johngonole

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    • Fri Oct 24th 03:37 AM | Rating: 0 0
      Commented on:
      More Fed Reserve Notes Intended for Wall Street
      Governments are what create markets. Markets have rules. No stealing, contracts, property rights, etc... Land boudaries, etc...

      I think everyone understands that governments created the rules by which a society governs themselves. The less capable a people are go doing this the more rules they need.

      The next argument is whether socialism, fascism, or truly free markets are better. Free markets are superior. The problem is that we have a monopoly on the primary medium of exhange the dollar. Hell I'd go back to bartering if it meant better price stability.

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    • Fri Oct 24th 03:20 AM | Rating: 0 0
      Commented on:
      The Physics of Money
      A stable economy requires stable prices. I think everyone can agree on this. For example if prices go up or down too quickly it causes resources to be directed to the wrong places. Price is primarily a function of supply and demand. However if the amount of currency used to establish or measure the price of goods and services is fluctuating wildly then what we think of as price is no longer just a function of supply and demand for that good or service. This causes price now to also be a function of currency supply. So if the price swings are caused by currency inflation or deflation then resources will be moved to the wrong places otherwise known as mal-investment. Now if managing the currency supply could be done effeciently and quickly it should be easy to maintain stable prices with a paper currency. However our currency supply (including all kinds of tradeable paper currencies) is dependent upon lots and lots of things such as

      1) How much govt deficit spending is taking place
      2) How much exported dollars are returning to this country via purchases of goods and bonds.
      3) How well the loans the banks who play with our money do on their investments since fractional reserve banking can quickly expand or contract the effective money supply.
      4) How many people at any given time are hoarding money. That is do they prefer dollars are or things such as stocks, TV's, etc...
      5) The fluctating supply of foreign currencies,

      This list could probably be expanded to a hundred or perhaps thousands of different things. The point is that because of an ever growing array of different forms of financial securities all of which have an effect on the paper supply of money they (The Federal Reserve and governments) can no longer effectively maintain price stability. Perhaps they never really could and just managed to get lucky a few different decades or so.

      Now realized beyond all these complexities the major portion of our money supply is actual just dollars multiplied by debt instruments and you realize that to continue to increase the money supply the ability of a nation to take on debt is paramount and you realize that people can only afford so much debt. Personal, county, city, state, Federal debt, and business debts are all huge. A large amount need debt to continue as is while other need none. Banks realize now tht those who need the debt can't be trusted with it and no one else wants to take out loans. This adds to credit freeze also.

      My belief is that at some point the government will have to stop creating new debt for dollars and simply turn on the printing press effectively paying down the national debt or spending it on public works projects. They may suceed doing it the traditional way by creating a debt instrument to back up the new dollars but either way they are going to print and print and print until interest rates sink so low everyone will want to borrow the cheap money. When all the factors that now conspire against the supply of money and its velocity reverse course their will be much more M1 supply in circulation. Odds are this will boomerang into hyperinflation.

      I did like what one person said the other day. We could see big ticket items requiring debt funding such as cars, houses, etc to see price declines while all the new money goes into necessities like Oreos and PBJ's.

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    • Fri Oct 24th 02:48 AM | Rating: 0 0
      Commented on:
      The Physics of Money
      The republicrats are socialist/fascist. A free market is a great thing and Greenspan is an idiot. He said he couldn't figure out why it broke down. He can't figure out why the banks did so poorly when its not in their self interest. Its easy to figure out when you realize that the people at the top were able to enrich themselves with high salaries and stock options and never actually have to take a stake in the company. If a rich man were to give me his money to manage and then say that I get millions regardless of how I do how well do you think I'll do managing his money? The fact is that large corporations completely detached from the interest of their shareholders will all fail one by one sooner or later. When its banks its a real problem for everyone
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    • Wed Oct 22nd 02:10 AM | Rating: 0 0
      Commented on:
      When Lending Standards Really Changed
      Dr O,

      I remember those comments made by Cramer back then. The land bank idea was a big idea. St. Joe is still overpriced. Usually I think real estate is a good deal but not when it sells for 2-3 times its real income producing value.

      Also thanks for the reader who published the article on Fannie Mae and Freddie Mac. The entire world's population as a mass is incredibly ignorant of economics, human nature, history, etc... Otherwise there is no way they would ask the politcians to enslave us this way. They are literally forcing us all into debt one way or another. Think about it. If you are someone who actually pays federal income tax then you and everyone like you own the national debt. Those who do not pay do not. Those who do not pay have no problem with the forced debt they are thrusting upon the tax payers.
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    • Sun Oct 19th 03:33 AM | Rating: 0 0
      Commented on:
      This Recession Will Be Anything but Deep
      Bo Peng - I totally disagree with the often mis-stated notion that this was a failure of democracy and private capitalism. Perhaps a failure of democracy (because the unaware masses have allowed the politicians the power to do this to us) but certainly not a failure of true free market capitolism. Prices are moving which means its still working. Grocery stores are still full of food. On time supply chains are adjusting to our demands. The failure is in Fascist controlled fiat money supplies that destablize prices causing inflation which pushes a moral people into immoral speculation just to be good savers or worse pushes people not to worry about the future at all and spend everything they have. If you look at all the problem areas (government overspending, too much military spending, the federal reserve and its politician friendly loose money supply, susidized airlines, subsidized this and that, ethanol subsidies or high corn prices, sugar import tarrifs, an unaccountable education system, government backed monopolies,....I could go on and on. Almost all the problems with the exception of very short term issues are in areas that are highly regulated, fascist, socialist, etc... Its not a free market failure its a failure of socialism and fascism as it pretty much has been throughout the history of the world. Free markets have always worked when void of socialism, fascism, and monopolies. Government will do to healthcare what they have done to everything else they've touched. Think customer service at your post office or local DMV. Think about how much they will pay for office supplies when they can be bought cheaper at office depot. Think of that new computer governments by for people every two years who only do word processing.


      I think the dollar is holding value because people are selling stocks and getting back into dollars. Dollars are replacing bad debt. Even if its a perfect offset to deflation right now eventually things will normalize and we will have more dollars in circulation. Since we buy every thing in dollars the price of everything will go up. Especially if the banks leverage off of the larger dollar supply again. There are so many factors that play into the supply demand picture of the dollar and just about anything else that it is really hard to tell what will happen.

      Diversify.
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    • Sun Oct 19th 03:06 AM | Rating: 0 0
      Commented on:
      Return of Weimar Monetary Policies?
      The only thing that scares me about Obama is that I do believe at heart he is a socialist and perhaps even a marxist. So lying is not necessarily against his world view. My big concern is that he definately has the cult of personality and if combined with a depression and a democratic congress there will be very little to stop him from forcing his idealology (whatever it is) on the masses.
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    • Sun Oct 19th 03:04 AM | Rating: 0 0
      Commented on:
      Return of Weimar Monetary Policies?
      A few quick comments:

      On war.....no thanks.
      On Hitler... no thanks,
      On Obama....no thanks.
      McCain....not much better
      Facism is not state controlled capitalism....it is quasi business/government controlled socialism. The Nazi party was a socialist party by name.

      Capitolism = Privately owned and controlled means of production
      Socialism = Government owned and controlled means of production
      Fascism = Government controlled means of production that are privately owned.
      Communism = Everything controlled and owned by a one party government
      America = a blend of the first three.

      Our defense industry, much of our financial industry, etc are fascist.
      Our education system is socialist....probably one reason most in the country don't know the differences pointed out above.
      Homebuilders are obviously capitolist as are your local mechanic, the plumber, the engineer, the architect, and most small business.

      So in this country we have a blend. Note that most of all of our economic problems are the result of government over spending in areas where our industries are highly fascist or socialized. Funny the supermarkets (capitolist) almost aways have what we need. They have market forces constantly providing them incentive. Remove proper free market incentives and you have clueless individuals misdirecting the resources of our nation....ie fannie mae and the federal reserve (fascist) and a really poor education system (socialist), Grand looking airports and football stadiums but bankrupt airlines etc...
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    • Sat Oct 18th 02:49 AM | Rating: 0 0
      Commented on:
      Oil Heading for $150 a Barrel, Gold for $1500 an Ounce - Merrill
      Live Free or die.......Free markets forever....anything else is slavery. I'd rather risk the slings and arrows of the economy than have a political party or dictator decide my fate.

      Bosunj take a chill pill. The USA is far from perfect but considering how much power this country has it has been remarkably restrained. No land grabs, No plundering of other's resources, etc...

      I for one like Ron Paul and think we need to go back to this country's original foreign policy of trade with everyone and alley with no one. You attack us and you'll regret it foreign policy.
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    • Thu Oct 16th 03:42 AM | Rating: 0 0
      Commented on:
      Silver: Gap Between Paper and Physical Prices Widening Daily
      One more comment. Silver now seems to be trading with the commodities. However the demand spike is on the refined silver side of things. With copper and other base metal prices sinking I'd expect slower mining production and hence also less silver production. If there is indeed a real shortage of silver the supply side couldn't tighten even further if the other metals are mined less since silver is a by product of these mines.
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    • Thu Oct 16th 03:39 AM | Rating: 0 0
      Commented on:
      Silver: Gap Between Paper and Physical Prices Widening Daily
      Wondering why SLV is trading even below the paper. Is someone shorting it?
      View article »
    • Thu Oct 16th 03:26 AM | Rating: 0 0
      Commented on:
      11 More Potential Buys
      NGG has more current liablities than current assets. I took a breif glance at this one because of the dividend and the low PE. Future PE is higher so I'm assuming earnings are going to drop. Furthermore Debt has been going up quickly. The've actually been using debt to buy back stock. I think this will stop now that borrowing money will be harder. Stock holder equity has also been dropping quickly. This probably has to do with buying debt to purchase stock. I don't know much about this company but it appears to be a young company that plays fast and loose. I'll look eleswhere.
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    • Tue Oct 14th 22:21 PM | Rating: 0 0
      Commented on:
      This Isn't a Bottom, It's a Disturbance in The Force
      Scipbill,

      Yeah I thought the star wars gaff was pretty bad too. Moonbat your post are right on.

      View article »
    • Tue Oct 14th 02:53 AM | Rating: 0 0
      Commented on:
      This Isn't a Bottom, It's a Disturbance in The Force
      Who is the chosen one? What’s left of the trade federation wants to know. The chosen one was supposed to bring balance to the FLATION. How can we plan our business when we don't know if prices are going to rise fast or drop fast? We fought for free trade (without consideration for the enviromental impacts of trading with planets without environmental regulation) when what we should have fought for was fair trade and a free market currency. Instead the supposed chosen one betrayed us and now the Empire owns large stakes in our companies forcing us to fund things we ought not be funding. This includes having to use their currency and fund their war machine. The first, second, and third round of investors in the first death star have been wiped out and the over expansion of the empire as well as the war with the rebels has led to more and more debt defaults. The bad debt is now causing different financial institutions to collapse. Others are hoarding the capital they have left. The chosen one has turned on the hyper credit generator and is spreading empire credits all over the universe at light speed. He is obviously full of fear and has promised to create as much credit as necessary to get the engines of growth moving again. We are not sure whether we should hire illegal immigrants (we must so we can compete) or build more robots. The problem is we can't tell if commodity or wage prices are going to go up or down. Many fear deflation but now we must fear inflation as well. The Emperor doesn't understand economics so he has turned that over to the supposed chosen one. On a good day, when the chosen one isn't killing someone, he is irrational at best and always makes rash decisions. No one knows how much bad debt and derivatives are on the books. No one knows how much credit creation it will take for the banks to start lending again. It could take an awful lot since the banks are so fearful. The odds are that once again he will overshoot and cause hyperinflation. Most of us in the trade federation have lost confidence in the chosen one’s ability to float the right amount of credit to keep prices stable. The Huts on Tatoowine had it right when they began refusing empire credits years ago. If only the trade federation could still trade only in gold and silver backed currencies. Only a few planets have those kinds of deposits and the supply is relatively fixed now after thousands of years of mining. I think free competitive currencies would protect the people and break the back of the empire's credit monopoly and as well as the huts. The huts have done really well since they only accept real assets when they trade. Of course they have been forced to that remote planet on the outskirts of our galaxy. The empire meanwhile continues to thrive as they keep everyone impoverished with credits that become more and more worthless each day. The war machine gets stronger still. Certain high members of the Nazi I mean Sith lord party benefit as well. Often clones are created for them to do the house cleaning. I’m not sure there is much difference between the clones and the natural born citizen anymore. We are all enslaved by the empire. If only the Jedi had acted instead of only being concerned with upholding the laws no matter how bad the laws got. They waited too long and have been forever replaced by the clones. Soon the empires government education system will have everyone reading at a clone reading level. As for me we will educate our kids ourselves so that one day we can be free again.
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    • Tue Oct 14th 02:18 AM | Rating: 0 0
      Commented on:
      Governments Wave Magic Wand; Ludwig von Mises Turns in His Grave
      I haven't read Mises myself but from everything I've read and heard quoted from him I think I've basically arrived at the same conclusions. Ultimately there is no free lunch. How free are we really anymore? I personally would rather risk a depression then see this country and apparently most of the rest of the world slip into Fascism and socialism.
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    • Mon Oct 13th 21:11 PM | Rating: 0 0
      Commented on:
      This Is What Happens When Everything Is Undervalued
      Easy to sound smart now.....I seriously doubt out of 5,500 stocks you couldn't find one that was fairly valued. Actually I believe AMZN still looked pricey for a retailer. Then again if you still have your average 5 year predicted growth rate for each company set between 15-25% a year maybe you did. This article was complete waste of my time reading.

      The media finally took a rest on pounding the drums of despair over the weekend. That was the difference. People who hadn't sold said why sell now and the media didn't push them over the edge. I think the fact that it is an election year is making things much more volatile because the media wants to hype every issue to influence the voters as much as they can.
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