Norton's Economic Musings

2012 Economics Commentary by Eric Jansen

2012-02-01T23:03:00.001-05:00

http://myemail.constantcontact.com/iTulip-Newsletter-Alert---Independent-Analysis-and-Commentary.html?soid=1101238839116&aid=LgzNRpRzfmM
..."Last week of the Bureau of Economic Analysis released revised U.S. GDP numbers for 2011. They reveal a U.S. economy destined for a new recession before the economy recovers from the last one, a mid-gap recession in iTulip terminology.

That hasn't happened since 1938. ..."

Beware of what is coming

2012-01-23T22:56:00.001-05:00

The Baltic Dry Shipping Index tracks the rates charged to ship dry commodities (coal, wheat, copper, lumber, etc.). That index has dropped to its lowest level in three years, which shows a slump in cargo shipments.Source: CBC/Radio-Canada

While the Baltic Dry Index is obscure to your average retail investor, keen market watchers have long considered it a valuable leading indicator for the world economy, indicating shifting tides in demand for key industrial commodities. And its plunge comes at a time when the prices for many key commodities remain buoyant – a disconnect that would traditionally suggest that commodities are poised for a fall.

Drones for Domestic Surveillance, Hunting Immigrants and Seizing Pot | | AlterNet

2012-01-22T23:12:00.000-05:00

DHS Pumping Money into Drones for Domestic Surveillance, Hunting Immigrants and Seizing Pot AlterNet

DHS has little to show for its drone spending spree other than stacks of seized marijuana and a few thousand immigrants who crossed the border without visas. January 16, 2012 Photo Credit: U.S. Air Force/Staff Sgt. Brian Ferguson LIKE THIS ARTICLE ?Join our mailing list:Sign up to stay up to date on the latest headlines via email. The Department of Homeland Security says it needs a fleet of two-dozen Predator and Guardian drones to protect the homeland adequately. Designed for military use, 10 of these unmanned aerial vehicles (UAVs) are already patrolling U.S. borders in the hunt for unauthorized immigrants and illegal drugs

Paint-on solar cells developed

2011-12-27T13:19:00.000-05:00

Paint-on solar cells developed
Paint-On Solar Cells DevelopedScienceDaily (Dec. 21, 2011) — Imagine if the next coat of paint you put on the outside of your home generates electricity from light -- electricity that can be used to power the appliances and equipment on the inside.See Also:Matter & Energy Nanotechnology Solar Energy Energy Technology Earth & Climate Energy and the Environment Renewable Energy Environmental Science Reference Nanomedicine Solar cell Electric power BiomassA team of researchers at the University of Notre Dame has made a major advance toward this vision by creating an inexpensive "solar paint" that uses semiconducting nanoparticles to produce energy."We want to do something ..."This paste of cadmium sulfide-coated titanium dioxide nanoparticles could turn large surfaces into solar cells. (Credit: : ACS Nano)

Unprecedented Fraud, Toothless Watchdogs

2011-12-24T02:50:00.002-05:00

by Barry Ritholtz

“Why there hasn’t been more robust prosecution is a mystery.”
-Raymond Brescia, visiting professor, Yale Law School

>
Reuters has an outrageous article detailing the absurdity of the lack of prosecution of financial crimes in modern America. It is a shocking to watch the United States, a nation that once followed the Rule of Law, slip into a banana republic..."

Coming Crash#3

2011-12-19T05:22:00.001-05:00

by Chris Puplava Watch the TED Spread

Portfolio Manager, Fundamental Analyst at PFS Group

Like the Ted spread for the US, the euro equivalent also shows counter-party risk continues to rise in Europe as the spread is higher now than at any time except for the peak in the 2008 credit crisis. What is key to note is how quickly the credit spread jumped in 2008, rising from less than 1% to nearly 4% in a matter of days....

Summary

It is my view that unless the ECB prints near the magnitude of trillions to support the European sovereign debt market and banks, then things are likely to get worse than better. Additionally, despite a US economic recovery, the message of my technical monitor and the general message from the credit markets suggests the US stock market is on shaky ground. If the ECB was going to come out with a massive quantitative easing program then spreads would contract and Europe would not pose the same threat to the current US economy as the US did to Europe and the world in 2008. Until that happens, defense and capital preservation remain paramount to investing.

LIBOR EUR

Preparing for the coming Crash#2

2011-12-19T04:53:00.002-05:00

By h.b. - Dec 18, 2011 - 11:15 AM
The Sunday Times reports that the Foreign Office is preparing for the worst case scenario and a collapse of banks in the Eurozone

The Sunday Times has claimed that Whitehall has plans for a euro-evacuation. The paper claims that the Foreign and Commonwealth Office is drawing up plans to ‘rescue’ thousands of British expats from Spain and Portugal in the event of a banking collapse.
..."The Foreign and Commonwealth Office is drawing up plans to evacuate thousands of British expatriates from Spain and Portugal in the event that their banking systems collapse. It comes as credit rating agencies warn that the deal struck by EU leaders this month may not save the single currency from further turbulence and possible collapse. Officials from the Foreign Office and the Treasury are preparing contingency plans to help thousands of Britons get home if banks in Spain and Portugal — two of the most vulnerable eurozone economies — fail and people are unable to get at their money.

The Treasury confirmed that plans to give emergency aid to Britons if eurozone banks collapse were being prepared but refused to give details.

Foreign Office sources said it was planning for a “nightmare scenario” with thousands of penniless Britons sleeping at airports with no money and no means of getting home. Among the contingency plans being discussed are sending planes, ships and coaches to evacuate expats.

A senior Foreign Office source said the plans were being drawn up to deal with a worst case scenario. It is drawing on experiences of other mass evacuations, such as during the 2006 war between Hezbollah and Israel where the UK sent warships to evacuate expats from Lebanon. ...
Read more: http://www.typicallyspanish.com/news/publish/article_33066.shtml#ixzz1gyNJhJt6

Preparing for the coming Crash-#1

2011-12-19T04:48:00.002-05:00

A good article on what is happening with the Euro and how to prepare you assets and investment portfolio

Beware of Europe’s Backdoor Bank Run

Here are four troubling signs the news media isn't telling you about

Dec 18, 2011, 8:00 am EST | By Keith Fitz-Gerald

On Wednesday, Fitch Ratings downgraded its credit ratings on five of Europe’s biggest banks, and while that decision made headlines, it’s not the most important story to come out of Europe this week.

The real story, which the mainstream media is neglecting, is about signs of an underground run on Europe’s banks. Almost nobody’s talking about it, but there are indications money is already moving out of the EU faster than rats abandoning a sinking ship...."

Trustee to Seize and Liquidate Even the Stored Customer Gold and Silver Bullion From MF Global

2011-12-19T03:20:00.001-05:00

by Jess's Cafe' Americain Dec. 17
The customer assets were stolen
"The bottom line is that apparently some warehouses and bullion dealers are not a safe place to store your gold and silver, even if you hold a specific warehouse receipt. In an oligarchy, private ownership is merely a concept, subject to interpretation and confiscation.

...How more plainly can it be said? The US financial system as it now stands cannot be trusted to observe even the most basic property rights as it continues to unravel from a long standing culture of fraud.

Get your money as far away from Wall Street as is possible. And if you want to own gold and silver, take delivery and store it in a secure private facility outside the fractional reserve system...."

re-hypothecation scandal

2011-12-13T02:31:00.003-05:00

MF Global and the great Wall St re-hypothecation scandal

12/7/2011

By Christopher Elias (UK)
(Business Law Currents) A legal loophole in international brokerage regulations means that few, if any, clients of MF Global are likely to get their money back. Although details of the drama are still unfolding, it appears that MF Global and some of its Wall Street counterparts have been actively and aggressively circumventing U.S. securities rules at the expense (quite literally) of their clients. ...http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/

Who is your mortgagee? Not the Bank you pay!

2011-12-07T00:43:00.001-05:00

MERS: The Elephant in the Foreclosure Room

If you are a homeowner , chances are that the current owner of your mortgage is an entity known as MERS (Mortgage Electronic Recording System). This is true even though you are making your payments to one of the major banks or a dedicated mortgage servicing company. Nobody borrows from MERS in the first instance but somewhere in the chain of title the likelihood is that MERS became (and continues to be) the owner despite a series of transfers to banks, trusts, and investment vehicles. In legal parlance, MERS will be identified in your mortgage documents as the "mortgagee of record," and will also be identified as the "nominee," or agent for the purpose of making future transfers to other entities. http://www.bankruptcyforeclosureblog.com/2011/03/mers-the-elephant-in-the-forec.html

Step Two Fix: Stop MERS!

2011-12-07T00:36:00.001-05:00

..MERS electronic system is an end run around registry of Deeds
The mortgage industry was kissed by a witch in the night. Looking for their own selfish gain they came up with a cunning system to transfer mortgages and shortcut the public recording system. Washed clean by the market crash, mortgage holders insisted their title claims were true, and the system is nursing its pain..."

Reinstate to Glass Steagall Act!!

2011-12-06T23:47:00.001-05:00

ref; Wiki:
Were the Walls Necessary? - The New Rules of the Gramm-Leach-Bliley Act
The limitations of the GSA on the banking sector sparked a debate over how much restriction is healthy for the industry. Many argued that allowing banks to diversify in moderation offers the banking industry the potential to reduce risk, so the restrictions of the GSA could have actually had an adverse effect, making the banking industry riskier rather than safer. Furthermore, big banks of the post-Enron market are likely to be more transparent, lessening the possibility of assuming too much risk or masking unsound investment decisions. As such, reputation has come to mean everything in today's market, and that could be enough to motivate banks to regulate themselves.

Consequently, to the delight of many in the banking industry (not everyone, however, was happy), in November of 1999 Congress repealed the GSA with the establishment of the Gramm-Leach-Bliley Act, which eliminated the GSA restrictions against affiliations between commercial and investment banks. Furthermore, the Gramm-Leach-Bliley Act allows banking institutions to provide a broader range of services, including underwriting and other dealing activities.

Read more: http://www.investopedia.com/articles/03/071603.asp#ixzz1foxsVYbf

2011-11-15T06:29:00.001-05:00

It’s All Connected: An Overview of the Euro Crisis

European leaders are dealing with growing debt problems that are rattling investors worldwide.
Here is a visual guide to the crisis......more

2011-11-08T06:22:00.004-05:00

And You Thought the Real Estate Bust Was Over

BY JOHN RUBINO from Financial Sense

"This week all eyes are on Greece and Italy, which is reasonable since they’re likely to be pretty entertaining. But as incredible as it sounds, PIIGS country sovereign debt might not even be the biggest banking-system threat on the immediate horizon. It turns out that the largest European banks have held onto — and apparently failed to mark down — a mountain of crappy paper from the housing bubble

Old Debts Dog Europe’s Banks

European banks are sitting on heaps of exotic mortgage products and other risky assets that predate the financial crisis, adding to pressure on lenders that also are holding large quantities of euro-zone government debt.

Four years after instruments like “collateralized debt obligations” and “leveraged loans” became dirty words because of the massive losses they inflicted on holders, European banks still own tens of billions of euros of such assets. They also have sizable portfolios of U.S. commercial real-estate loans and subprime mortgages that could remain under pressure until the global economy recovers...."

Career Education Shares Plunge, as CEO Resigns; Bellwether for Education Stocks? - Forbes

2011-11-07T16:56:00.000-05:00

Career Education Shares Plunge, as CEO Resigns; Bellwether for Education Stocks? - Forbes: "Career Education Corp. and other for-profit colleges like it have been under the microscope lately, with the usual litany of for-profit education allegations: aggressive recruiting techniques, poor job placement rates, and overwhelming student debt.. "

Norton's comment: This is how student loans get ballooned and student abilities to repay go down. Remember the national amount of outstanding student loans is MORE than the total of personal credit card debt! So, these student loan financial co.s and banks....yes our favorite banks are promoting loans which are beyond the clients ability to repay.

2011-11-06T06:11:00.002-05:00

Mocking the Poor? Not a good idea!
by Economic Collapse http://theeconomiccollapseblog.com

"...There is more economic frustration in this country today than there has been at any other time since the Great Depression. We are watching pressure build to very dangerous levels.

It is important to note that I certainly do not agree at all with the solutions being put forward by the organizers of the Occupy Wall Street protests. As I have written about previously, collectivism is one of our biggest problems, and more collectivism is not going to solve anything.

But it is definitely understandable that people are incredibly upset about this economy and that they want to protest. Most Americans realize that something is fundamentally wrong with our economic system.

Unfortunately, most of them do not understand how we have gotten to this point or what it is going to take to fix things. That is one of the reasons why I write about economic issues so much. We desperately need to educate America.

But what is undeniable is that there is a growing rage in this country that protest movements such as the Occupy Wall Street are giving a voice to.

Our system is badly broken. The people out there protesting in the streets may not understand much, but they do understand that something needs to change.

The Wall Street elite should be taking these protests as a signal that they need to get their house in order. The status quo just is not going to cut it. But instead of taking leadership and calling for significant change, many among the elite are openly mocking the protesters.

The incredible arrogance displayed by so many on Wall Street and by so many in Washington D.C. is absolutely appalling...."

2011-11-06T06:05:00.000-05:00

Extreme Poverty Is Now At Record Levels – 19 Statistics About The Poor That Will Absolutely Astound You

According to the U.S. Census Bureau, a higher percentage of Americans is living in extreme poverty than they have ever measured before. In 2010, we were told that the economy was recovering, but the truth is that the number of the "very poor" soared to heights never seen previously. Back in 1993 and back in 2009, the rate of extreme poverty was just over 6 percent, and that represented the worst numbers on record. But in 2010, the rate of extreme poverty hit a whopping 6.7 percent. That means that one out of every 15 Americans is now considered to be "very poor". For many people, this is all very confusing because their guts are telling them that things are getting worse and yet the mainstream media keeps telling them that everything is just fine. Hopefully this article will help people realize that the plight of the poorest of the poor continues to deteriorate all across the United States. In addition, hopefully this article will inspire many of you to lend a hand to those that are truly in need.

Tonight, there are more than 20 million Americans ...more Extreme Poverty 19 statistics

Practical Steps for Creating a Self-Sustainable Home | James J Puplava CFP | FINANCIAL SENSE

2011-11-06T05:53:00.000-05:00

Practical Steps for Creating a Self-Sustainable Home | James J Puplava CFP | FINANCIAL SENSE

The following transcript comes from a recent interview with Nicole Foss covering a wide range of practical steps and considerations for maintaining a fully or partially-sustainable home. The full audio interview can be accessed here.

Jim Puplava: Joining me on the program is Nicole Foss from the Automatic Earth and Nicole you recently did a video and it is called How I Prepared My Family for Peak Oil. I thought we would start our discussion today because I think one of the factors that we are starting to see right now, with oil prices at $90 in a weak recession along with high unemployment, is we are starting to see the effects of peak oil because you kind of wonder why we are at close to $90 given such weakness. Now some may say that is speculation but, putting that aside for now, I would like to talk about what you did to prepare your family. Now as I understand it Nicole, you sold your house in England in the 1990’s and you bought a farm in Ontario and lets talk about what you did as you discovered peak oil to get your family and prepare for it, what did you do first?..."

2011-11-06T05:43:00.000-05:00

Liberty without Virtue
by Arthur Cutten at Jesse's Americain Cafe

"But what is liberty without wisdom, and without virtue? It is the greatest of all possible evils; for it is folly, vice, and madness, without tuition or restraint."

Edmund Burke

GroupOn = LinkedIn?

La la la, whatever. La la la, doesn't matter. As cynical an IPO as seen since 1999 they said today.

Where is the MF Global customer money? First it was missing, and then it was not. And then it was lost (or) missing again, and then found at JPM. And then that was denied, and now it seems to be lost at sea in a financial storm of venality.

Maybe Judge Crater and Jimmy Hoffa took it with them.....

2011-11-06T03:54:00.001-05:00

The Economics Of Private Prisons by NPR
by David Shapiro
"...says that promise of jobs and tax revenue is eerily similar to what some officials in Hardin said back in 2004.

Shapiro, a staff attorney for the American Civil Liberties Union National Prison Project, is the author of a new ACLU report that's critical of the private prison industry.

Shapiro says it's possible a town could reap some small economic benefits from a private prison, but it may not bring the larger economic boost the county is hoping for..."

2011-11-04T06:22:00.001-04:00

....The Next Big Bailout has already started
from Economic Sense

People who leave their money with BoA already know (or should) that they're taking a fair-sized risk. In late September, Moody's dropped the credit rating of the bank's long-term holding company two levels, from A2 to Baa1, and cut its retail bank rating from A2 to Aa3. There are over $1 trillion in deposits still in an institution sitting on a status that is barely north of junk.

"Bank of America is the only US lender that lacks a rating of A3 or higher among the five firms listed by the Office of the Comptroller of the Currency as having the biggest derivatives books," Bloomberg wrote in an October 18 story.

Behind the word "biggest" lies a reality that is truly mind boggling. Bank of America's holding company - the parent of both the retail bank and the Merrill Lynch securities unit - held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. That's trillion, with a T.

And here's the really cool part. Can you guess who's on the hook if that gargantuan derivatives book blows up in BoA's face?

We are.....

Warner: Senate could vote to reinstate Glass-Steagall - The Hill's Blog Briefing Room

2011-10-29T06:52:00.000-04:00

Warner: Senate could vote to reinstate Glass-Steagall - The Hill's Blog Briefing Room

By Michael O'Brien - 05/01/10 12:00 PM ET

Senators could approve an amendment to reestablish the separation between banks' commercial and investment operations, Sen. Mark Warner (D-Va.) suggested.

Warner, a member of the Senate Banking Committee who's been closely involved in negotiations over a Wall Street reform bill, said that while he opposed such a measure, the Senate could get the votes to reimpose the Depression-era Glass Steagall law.

"It may have a chance," Warner said during an appearance on C-SPAN's "Newsmakers" of the chances for passage of an amendment to reimpose the law, which was repealed by Congress in 1999....

Norton's comment: This former law stopped banks from additionally acting as investment bankers. When this was repealed under pressure from the banking and investment lobbies, it opened the door to what is now the credit default swap debacle, the 2008 financial crisis and the worldwide ongoing crisis. Even today Bank of America has been allowed by the FED and the FDIC to maneuver over 50 TRILLION DOLLARS IN derivatives (with nil real value) over to their retail banking system. Why would they do this? Because if they default, FDIC account insurance, OUR MONEY, will cover the default. Another monetization of the financial risks that end up as public debt for corporate irresponsible action!

How Bank of A just got tax payers to back$ 75 Trillion dollars of trash Derivatives

2011-10-29T03:28:00.000-04:00

...And we thought moving our slave wages to our local credit union was going to save us! ...This means that the investment bank's European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn't get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to "give relief" to the bank holding company, which is under heavy pressure. .. http://www.sott.net/articles/show/236509-Holy-Bailout-Federal-Reserve-Now-Backstopping-75-Trillion-Of-Bank-Of-America-s-Derivatives-Trades

How Six Layers of Deficits will Lead to a Retirement Disaster | Daniel R Amerman CFA | FINANCIAL SENSE

2011-10-21T06:51:00.000-04:00

How Six Layers of Deficits will Lead to a Retirement Disaster | Daniel R Amerman CFA | FINANCIAL SENSE

Treasury officials: Never saw a loan like Solyndra - BusinessWeek

2011-10-15T15:49:00.000-04:00

Treasury officials: Never saw a loan like Solyndra - BusinessWeek: "at private investors moved ahead of taxpayers for repayment on part of the loan in case of a default."

'via Blog this'

Norton's comment: Now is there anyone out there who still doesn't get the the Fox is still in charge of the chicken coup? On Wallstreet, Main Street, Energy St......that is;
those who are creating financial risk and calamity, are still being bailed out by their comrades with public funds without our votes...
too big to fail is just another excuse to keep the free market from placing the results of risky financial behavior on those who created, promoted, lied about the transactions to the public; another excuse to bypass what makes democracy work with one vote one man.....and an educated public of voters.

Can Margin Debt Give Us A Clue On Market Direction?

2011-09-29T09:30:00.001-04:00

Can Margin Debt Give Us A Clue On Market Direction?: "bottoms in the market occur when there are positive net credit balances"

'via Blog this'

"...By the time the bottom of the decline was reached in March of 2009, positive net credit balances had ballooned to almost $200 Billion. Surprisingly, after investors had been wiped out twice in a single decade, they came storming back to the casino flush with cash as the Fed, due to the introduction of Quantitative Easing, which removed investment risk from the markets. Investors scrambled to lever up their portfolios for a third time. This time margin debt didn't quite achieve its previous peak but quickly surged to $330 Billion. ..."

Coming Currency Crisis - Financial Sense

2011-09-15T01:42:00.000-04:00

by By Bud Conrad, Casey Research
...As to what speculators – what anyone – should do, it doesn’t really matter whether the fall of the dollar precipitates the level of crisis we expect. The steps we advocate are reasonable for anyone who doesn’t want to get hurt by a currency crisis: buying physical gold (and silver – both are still relatively cheap in inflation-adjusted dollars); getting a useful portion of one’s assets into a stable country outside of the US (preferably one with no involvement in the “War On Terror/Islam”); and investing a fraction of one’s portfolio in gold stocks....

Highlights From That Ultra-Gloomy Goldman Report That Everyone Is Talking About

2011-09-13T20:15:00.000-04:00

Highlights From That Ultra-Gloomy Goldman Report That Everyone Is Talking About: ""

'via Blog this'

Jesse's Café Américain: Weekend Reading: Psychopaths Among Us, the Madness...

2011-09-11T21:01:00.000-04:00

Jesse's Café Américain: Weekend Reading: Psychopaths Among Us, the Madness...: "A lot of white-collar criminals are psychopaths," says Bob Hare. "But they flourish because the characteristics that define the disorder ...

Norton's comment: This is really an interesting angle on the collapse of our democracy and understanding why and how the Wall Street crooks and the Corporate banksters are still managing to comeup with more ways to rob the middle and poor blind even after being called to account for it. Ocuh!

Understanding the Second Great Contraction: Percent Off the Previous Peak

2011-08-31T20:15:00.005-04:00

Understanding the Second Great Contraction: Percent Off the Previous PeakJames Ross, the University Architect at UNC Wilmington and an avid student of the economy, called my attention to Martin Wolfe's recent essay at the Financial Times explaining that we're not at risk of a double-dip recession because the one that began in late 2007 hasn't ended.

Of course, the National Bureau of Economic Analysis (NBER) declared June 2009 as the end date for the last recession, a decision they announced in September of the following year. You can read their rationale here. According to the NBER's analytical method, which focuses on major peaks and troughs as boundaries, the June 2009 end for the last recession makes perfect sense. But if you expect the end of a recession to be a return to some semblance of economic normality, then, to paraphrase the immortal words of Yogi Berra, the last recession "ain't over 'til it's over."

Bill McBride, the economic wizard at Calculated Risk, is a master at graphing data series ..."

US mutual fund outflows surge after downgrade -ICI | Reuters

2011-08-17T15:14:00.000-04:00

US mutual fund outflows surge after downgrade -ICI | Reuters: "Wed Aug 17, 2011 1:12pm EDT
NEW YORK, Aug 17 (Reuters) - U.S. mutual funds had the
largest outflows in nearly three years in the wake of the
downgrade of the U.S. credit rating by Standard & Poor's, data
from the Investment Company Institute showed on Wednesday.
Investors pulled a net $40.3 billion out of those funds in
the week ended Aug. 10, the largest weekly withdrawal since
early October 2008, soon after the collapse of Lehman
Brothers."

Phone-Hacking: The Smoking Gun - Crime, UK - The Independent

2011-08-17T11:17:00.003-04:00

Phone-Hacking: The Smoking Gun - Crime, UK - The Independent: "News International executives were told four years ago that phone hacking was rife at the News of the World and subsequently paid a jailed employee a quarter of a million pounds after he claimed that Andy Coulson authorised and then tried to hide the extent of it at the newspaper when he was editor.

Previously secret papers show that Rupert Murdoch's most senior lieutenants paid...."

Majority of corporations avoid federal income taxes - study - Aug. 12, 2008

2011-08-17T11:15:00.000-04:00

Majority of corporations avoid federal income taxes - study - Aug. 12, 2008: "NEW YORK (CNNMoney.com) -- Nearly two-thirds of U.S. companies and 68% of foreign corporations do not pay federal income taxes, according to a congressional report released Tuesday...."

Norton's comment: If corps. were the engine that created the most jobs, then this might be worth it; however, it is SMALL BUSINESS that creates the jobs AND PAY TAXES AND SUFFER UNDER COMPLEX REPORTING REGULATIONS! Regulation is NOT a bed word. It is those designed to be complicated to provide escape holes for corporate interests and to sustain legal fees / business that I object to! Currently, our system does NOT function as a democracy, does NOT benefit the populace or the voters. It serves the corporate interests that are contrary to benefiting the middle class that has always driven economic growth.

The Middle Class is DEAD. When do we have the funeral? Shall we wait until the whole economic system in the USA collapses or have it now? What do you think?

The Ideological Crisis of Western Capitalism - Joseph E. Stiglitz - Project Syndicate

2011-08-06T08:21:00.000-04:00

The Ideological Crisis of Western Capitalism - Joseph E. Stiglitz - Project Syndicate: "NEW YORK – Just a few years ago, a powerful ideology – the belief in free and unfettered markets – brought the world to the brink of ruin. Even in its hey-day, from the early 1980’s until 2007, American-style deregulated capitalism brought greater material well-being only to the very richest in the richest country of the world. Indeed, over the course of this ideology’s 30-year ascendance, most Americans saw their incomes decline or stagnate year after year...

A decade ago, in the midst of an economic boom, the US faced a surplus so large that it threatened to eliminate the national debt. Unaffordable tax cuts and wars, a major recession, and soaring health-care costs – fueled in part by the commitment of George W. Bush’s administration to giving drug companies free rein in setting prices, even with government money at stake – quickly transformed a huge surplus into record peacetime deficits.

The remedies to the US deficit follow immediately from this diagnosis: put America back to work by stimulating the economy;.."

Tips on Storing Precious Metals Safely - Precious Metals - Resource Investor

2011-07-24T21:40:00.000-04:00

Tips on Storing Precious Metals Safely - Precious Metals - Resource Investor: "There are only two ways to buy physical gold – buy it and store it yourself, or buy it and have someone store it for you. So it is obvious that storing metal is an important part of the buying process. Consequently, I am often asked about storage.
Storing gold at home has one important advantage; you have metal close at hand. However, there are numerous disadvantages, the most obvious one being the risk of theft. Unfortunately, insurance is expensive, if you can even get it. Also consider that your liquidity is impaired because you have to return your coins and/or bars to a dealer to exchange them for a national currency. That takes time and may even incur a refining cost to confirm the gold content before the dealer accepts your metal.

When you store gold with a company,"

Global Currencies: The Euro, The Yen, and the Bitcoin? - CNBC

2011-07-24T21:38:00.000-04:00

Global Currencies: The Euro, The Yen, and the Bitcoin? - CNBC: "The dollar, euro and yen might be the primary language of currency traders today, but online, all the talk is about bitcoins.

The digital currency has been around for nearly two years now, but it burst onto the radar of the mainstream world in June, when Gawker published a story about an underground Website where you could trade the currency for illegal drugs. The chatter surrounding the story eventually faded, but a lot of people were left confused about bitcoins. What are they? How do they operate? And what, aside from illegal narcotics, can they be used for?"

How Big Is E-commerce Industry | The Invesp Blog

2011-07-24T10:53:00.001-04:00

How Big Is E-commerce Industry | The Invesp Blog: "The e-commerce sector has continued its double-digit growth year over year. And to make it easy for you to understand the growth of e-commerce industry in US and all across the world. We’ve created an infographic “How big is E-commerce” that will cover some interesting facts about the E-commerce industry, its growth and latest trends."Infographic by – Conversion Optimization Company Invesp

Boomer Bust 2011, Unprepared & Unaware

2011-07-24T10:32:00.000-04:00

Boomer Bust 2011, Unprepared & Unaware: "This year, America’s baby boomers – 78 million people in all – begin turning 65 and this growing demographic wave threatens to cripple our financial and health care systems and significantly burden future generations.

To better understand the implications of this looming crisis, Volunteers of America commissioned a nationwide survey with Lake Research and American Viewpoint into how the elderly and their caregivers are faring during the economic downturn. The survey found that the majority of Americans significantly underestimate the amount of savings they will need to finance their future long-term care needs, and that caregivers are sacrificing their own financial futures to help care for older loved ones."

Most Americans Are Without a Financial Back-up Plan

2011-07-24T10:26:00.000-04:00

Most Americans Are Without a Financial Back-up Plan: "WEBWIRE – Friday, July 22, 2011
New State Farm survey shows that while 81 percent of Americans believe it’s very important to have a financial “Plan B,” fewer than half have such plans in place

Bloomington, Ill., - If the unexpected happens and a major life crisis occurs, most Americans today would be unprepared to handle the impact. These findings are detailed in the new State Farm® “Financial Plan B” survey. In the study, while 81 percent of all adults say having a back-up plan is very important, only 45 percent say they’ve actually planned ahead and are ready to weather a life crisis...."

Bernanke Just Lit the Fuse on $1,800 Gold and $55 Silver by Year End!

2011-07-13T16:41:00.003-04:00

Kitco - Commentaries - Jason Hamlin

www.goldstockbull.com

Hello QE3 – Bernanke Just Lit the Fuse on $1,800 Gold and $55 Silver by Year End!

Federal Reserve Chairman “Helicopter” Ben Bernanke indicated that the U.S. economy is at a crossroads this morning, telling Congress the central bank is prepared to provide further stimulus. Investors reacted by dumping dollars, buying stocks and pushing gold to a new all-time high of $1,585. Silver, while still significantly below its 2011 high near $50, has advanced nearly 6% today...."

Data Spotlight: Independent Contractors On the Rise « EMSI | Economic Modeling Specialists Inc.

2011-06-24T21:41:00.000-04:00

Data Spotlight: Independent Contractors On the Rise « EMSI | Economic Modeling Specialists Inc.

>>For a complete discussion on covered vs. noncovered workers, see this article.

We produced the following chart to illustrate the steady increase of workers not covered by unemployment insurance among 10 of the broadest-level industry sectors using national county-level data. The ratio of noncovered workers to the rest of the workforce is derived by comparing EMSI’s covered dataset (which closely resembles state LMI data, but with suppressions removed) with our complete dataset. The time frame is from 2005 to 2010.

Hamish McRae: Working longer ought to be an opportunity, not a curse - Hamish McRae, Commentators - The Independent

2011-06-16T17:02:00.000-04:00

Hamish McRae: Working longer ought to be an opportunity, not a curse - Hamish McRae, Commentators - The Independent: "But to focus on pensions and retirement is to think about the mechanical consequences of ageing, the accounting side of things. But there are other consequences of ageing that are more interesting and even more important. For example, what happens to the nature of work? What will be the social attitudes of the 'new old'? How will people adapt to four-generation families?

There is no road map to help us navigate through this new world, because..."

Stephen Roach: America is a Zombie Nation just like Japan « naked capitalism

2011-06-16T14:23:00.000-04:00

Stephen Roach: America is a Zombie Nation just like Japan « naked capitalism: "Stephen Roach: America is a Zombie Nation just like Japan
Cross-posted from Credit Writedowns

Stephen Roach has written an Op-Ed in today’s Financial Times that is worth reading. He outlines his version of Richard Koo’s Balance Sheet Recession theorem, opining that “the global economy is being hobbled by a new generation of zombies – the economic walking dead.”

His main points are:
American consumers are retrenching"

How To Create A Passive Income

2011-06-16T10:41:00.001-04:00

How To Create A Passive Income: "Gone are the days of thirty year careers and an anti-climatic send-off with a gold watch. Increased labor competition, an economy shifting away from manufacturing and towards service, and a basic impatience from Generations X and Y have just about done away with the idea of retiring on a pension from a working lifetime with one employer. Add the Enron fiasco to the mix and most people have given up on the idea of “job security.” With all the uncertainty, creating multiple streams of passive income is a great way to hedge against the risk of unemployment."

Norton's comment: I have been researching during the past 2 years of severe underemployment how to create a passive / residual income in the face of economic collapse and cultural unraveling in the USA. Here are some results for those who want extra income and a path to retirement on the 3 to five year plan instead of the corporate 45 year plan that makes your boss rich but not you.
http://www.lifeinbalance-consulting.com

"The People Vs. Goldman Sachs" - Taibbi's Magnum Opus | zero hedge

2011-06-15T21:16:00.000-04:00

"The People Vs. Goldman Sachs" - Taibbi's Magnum Opus | zero hedge: "They weren't murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington, took an oath before Congress, and lied about it."

NOrton's comment: This makes me sick. The worst devious human behavior on steroids! And after the 1960s effort for peace. Many of these crooks are from the 1960s and more crooked than I can imagine...all with the face of peace and free market lingo. Puck!

Listen to this video: http://youtu.be/jt9j3_tLXaI

A new economic model | the new economics foundation

2011-06-03T16:15:00.000-04:00

A new economic model | the new economics foundation: "'Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist' - Kenneth Boulding

There is nothing ‘natural’ about our current economic arrangements. They have been consciously designed to achieve a simple objective: growth. But growth is not making us happier, it is creating dysfunctional and unequal societies, and if it continues will make large parts of the planet unfit for human habitation.

We need to do things differently, and soon..."

Norton's Comment: This is the MOST EXCITING discovery! I heard the Speaking in Maine program sponsored by the Hour Exchange Program for Portland, Maine June 03, 2011. Speaker was Stewart Wallace, "recovering economist" and a founder of the New Economics Foundation (UK). This is its 20th year in existence.
Some of the New Terminology:
Collaboration
Power enabled by the people
New Economic Metrics beyond the GDP: Wellness, Happiness
Local Food
Local Energy
Local Sustainability

THIS IS VERY POSITIVE NEWS. IT IS TIME FOR US TO BUILD A NEW FUTURE, A NEW ALTERNATIVE CURRENCY, A NEW WAY OF EDUCATING OUR KIDS FOR A BETTER FUTURE. FOR A BETTER BUSINESS MODEL.

USDA: Goodbye Food Pyramid, Hello MyPlate |

2011-06-03T09:52:00.001-04:00

USDA: Goodbye Food Pyramid, Hello MyPlate |: "Today, First Lady Michelle Obama and officials from the USDA unveiled what they hope to be their newest weapon in the battle against childhood obesity: a plate of food.

The USDA launched MyPlate on Thursday, replacing the two decade old Food Pyramid
The USDA’s Food Pyramid, which was established in 1992 to get Americans to better focus on the “right” types of foods they should be eating, has been replaced with MyPlate, “a new generation icon with the intent to prompt consumers to think about building a healthy plate at meal times,” USDA officials said in a press release.

The new MyPlate icon emphasizes the fruit, vegetable, grains, protein and dairy food groups."

Homework by Allen Ginsberg | The Writer's Almanac with Garrison Keillor

2011-06-03T09:21:00.000-04:00

Homework by Allen Ginsberg | The Writer's Almanac with Garrison Keillor: "Homework
by Allen Ginsberg
Homage to Kenneth Koch

If I were doing my Laundry I'd wash my dirty Iran
I'd throw in my United States, and pour on the Ivory Soap,
scrub up Africa, put all the birds and elephants back in
the jungle, I'd wash the Amazon river and clean the oily Carib & Gulf of Mexico,
Rub that smog off the North Pole, wipe up all the pipelines in Alaska,
Rub a dub dub for Rocky Flats and Los Alamos, Flush that sparkly
Cesium out of Love Canal
Rinse down the Acid Rain over the Parthenon & Sphinx, Drain the Sludge
out of the Mediterranean basin & make it azure again,
Put some blueing back into the sky over the Rhine, bleach the little
Clouds so snow return white as snow,
Cleanse the Hudson Thames & Neckar, Drain the Suds out of Lake Erie
Then I'd throw big Asia in one giant Load & wash out the blood &
Agent Orange,
Dump the whole mess of Russia and China in the wringer, squeeze out
the tattletail Gray of U.S. Central American police state,
& put the planet in the drier & let it sit 20 minutes or an
Aeon till it came out clean......"

Norton's Comment: Imagine...this was written in 1955 on June 3. So poignant today!

Skype Acquired by Microsoft: 3 Fears & 3 Hopes

2011-05-16T15:00:00.000-04:00

VOIP Telephony Trends

Skype Acquired by Microsoft: 3 Fears & 3 Hopes: "Hopes
I probably have bigger, more active hopes for this acquisition than I do fears.

With 660 million+ registered users and more than 100 million average monthly users, Skype is bigger than Twitter.Disruption of the telephony landscape is something people have been waiting for years to see from consumer VOIP services, especially Skype. The service has no doubt upturned the international fixed line economy, but how about shaking things up with mobile carriers? It would be great to see Microsoft, Google and Facebook all make strong mobile VOIP plays and take some power away from the big carriers of the world. Heck, more competition could even make the carriers change their ways and earn some love from their customers, instead of simply holding us all hostage. Who couldn't use more love?"

Consumer Reports Partners with BillShrink to Help Consumers Find the Best Deals On Wireless Plans, Credit Cards and TV and Cable Packages BillShrink

2011-05-16T14:51:00.000-04:00

Consumer Reports Partners with BillShrink to Help Consumers Find the Best Deals On Wireless Plans, Credit Cards and TV and Cable Packages BillShrink: "Consumer Reports Partners with BillShrink to Help Consumers Find the Best Deals On Wireless Plans, Credit Cards and TV and Cable Packages

Yonkers, NY and Redwood City, CA – April 26, 2011 – Consumer Reports (www.ConsumerReports.org), the independent, nonprofit testing organization, and BillShrink (www.billshrink.org), the popular money-saving search engine and provider of in-statement rewards, today announced a partnership to help consumers find the best deals on wireless plans, credit cards and TV and cable packages...."

NOrton's Comment: Also see my website for a basket of financial tools, money management methods, ways to save, invest, payoff debt, build for retirement, creating a financial makeover where YOU are IN CHARGE.
http://Lifeinbalance-consulting.com

USA Inc.’s financials are discouraging

2011-05-16T12:18:00.000-04:00

By the standards of any public corporation, USA Inc.’s financials are discouraging.
Created and Compiled by Mary Meeker
February 2011

A Inc.is a non-partisan report that looks at the U.S. federal government (and its financials) as if it were a business. Mary Meeker, partner at KPCB and former financial analyst at Morgan Stanley, created and compiled the report with the goal of informing the discussion about our financial situation and outlook. USA Inc. examines the country’s income statement and balance sheet, aiming to interpret the underlying data and facts, and illustrate patterns and trends in easy-to-understand ways. The report also analyzes the drivers of federal revenue and the history of expense growth, and discusses basic scenarios for how revenue and expense growth might change to help America move toward positive cash flow.

True, USA Inc. has many fundamental strengths. On an operating basis (excluding Medicare
and Medicaid spending and one-time charges), the federal government’s profit & loss statement
is solid, with a 4% median net margin over the last 15 years. But cash flow is deep in the red (by almost $1.3 trillion last year, or -$11,000 per household), and USA Inc.’s net worth is negative and deteriorating. That net worth figure includes the present value of unfunded entitlement liabilities but not hard-to-value assets such as natural resources, the power to tax or mint currency, or what Treasury calls “heritage” or “stewardship assets” like national parks.
Nevertheless, the trends are clear, and critical warning signs are evident in nearly every data
point we examine.

USA Inc. - A Basic Summary of America's Financial Statements

The job shortage | State of Working America

2011-05-13T23:36:00.004-04:00

The job shortage | State of Working America:
"The job shortage
Job seekers outnumber job openings by a significant margin—in September 2010, the ratio was 5 to 1. Importantly, this isn’t the number of applicants per job opening—that number is much higher, as one unemployed worker applies for many jobs. The 5-to-1 ratio means that for four out of every five unemployed workers, there literally are no jobs. That is actually a substantial improvement over late 2009, but it is still far higher than the worst month of the previous recession and over three times as high as in 2007, before the Great Recession started...."

'Degrees for What Jobs?' Wrong Question, Wrong Answers - Commentary - The Chronicle of Higher Education

2011-05-13T14:52:00.006-04:00

'Degrees for What Jobs?' Wrong Question, Wrong Answers - Commentary - The Chronicle of Higher Education: "As the report of the governors group observes, the deep economic trends are 'rapid globalization, accelerating innovation, and relentless competition.' This is precisely why employers, in survey after survey, including those referenced in the report, express their desire for colleges and universities to place more emphasis on cross-disciplinary intellectual skills and on providing students with the broad knowledge base necessary to understand the complex contexts in which they will work. What new employees too often lack, business leaders complain, are the skills and abilities that enable them to continue learning on the job.

Given these data, the governors association is looking backward rather than forward when it urges priority for degree programs that are directly linked to specific 'high-demand jobs...

This country owes its greatness to precisely this rich mix of liberal and practical education, leavened with a strong recognition that education's first duty is to democracy. As they make prescriptions for the future, the governors' advisers would do well to read some history—while it's still being taught.

Carol Geary Schneider is president of the Association of American Colleges and Universities..'"

Taking Care of Your 90-Year-Old Self

2011-05-12T11:02:00.000-04:00

Here's the greatest challenge to retirement planning:

You may live a very, very long time.

That may sound like a silly "problem" — the kind of thing that only an actuary would worry about. But, in fact, the always-improving possibility that you could see your 90s or perhaps live beyond 100 is what makes it so difficult to manage that retirement nest egg..

If you knew for a fact that you were going to die on the day you turned 80, you could really live it up for the 15 or 20 years until then. But not knowing how long you'll need your money to last requires you to conserve it cautiously.

The National Center for Health Statistics reported on Wednesday that U.S. life expectancy has reached an all-time high. A baby born in 2009 can expect to live 78.2 years, and folks who have already have made it into their 60s tend to have higher life expectancies. At 65, the average person can expect to live to be 83....

Gold, Silver Now Legal Tender in Utah

2011-04-17T19:09:00.031-04:00

Gold, Silver Now Legal Tender in Utah: "With Gov. Gary Herbert’s signature on March 25, the state of Utah became the first in recent times to officially accept gold and silver coins as legal tender at their true value, prompting praise from sound-money advocates warning about the future of the Federal Reserve System and its fiat money.

The 'Utah Legal Tender Act,' as the new law is known, “recognizes gold and silver coins that are issued by the federal government as legal tender in the state and exempts the exchange of the coins from certain types of state tax liability,” according to the bill. The law does not force anyone to accept or pay in precious metals, but rather provides the option for those who wish to do so voluntarily.

In essence, the bill legalizes currency competition in Utah by removing punitive state taxes on individuals and businesses trading in precious-metal coins....

the law is known, “recognizes gold and silver coins that are issued by the federal government as legal tender in the state and exempts the exchange of the coins from certain types of state tax liability,” according to the bill. The law does not force anyone to accept or pay in precious metals, but rather provides the option for those who wish to do so voluntarily.

In essence, the bill legalizes currency competition in Utah by removing punitive state taxes on individuals and businesses trading in precious-metal coins.

Comment by Norton:

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This Is How the "American System" Was Corrupted and Destroyed

2011-04-12T17:23:00.000-04:00

This Is How the "American System" Was Corrupted and Destroyed: "By 1990, the total debt-to-GDP ratio in the U.S. had grown substantially to 2.6 times GDP. It reached 3.6 times by 2007 – even before the financial crisis. Today, total debt in the United States stands at $56 trillion – 3.8 times GDP.

That's $180,000 in debt for every man, woman, and child in the United States. That's nearly $700,000 in debt per family in the United States."

The interest on these debts is more than $3.5 trillion per year. To give you some idea how much money we're spending on interest alone... just consider the total budget of the U.S. federal government is also $3.5 trillion. Again, $3.5 trillion just covers the interest!

These debts are completely unaffordable. How many families in America do you know that can afford to finance and repay $700,000 in debt? Not many... Certainly not the "average" family...."

Good Carbs, Guilt-Free Eating

2011-04-05T22:55:00.007-04:00

Free website - Powered By Wix.com

Norton's comment: Refined flour loses 85% of it nutrition rapidly and becomes rancid on the grocery shelf. It is marked as viatmin re

Interactive | State of Working America

2011-03-30T21:45:00.002-04:00

Interactive | State of Working America

When income grows, who gains?

Source: The data come from this table: http://www.econ.berkeley.edu/~saez/TabFig2008.xls

on Emmanuel Saez’s website at University of California, Berkeley. Methodology

Norton's comment: Try this chart on the website. Notice the the income disparity get worse as you move the bar forward from 1917 to the present! This is no accident. It is a reflection of Democracy being hijacked, of the already rich getting richer; i.e., the Wall street financiers, brokerage firms and banks. Then when WE bailed them out we gave more money to the people who were most responsible for the melt down. And did they make loans MORE available to the working class? No, they continued the derivativeness investment game that got us in the mess. Now, the diversion is to blame union workers, teachers and public servants for it by laying them off and battling the Unions and right to work laws. This is to keep the public off balance so we do not think to hold the real people responsible, throw them out! Ugh!

Across the Generations in the Workplace - new creativity and calm

2011-03-30T12:52:00.004-04:00

The New Melting Pot: How to Effectively Lead Different Generations in the Workplace

by Anne Houlihan

"Put a group of strangers together, ask them to work side-by-side in the same building or office for eight or more hours each day, and you're bound to have some conflict. And when that group of people contains people from differing generations, all with different values and views of the world, the amount of conflict your office experiences can greatly multiply.

Managing and motivating a diverse workforce can certainly be challenging. As more and more people from the youngest generation enter the workforce and work alongside the most senior employees, many managers are learning that a one-size-fits-all management style simply does not exist. That's because each of the four generations now working side-by-side bring unique viewpoints to the table and let generation specific values guide their daily actions.

If you want to effectively lead your staff despite any generational differences and encourage others to learn from the diversity of the group, then consider the following guidelines..."

Credits:
By Anne Houlihan

Anne Houlihan is President of Satori Seal, where she tripled revenues in one year and increased profits 140% with her innovative budgeting and leadership techniques. Anne combines more than 25 years of hands-on corporate experience and coaching to help companies of all sizes. With her speaking and consulting, she helps improve management techniques, empower employees to be decision-makers, bridge the generational gap and overcome adversity. For more information on her speaking and consulting, go towww.goldenkeyleadership.com or call 951-235-5405.

This article appeared in Supervision a publication of the National Research Bureau. Used by permission of the author. (Thank you Anne!)

Norton's comment: Please see my website offering help for seniors aging at home at www.LifeinBalance-consulting.com

The Media's Role in Constructing Generational Labels

2011-03-30T12:45:00.000-04:00

The Media's Role in Constructing Generational Labels:
"In her excellent article 'Generational Identity and Memory in American Newsmagazines,' Carolyn Kitch describes the role the media plays in constructing generational labels. One paragraph in particular caught our eye in light of the recent 60 Minutes piece on the Millennials (Gen Y):

“A fourth similarity in each generational narrative is the progression of its tone from negative to positive This has nothing to do with whether or not a group is actually ‘new’ in American culture when it is first named: in the late 1990’s, the Greatest Generation was hardly a new phenomenon as a cohesive social group, nor was the Baby Boom by the time the oldest members turned 40 in the 1980’s. Each generation has been portrayed first as problematic (part of the journalistic ‘surprise’ at its discovery) and then, increasingly, as more acceptable and admirable. The common storyline begins with each group’s selfishness or irresponsibility and its inexplicability to other generations. Then its image improves, as subsequent coverage discusses the generation’s achievements, character, and merit. Those positive qualities, however, are described as ‘different’ than the qualities of the immediately preceding generations, allowing novelty to remain part of the story.”

To what extent does the media affect our thoughts about other generations?..."

Norton's Comment: Even forward thinking employers often miss the potential benefits of having multiple generations working together. In a collaborative and team oriented work environment this mix of generations can prove to be both a calming influence and foster more creative solutions for roadblocks to sales growth and product innovations.

Leading Indicator: Baltic Dry Index

2011-03-23T12:43:00.002-04:00

Yes, notice the little red dot at 1.47 ! today it dropped 99 PERCENT TO 1.47 FROM 1500 !

The Most Important Chart No One is Talking About | Daily Trade Alert

2011-03-23T11:47:00.003-04:00

The Most Important Chart No One is Talking About | Daily Trade Alert: "You can see this trend in the two-year performance chart below. It charts the performance of the benchmark commodity index (black line) against the benchmark U.S. stock index (blue line). You’ll note both asset classes sport nearly identical returns… and similar ups and downs. We highlight this trend again because it’s an EXTREMELY IMPORTANT thing to keep in mind when constructing an investment portfoilio."

The message?

So building a portfolio profile must include investments that are a hedge against a broad market crash.

Consider this chart:coming

How the "American System" Was Corrupted and Destroyed

2011-03-23T00:07:00.000-04:00

DailyWealth | Investment Newsletter, Advisory & Investment Analysis: "This Is How the 'American System' Was Corrupted and Destroyed
By Porter Stansberry with Braden Copeland Tuesday, March 22, 2011

Who is the world's most influential investor?

Most people would say Warren Buffett. He is a living legend – probably the most successful investor in history. He is the CEO, chairman, and largest shareholder of Berkshire Hathaway, which controls more than $60 billion of publicly traded stocks and holds total assets of around $370 billion....

hat all changed in August 1971. Rather than cut the government's spending and raise interest rates to slow demands from our trading partners for bullion, President Nixon took us off the gold standard. From that point, our creditors had no legal claim to our gold reserves. And the banking system had nothing but the Federal Reserve to limit the creation of additional credit and money.

You can see what happened next in the chart below...

It Started With 'No Child Left Behind' - Room for Debate - NYTimes.com

2011-03-21T15:17:00.000-04:00

It Started With 'No Child Left Behind' - Room for Debate - NYTimes.com: "Although politicians and corporate leaders claim they want to reform education, it is impossible to see how the campaign against teachers will advance that goal. No high-performing nation in the world is reducing the status and rights of the teaching profession."

Now what do you do with aging parents?

2011-03-20T17:06:00.001-04:00

Welcome!

Our school system teaches virtually nothing about money !

2011-03-16T11:58:00.008-04:00

RICH DAD ROBERT KIYOSAKI BLOG: "TUESDAY, MARCH 15, 2011

Our school system teaches virtually nothing about money

Robert Kiyosaki :
Robert Kiyosaki: ..... it is a value system, and it's something we learn as kids. So that's what 'Rich Dad, Poor Dad for Teens' is about because our school system teaches virtually nothing about money. Why, I don't know. I studied calculus for two years at school, and I never use calculus. But whether we're rich or poor or stupid, we're all going to use money. But our school system seems to treat money the way my poor dad treated money--was that money was an instrument of evil, it corrupted you and made you greedy, so they just didn't talk about money."

International Comparison of Math, Reading, and Science Skills Among 15-Year-Olds

Read more: International Comparison of Math, Reading, and Science Skills Among 15-Year-Olds — Infoplease.com

The Unanticipated Consequences of MERS

2011-03-15T16:44:00.000-04:00

New Economic Perspectives: The Unanticipated Consequences of MERS: "MERS (Mortgage Electronic Registration Systems) sought to privatize key aspects of the public title system. The primary purpose was to avoid recordation fees when interests in real property were assigned or transferred. MERS' founders read like a who's who of the entities who caused the recent financial crisis, so some scholars view its creation as an example of a private sector action intended to harm the public. This column assumes that MERS' harms were, originally, unintended. It focuses on the insanity – from the standpoint of honest lenders and investors – of MERS' devastation of a public system of recordation that had served business, particularly lenders and investors, brilliantly.

MERS' problems are legion, but .......more

MMA Accelerated Mortgage Pay Off In 8 to 11years News Video

2011-03-03T10:55:00.000-05:00

Get started here with Norton:

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2011-03-03T10:44:00.001-05:00

Call Norton for a FREE Analysis or fill out your information on our secure form here:

Did You Notice This Change in the U.S. Dollar?

2011-03-01T12:57:00.000-05:00

Did You Notice This Change in the U.S. Dollar?
Did You Notice This Change in the U.S. Dollar?
By Dr. Steve Sjuggerud
Tuesday, March 1, 2011

Did you notice the U.S. dollar changed in the last few weeks?

I don't mean that it changed colors, has new security features, or has different words.

I mean something far more important... I'm talking about the way the U.S. dollar acts in the world.

You see, in the past, without fail, the U.S. dollar has been what the Big Money runs to in a crisis. Always.

Always, that is, until this latest crisis in the Middle East. In this crisis, the dollar is down.

Let's figure out what's going on here...

Let me explain why the Big Money has historically run to dollars first... And then we'll consider why the Big Money might not do that in the future... starting with this current crisis.

It's a subtle change in the world. But if it's true, the implications are quite serious... If foreigners don't want dollars in a crisis, when do they want them?....."

J P Morgan accepts Gold as collateral on bank loans - first time!

2011-02-25T09:18:00.000-05:00

StreetInsider.com - GOLD ABOVE $1400; PMX Gold Releases Preliminary Gold Bullion Vending Machine Sales Data, Confirms Planned Nationwide Expansion Based on Gold's Emergence as Parallel Currency: "Gold Bullion's Acceptance as Collateral by Financial Institutions and Emergence as a Parallel Currency

Earlier this week JP Morgan announced that they will accept physical gold bullion as collateral and allow institutional firms and banks to borrow money against deposits. It is interesting to note, however that they will not accept ETF trust gold as collateral, thus clarifying the significance of physical gold holdings. This announcement follows CME Clearing Group's decision to accept gold as collateral for trades on the exchange, and that Gold Bullion can be used for margins for CME trades ranging from crude oil, gold, grains, equity indexes and Treasury bonds.gold..."

The Only Trend that STILL Matters

2011-02-24T20:59:00.000-05:00

February 2011: PSIA - The Only Trend that STILL Matters: from Porter Stansberry Investment Associates
"...You could run the same example with almost any global commodity. And you can do the same exercise with domestic goods – like home prices... or even stocks. The fact is, the world's economy is being hamstrung by the volatility of our paper currency. The sooner it is replaced with real money (gold), the better. The world took a big step in this direction last month, when JPMorgan again decided to accept gold as collateral from hedge funds. (Isn't it amazing JPMorgan didn't accept gold as collateral?)

Now, you may not intuitively understand these concepts. They are complex. You may not ever really get your mind wrapped around the world's monetary system. You might not really understand why gold returning to the banking system via collateral rights is momentous. But I know you can understand in a deep and meaningful way, what's truly happening here...

Do you remember this line from a popular movie made about 15 years ago?

Nobody believed he was real. Nobody ever saw him or knew anybody that ever worked directly for him... That was his power. The greatest trick the Devil ever pulled was convincing the world he didn't exist.

Christopher McQuarrie wrote the line in his Academy Award-winning screenplay, The Usual Suspects (which made Kevin Spacey a star). If you saw the film, you understand the message: The best criminals convince the world that they don't exist.

The Federal Reserve has done..."

Scratch a New Aquaintance and Find–A Caregiver! | Inside Aging Parent Care

2011-02-23T23:31:00.000-05:00

Scratch a New Aquaintance and Find–A Caregiver! | Inside Aging Parent Care: "I’ve read the stats. I know that there are 44,000,000 caregivers of aging parents and other relatives over the age of 50 out there. And I know this number is growing every day. But I’m still surprised when some weeks it seems like everyone I meet is a caregiver."

Norton's comment: Yes, this is a financial issue. And our culture is NOT setup to care for family since our families are typically dispersed around the Country. And the illusion continues to be marketed that our adult children are independent, self-sufficient, and besides parents are out of date, not in touch with the new world.....really? And who will care for our g-children when both parents are working long hours? We the chips are down, who will cover your back?

The $600 Trillion Derivatives Market - Newsweek

2011-02-22T14:58:00.006-05:00

The $600 Trillion Derivatives Market - Newsweek: "600,000,000,000,000?
It's a number no one questions, but the size of the derivatives market is not as shocking as it looks
If some banks are too big to fail, $600 trillion has become the number too big to question. That's $600,000,000,000,000—the rough figure cited in many news reports for the total size of the derivatives market, now blowing up to such alarming effect. At a time of mind-boggling turmoil on Wall Street, perhaps it's not surprising that few stop to ponder how a market for obscure financial products,...more"

Size of the US Gross Domestic Product (GDP)
per person: $ 47700
cost per person to keep a prisoner in jail 100,000 dollars for 7.5 million incarcerated!

National debt per person
According to the Debt Clock:
• Total national debt: $13 trillion
• Debt per citizen: $42,026
• Debt per taxpayer: $117,982
• Total interest due: $1.9 trillion
• Interest per citizen: $2,211

Read more: http://www.foxnews.com/us/2010/05/26/national-debt-clock-tracking-red/#ixzz1EiiOZywm

What Backs the Buck? The FED back Story

2011-02-16T21:09:00.001-05:00

fed-components-chart.gif (676×1231)

Norton's comment: Notice now most of it is loan advances and debt.

Estranged-The Dilemma of the American Couple : The Curse Of The Capable

2011-02-11T15:45:00.000-05:00

Estranged-The Dilemma of the American Couple : The Curse Of The Capable: "Estranged-The Dilemma of the American Couple

American couples are increasingly growing distant in a society driven by image, fears of ageing and the uncertainties of a rapidly changing world. According to the World Health Organization we have one of the highest rates of depression, stress, anxiety, addictions, diabetes and obesity in the civilized world. Our children reportedly have the highest rates of childhood diabetes and obesity, and the depression rates for children are two and a half times what they were a few years ago. Eating disorders and substance abuse are common not atypical in today’s schools. Each week we spend 22 hours less with our children than parents 20 years ago; we are essentially becoming ESTRANGED from our children.

Money Can’t Buy Love......"

Loving a Fantasy

The pornographic industry has grown exponentially as it offers, along with sex chat rooms, a quick fix to the chronic problem of emotional distance in long term relationships. Americans spent $13 billion on pornography in 2006, every second we spend $3,075 on pornographic sites .Spouses who pursue porn on a regular basis ultimately feel estranged from their partners as no one can compete with the idealization of porn figures. These idealized images foster perfectionism and a false sense of what love and intimate sexuality really mean

Norton's comment: Wow, this is really on point.
It raises the question,
"what is life really about?"
"Discard all the puff, the tweets, the Facebook friends, for the moment and consider....
Who can you call and ask for help, right now, come over, no questions, just come now."
It is NOT the 1500 friends on Facebook! Who are these people you can count on when it is life or death?

Consider that over 50% of fathers are absent from their home. This has catastrophic consequences on their children, on
their primary/significant relationships...on the mothers.

With what frequency do we still use these words:
Integrity
Loyalty.
Character
Empathy
Community
Neighbor
Self-less
Honorable
Caring
Giving

???

The Limits of Monetary Policy: ‘Monetary Policy Responsibility Cannot Substitute for Government Irresponsibility’ | The Big Picture

2011-02-09T15:56:00.002-05:00

The Limits of Monetary Policy: ‘Monetary Policy Responsibility Cannot Substitute for Government Irresponsibility’ | The Big Picture: "That reason has nothing to do with monetary policy. It has everything to do with the taxation and fiscal and regulatory policies of the states. The cost of capital does not explain the different economic performances of the states; the cost of doing business has everything to do with those differences. However well-meaning tax and regulatory initiatives in the laggard states may have been when they were conceived and levied, they have had unintended consequences that have led to economic underperformance and job destruction."

Jesse's Café Américain: Gold Daily Silver Weekly Charts - Panic Hits the Money Printers As Benny Signals QE -> infinitum

2011-02-08T23:56:00.000-05:00

Jesse's Café Américain: Gold Daily Silver Weekly Charts - Panic Hits the Money Printers As Benny Signals QE -> infinitum: "But if one is on some standard, it forces you to be more transparent and overtly devalue your currency, should you wish to do things like bail out your friends on Wall Street. Electronic digits on the other hand are much more amenable to a bureaucracy which prefers to conduct its business using opaque financial transactions in a self-serving manner, lacking in sufficient independent oversight.

Oh I see where Benny came out today and signalled QE to the limit, and gold and silver spiked higher. Now it all seems more clear to me.

A nice fade. Thanks. And let's hope Ron Paul gets that audit soon.

As Matt Damon said in one of the best poker movies, Rounders:
Mike McDermott to Teddy KGB: "Well you feelin' satisfied now Teddy? Because I can go on bustin' you up all night."
Caution: language"

The Constitutional Tender Act

2011-02-08T20:57:00.006-05:00

The Constitutional Tender Act

The United States Constitution declares, in Article I, Section 10, "No State shall... make any Thing but gold and silver Coin a Tender in Payment of Debts". This means that no State can make something a "tender in payment" (which means they cannot "make something an offer as payment") for any debts, which would include debts owed by and to the State. However, EVERY State in the United States of America HAS made some other "Thing" an offer as payment - they have by law declared that they will accept, and pay out, Federal Reserve Notes for any debts owed by or to them. Therefore, every State is in violation of Article I, Section 10 of the U.S. Constitution. Thus the need for the "Constitutional Tender Act" -- a bill template that can be introduced in every State legislature in the nation, returning each of them to adherence to the United States Constitution's actual legal tender provisions.
WATCH THIS VIDEO:

Economic Federalism - Dr. Edwin Vieira. Ph.D, J.D. from StandUpForLiberty on Vimeo.

A 90 minute video featuring Dr. Edwin Vieira speaking about the Constitutional authority of the states to pass legislation rejecting paper money in favor of gold and silver. In our current economic crisis, teaching these officials the proper way of fixing it is crucial!

"Economic Federalism" Video

Excellent video about about the Constitutional authority of the states to pass legislation rejecting paper money in favor of gold and silver.

Norton: To-date 11 States have passed legislation to this effect. Mostly done in 2009.

Volatility Then and Now

2011-01-19T10:44:00.000-05:00

Jesse's Café Américain: Volatility Then and Now: "As you may recall, there was a steady ramp higher in stocks at the end of 2009 until about January 19, 2010. There was also a corresponding drop in the VIX volatility index to rather low levels.

There was a precipitous sell off in stocks in the latter part of that January as the market corrected from an artificial and highly overbought condition.

Beware of artificial complacency for it always masks a fraud...."

Openness not globalisation, stresses Noble laureate Joseph Stiglitz in Cairo

2011-01-17T14:50:00.000-05:00

How to regain US dominance in Education, innovation and World leadership

by Norton >>>I love this quote from Edward Stiglitz"
Stiglitz listed five ingredients to change the comparative advantage that a country has through dynamic economics. It is all about education, openness and innovation, he insisted...."

Openness not globalisation, stresses Noble laureate Joseph Stiglitz in Cairo - Economy - Business - Ahram Online: "Stiglitz listed five ingredients to change the comparative advantage that a country has through dynamic economics. It is all about education, openness and innovation, he insisted....

Gold and Silver ETF Holdings Decline

2011-01-17T12:50:00.006-05:00

Gold and Silver ETF Holdings Decline As Precious Metals Continue Sideways Price Action:
January 12, 2011
After major upward price movement during the later half of 2010, both the SLV and GLD continue their sideway price action.

As gold and silver prices continue to consolidate, gold holdings in the SPDR Gold Shares Trust (GLD) and silver holdings in the iShares Silver Trust (SLV) both declined..."
Despite the lack of correlation between gold prices and gold holdings of the GLD, investing in the GLD has produced approximately similar returns to owning bullion, disregarding transaction costs. The price gain during 2010 was approximately 28% for both gold bullion and the GLD. For those who choose to avoid holding the physical metal, the GLD was an excellent substitute choice for gold bullion in 2010.

US Banks Reporting Phantom Income on $1.4 Trillion Delinquent Mortgages - Robert Lenzner - StreetTalk - Forbes

2011-01-15T07:02:00.000-05:00

US Banks Reporting Phantom Income on $1.4 Trillion Delinquent Mortgages - Robert Lenzner - StreetTalk - Forbes: "The giant US banks have been bailed out again from huge potential writeoffs by loosey-goosey accounting accepted by the accounting profession and the regulators.

They are allowed to accrue interest on non-performing mortgages ” until the actual foreclosure takes place, which on average takes about 16 months.....

This means that Bank of America, Citigroup, JP Morgan and Wells Fargo, among hundreds of other smaller institutions, can report interest due them, but not paid, on an estimated $1.4 trillion of face value mortgages on the 7 million homes that are in the process of being foreclosed."

S&P, Moody's Warn On U.S. Credit Rating - WSJ.com

2011-01-14T23:11:00.000-05:00

S&P, Moody's Warn On U.S. Credit Rating - WSJ.com: "By MARK GONGLOFF, MARK BROWN And NATHALIE BOSCHAT

With attention focused on sovereign-debt worries in Europe, two major credit-rating firms reminded investors again that the U.S. has debt problems of its own.

Investors bought Treasury debt nonetheless, ignoring the comments, which echoed prior statements by the companies and may still be months or years away from having any practical meaning

"The warning on the U.S. rating is well-founded," said Brian Yelvington, chief fixed-income strategist at Knight Capital. "However, it will probably fall on deaf ears until the peripheral Europe story plays out."

Moody's Investors Service said in a report on Thursday that the U.S. will need to reverse the expansion of its debt if it hopes to keep its "Aaa" rating....."

Norton's comment: Are you preparing for this?

Federal budget spending - 1970 2009 & 2020

2011-01-14T20:48:00.001-05:00

Shorting Municipal bonds? Read Carefully.

2011-01-14T20:33:00.000-05:00

How We Know the Crisis Has Arrived
by End of America video by Porter Stansberry

For us, the moment arrived five years ago. We noticed the dollar collapsing against both gold and the currencies of our trading partners. We could see the problems on the balance sheets of car makers, investment banks, and Freddie and Fannie. We watched, aware of the risks, when investors bid up real estate prices, oil prices, gold prices... almost anything to get out of the dollar....

We would urge you to share these facts (and our "End of America" video presentation) with anyone you care about.

Here are the top seven factors we believe MUST lead to the end of the global U.S. dollar standard – what we call The End of America

Seven Ways to Know:
1.The price of gold has gone up for 10 years in a row.
2.Our government's deficits are out of control
3.The government cannot increase tax revenues enough to cover our spending or repay our debts – ever.
4.Special-interest groups – particularly government unions – are looting our Treasury. Self-serving special interest groups have completely hijacked government spending.....
5.We're printing money just like the banana republics we used to mock.
6.We can't repay our debts. Total debt outstanding in the U.S. currently exceeds $55 trillion.
7.Shockingly, new debt issuance in the U.S. is soaring, with the lowest-quality debtors borrowing record amounts.

Why No One Else Is Issuing These Warnings

You may read these facts and ask, "Where are the ratings agencies? Why does a small newsletter based in Baltimore, Maryland seem to have the jump on everyone in Washington and most of the people in New York? Why aren't these facts in the newspaper? On the news at night? In magazines?"

The answer: Government spending now makes up more than 40% of our economy. No big business can afford to offend its best customer. And most also depend on the government for protection from competition, in the form of licenses or permits.

".......The easiest and most direct way to profit from the coming collapse of municipal finance is simply to short the bonds of the lowest-quality municipal issuers. One ETF in particular should be on your radar: the Market Vectors High-Yield Muni ETF (NYSE: HYD). Look at the following chart of the ETF. As you can see, it is collapsing. More than 30% of its holdings are rated below 'B' – which is deep into junk status. Most of the other bonds it owns are triple B, double B, or B. Most of these bonds will be downgraded at some point this year. And many of them will default."...........more

Norton's comment: I am sharing this with you because I feel it is urgent for all my friends and acquaintance's to protect their hard earned savings and additionally figure out they can thrive during this catastrophe.

American Economic Power GDP:A little historical perspective

2011-01-14T08:55:00.000-05:00

China's economy: Hello America | The Economist:
August 16, 2010
"CHINA has become the world's second biggest economy according to data released on Monday August 16th. Japan's economy fell behind China's at market exchange rates in the second quarter (it has been number three in PPP terms for some time). These numbers are not strictly comparable: Japan's data have been seasonally adjusted while those for China have not. Quibbles aside, Japan will surely be eclipsed soon, if it has not been already. Data compiled by Angus Maddison, an economist who died earlier this year, suggest that China and India were the biggest economies in the world for almost all of the past 2000 years. Why they fell so far behind may be more of a mystery than why they are currently flourishing...."

Norton's comment: Notice that China was in the dominant GDP position for many centuries. USA only shows dominance starting in the 20th century.

Judge orders Fed to deliver gold records for her review | Gold Anti-Trust Action Committee

2011-01-10T21:24:00.001-05:00

Judge orders Fed to deliver gold records for her review | Gold Anti-Trust Action Committee: "Judge orders Fed to deliver gold records for her review
Submitted by cpowell 2:18p ET Monday, January 10, 2011

Gold reserves per capita (wikipedia)

Dear Friend of GATA and Gold:

GATA today scored a small but perhaps auspicious victory over the Federal Reserve in our lawsuit seeking access to the Fed's secret gold files. The judge presiding over GATA's federal freedom-of-information lawsuit in U.S. District Court for the District of Columbia, Ellen Segal Huvelle, granted GATA's motion to order the Fed to produce in complete form for the judge's private review 20 gold-related documents the Fed has sought to keep secret. The judge ordered the Fed to deliver the documents by Friday............................

..........If the U.S. gold reserves are just sitting somewhere, inert, unencumbered, and unused for surreptitious market intervention, what's the problem with full disclosure?

Financial journalists unafraid of aggravating the world's financial powers should start putting gold-related questions to the Fed and other central banks and stop simply assuming that secrecy should be the normal order of things with central banks and gold.

And people everywhere who believe in free markets in the monetary metals and who have not already supported GATA financially can join our struggle here:

http://www.gata.org/node/16

This struggle could have been undertaken easily and likely more effectively by the World Gold Council, which aims to represent gold mining companies and gold investors. But the council's indifference to questions of surreptitious central bank intervention in the gold market has left the struggle to GATA. We need your help to pursue this struggle to victory for free markets, limited government, and a better, fairer world.

CHRIS POWELL, Secretary/Treasurer

Gold Anti-Trust Action Committee Inc."

Most people will do nothing..Part I of series by Nortoni

2011-01-10T16:15:00.020-05:00

Most People will do Nothing.. This is a quote from Porter Stansberry in my Subscription letter January 07, 2011

Here is my Story (Norton West) -A Little Family History
As a student of finance and international banking, and one of America's under-employed, I have had the privilege of time to follow economic trends in 2010. My father made it through the 1929 Crash working for a business that was stable. His father, my grand father, did NOT make it well through the Crash of 1929. My grandfather was a peanut broker in Waverly, VA and a local bank director. He used all his money to payoff the bank depositors.

So, now here I am in 2011 as the great grandson of John Walter West Sr. facing an economic collapse of an even greater magnitude than 1929. I do NOT want to be caught in the continuing economic and cultural downdraft this time even though it is easy to say most of it is out of my control.

In my recent experience, as Porter Stansberry also expresses, "most people will do nothing" ...when faced with this economic disaster. Why do they do nothing?

Here is my take on it and my journey to find an answer, to take control, to keep informed, get educated, take personal action and offer an avenue for others to take control of their financial and personal future.

1. Most families, couples or single parents are running so fast, working multiple jobs, getting educated, paying off debt, finding time to rest, taking care of kids, maintaining a home...........they are exhausted before the day ends and just happy to have a roof over their head and a bed to sleep on. Then they start all over the next day.

2. This information only highlights one more thing out of their control. It is too depressing to consider. They just need to focus on one day at a time.

3. They have not been educated in economic, personal finance, central banking, global economics or debt management. They are just over-whelmed with what they already have on their plate. Let someone else deal with these matters.

4. Over 50% of fathers are absent. Single mom homes are for the most part not making it and the absence of a father can NOT be filled by an overworked mom and kids that are never home with their parents for valuable functional family time!

5. Powerful marketing forces have shaped our view of ourselves, what we consider our rights, our picture of the American dream and how we get there. This largely deceptive, manipulation of our view of reality, self, position in the community and abilities to change things derives from the research and practice of psychology based on Sigmund Freud. Watch the BBC special titled "The Century of Self" if you are interested.

Ok, OK, that is enough! I could go on but I know your time is precious.

The point is our Democracy has been hijacked

by big corporate interests, secret power brokers, and subsequently a mass marketing system of ideas and products that do NOT sustain the original concept of representative democracy. The foundation of our democracy was based on broad participation of an educated, participative citizenry and a dynamic economic environment for the middle class to grow and improve itself. Additionally, it is based on a representative democracy. That is, the elected legislators are responsive, accessible and available to their constituency. It is based on an educated, critical thinking, independent thinking, well educated citizenry. THIS IS NOT WHAT WE HAVE NOW! Our social institutions have been privatized and serve the directors and stockholders, NOT the citizenry! Such as, healthcare, prison system, the military....the result is we cannot find the people in charge. If we can, they will not answer the phone. All we get is a recording and no callback! In the meantime our government is giving away trillions of our tax dollars to the very power brokers that have caused the collapse in the first place.

So if you are ready to stop reading and just bank on this crisis passing

......then as a friend, colleague or family member do yourself a favor. Be just a little curious. I have a plan for us all to take charge of our future but please answer the following CRITICAL QUESTIONS put forward by Porter Stansberry first:
· How high will gold have to get before you think something is seriously wrong?

· How high will silver have to get?

· How many banks will the FDIC have to close before you consider the dollar to be unsafe?

· How many municipalities will have to go under before you think there's a crisis?

· How European states will have to leave the euro before you begin to doubt the stability of the world's paper currencies?

· How high will agriculture prices have to go before you see that a global food panic is underway?

I (Porter) suggest you write down the answers to these questions now. Because almost no matter what you answered, you'll get to that point soon…..

Norton's comment: Then if you are still curious and willing to consider that the givens and assumptions we grew up thinking are NOT in effect today but we can adapt and prosper..read my PART II of this posting.

Best regards,
Nortoni West

Prepare yourself for the impending global crisis

2011-01-10T15:06:00.000-05:00

Weekend Edition: "Weekend Edition
Prepare yourself for the impending global crisis
Saturday, January 8, 2011

By now, you should have seen Porter Stansberry's prediction for 'The End of America.' His recent video was the culmination of years of research and observation, which led him to this conclusion... The U.S. dollar and economy are doomed. The U.S. government has printed more money and taken on more debt than it can ever repay.

But the U.S.'s situation isn't unique. We've seen it play out many times throughout history. Whenever a sovereign nation becomes so indebted it can never hope to repay, it inflates. And the scary thing is, inflation is already running rampant. Take a peek at the chart below and its explanation from the most recent issue of his Stansberry's Investment Advisory newsletter.."

............As Chris Weber points out in this week's DailyWealth, gold has risen for 10 consecutive years. Going all the way back to 1980, Chris never found another market with the same consistency.

And he agrees gold's rally isn't over. Go to the grocery store and ask people if they own gold... Not gold jewelry, but actual gold bullion. Most do not. Sure, gold is making headlines. But until your waiter, auto mechanic, and tailor are showing off their new Canadian Maple Leafs, you can bet gold will rally. If we do see a short-term dip down to $1,300 or $1,200, we'd treat it as a tremendous buying opportunity.

And it helps that the Federal Reserve is hell-bent on printing the dollar into oblivion......

US Inflation: Annual Percent Change (1774-2007)

2011-01-09T21:52:00.002-05:00

US Inflation: Annual Percent Change (1774-2007)

by CATHERINE on MAY 27, 2008

in HISTORY OF THE UNITED STATES,VE INFOGRAPHICS

Here is the annual percent change of inflation (CPI) in the Untied States from 1774 to 2007, which I graphed in my previous post, but this time I added historical events to the graph: Wars, Banking Panics, Pegging Paper Money to the Gold and Silver Standard, Establishment of the
Federal Reserve and the US Mint.

Data from MeasuringWorth.org

Financial Life Cycle Planning - Comparisons

2011-01-09T21:49:00.000-05:00

dshort.com - Financial Life Cycle Planning: "The 'Real' Mega-Bears
January 8, 2011 weekend update
It's time again for the weekend update of our 'Real' Mega-Bears, an inflation-adjusted overlay of three secular bear markets. It aligns the current S&P 500 from the top of the Tech Bubble in March 2000, the Dow in of 1929, and the Nikkei 225 from its 1989 bubble high."

Click to Enlarge

This chart is consistent with my preference for real (inflation-adjusted) analysis of long-term market behavior. The nominal all-time high in the index occurred in October 2007, but when we adjust for inflation, the "real" all-time high for the S&P 500 occurred in March 2000.

Here is a nominal version to help clarify the impact of inflation and deflation, which varied significantly across these three markets.

Note: These charts are not intended as a forecast but rather as a way to study the today's market in relation to historic market cycles.

YouTube - Gerald Celente on The Gary Null Show 01/03/11

2011-01-09T21:23:00.000-05:00

YouTube - Gerald Celente on The Gary Null Show 01/03/11: ""

Get it NOW!

Prepare for this! Get off the Grid!

Massive Silver Withdrawals From The Comex

2011-01-09T21:01:00.026-05:00

January 8, 2011

Jesse's Café Américain: Massive Silver Withdrawals From The Comex:

"It could prove to be a watershed event, or at least an interesting scandal to observe as it unfolds.
Harvery Organ's commentary:
'And now for the big silver report.
We witnessed a massive withdrawal of silver unprecedented in the history of the comex. First there was a smallish 6507 oz of silver deposited to two customers, one being 497 oz and the other 6010 oz). But just look at the huge withdrawals:...."

Prior report that JP Morgan recently took a massive short side position on silver:

Citizens Look to Squeeze Silver Manipulator January 3, 2011

By Eric Fry American FreePress Net http://www.americanfreepress.net/html/silver_150.html

There’s a lot of rumor, buzz, innuendo, chitchat and scuttlebutt about the precious metals markets these days. Most of the buzz is about JPMorgan and silver. Rumor has it that JPMorgan has amassed a whopping short position in silver......For perspective, 3.3 billion ounces is roughly equal to one-third of all the world’s known silver deposits; two times the world’s approximate stockpiles of silver bullion; four times the annual mined supply of silver; 30 times the inventory of silver at the COMEX.....So it should come as no surprise that a grassroots campaign has formed, the sole purpose of which is to punish JPMorgan for its attempted manipulation of the silver market.

“A viral campaign to buy physical silver and ‘crash’ the bank is now spreading like wildfire on the Internet,” Rubin reports. “Just Google [the words] ‘Crash JP Morgan; Buy Silver’ [to learn more about it]. . . .Those who wish to participate in squeezing the living daylights out of JPMorgan may want to consider buying physical silver, silver futures and [the iShares Silver Trust, which issues stock backed by silver].”

Maybe the story about JPMorgan’s short position in silver is mere innuendo. Maybe not. But two facts are irrefutable:........

Go to Gold vending machine in Florida

High and Low Finance - Bankers Point to the Rules as the Problem

2011-01-04T14:38:00.000-05:00

High and Low Finance - Bankers Point to the Rules as the Problem - NYTimes.com: "On Thursday, members of a House subcommittee joined in demanding that the rules be suspended. It was a bipartisan lynching of the accounting rule writers.

The panel’s chairman, Representative Paul E. Kanjorski, Democrat of Pennsylvania, said the accounting rule “does provide transparency for investors,” but that “strict application” of the rule had “exacerbated the ongoing economic crisis.

Then he issued the threat. “If the regulators and standard setters do not act now to improve the standards, then the Congress will have no other option than to act itself.”

Sadly, a victory for the bankers would not help them much. Even if it were true that banks would be held in higher regard now if they had not been forced to write down the value of their bad assets — and that is, at best, debatable — changing the rules now would be counterproductive. Would you trust banks more? Would other banks be more inclined to trust banks?

It is true, as the bankers argue, that valuing illiquid instruments is tricky. And it is true that markets can overshoot. Some of these securities may well be undervalued now. But the solution is not to go to what Robert H. Herz, the chairman of the Financial Accounting Standards Board, calls “mark-to-management” accounting.

I call it “Alice in Wonderland” accounting, after Humpty Dumpty’s claim in that book that “When I use a word, it means just what I choose it to mean, neither more nor less.” After Alice protests, he replies, “The question is, which is to be master — that’s a..."

Norton's comment: Sadly, also this article is a year old but the banks and their congressional puppets are still messing around with Accounting Standards that would NOT fly as normal for private industry. The banks and the FED are still hiding junk assets / derivatives while listing them on their books at face value. Can anyone tell me when was the last audit of the books on the FED, the US Treasury including an inventory of gold deposits at Fort Knox? It is time for an audit! Upps, who can we trust to do and report the audit?

Stock Market & World GDP Statistical Data Sculptures — Visualizing Economics

2011-01-04T14:33:00.000-05:00

OTC Derivatives vs. World GDP Statistical Data Sculptures — Visualizing Economics: "The piece consists of two layers: the lower half is a mapping of the
world’s GDP and the top half is a mapping of the derivatives volume,

alloted to the coordinates of the countries on a map."

Norton's comment: So you can see the scale of OTC outstanding Derivatives in each country is MORE than the size of their annual GDP (gross domestic product)! This is still the case! Many of these derivatives are still listed and reported by the banks and the FED at face value when they could very well be worth 10 cents on the dollar.

So, when will these assets(or contingent liabilities) be revealed? What effect will they have on the stock market? On the bond market, on the financial statements? Don't you think that this is indeed a "...The Total Notional Value of OTC Derivatives Outstanding dropped from some $683 Trillion as of June, 2008 to $592 Trillion as of December, 2008, according to the Bank for International Settlements (BIS – the Central Banker’s Bank – see www.bis.org, Path: Statistics > Derivatives > Table 19) (Ed Note: A Rough “Cocktail Party” Definition of “Notional Value” is “Unrealized Potential Maximum Value.”)

This first drop in Notional Amount of OTC Derivatives Outstanding in years, mainly reflects the massive deleveraging which occurred during the Fall, 2008 Market Crash..." from http://tiny.cc/wdw80

from Seeking Alpha

Also see original article at http://tiny.cc/uyj6y Hera Research, LLC

The Consumer becomes “The Consumed” by Mish

2011-01-03T23:11:00.000-05:00

The Consumer becomes “The Consumed” by Mish: "The Consumer becomes “The Consumed”
by Mish - Global Economic Analysis Published : January 03rd, 2011

Following is one of the more fascinating emails I have ever received. It is from reader Sally Odland who every year partakes in a 'different ritual' celebration on New Year's Eve, a tradition she picked up on a trip to Ecuador....."

Forecast 2011 - Gird Your Loins for Lower Living Standards by James Howard Kunstler

2011-01-03T23:00:00.000-05:00

Forecast 2011 - Gird Your Loins for Lower Living Standards by James Howard Kunstler:

"...What's left of the American economy is a web of financial rackets divorced from the production of real wealth, dependent on an elaborate computerized three-card-monte edifice of swindling. Those groans and creakings you hear are the agonies of this ediface swaying under its burden of lies, while underneath it the ground of history shifts.. "

Pay attention to the bond market’s new ‘creatures’

2011-01-02T10:56:00.002-05:00

Pay attention to the bond market’s new ‘creatures’

By Aline van Duyn Published: December 3 2010 19:14

New creatures have entered the bond market ecosystem en masse. What is not yet known is whether these creatures will change the way the ecosystem works. Are they benign, or are they malignant?

The “creatures” I’m referring to are from planet Earth. Indeed, many of them are probably reading this newspaper. They are the individual investors who have been pouring their savings into bonds like never before......"

Norton's comment: How long will these new bond holders tolerate negative returns? Maybe 3 months Treasuries make sense but long term rates don't. That is why I have bet on the reverse US Treasury ETF (TBT). See chart above.It has been rising since Oct. announcement of QE2.

Also see 20 Year Treasury Yields below. Remember, the yields go up as they are sold at auction for a discount, since buys are less inclined to see value in a declining US Dollar as the FED floods make with newly printed dollars; that is, if the face value is $ 1000, they must sell at a discount of less than face value to find buyers. Thus, the yield goes up.