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Saturday, May 25, 2013

Never fight a land war in Asia...

If he prepares to defend the back, the front will be weak.
If he prepares to defend the left, the right will be weak.
If he prepares to defend the right, the left will be weak.
If he prepares to defend everywhere, everywhere will be weak..

                                                                                                         -Sun Tzu - The Art of War

Have you ever heard the saying..."Your writing a check your body can't cash?"

I think all of us at one time or another have done things and said things that all come back to bite us in the end.  However some of us never learn from those mistakes.

Take the President for example;

These past weeks have been a terrible for him. 

I'm really not feeling bad for him at all though.  His socialist bully like behaviors have earned him this trouble!

So unless you have lived under a rock the President is facing down some very big scandals;

2.  The IRS is caught with their hand in the proverbial cookie jar with using their power to harass conservative groups.  The President used the IRS to threaten and bully anyone who stands up for Liberty and Freedom.

3.  The DHS / CIA  and every other three lettered acronym department that supposedly protects our nation is caught up in the problem of the Saudi National who quite possibly related to the Boston bombing and was certified as a really bad guy was quick ushered out the country faster than you can say boo.

4.  We are now being drug into a "War by proxy" against the Russians in Syria.  Russia is selling Syria Arms and we are going to Sell the Rebels weapons... they will fight it out and thus we will fight each other.

To you and I ... number 7 should bring the most concern.

I want to say again that this short list continues to prove that they, the Government is a big, amorphous blob of absolute in-efficiency and stupidity that is capable of thoughtless tyranny and will stop at nothing to absorb power. 

However, I have to equate it to the quote from the great war strategist above Sun Tzu... the President and Government are having to defend themselves on multiple fronts... this leaves them weak and un-prepared for the next attack.

But what are they un-prepared against?

The very serious coming Economic Problems. 

If you have been watching the World for the past 6 months and have seen what has happened in Greece and Cyprus you should understand that the money problems that they are having are going to happen to us us... but on a magnitude never seen before in human history.

Let's break this down.

We are seeing many, many horror stories coming from Greece about how their citizens are starving because all they have is rations of Pasta and Ketchup. 

What breaks my heart the most about what I am hearing is that kids are suffering.    Poor defenceless kids, all because their parents trusted their Government would provide for them in their time of needs.  Guess what? They didn't!  Grecian children are starving and begging their classmates for food!

Cyprians lost 60% of their wealth in their accountsSpain has record unemployment for their younger population, and now has slipped back into recession because they have spent their way into oblivion.

So as we reach the debt limit on Sunday of 16.8 trillion dollars (16,800,000,000,000) and growing the Treasury department said they are going to have to take "extra ordinary measures" to ensure that we can continue to pay our obligations. 

So what could that potentially look like?  My best estimate is that the cuts will have to come from the entitlement programs like Social Security, SSI and Food Stamps.  You see because the FED is who we owe a majority of our money too will be paid... the FED doesn't care if you starve... the FED doesn't care if you have a place to live... the FED doesn't care if you have a job.

The Government of the United States has used it's credit card to the max, and now... we are going to have to see the Treasury make moves and cut spending.  Remember what I said in my post "The House of Cards of Cards is Starting to Fall"?  I told you that when the money for Social Security and SSI starts to cease it will be bad... people are going to be pissed and they are not going to react well. Hungry people are dangerious and violent. This has been proved time and time again.  Just look at these menial interruptions we have seen in the past to get an example of what it will look like;

 When Hurricane Sandy hit the New England area, people stole and tried to hurt one another for food; The residents of Queens New York had to arm them selves with Baseball bats, bow sand arrows and guns just to protect them from looters.

Then when Hurricane Katrina hit New Orleans people fought with Police and rioted to get the supplies they wanted... .

This is historical... every time we see a disaster take place... Government collapse, monetary collapse or war that breaks a country down, the more feral people become to get what they need.

We want our most basic human needs meet... we don't want our kids to starve, cry and know that there is nothing we can do about it! It happened in Leningrad, it happened in the Balkans.

The threat is very real.

All this data we have examined today circles back around and points to one thing in particular the Government is fighting wars on all sorts of fronts.  They are fighting an information war, a physical war and very, very soon an serious economic war.  

I assure you,  "The Event" will come.

I believe that it will be the economic component that will set it all off.  It will be the total collapse of the paper currency system.  
I'm telling you the "precursors" are here... have you seen them?  Have you felt the pain in your pocket book as the price of beef increases and the items you consume every day go up in price?  Have you felt the pain at the Gas pump? 

Have you  felt the pain of having to say no to buying things you need every day? 

Wait ... maybe you haven't yet... maybe you haven't decided that what I have been saying is truth!  Maybe you still want that to make sure your family has that big vacation home, maybe your still spending money like it is going out of style.. that new designer handbag, those $300 shoes, that new 56 inch flat screen, HD 3D TV with the motion activated whatever... 
Believe it or not... people are still thinking that way... 

You couldn't possibly have a pulse and not understand that what we are seeing happening to our nation is very, very bad.  

It is finally time for you to fully accept what we are beginning to seeThis is not the America you grew up in, this is not the America that we envisioned for our kids.  This is not the America our founders wanted you and I to inherit!

It is time for a change...! It is time for you to make a change!   I know this idea of holding our elected peoples feet to the fire seems impossible, but I assure you it isn't. Remember, they work for you! You are their boss, and should you not get the results you want, you fire them!

Recall them! Run against them and speak the truth!  Start a grass roots effort!

But here is my main concern... we may not get that option... we not get the ability to hold them accountable the way we would want to ... time may be up soon... without money... the economy doesn't flow and doesn't provide the food your kids need, the money you need to pay your power bill, and doesn't offer you a job that you can use to pay your mortgage...

You have to prepare.  You have to begin taking responsibility to make sure that your family is looked after when "The Event" takes place.  You have to make sure your kids have food to eat, a warm place to sleep, and clothes that will protect their little bodies.

What is coming is bigger than you or I... its time to stop thinking about yourself...

Until next time.

Tuesday, May 7, 2013

The Village of Potemkin

Thus, the use of fiat money is more justifiable in financing a depression than in financing a war.

Potemkin Village is not a plot of the next M. Night Shyamalan film or a new video game by Nintendo where you try and catch cute characters to battle each other. 

It isn't even a remote village somewhere that Rick Steve's can get you to in Eastern Europe. 

Potemkin Village doesn't exist.

It actually is the best analogy for our economy I have seen yet!

Confused? Let me explain...

Have you ever seen the old Spaghetti Westerns?  Did you ever notice that most of the buildings look the same from movie to movie? Well, that is because most of the time when a movie producer would want to build a set and didn't have it in the budget for a whole new set design they would order up a "Potemkin Village" from the local prop house.

The term "Potemkin Village" is named after Prince Grigory Aleksandrovich Potemkin-Tavricheski who was the lover of Catherine II during the 1700's.  Aleksandrovich was known to create fake villages along the path of Catherine as she passed from one side of Russia to the other to impress her during her tour of the country in 1787.  This impressed Catherine very much and kept him in her good graces as well as her bed.

How would he feel now if he knew his namesake would best describe lies? defines a "Potemkin Village" as; "a pretentiously showy or imposing facade intended to mask or divert attention from an embarrassing or shabby fact or condition."

Guess what?

We as the American People are falling victim to these "Potemkin Villages" each and every day.  Just take the most recent jobs report for example; What we see according to the Government is that 165,000.00 jobs were added in March of this year. 

Here are the "highpoints" of the press release;

unemployment rate since January. The number of unemployed persons, at 11.7 million, was also little changed over themonth; however, unemployment has decreased by 673,000 since January. (See table A-1.)


non-farm payroll employment increased by 165,000.  Professional and business services
added 73,000 jobs in April and has added 587,000 jobs over the past year. In April, employment rose in temporary help services (+31,000), professional and technicalservices (+23,000), and management of companies (+7,000).

Within leisure and hospitality, employment in
food services and drinking places rose by 38,000 over the month. Job growth in the food services industry averaged 25,000 per month over the prior 12 months.

Retail trade
employment increased by 29,000 in April. The industry added an average of 21,000 jobs per month over the prior 12 months. In April, job growth occurred in general merchandise stores (+15,000) and in health and personal care stores (+5,000).

Health care added 19,000 jobs in April. Within the industry, employment rose in ambulatory health care services (+14,000). Over the prior 12 months, job growth in health care averaged 24,000 per month.

In April, employment also continued its upward trend in social assistance (+7,000).

Employment changed little over the month in construction, with small offsetting movements in the
residential and nonresidential components. Construction gained an average of 27,000 jobs per month over the prior 6 months. Manufacturing employment was unchanged in April.

See that last part, "Manufacturing employment was unchanged in April". 

That's bad.

That's bad because we aren't increasing what we are making. We aren't adding any more value to our country.  Our GDP to debt ratio is 105% and growing rapidly.  We are not adding any assets to our balance sheet!

Sure, professional jobs went up, so more admins and computer guys got jobs.  Maybe a few more managers got hired, but for the most part, the solid middle class production job was not created.

When you have a country that is filled with very high end jobs and extremely low paying jobs like service jobs, you will never have a middle class that will grow and create a tax base you can earn from.  People who work in manufacturing have disposable income!

They have money to be spent on TVs, Cars, and other larger ticket items that we can make domestically, but the jobs that create those things are not being created at all!

Wait staff and line cooks at restaurants do not have disposable income. 

Walmart Greeters do not have disposable income. 

Office Admins do not have disposable income.

Bar Tenders do not have disposable income.

Without disposable income... money does not flow through an economy.

So... A question for you, with all that data you just read, did you spot the "Potemkin Village" in the jobs report?

It was the unemployment rate! 

You see, the unemployment rate is one of the biggest lies in America.  It isn't 7.5 percent, or 8.5% or even 10% .  The "Potemkin rate" of 7.5% is just laughable. 

I will prove it to you;

According to Bureau of Labor and Statistics, 9.5 million people have left workforce under the Obama administration. The link I provided gives you access to the BLS records and you can customize the reporting as you like... I used the option of "out of workforce" and the Obama administration time frame to generate my results.

Now... it is a matter of simple math; Divide 9.5 Million by the population of the United States and you get 28.2 percent.

Yes... 28.2% of working age adults are out of the work force. Now you can't look at that number and tell me that we are in a recovery.  More people are out of work now than ever before! This is just one of the Governments "Potemkin Villages" they are using to tell us that "all is well... don't worry, trust us, you'll be OK!"

It is a mathematical certainty that we are loosing close to 600,000.00 per month that are hidden from view. 

The average workweek for all employees on private nonfarm payrolls decreased by 0.2 hour in April to 34.4 hours. Within manufacturing, the workweek decreased by 0.1 hour to 40.7 hours, and overtime declined by 0.1 hour to 3.3 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls decreased by 0.1 hour to 33.7 hours. (See tables B-2 and B-7.)
This is a problem.  If we look at the "employed" figure of 143,724,000 people a drop of 0.2 hours is a full-time-equivalent decrease of 1/2%.  Applied to the employed population this amounts to an imputed economic decrease of 718,620 jobs!

People, you need to wake up! 

It isn't getting better out there! 

Sure there may still be some pockets of the country that are doing "ok"... but when you look at numbers like this; it doesn't bode well for us.  We know that the "QE" process is just getting worse and money is being printed at a rate of 85 billion dollars a month, and frankly it won't work in the long run. 

Inflation will come, the economic system is setup to fail, and we are watching it slowing starting to unravel like a poorly made scarf.   Ben Bernake doesn't know the stitches to fix it.  He just keeps adding to the bottom as the top unravels. He has proven himself to be incompetent time and time again with what he says.  He doesn't get it.  He doesn't have to.  They want the economy imploded.  They want people to crawl on their knees and beg the Government to bail them and their children out just as they bailed out the "to big to fail" banks in 2009.


If I were you, I would watch the video that I have embedded here.  It's good and its three very smart men telling you that the laws of economics have been ignored!

If you haven't chosen to truly open your eyes about the danger that our monetary system is into ... now is the time... do your research and then get your family ready!

You need to continue to prepare yourself accordingly... "The Event" is coming at us faster than we know.

Until next time...