECESSARY in the commodities markets. The cash commodity itself is the underlying reality and is not dependent on the futures or options markets. Many people seem to have gotten that backwards over the past decades. From Abel the animal husbandman up until the year 1964, there were no cattle futures contracts at all, and no options contracts until 1984, and yet the cash cattle markets got along just fine.
Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.
To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers. Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.
As for me, I can only echo the words of David:
“This is the Lord’s doing; and it is wonderful in our eyes.”
With Best Regards-
Ann Barnhardt
“I am going to head out of town for a few days, but will be checking email and messages,” Barnhardt wrote, after describing her letter as “going Galt” — a reference to Ayn Rand’s “Atlas Shrugged.”
“Thanks to one and all for the kind support and prayers. Please be assured of mine in return, for all of us.”
Thursday, October 27, 2011
20111027 OWS: Free Episode of GBTV
Galt's Gulch brings you a free episode of GBTV which looks at the organizing of the Occupy Wall Street movement and includes videos of speechs and rallies in which the "spontaneous: OWS in announced and planned months in advance.
Monday, October 17, 2011
Friday, March 18, 2011
20110315 Blast From the Past: Ron Paul
With the recession hanging on, the dollar losing standing around the world, unemployment remaining high and commodity prices continuing to soar, the persistent nagging of Congressman Ron Paul seem prophetic. I searched back and found what he was preaching exactly three years ago before the economic meltdown and it seemed appropriate to dust them off for another look.
America became the greatest, most prosperous nation in history through low taxes, constitutionally limited government, personal freedom and a belief in sound money. I decided to run for president because I am deeply concerned that the conservative movement has drifted away from these principles that we once so fiercely defended. Deficits have exploded, entitlements are out of control and our personal liberties are threatened like never before.
The current state of our economy drives home the hard truth that living beyond our means has caught up to us. Oil is over $100 a barrel, the housing market is in sharp decline and the dollar is in a free fall.
The national debt now stands in excess of $9 trillion, more than $30,000 per person. The total future debt obligations of the United States, including entitlements, are estimated at around $59 trillion, which equates to over $500,000 per household. Social Security and Medicare will likely consume the entire federal budget by 2040, threatening the average American with an impossible tax burden.
As I said this past November to Federal Reserve Chairman Ben Bernanke, "We're indeed between a rock and a hard place, and we don't talk about how we got here; we talk about how we are going to patch it up." The "solutions" proposed so far--stimulus packages, bailouts and interest rate cuts--just amount to printing more money, which will lead to greater currency devaluation, contribute to the rising costs of living, and further squeeze the middle class and our senior citizens.
This is the first time in over 100 years that monetary policy is being discussed in earnest during a presidential campaign. Money is the lifeblood of any economy, and control over a nation's currency means control over its economic well-being. Fed bankers quite literally determine the value of our money by controlling the supply of dollars and establishing interest rates. Their actions can make you richer or poorer overnight, in terms of the value of your savings and the buying power of your paycheck. For over 30 years, I have been urging all Americans to educate themselves about monetary policy in order to better understand how a small group of unelected individuals at the Fed and the Treasury Department wield tremendous power over our lives.
In order to immediately strengthen the economy and lay the groundwork for continued prosperity, I have proposed a four-part plan that involves lower taxes, less spending, a sound monetary policy and regulatory reform.
We can take several immediate steps to reform our archaic tax system and give Americans back the fruits of their labor. I will work to make the Bush tax cuts permanent, including a repeal of the estate tax, and I will fight to end taxes on Social Security benefits and income derived from tips. I also believe that if we are to truly address the housing crisis, we will end taxes on forgiven mortgage debt, which is considered "income."
The most permanent tax reform we can undertake, though, is to end the income tax and abolish the IRS. We could remove the entire personal income tax-funded portion of the budget and the federal government would still receive roughly the same revenues that it did during the Clinton years. And we could do this without even touching Social Security and Medicare.
The key to tax reform lies in spending reform. It's time to cut back on our trillion-dollar overseas budget and use that money to secure the programs Washington has forced so many citizens to depend on. By doing this, we can let younger generations opt out of these programs and save for their own retirements and health care needs. As president, I will also veto any unbalanced budget and demand that Congress address wasteful spending.
Lower taxes and less government spending will put more money in your pocket. A sound monetary policy will increase the value of that money and drive down the costs of living.
Immediate monetary reform can be achieved by requiring transparency at the Fed. All Federal Reserve meetings should be televised just like the proceedings of Congress, and they should once again make all information on the money supply available. I also favor legalizing competing currencies. History is replete with examples of the inevitable failure of paper money systems, from our own founding days, to inter-war Germany, to the monetary crisis of 1970s Latin America.
However, I believe that for our economy to be secure in the long term, Congress must reassert its authority and end the unconstitutional Federal Reserve.
Finally, we must be willing to undertake regulatory reform. It would serve us well to revisit the myriad federal regulations that have stymied the innovative spirit of the American people.
One of the most damaging regulations imposed on the American people is the Sarbanes-Oxley Act. A survey by Financial Executives International put the average cost of compliance with Sarbanes-Oxley at $4.4 million, while the American Economics Association estimates the Act could cost American companies as much as $35 billion. A study by the prestigious Wharton Business School found that the number of American companies delisting from public stock exchanges nearly tripled the year after Sarbanes-Oxley became law. One of the best things Congress could do for the American economy is to repeal this damaging legislation.
According to David Walker, former head of the U.S. Government Accountability Office, "We are mortgaging the future of our children and grandchildren at record rates, and that is not only an issue of fiscal irresponsibility, it's an issue of immorality."
Unless we embrace fundamental reforms, we will be caught in a financial storm that will humble this great country as no foreign enemy ever could. However, we can find safe harbor in our ideals. Reclaiming our historic legacy of principled commitment to liberty will, once again, unleash the innovative spirit that propelled our nation to heights of prosperity never before achieved in human history.
America became the greatest, most prosperous nation in history through low taxes, constitutionally limited government, personal freedom and a belief in sound money. I decided to run for president because I am deeply concerned that the conservative movement has drifted away from these principles that we once so fiercely defended. Deficits have exploded, entitlements are out of control and our personal liberties are threatened like never before.
The current state of our economy drives home the hard truth that living beyond our means has caught up to us. Oil is over $100 a barrel, the housing market is in sharp decline and the dollar is in a free fall.
The national debt now stands in excess of $9 trillion, more than $30,000 per person. The total future debt obligations of the United States, including entitlements, are estimated at around $59 trillion, which equates to over $500,000 per household. Social Security and Medicare will likely consume the entire federal budget by 2040, threatening the average American with an impossible tax burden.
As I said this past November to Federal Reserve Chairman Ben Bernanke, "We're indeed between a rock and a hard place, and we don't talk about how we got here; we talk about how we are going to patch it up." The "solutions" proposed so far--stimulus packages, bailouts and interest rate cuts--just amount to printing more money, which will lead to greater currency devaluation, contribute to the rising costs of living, and further squeeze the middle class and our senior citizens.
This is the first time in over 100 years that monetary policy is being discussed in earnest during a presidential campaign. Money is the lifeblood of any economy, and control over a nation's currency means control over its economic well-being. Fed bankers quite literally determine the value of our money by controlling the supply of dollars and establishing interest rates. Their actions can make you richer or poorer overnight, in terms of the value of your savings and the buying power of your paycheck. For over 30 years, I have been urging all Americans to educate themselves about monetary policy in order to better understand how a small group of unelected individuals at the Fed and the Treasury Department wield tremendous power over our lives.
In order to immediately strengthen the economy and lay the groundwork for continued prosperity, I have proposed a four-part plan that involves lower taxes, less spending, a sound monetary policy and regulatory reform.
We can take several immediate steps to reform our archaic tax system and give Americans back the fruits of their labor. I will work to make the Bush tax cuts permanent, including a repeal of the estate tax, and I will fight to end taxes on Social Security benefits and income derived from tips. I also believe that if we are to truly address the housing crisis, we will end taxes on forgiven mortgage debt, which is considered "income."
The most permanent tax reform we can undertake, though, is to end the income tax and abolish the IRS. We could remove the entire personal income tax-funded portion of the budget and the federal government would still receive roughly the same revenues that it did during the Clinton years. And we could do this without even touching Social Security and Medicare.
The key to tax reform lies in spending reform. It's time to cut back on our trillion-dollar overseas budget and use that money to secure the programs Washington has forced so many citizens to depend on. By doing this, we can let younger generations opt out of these programs and save for their own retirements and health care needs. As president, I will also veto any unbalanced budget and demand that Congress address wasteful spending.
Lower taxes and less government spending will put more money in your pocket. A sound monetary policy will increase the value of that money and drive down the costs of living.
Immediate monetary reform can be achieved by requiring transparency at the Fed. All Federal Reserve meetings should be televised just like the proceedings of Congress, and they should once again make all information on the money supply available. I also favor legalizing competing currencies. History is replete with examples of the inevitable failure of paper money systems, from our own founding days, to inter-war Germany, to the monetary crisis of 1970s Latin America.
However, I believe that for our economy to be secure in the long term, Congress must reassert its authority and end the unconstitutional Federal Reserve.
Finally, we must be willing to undertake regulatory reform. It would serve us well to revisit the myriad federal regulations that have stymied the innovative spirit of the American people.
One of the most damaging regulations imposed on the American people is the Sarbanes-Oxley Act. A survey by Financial Executives International put the average cost of compliance with Sarbanes-Oxley at $4.4 million, while the American Economics Association estimates the Act could cost American companies as much as $35 billion. A study by the prestigious Wharton Business School found that the number of American companies delisting from public stock exchanges nearly tripled the year after Sarbanes-Oxley became law. One of the best things Congress could do for the American economy is to repeal this damaging legislation.
According to David Walker, former head of the U.S. Government Accountability Office, "We are mortgaging the future of our children and grandchildren at record rates, and that is not only an issue of fiscal irresponsibility, it's an issue of immorality."
Unless we embrace fundamental reforms, we will be caught in a financial storm that will humble this great country as no foreign enemy ever could. However, we can find safe harbor in our ideals. Reclaiming our historic legacy of principled commitment to liberty will, once again, unleash the innovative spirit that propelled our nation to heights of prosperity never before achieved in human history.
20110301 Biofuel Eats the Poor
Doing what is right is not always easy. I am not talking about any moral debates over the good of the many outweighing the good of the one and it does not matter whether the argument is attributed to John Stewart Mill or to Mister Spock. Sometimes it is just hard to know what is right.
One quick example of this is the compact fluorescent light bulb. We all know that we are supposed to use them because they are good for the environment. There are commercials that play quite often. I do not know what they are advertising but there is a happy smiling woman who tells us that doing something simple like changing a light bulb gives us a feeling of empowerment over our lives. I changed my own light bulbs over to the fluorescent kind four years ago. The problem is – when these bulbs die and we throw them away, they are full of toxic mercury. Suddenly they are very bad for the environment.
A bigger and more pressing issue is ethanol. It is a popularly accepted belief that ethanol is good for the environment. I believe that it is true that corn burns cleaner than oil. However, corn burns a lot less efficiently than oil. You use more ethanol fuel to go somewhere than you do oil. It also takes much more energy to turn corn into fuel than it does to turn oil into fuel. Ethanol is also corrosive. Fuel made from oil can be pumped through a pipeline. Ethanol would eat through the pipeline so it needs to be trucked to where it’s going. To burn a gallon of ethanol turns out more pollution than a gallon of oil based fuel.
This is not to say that there is no place for ethanol within the whole. Even with all of the new oil being pumped out of the ground, it is not going to be here forever. I remember the predictions that it would be gone by 1990. While that was wrong, it is true that is a finite resource that everyone wants and this takes power and control away from us (the users) and gives it to people who have radically different feelings about life and death (the producers). We need to find better ways to make ethanol and better ways to use it.
The biggest problem with ethanol is that it reduces the food supply. I have to give credit to Fidel Castro, he had this right. Because the industrialized world is concerned with how much we need to spend to fill our gas tanks, food is being removed from the third world. A sizable chunk of the world population spends seventy-five percent or more of their assets on food. Any increase in food prices is devastating to them. We are beginning to see food riots in places all over the globe. It was the rapid rise in food prices which sparked revolts in Tunisia and Egypt. The famines in Africa look to be the worst they have been in generations.
Back here in the states, we are seeing price increases that dwarf what happens at the pump. Whether we are shopping in the cereal aisle or ordering a thick crust pizza, the price is going up because the food supply is being tampered with. Anything with corn or wheat or flour in it is affected. Over the last few decades, we have seen the phenomenon of low cost food being less healthy than more expensive food and low cost food is loaded with corn syrup and corn starch.
Ethanol is a quick fix that we can do so that we feel better about ourselves, but the reality is that it causes pollution and drives millions to starvation. We were better served to find ways to replace petroleum wherever possible.
One quick example of this is the compact fluorescent light bulb. We all know that we are supposed to use them because they are good for the environment. There are commercials that play quite often. I do not know what they are advertising but there is a happy smiling woman who tells us that doing something simple like changing a light bulb gives us a feeling of empowerment over our lives. I changed my own light bulbs over to the fluorescent kind four years ago. The problem is – when these bulbs die and we throw them away, they are full of toxic mercury. Suddenly they are very bad for the environment.
A bigger and more pressing issue is ethanol. It is a popularly accepted belief that ethanol is good for the environment. I believe that it is true that corn burns cleaner than oil. However, corn burns a lot less efficiently than oil. You use more ethanol fuel to go somewhere than you do oil. It also takes much more energy to turn corn into fuel than it does to turn oil into fuel. Ethanol is also corrosive. Fuel made from oil can be pumped through a pipeline. Ethanol would eat through the pipeline so it needs to be trucked to where it’s going. To burn a gallon of ethanol turns out more pollution than a gallon of oil based fuel.
This is not to say that there is no place for ethanol within the whole. Even with all of the new oil being pumped out of the ground, it is not going to be here forever. I remember the predictions that it would be gone by 1990. While that was wrong, it is true that is a finite resource that everyone wants and this takes power and control away from us (the users) and gives it to people who have radically different feelings about life and death (the producers). We need to find better ways to make ethanol and better ways to use it.
The biggest problem with ethanol is that it reduces the food supply. I have to give credit to Fidel Castro, he had this right. Because the industrialized world is concerned with how much we need to spend to fill our gas tanks, food is being removed from the third world. A sizable chunk of the world population spends seventy-five percent or more of their assets on food. Any increase in food prices is devastating to them. We are beginning to see food riots in places all over the globe. It was the rapid rise in food prices which sparked revolts in Tunisia and Egypt. The famines in Africa look to be the worst they have been in generations.
Back here in the states, we are seeing price increases that dwarf what happens at the pump. Whether we are shopping in the cereal aisle or ordering a thick crust pizza, the price is going up because the food supply is being tampered with. Anything with corn or wheat or flour in it is affected. Over the last few decades, we have seen the phenomenon of low cost food being less healthy than more expensive food and low cost food is loaded with corn syrup and corn starch.
Ethanol is a quick fix that we can do so that we feel better about ourselves, but the reality is that it causes pollution and drives millions to starvation. We were better served to find ways to replace petroleum wherever possible.
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