Feeds:
Posts
Comments

Archive for the ‘Political Economy’ Category

One of the sad duties I performed as a stockbroker was informing Americans that their retirement funds had vanished. Poof! Just like that retirement at 68 was now a pipe dream! I worked for one of the largest BAnks in America in its brokerage business. I took calls daily from clients who could not understand why their GM bonds had vaporized. I guess I lacked the acumen to explain to Aunt Nellie from Saginaw that it was for the greater good. Senior creditors of GM were fucked over. And by the way contract law in America vanished overnight to ensure that the UNIONS maintained their preponderance. Ever talk to a 70 year old dude wondering why his $200,000 retirement fund of GM bonds is now worth $0! Didn’t think so. Everyone thinks when bondholders get screwed that it’s some huge investment/pension/institutional player. News for ya folks. I talked to a few dozen retirees who were fucked out of their retirement by the Asshats who run the Government! And I was one simple broker in my call center of several hundred brokers!

I think the best part of my organization was that our leaders acquiesced when the Federal Government forced us to buy a failing Investment Bank with your tax dollars! Nothing wrong with a merger, we’d been buying up everything in sight for years. But mergers are great when YOU pay for them. And the bonuses are great if you’re above AVP. Cheers taxpayer!

Advertisements

Read Full Post »

The looming debacle of the emerging public pension crisis has even pricked the ears of the NY Times! I read an editorial today in the Providence Journal about the City of Providence firefighters. One firefighter took disability in 1991 with a salary of $34,000. With compounding COLAS of 4, and 5 and even 6 percent through the years, his pension today is $103,000. In 2015 it will be $138,000. In 2020, $185,000. These levels of pension largesse are obviously unsustainable. Of course, Providence’s pension fund is also 70% unfunded!!! Smart private sector citizens who refuse to be raped by the public pension system will obviously flee spendthrift locales. But the ultimate question is how did the pension system get so out of control? Simple answer: Unions. No one employed by any government, city, municipality or town should be allowed to unionize. They retire much earlier than you with benefits beyond your wildest imagination. I laugh when I hear teachers complain that we have to do it for the children. What they really mean is they want to do it TO the children. As we tumble over the cliff of Mt. Obama Doom remember to keep your powder dry. Once all these cities, towns even states start defaulting there will be hell to pay. Cheers!

Read Full Post »

I’ve been goofing off of late, forlorn with the knowledge that our way of life is past. This knowledge will not be apparent to the simpletons for a few more years. Ah! Ignorance is bliss. For the rest of us preparedness is paramount. I’ll cease my silly detours into Grateful Deadville and start to concentrate on the demographic/financial time bomb that has been ticking, still ticks and whose tocsin sounds in the distance.  Good luck and God speed….

Read Full Post »

    Finance leaders from the EU have put together a $1 Trillion rescue package to battle the looming debt crisis. The IMF will chip in $320 Billion  dollars of the total. (The US is the largest stakeholder in the IMF, our quota is 17%, i.e., we provide 17% of the funds. Ergo, .17 x 320 = 54.4). That’s right, the US taxpayer is coughing up, or should I say bleeding,  approximately $54 Billion to save the Socialist economies of Europe from imminent collapse. The US is almost 13 Trillion dollars in debt and heading off a financial cliff thanks to Obama, but we taxpayers can still afford to rescue our betters in Europe from their own self-induced fiscal follies! Capitalist American swine are oh so happy to send a lifeline to their Socialist comrades across the pond. I’m glad to contribute my hard-earned then confiscated tax dollars to help Frenchies retire at 55. I’ll be working till the day I drop, so have some champagne on me François mon frère. I’ll even kick in the tip. Profitez pendant que vous pouvez.

    This “rescue” will provide a temporary salve to their self-inflicted financial wounds, but there’s still trouble up yonder on the horizon. This courtesy of Bloomberg, “Europe’s debt-ridden nations still have to raise almost 2 trillion euros within the next three years to refinance maturing bonds and fund deficits. Led by Italy’s $126 billion, Greece, Spain, Portugal, Ireland and Italy have a total of $215 billion of debt coming due in the next three months, according to JPMorgan.”

Read Full Post »

Socialism has always been a pink unicorn. European bank risk is soaring. Europe will need something like $60 TRILLION in the bank to fund its current welfare liabilities! Of course, the USA needs $100+ TRILLION to fund ours. Folks that ain’t gonna happen. The Greek crisis and the unfolding developments bear scrutiny because they adumbrate what lies ahead for the US. The problem in the US is that 47% of the population pays no tax, yet they are allowed to vote. Why wouldn’t you vote for more entitlements if you don’t have to foot the bill. Presumably those of us who pay taxes will just bite the bullet and allow the government to continue down its ruinous path. Who knows? But I imagine those who do pay taxes, produce, strive to thrive and get off their asses everyday to work are more likely to own guns. Which is important because when all this collapses, the slackers who can no longer feed at the government teat will be coming to your city, your town, your home looking for their handout. No longer gently swaddled by Nannystate’s caresses they’ll be on the march. By hook or by crook, they’ll want what you’ve got. The government has been the intermediary all these many years between the producers and the leeches. If the government collapses we’ll be back to a Hobbesian square one. Guns and ammo, guns and ammo…
(One funny takeaway from the Greek situation is the absurdity! They’re protesting cuts in government which is the only way to stave off bankruptcy. Other countries are bailing them out and they’re complaining! What they are actually protesting for is MORE government. The socialist mind can never apprehend reality even when it bites them in the ass!!!)

Read Full Post »

Read Full Post »

How’s that Socialism working for ya? Greece will implode despite the recent rescue package. Unfortunately, U.S. Taxpayers (who provide the greatest percentage of funding to the IMF) have forked over something like $18 Billion to help delay the inevitable. Make no mistake, the piper always gets paid. You can vote yourself socialism and economic profligacy for a long time but eventually all the dominoes fall. Socialism, like all Ponzi schemes, eventually folds. Won’t be much fun to be a Greek for the next generation or so!

Greek riots

But then again, if you believe in pink unicorns and magic rainbows maybe all will be well. Perhaps the Almighty O’Bama will part the Red Seas of debt he has created before they swamp the once redoubtable USA. Yes, Uncle Sam seems hell-bent on replicating the Eurozone’s follies. This chart is courtesy of Al Fin. Want to place a bet on which domino falls next?

Read Full Post »

Older Posts »