Sunday, August 16, 2009

The spending scam - we are screwed

If you really want to know what’s really going on in the world right now, consider the following.

You have been spending a lot of money to buy a lot of things you actually cannot afford. You are in debt, close to personal bankruptcy and you have been writing I owe you’s (IOU) to everyone you know to cover your continuant expenses. Your neighbours are starting to question your morality and some are even angry enough to beat you up. You have already mortgaged your house so many times that cannot be done anymore, you are working 3 jobs and your family is screaming for more stuff, so what do you do? Cut expenses? Tell the family they cannot have more stuff? Throw your kids out to get jobs? Maybe all of the mentioned and then some.

Now imagine you are in the same situation but regarding a whole country and you are the president or prime minister and you want to get re-elected. Of course you would borrow more! You sell IOU’s like crazy and spend it all. You use the printing machine to tax and in-debt the populace even further. And when that recession hits, what do you do? You do the same thing, but now you crank the gear into overdrive and borrow and print so much money that you can fill the Mediterranean with all those notes. In addition you artificially lower interest rates so all citizens can borrow cheaper and in-debt themselves even further as an additional debt. And when people do not do as expected, you urge them on, call up newspapers to spread your scam; you use your friends, the bankers, to further spread trust in the system. Eagerly asking people to empty their piggy-bank, take out advances on their pay-check, mortgage their grandparent’s house and maximize their credit cards. Spend spend and spend! And when some numbers, thanks to all those scams, start to show some improvements again, you can claim that the recession is over.

Now, after this little session into reality, what will happen next? Will the “recession” end? Are the country (or you) better off?

This is what’s being done right now and even if it has been done before and long before the current crisis, everything now are at a level not ever seen before. Only looking at US the Obamination and his administration has spent and will spend more money then all presidents before him put together. Add up both world wars, Vietnam and the New Deal and you still don’t even reach the bail-out levels. And what will our politicians say, argue for and eventually do? That’s right! The same thing!

The current bubble they are inflating is so humongous that it dwarfs anything before. Take a look at Island and then take that times 1000 and you will get pretty close. We are so screwed. We are so utterly utterly fucked that it is hard to comprehend. What you all need to do is to prepare. Sooner or later this Tsunami will hit the world and when this happens life as we know it will be no more.

Bring home the troops

For some strange reason Sweden have soldiers in Afghanistan. Partly helping Nato (US) with their hunt for Usama Bin Laden that allegedly was behind the 9/11 attack although no proof of this have even been shown, and partly they are there in order to help the Afghan people and support the “democratic” government fend of the Taliban’s. Even if this can be explained from some kind of “humanitarian” viewpoint it then becomes very strange that there aren’t a Swedish involvement in Venezuela, helping that populace fends of the socialist dictatorship. And how about Ukraine? Tibet? Zimbabwe? And if we are there to protect females, how about Saudi Arabia? Iran? The number of conflicts and people suffering in this world are near endless.

Besides, there is a very simple solution in Afghanistan: legalize drugs. Almost all income the Taliban has comes from trading drugs. If drugs where legal in our part of the world (we who mainly buys the Taliban drugs) the prices would go down, normal people could start their own agricultural experiments and most (all) income the Taliban’s have would disappear.

It is very hard to see any real reason for Swedish tax payers to pay for this stupidity. Sure the Swedish troops, along with others, will help one or two, but in the long run will it make a difference? The biggest and badest army and intelligence forces of the world cannot, for some reason, find the people they are looking for and looses in human life in a foreign land seems highly unnecessary. And, as mentioned, if this notion of righteousness is so fantastic, there are a lot of places we should be sending troops, and are we really that much better? How good is our own country with bankers earning billions with taxpayers paying the bill, with fascist laws being formed regarding the free media and politicians everywhere imposing new restrictions every day? Rationally speaking there is no reason for us being there, and humanitarianly speaking it is questionable.

More lies

Japan have had an economic downturn since 1990 and during time, until now, the Japanese governments have been throwing stimulus after stimulus after stimulus into the fierily hell of stupidity and kept interest rates down near zero for the better part of a decade. The only thing that have kept them floating have been trade and the Japanese people that work hard and still save money. Now it is reported that Japan, after four consecutive quarters of contraction, has a “growing” economy since it “grew” by 0.9% in the April-to-June quarter. Cornflake economists and robot journalists immediately took this as another sign that the recession is over referring to Germany and France that last week had positive (fictive) growth numbers. Some investors and other correspondents say that the rise is due to a huge government stimulus package and it is unclear whether the momentum will be sustained. Massive government stimulus measures helped - measured as about 0.7% of the growth by economist which means, of course, that the real number is higher - to boost the economy, including cash handouts and subsidies to buy energy efficient cars and home appliances. The second reason is that manufacturers benefited from recovering demand in mainly China (demand also thanks to stimuli).

As mentioned in this earlier post the supposedly “growth” in Germany and France was a lie, and so is Japans. This because of what I have said before and will say again, GDP is a very stupid way of measuring wealth and how the economy is really doing. Anyone with the slightest knowledge can increase GDP with 10% without even trying. All you need to do is hire all people that is unemployed to tare down houses and rebuild them again or, even funnier, have them dig holes in the ground and refill it again, over and over. Best way of doing this, of course, is to borrow hundreds of billions to pay for the scam. And for a government under fire things like typhoons, earthquakes and massive fires are fantastic news since all those things also increase GDP. People dying? Pffff… Real wealth creation? Pffff… GDP is what matters.

In the real world Japan, as most other countries, is doing terrible at the moment. Both Japan and China will end up on the other side of the tunnel after this depression as winners since their capacity to actually produce is higher than most other countries, but for now and the near future their “growth” is not good news, in fact its bad news. This for two reasons. Firstly its not real wealth that has been created, only higher GDP numbers, secondly, and most importantly, this sends out a signal that the stimulus’s and bail-outs are “working” hence more of the same madness is to come.

Wealth comes from us producing things, not from governments throwing billions around. Wealth comes from producing, not from bailing out companies that should go bankrupt. Until either the people realize this and rebel or our leaders realize this and do the right thing this depression will never be over. There might be a year or two of recovering now and again, but sooner or later, the next recession will hit, and then the next and the next. In our current situation, however, there is no recovery for a long time yet, at least not for the US and the UK that are in terrible conditions. And when the second wave of this depression tsunami wave hits US, it will have effect on the entire world. In other words, don’t trust anything you are being told. It is all a lie.

Some more companies to stay away from

In order to further strengthen its core franchise Swedbank announces fully underwritten SEK 15 billion rights offering this failing institution says in a pressrealize today. Apparently Folksam Liv and Folksam Sak, two of the main owners, have decided to guarantee some of these billions which mean that those two are two other companies to stay away from. Swedbank is a horrible institution that recently needed their second bail-out from the Swedish government in less then 20 years and they have still not coped with all their billions in losses from the Baltic and Eastern European states. In other words the Swedish taxpayers continue to support and pay for overpaid economists, bankers and investors at a bank that should have gone down a long time ago. I have said it before and I will say it again, if you are a customer at this bank, leave it and leave it now. Also those investing in this bank will take heavy losses in the future, stay away from those too. And for God's sake, never buy any stocks or anything that has to do with this utter stupidity.

War emminent

The dictator Hugo Chavez continues his scheme to antagonize Columbia, now apparently arrested 30+ Columbian citizens as they waited to get identification cards that are regularly distributed by the consulate. Consul Maria Elvira Cabello told the Globovision television channel that between 20 and 30 Colombians, including an official from Colombia's diplomatic mission, were held at a police station for several hours before being released. Police also took computers belonging to the consulate and passports from some of those detained, she said. Cabello also stated: "This took us by surprise because it's a frequent endeavor that we undertake every month,"

This is not a normal action taken from one country towards another. While the Venezuelan economy deteriorates more and more, the leftie autocracy will probably have no choice. Socialism cannot create value, only distribute it, so when the wealth’s goes down, the dictator and his cronies will have no choice other than to start a war to keep the populace busy with other concerns. This will happen sooner or later so why not during the beginning of this depression? I really starting to like Chavez, he is showing the world what socialism is. Not that we really need to know, Stalin, Hitler, Pol Pot and all the others have already done that, but most people seem to have forgot already so another dictator showing his true bloodlust is a good thing.

Why "Normal" WILL NOT Return

One of my favorite economists that you really should listen to, also for financial advice. Please visit his site or just check the video for a while.

so true

There are three classes of people: those who see, those who see when they are shown, those who do not see.
// Leonardi da Vinci

Fascism keep growing in the US

Violence erupted at a townhall meeting hosted by North Carolina congressman David Price, after a protester was punched in the face for voicing his opposition to proposed changes to health care coverage in America.

Not a single time the right have started fights, the Obaminations supporters, however, have started trouble on several occasions already. This is not an isolated incident. Media, however, only keep reporting about conservatives and "right-wing" people with swastikas. Lefties are gaining ground and fascism is growing.

The assault took place at the end of an opening speech Congressman Price at North Carolina Central University in Durham. Eyewitnesses of the assault say claim the assailant was an African-American woman who openly supported Obama.

People who went to the meeting sponsored by SEANC, the South’s leading employee union with 55,000 members, say it was highly scripted and was more of a presentation than an actual townhall meeting. Union-run Security banned any anti-health-care reform posters while allowing Democrats to distribute leaflets promoting Barack Obama.

As security officials took away the assailant, Democrat Party supporters mocked the victim, asking him, “do you have health care?”. The victim, who wishes not to be identified, is pressing charges against his attacker.

The politically correct strikes again

Rolf Hillegren is the name of the day. He works at as prosecutor in Stockholm and was quoted the other day saying: “When thinking of rape, you mostly think about horrid examples. But take a man and a woman that really know each other (relationship*) and the female says she does not feel like it, but the male do her anyway. Sure it might be a bit unfair, but hardly worth a couple of years in prison”

What you really need to know before making a judgment about this statement is that this was said in the context of changing how courts rule in Sweden. Today you can be sentence to several years in jail just by someone else claiming you raped her/him. No evidence needed, no witnesses, nothing. All that is needed is for the judge and some politically appointed “jury’s” to believe in one story more than the other. This is about to change and in this context Mr Hillegren uttered that sentence.

Also you need to know about the scale within the Swedish justice system. Whatever one thinks about it, the fact is that there are several levels of rape and several levels of sexual abuse. In earlier statements from the same man with similar words he has referred to the technical/juridicial term “rape” and said it should not be interpreted as the same thing as sexual abuse. Legally speaking, he is right of course, but in this case it is not even this he is talking about, not as I see it, but no matter what, the headless chickens comes out of the woodwork to hang the man, without checking anything except for one sentence taken out of context. This is how you trick people, this is how you sell newspapers and this is how you know people are complete morons. I’m not even convinced he actually said the words being quoted; I trust newspapers and journalist as far as handicapped dwarf can throw them.

Of course feminists and politically correct ass-holes comes forth and crucify the man claiming he condone in-house rapes within relationships/marriages. I can hardly see how someone can make that claim about above sentence, and even if, it is even harder to think Hillegren actually talked about such events. At the most he should be accused of not bending to the PC-rule of always saying and using the “correct” phrases.

How many people - that have been in a relationship - have been saying no and not wanting sex, but end up having it anyway? I know I have, many times. And I cannot imagine anyone that hasn’t. Sometimes you don’t want to; sometimes you are tired or have jerked of too many times during the day and don’t have the stamina. Can such a situation really be construed as a rape-situation? If that’s the case I have been raped by many girls throughout the years and it would be very hard to find a single person on this planet that hasn’t been raped. This is ridiculous of course, but that doesn’t stop the PC-idiots.

So many morons and so little time…

* my translation from Swedish and my word put in to show what he was talking about