Tag Archives: money

Jamie Dimon’s Obfuscation = JP Morgan’s Guilt?

13 May

I want to draw your attention to one of the most important things Jamie Dimon said to David Gregory in their recent conversation of JPM’s $2 billion proprietary trading loss:

GREGORY: The immediate question, the SEC is looking into this: Did the bank break any laws? Did it violate any accounting rules or SEC rules?

DIMON: So we’ve had audit, legal, risk, compliance, some of our best people looking at all of that. We know we were sloppy. We know we were stupid. We know there was bad judgment. We don’t know if any of that is true yet. Of course regulators should look at something like this, that’s their jobs. So we are totally open to regulators and they will come to their own conclusions. But we intend to fix it and learn from it and be a better company when it’s done.

The question Gregory asked was extremely simple: did you break any laws, accounting rules, or SEC rules? The answer Dimon gave was essentially this: “We’ve looked into it and I know the answer, but I’m not going to say right now what it is.”

Think about all the different things he could have said. Think about why he might have said this. This is bad, folks.

When baseball players are asked to testify before Congress about steroid usage, they obfuscate like this. When cyclists are asked to testify about blood doping, they obfuscate like this. When Jon Corzine responds to questions about MF Global, he obfuscated like this. Why? Because the level of cover-up is so massive that drawing any attention to the truth is overwhelmingly frightening for them. What you see from Mr. Dimon is a high level of fear about what this problem means for him, his bank, America, and the world.


Money Printing and The Sex Tourist Industry

28 Apr

Further Abuse of American Fiat

I highly recommend reading this fascinating account from John Keatley, an American photographer who went to the Philippines to do an exposé on the sex-tourist industry, which is also highly recommended.

Ironically, he ran into a politician from New Mexico, who was frequenting the Red Light District of Angeles. Not only was this politician aware of John’s presence, but encouraged him to take pictures of him and email them to him. After the story broke, Keatley was interviewed about it as well as the politician.

In this blog, we often uncover and discuss the injustices that come America’s abuse of its economic superiority, most notably trade manipulation through money-printing. But the whole spectrum of our abuse is much broader. This is just one more example of it. Ever since World War 2, which my financial readers know was the economic peak of America, GI’s, tourists, and businessmen have frequented Angeles, and other developing nations for cheap sex.

Why does this happen? Simply because our currency, though much of it is not earned but printed from nothing, is still highly valuable, causing other countries contort their entire legislative system to accommodate American lust.

If this is how we want to utilize our “prosperity”, we deserve a depression.


Condensed Crash Course

18 Apr

One of the reasons young people are having attention deficit issues is that there are few people worth paying attention to any more. Chris Martenson is one of the people you need to pay attention to. And it isn’t hard to. This condensed version of the much longer 3+ hour version “Crash Course” (also equally worth your time) is an excellent way to get to know what Chris has to offer.

Why should you listen to Chris?

In short, because he has a very holistic view of the world. I don’t agree with everything he says, but there is very little he ignores when he says what he does, and that’s important. One of the main priorities I have in this blog is to incorporate what God says into as much of what I think about economics as I can. Chris has helped me to do that.

A Suggestion for CNBC

16 Apr

There are rarely clear options for those who seek truth in financial markets today. On one side of the fence, you have people like Dennis Gartman, who come out on every other side of gold depending on the month, care nothing about fundamental analysis, and like to come on TV to brag about every trade that they (allegedly) made like they just won big at a casino, only they can never tell you when the next one will be. And then you have the Melissa Lees of the world who rehearse and prepare just well enough every day in order to know how to address questions to the Gartmans of the world and repudiate or ignore others who actually do fundamental analysis.

ImageDon’t get me wrong, both of these people seem to have plenty of experience and a fair amount of data in their preparation, but they have no curiosity.Truth as a concept is lost on them. CNBC gives you other options, like the hyperactive Jim Cramer and the reactionary Rick Santelli, but what kind of personal responsibility do they take for their speech? How much real research can you do before you host your daily show?

These people are supposed to be real experts, but I see no reason to trust them. Give every person who regularly appears on CNBC a hypothetical $10,000, tell them to invest it in any assets they choose, and make a Fox-Box in the upper left hand corner that shows the total return of that portfolio every time they host their show. Then you have transparency.

Will it happen? I don’t think so. This kind of exposure would be so detrimental to the idea of a free exchange of equally unaccountable ideas, it would probably make many segments of programming untenable. It would have been like making a camera crew follow Barry Bonds or Lance Armstrong around whenever they spoke with their “trainers”, “doctors”, and other unseemly associates. America believes the lie and idolizes the liars far too often for the person who wants to know what’s really going on. But one day the charade will end.


Why War is Not Good for the Economy

4 Apr

Created by www.learnliberty.org.

Haven’t you heard that what got America out of the Great Depression was _________ _____ __ ? If you can’t fill in the blank you were probably not raised in the American public school system. It is almost essential to our public mindset that either FDR’s domestic programs (those which weren’t struck down by the Supreme Court) or his foreign policy (entering into World War 2) caused us to grow as an economy.

It’s just not true


Peter Schiff Pigeonholed More than Ever

28 Mar

No one is a more outspoken and passionate critic of the actions of the Federal Reserve than Peter Schiff. Having accurately called the housing bubble of 07-08, Schiff has said repeatedly that the next bubble will be the bond market. The reasoning isn’t complicated, because the primary solution to the housing crisis was government and central banks confederating together to buy up toxic assets from the real estate bubble.

So what’s the problem when he mentions it on CNBC? Why are these people so reticent to engage in a discussion of the issues he brings up?

As you will notice in this video, Schiff clearly articulates the dilemma that the Federal Reserve has put itself into. On the one hand, it has lowered interest rates significantly in order to prop up the highly leveraged banking system of the United States against the massive losses it stands to take when/if just a few important components of its portfolio fails. On the other hand, the lowering of interest rates creates massive inflation which make it extremely difficult for every non-banking sector of the economy to create, manufacture, and distribute products for a profit.

Continue reading

Shifting Standards

27 Mar

In the last 99 years, our country has undergone a massive change. If it had happened in 5 years, it probably wouldn’t have happened. We have essentially changed in the way we ascribe value. The ramifications of this change cannot be underestimated nor fully understood. But the change itself can be.

On December 23, 1913, the United States government put its own constitutional mandate to create money into the hands of the Federal Reserve, a private banking system led by an unelected group of people who generally worked in the banking profession. Nearly twenty years later, on April 5, 1933, President Franklin Roosevelt issued Executive 6102,  which outlawed the possession of coined gold.  A little over 32 years later, on July 23, 1965, the Coinage Act of 1965 discontinued the coining of silver dimes. On August 15, 1971, Nixon ended the convertibility of the dollar into gold for foreign central banks. Incidentally, the penny’s copper composition was changed from 95% to only 5% in 1982.

Today, the nickel stands alone as a coin which, except for a brief shift in WW2, has maintained its composition of 25% nickel and 75% copper since 1866. The student of history will not be surprised that recent legislation may soon change the nickel to be made from steel.

For the entire 20th century, the US systematically removed its currency from the constraints of metallic standard. Think about that.

Continue reading