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Showing posts from January, 2012

There's a sucker born every minute

...and there were millions of college kids voting for Hopey McChange four years ago. How's that working out for their now unemployed, stoned-on-the-couch asses? Not so well: Back before he was president, admitted drug user Barack Obama was known to question the sagacity of the drug war. Now that he's occupying the Oval Office, Obama regularly laughs off the subject of legalizing marijuana when it comes up. Which might be kind of funny if his Justice Department wasn't busy cracking down on medical marijuana dispensaries with a ferocity that easily surpasses anything evinced by the Bush or Clinton admins.

Dude got robbed

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Gold keeps doing what it does best as Fed promises three more years of easy money

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On Wednesday, the central planners at the Federal Reserve announced that they will continue distorting the markets by manipulating interest rates to near-zero at least through 2014.

Gold took off like a rocket, rising more than $50 intraday.


Chart: Bloomberg

Stocks, the object of Ben Bernanke's obsession, didn't keep up, rising only one percent and then fading the next day.



Chart: Bloomberg


There is a stunning amount of ignorance and misinformation about gold among the public, the financial press, and economists. Remember when banker Richard Wiggins trashed gold at $1200 in Barron's? And witness the ignorance in the comments here, including from economist Barkley Rosser, about gold being in a bubble in 2010 at $1200. Personal finance guru Dave Ramsey, who is otherwise generally outstanding, has been telling people to dump gold for years, including here in October 2009 with gold at $1000.

Many people think of gold as an inflation hedge, and can't understand why gold…

B-Daddy takes one for the team

I couldn't bear to listen to another State of the Union from that crony capitalist looter.

Fortunately, B-Daddy did, and gives us the Cliff's Notes here.


Remember what the dormouse said...

Feed your head!

Scientists discover how psychedelic mushrooms work.
Within a minute after subjects got an infusion of psilocybin, researchers said, scanners that plot blood flow within the brain detected a sudden drop in activity in the medial prefrontal cortex and the posterior cingulate cortex, two areas of the brain that appear to be key in "grounding" us in reality. These areas also are key nodes of the brain's newly identified Default Mode Network, which springs to life when our minds wander.

Thus untethered, the brain's sensory regions are free to soar. Subjects reported unusual changes in their visual experiences, including geometric patterns, distortions of space and size, and dreamlike perceptions. They reported that their thoughts and imaginations wandered, their perceptions of time were changed, and sounds they heard brought on vivid images -- a mingling of sights, sounds and thoughts such as those experienced by people with synaesthesia. And researchers …

Hockey Goalies are Cool

Tim Thomas didn't join his Boston Bruins teammates to meet Premier Obama at the White House yesterday. He released this statement:
"I believe the Federal government has grown out of control, threatening the Rights, Liberties, and Property of the People.

This is being done at the Executive, Legislative, and Judicial level. This is in direct opposition to the Constitution and the Founding Fathers vision for the Federal government.

Because I believe this, today I exercised my right as a Free Citizen, and did not visit the White House. This was not about politics or party, as in my opinion both parties are responsible for the situation we are in as a country. This was about a choice I had to make as an INDIVIDUAL.

This is the only public statement I will be making on this topic. TT"

The Silicon T-bill

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Bernie Madoff's consistent returns earned him the nickname "the Jewish T-bill." While 10% - 12% annual returns were too good to be true, the market does offer some nice, consistent yields now and then.

Back on Thanksgiving 2008, we pointed out that you could buy a very well-known semiconductor stock with a rock-solid balance sheet with a dividend yield of 4.5%, paying more than long-term Treasuries.  That stock is now up 91% since then, and the dividend has increased three times and is now 50% higher.  If you'd bought then, you'd be earning 6.75% on your cost in addition to nearly doubling your principal.  Even at the current price, the stock still yields more than 30-year Treasuries, and dividends look set to continue increasing while Treasury coupons remain fixed at anemic levels. (Note: the balance sheet is no longer as rock-solid due to an acquisition and the opportunistic issuance of a modest amount of long-term debt at attractive yields to fund stock buyba…

Internet: 1, Congressional Rats: 0

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Ed. note: I wrote this last night. Normally I'd just cross-promote with a link but WCV suggested I repost in full here for your reading pleasure. Enjoy. WCV, I know how you feel about the excessive swearing on your site but A) you told me to do this and B) if anything warrants cussing people out, it's this. Remember, kids, the Internet never forgets. - JDA

Hey, listen to me and listen good. NEVER FORGET. Never forget the assholes in Washington who wanted to build a Great Wall of America across the Internet. Never forget the proposed Cybersecurity Act of 2009. NEVER EVER WHATEVER YOU DO, don't you dare forget. That's all I ask.

Ding dong, the witch is dead (for now):


After getting panned on the Web, Hollywood’s blockbuster anti-piracy bill imploded like a box-office bomb this week — and Washington realized the Internet’s “series of tubes” now may have more clout than the vaunted motion picture and music industries.

By the time Senate Majority Leader Harry Reid (D-Ne…

Obama Supporter-Like Quotes

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I've heard most of these for reals:

People don't want to be part of democracies; they want to be part of religions. The Democrat and Republican parties are super religions but they are becoming destroyers of democracy.

HT: Daily Bail

Greenspan's Body Count:

UPDATE: Post removed at request of victim's family.

Not to mention those holes in his hands!

More bang for your buck

In between QE2 and QE3, we're getting quite a lull in inflation.

Indeed, there are increasing signs of deflation.

Consider, for example, what you can get for a few bucks worth of Chicken McNuggets in Burbank:
A Los Angeles woman was arrested after she offered sexual favors in exchange for chicken McNuggets, Burbank police said.

Khadijah Baseer of Los Angeles reportedly opened customers’ car doors in the drive-thru of McDonald’s on the 1700 block of Olive Avenue about 11 p.m. Wednesday, asking for free chicken McNuggets in exchange for sexual favors, Officer Joshua Kendrick said.

A man told police Baseer approached him but he refused the offer Baseer was arrested Wednesday on suspicion of prostitution.Prostitution? So the 1% can take a girl to Spago and woo her with a $300 bottle of wine but the rest of us aren't allowed to buy a girl some chicken nuggets?

Newsweek: Obama is not a horrible president; you're just too stupid to realize how awesome he is

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This is how low the mainstream media have sunk. You're not still reading them, are you?

QE3!!!

The Fed voting rotation has just ejected all the hawks and brought in a bunch of doves. The only voting hawk will now be Jeffy Lacker, who is sure to have a series of lone dissents this year.

Get ready for QE3!

CNBC:
Federal Reserve officials are seriously considering giving the US economy—and especially the housing market—an added jolt with more quantitative easing.

Fed officials are likely to discuss such a move at their Jan. 24-25 meeting, when the central bank will issue its first quarterly forecast on interest rates under the new communication policy.

Two of the new voting members this year on the Federal Open Market Committee, which sets interest-rate policy, have recently suggested they would support more assets purchases.

San Francisco Fed President John Williams said that sustained high levels of unemployment, as forecast by many Fed members, "does make an argument that we should have more stimulus." Hurry up, Fedsters! Those trillion-dollar deficits aren&#…

Federal Reserve exposed as a pack of giggling morons as economic collapse loomed

Just the facts here. From their own meeting transcripts, in the New York Times:
“We think the fundamentals of the expansion going forward still look good,” Timothy F. Geithner, then president of the Federal Reserve Bank of New York, told his colleagues when they gathered in Washington in December 2006.

Some officials, including Susan Bies, a Fed governor, suggested that a housing downturn actually could bolster the economy by redirecting money to other kinds of investments.

And there was general acclaim for Alan Greenspan, who stepped down as chairman at the beginning of the year, for presiding over one of the longest economic expansions in the nation’s history. Mr. Geithner suggested that Mr. Greenspan’s greatness still was not fully appreciated, an opinion now held by a much smaller number of people. ... and this: Ms. Yellen said: “It’s fitting for Chairman Greenspan to leave office with the economy in such solid shape. The situation you’re handing off to your successor is a …

Foreign Treasury holders requesting three steps toward the door

Like any bubble, the Treasury bubble will be immensely profitable for holders who get out in time.

... which is what an increasing number of foreign holders look like they are trying to do.
[...] as of today's H.4.1 update, the outflow has increased by yet another $8 billion to a new all time record of $85 billion, in 6 consecutive weeks, which is also tied for the longest consecutive period of outflows from the Fed's Custody account ever. This week's sale brings the total notional of Treasurys in the Custody account to just $2.66 trillion (down from a record $2.75 trillion) and the same as April of last year. And since the sellers are countries who have traditionally constantly recycled their trade surplus into US paper, this is quite a disturbing development. Obama just asked for another trillion dollars in borrowing, and the cowardly Republicans have already agreed to give it to him.  And then after the election, we'll need another trillion, which will again be ap…

Ron Paul stunning 24% second place in New Hampshire

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Please donate to carry the message of freedom to South Carolina.

Your US-taxpayer-funded IMF dollars and US Federal Reserve swap lines at work

In the welfare state of the absurd:

Greece’s Categorization of Pedophilia as ‘Disability’ Sparks Outrage

Disabled people in Greece are furious over a plan by the Athens government to categorize pedophiles, pyromaniacs, fetishists, exhibitionists, compulsive gamblers, kleptomaniacs, sado-masochists, among others, as “disabled,” suggesting such groups may also be eligible to receive state benefits.

The country’s Labor Ministry explained that it consulted with a panel of medical experts to include people with behavioral disorders to widen the definition of “disability.” However, it added that the categorization does not necessarily mean they will all be entitled to state benefits.

Now excuse me while I go to Greece, strip naked and start a fire, and retire on two disabilities. HT: T-Dub.

Unoccupied

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"Occupy Encinitas," Sunday, Jan. 8, Highway 101

Photo credit: Left Coast Rebel.

Not Illegal Obama?

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This from 60 Minutes:PRESIDENT BARACK OBAMA: You know, I can't, as President of the United States, comment on the decisions about particular prosecutions. That's the job of the Justice Department. And we keep those things separate, so that there's no political influence on decisions made by professional prosecutors. I can tell you, just from 40,000 feet, that some of the most damaging behavior on Wall Street, in some cases, some of the least ethical behavior on Wall Street, wasn't illegal. That's exactly why we had to change the laws. And that's why we put in place the toughest financial reform package since F.D.R. and the Great Depression.William K. Black disagrees:

US Debt for Dummies

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This is fun.
Of course my econ prof always says debt doesn't matter. I must be a dummy.

Santorum's ruling-class sellout problem

You know about this blog's long-held disdain for Rick Santorum's religious nuttiness.

But I've never had a reason to question his blue-collar, humble origins shtick until now.
Like Gingrich before him, he got rich selling his Washington connections after leaving Congress. Since his 2006 re-election defeat, the former Pennsylvania lawmaker has gone from being one of the poorer members of the U.S. Senate to earning $1.3 million between January 2010 and August 2011. In 2007, he spent $2 million to buy a 5,000-square foot home in Great Falls, Virginia, according to property records.

Santorum’s financial rise was powered by consulting contracts with fuel producer Consol Energy Inc., faith advocacy group Clapham Group and American Continental Group, a Washington consultancy, as well as media engagements.

“If he’s claiming he’s not an insider, this is the thing that insiders do -- after public office they cash in,” said Kent Cooper, a campaign finance expert and former Fed…

Ice Cream, You Scream.....

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The Bernanke's dirty deeds are showing up in the most unhappy places, in this case in the form of my beloved Breyers Mint Chocolate Chip ice cream. I remember buying half gallons of my fav cold treat but for obviously transitory reason Breyers is now pushing it's product in 1.5 quart containers. That's a half quart short a half gallon for those metrically inclined.

You aren't even going to let us eat cake are you Ben???

Stephanie Edwards back covering the Rose Parade

We're getting lots of blog traffic this morning from people googling "Stephanie Edwards."

I didn't watch it this year, but I hope she equaled her epic 2011 performance.

Senator Rick "Man-on-dog" Santorum gives Ron Paul and Romney a challenge for Iowa

... sez PPP:
Ron Paul is at 20%, Mitt Romney at 19%, and Rick Santorum at 18%. Rounding out the field are Newt Gingrich at 14%, Rick Perry at 10%, Michele Bachmann at 8%, Jon Huntsman at 4%, and Buddy Roemer at 2%. This blog has been following Rick Santorum since long before he was a has-been and a 17-point loser in his most recent election.

Lest we forget, some of Rick Santorum's Greatest Hits:

* The problem with Social Security is there are too many abortions.

* Homosexuals are like child molesters and dog rapists.

* God plays with light switches to send signals to me.

* Priests rape children because society is too tolerant of homosexuals.

* The Founding Fathers opposed the pursuit of happiness.

* Freedom is only for people who do what I think they should do.

* Dang, I still haven't found anyone who can fix that little SEO problem.

An Obama-Santorum race would have results remarkably similar to Casey-Santorum. Maybe bigger.