Burr – Gore Vidal

 

Another great Gore Vidal historic novel in which he weaves together real events and the lives of historic people in something more interesting and readable than fiction. I knew little of Aaron Burr before Vidal’s biographic drama based on the journals, letters, media coverage, court records, etc of the day. What I recalled from my horribly lacking public education “history” coursework on Burr was that he shot Hamilton in a duel. The real Aaron Burr was an energetic, intelligent, thoughtful, if not at times short-sighted, treasure to the new America of his time. Perhaps even more worthwhile is the insight gained on the “founding fathers” through Burr’s own interactions with and impressions of these highly flawed, now-deified, political opportunists as history has been written by those who manipulated for themselves the control of the curricula’s pen. Particularly fun are Burr’s opinions of the worst soldier and general ever, George Washington, and the hypocritical, self-important, highly flawed Thomas Jefferson.

Vidal published Burr in 1973. The political intrigues, power plays, war lust, and human frailties from almost 200 years prior are well-described, and now, 40 years after the book’s publication, are as relevant and evident in the politicos and world stage today as ever. Nothing new under the sun. He describes events of centuries past similar to what is evidenced today: political violence, blackmail, the exploitation and creation of international incidents to start wars and mold public opinion,… Meanwhile, he captures the backdrop and events of the times: catastrophes, fads, disease, diet, mores, daily life.

This is a book that once finished, you hold to your chest in appreciation, process for a while, and wonder if you shouldn’t start over immediately with the first page.

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“A Big, Fat, Ugly Bubble” – by David Stockman

Another Stockman feat of economic insight. The US malaise that has traversed decades and administrations only worsens with time – growing and inflating towards an inevitable mega-crash of currency and asset valuations. The Donald had a chance to stop the trajectory, but has proven himself utterly unaware of the basic roots of the disease.

 

“The overwhelming source of what ails America economically is domiciled in the Eccles Building. During the past three decades the Federal Reserve has fostered destructive financial mutations on Wall Street and Main Street and among the household, business and government sectors of the national economy alike.

“These Bubble Finance polices have fueled an egregious financial engineering spree by the C-suites of corporate America to the tune of $15 trillion of stock buybacks, debt-fueled M&A deals and LBOs during the last decade. These actions have stripped-mined balance sheets and cash flows from main street businesses, thereby garroting economic growth—even as they delivered multi-trillion windfalls into the hands of a few ten thousand speculators on Wall Street.

“At the same time, the Fed fostered a borrowing binge in the household sector after the 1980s. It eventually resulted in Peak Debt and a $15 trillion albatross of debilitating debts on the homes, cars, incomes and futures of what used to be middle-class America.

“All the while, it also led politicians down the primrose path of free-lunch fiscal policy. That is, by monetizing $4.2 trillion of Treasury and GSE debt during the last three decades, the Fed anesthetized the US economy from the baleful effects of crowding out and rising interest rates that would have otherwise resulted from soaring government deficits. At length, this left the public sector impaled on Peak Debt, as well.”

 

Read the full article here at LRC.

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The next market correction will be a doozy!

Lynette Zang of ITM trading is a previous Lehman Brothers analyst who now analyzes markets for hard asset investment (precious metals). In her podcast with Greg Hunter, she offers some eye-opening insights and charts concerning the financial status of the US and world. (Of course, there are some very bright financial minds out there – none of whom are in any way associated with government or institutes of “higher learning” – like Jim Rogers, Peter Schiff, David Stockman,… so plenty of other places to find similar insights.)

 

https://youtu.be/KrdWIb7FYiU

 


 

And a related article found in my perusals today from zerohedge:

“The World Is Now $217,000,000,000,000 In Debt And The Global Elite Like It That Way”

From my social media post regarding the article:

Global debt estimate $217 TRILLION, >300% of global GDP. Massive debt “funnels wealth to the very top of the global wealth pyramid. In other words, it makes global wealth inequality far worse because this system is designed to make the rich even richer and the poor even poorer. Every year the gap between the wealthy and the poor grows, and it has gotten to the point that eight men have as much wealth as the poorest 3.6 billion people on this planet combined….”

“… debt-based central banking is designed to get national governments trapped in endless debt spirals from which they can never possibly escape.”

Bill Gross, perhaps the world’s most premier and recognized bond investor said recently, “our highly levered financial system is like a truckload of nitroglycerin on a bumpy road.”


 

And I stumbled upon Neil Howe again, who shares some interesting points from his concept of “The Fourth Turning” – how societies, like seasons, have historically evolved and cycled each generation. The pending fourth turning now, he argues, is one that will be fomented by a large crisis (as always), lead to the collapse/dissolution of power and wealth structures, permit a creative destruction in which institutions and assets which have real value will persist – an across the board reset with a new societal era beginning. Worth consideration.

Stay safe out there! Forecast is for choppy seas.

 

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Forbidden Questions: 24 Key Issues Ignored by the Washington Elite and the Media – by Andrew Bacevich

Brilliant questions by retired Army Colonel and retired history/international relations BU professor Andrew Bacevich. These show not only what the media and politicians refuse to address, but likely what you seldom, and likely never, have considered.

Read the article here, or get the highlights by listening to the Tom Woods’ podcast, episode 819, here (where I first caught wind of it this morning). And here is Dr. Bacevich’s wikipedia page.

An excerpt from his intro to some basic, fundamental questions for the intellectually curious (or even those with viable brain activity) on the topic of the disaster of US foreign policy:

“Apart from a commendable determination to discomfit Trump and members of his inner circle (select military figures excepted, at least for now), journalism remains pretty much what it was prior to November 8th of last year: personalities built up only to be torn down; fads and novelties discovered, celebrated, then mocked; “extraordinary” stories of ordinary people granted 15 seconds of fame only to once again be consigned to oblivion—all served with a side dish of that day’s quota of suffering, devastation, and carnage.  These remain journalism’s stock-in-trade.  As practiced in the United States, with certain honorable (and hence unprofitable) exceptions, journalism remains superficial, voyeuristic, and governed by the attention span of a two year old.

“As a result, all those editors, reporters, columnists, and talking heads who characterize their labors as “now more important than ever” ill-serve the public they profess to inform and enlighten.  Rather than clearing the air, they befog it further.  If anything, the media’s current obsession with Donald Trump—his every utterance or tweet treated as “breaking news!”—just provides one additional excuse for highlighting trivia, while slighting issues that deserve far more attention than they currently receive.

“To illustrate the point, let me cite some examples of national security issues that presently receive short shrift or are ignored altogether by those parts of the Fourth Estate said to help set the nation’s political agenda. To put it another way: Hey, Big Media, here are two dozen matters to which you’re not giving faintly adequate thought and attention.”

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Manchester Terror Attack Proves that the War On Terror Is Failing – Washington’s Blog

Sharing a thoughtful post from Washington’s Blog for your enlightened consideration:

“Given that the Manchester terrorist was a product of the interventions in Libya and Syria, it’s time to have an adult discussion about what it will take to stop terrorism…. There are 10 basic principles that serious, mature people need to discuss if we want to stop terrorism …”

 

http://www.washingtonsblog.com/2017/05/want-stop-terrorism-just-pretend.html#more-67740

 

 

(image lifted from UK’s Metro story of 23 May.)

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Dump the Destroyers of Worlds… for the Sake of the Children

The future demands a different approach, decentralized power structures, the removal of wealth-consolidating scamsters, the rejection of demagogic race-baiters and crisis actors, a cessation of coercive Imperial interventionism into every corner of the world which perpetuates violence, blow back and war. Dump them all and live.

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Open Source EVERYTHING

Interesting podcast with Nobel Peace Prize nominee, Robert David Steele. Open sources lead to peace and prosperity for all.

https://www.youtube.com/watch?v=fVBknoOSVIQ&feature=youtu.be

 

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“Venezuela is Starving” – from the Wall Street Journal this week

“Once Latin America’s richest country, Venezuela can no longer feed its people, hobbled by the nationalization of farms as well as price and currency controls.”

Please see the WSJ article from May 5, 2017.

 

I posted elsewhere some thoughts on the economic, political and humanitarian disaster of Venezuela, and wanted to preserve some of that here. I lived in Venezuela for a few years in the 1990s and left about the time that Hugo Chavez was coming to power. Given my connection to that country, I have followed its decline with saddened interest. Now, post-Chavez, Maduro has accelerated the dysfunction and demise of seemingly every societal system.

 

 

When I left Venezuela in 1992, about 16 Bolivares bought a dollar, if I remember correctly. Now, it takes 5,000. (Of course, I think their central bank was recently about to lop off a few zeroes to make things look better.) In an attempt to control everything and everyone, their Gov has nationalized (and destroyed) almost all commerce, and hyper-inflated their currency to the point of near uselessness. They’ve driven businesses out of business, and international investment entirely out of the country. This is Gov doing everything it wanted to do without public restraint. Gov writ large. In its near fullness. Statism unveiled. Perhaps the only things we don’t currently witness that would fulfill the completeness of the state are wars of Empire (which they can’t afford) and political prisons/work camps (of which there are multiple stories of political enemies being removed and imprisoned, just not on large scales. Perhaps that is unnecessary, as their silence is culturally imposed or they’ve already fled.)

I was in Venezuela for almost two years in the 90s. Beautiful, fertile, temperate climate, diverse terrain, hundreds of miles of Caribbean coast, tourism-ideal land…. but for Gov. One of my vivid memories is of all of the fruit that would rot on the ground in the smaller towns. Massive mango trees were common, and often, there would be scores of rotting fruit on the ground from overabundance. Similarly, all manner of other fruits were plentiful – some of which I had never before tasted: varieties of banana and plantain, star fruit, guayaba, guava, papaya, others I can’t remember the name of. There is no reason that country should not be an agricultural powerhouse to the world, much less be able to feed its people… other than the reason that we’ve mentioned.

One thing that I disdained about their culture, however, is likely a direct contribution to their situation. In essentially every instance, the common colloquialism was, “si Dios quiere.” Essentially, “God willing.” Any future plan, appointment, project or even luncheon for the next day was qualified with that thoughtless suffix. It was if they had culturally and religiously abandoned their own responsibility, will, forethought, commitment, etc. in exchange for whatever might occur… because certainly that would be God’s will. They always had a Divine out, a Holy Excuse, for their failings and apathy. Myself, even as a Christian at the time, I found this horribly annoying, lazy and unproductive. I think that this mindset especially put that people at risk for Gov stepping in to impose all manner of controls. The people had abandoned self-responsibility, awareness, intellectual curiosity and even self-preservation to a faulty security that God would just take of every little aspect of their lives without any work or attention on their own part. Government  and its actors had the cover and distraction they needed to do whatever they wanted to control, regulate, inflate, devalue, nationalize, self-promote, nepotize, conspire. History is replete with Gov’s use of religion to subdue and control the masses. Unfortunately, the Venezuelans will have their own chapter in that book.

maps from geology.com

 

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“The FDIC Illusion of Insured Bank Deposits”

 

This graphic and title are lifted directly from demonocracy.info, which has great graphics to help visualize a very precarious financial system and monetary policy. With my interest spurred from the recent post on fractional reserve banking, I wanted to check on the current fund level for FDIC insurance (which looks to be $83B per page 94 of the 2016 GAO report – up from $25B a few years ago). Bank checking and savings deposits (M1 + part of M2, as I understand them) in the US appear to be about $13 Trillion. That would mean FDIC assets could cover 0.64% of total deposits.  Of course, in the totality of the US financial system, which includes innumerable other forms of deposits, investments, instruments and debt, one might begin to get the sense that there is very little asset to cover astronomical liabilities. In comparison to the potentially $300T in derivatives, the FDICs cushion would cover 0.028% of losses. With that in consideration, one might do well to consider broad diversification into asset classes outside of numbers in a computer which hang tenuously upon a distorted and manipulated economy of wanton credit expansion, boom-bust cycles, artificially low interest rates, and ever-expanding debt. Some cautious skepticism wouldn’t seem entirely out of order.

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Precious metals still seem to be a wise purchase as a hedge against inflation, if not as real investment.

Overlaying three historical charts from the year 2000 to today: money supply in $Trillions, gold and silver in dollars/ounce. Metals dropped off of the growth curve in 2012, although the money supply has continued to grow (devaluing the dollar). One would expect metals prices to follow the inflationary trend upward, getting more expensive as the dollar value falls with increasing supply. The fact that they have not makes me think that they may be significantly undervalued. While I do not use metals as an investment, per se, I find them very useful as stores of value – much moreso than the fiat currency of a government-controlled, ever-expanding money supply which can only continue on its current growth curve as printed/credit-expanded money is used to cover unfunded and untenable liabilities owed to the public. My take away: more metals.

 

I pulled these charts from www.kitco.com and from www.nowandfutures.com

 

 

Edit on May 6, 2017: After I posted this, I was thinking about one of the points that David Stockman (and others) have made regarding the correlation in money expansion and rising stock prices. Particularly, I think I first saw this vividly in Stockman’s book The Great Deformation: The Corruption of Capitalism in America, wherein he describes the basically 1:1 correlation between Fed money expansion and corporations making use of that easy money and credit to indebt themselves in order to buy back their stocks. This decreases the number of outstanding stocks, increasing the earnings-per-share number, making the stock look more valuable than it really is. Additionally, for individuals, easy credit allows them to keep high debt levels while pouring money into an increasingly distorted market. A third factor is that as the Fed keeps interest rates extremely low, there is nowhere to “invest” that is safe and simultaneously offers a decent rate of return. Historically, one could park one’s savings in a CD and safely make 5%. Now, with artificially low interest rates near 0%, and in some countries rates are negative, people “chase returns” in the only place that they hope to keep a positive return on investment: that increasingly distorted stock market which is inflating/devaluing values in step with the flood of dollars. (Peter Schiff has significantly commented on all of this, as well.)

See the below chart to follow what looks to be only M1 (which is only cash and demand checking deposits which can be quickly liquidated, and does not include all of the expanded monetary credit lines of M2 and M3 – see Investopedia on the topic) in correlation with the Dow Jones Index. All of that money seems to be dumped right into the stock market. There has been no real growth. The Dow is just an indirect indicator of money supply expansion. (At another time, we might discuss M1. As it includes savings and checking accounts, we might dig into how much of that money even exists in a fractional reserve banking system wherein the financial institutions hold 90%+ of those dollars only as numbers in a computer. There is no paper cash or real asset to back those liabilities to account holders.)

 

chart source: Stockcharts, which was linked from a Gold Eagle article.

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