Our Cyprus Moment

This story has really highlighted the ignorance of a large sector of the so-called educated and informed minority. Most people dont care about bankster games and all the looting that goes on behind the scenes, at least not until they start coming after your savings. For some reason that seems to raise all sorts of red flags and get people all riled up. But I guess it is fine so long as they dont try it the Cypus way? What if they are not so blatant about it? Well, the Federal Reserve confiscated arguably much more than 10% of everyone's savings over the last 5 years. Just flat out confiscated. Is that hyperbole? Hell no its a damn fact. If you take granny's $50,000 cd she has at the bank earning 4% that gives her $60,800 after 5 years. But when the Fed lowers rates to nothing, her CD earns her basically nothing after 5 years. Maybe $2000 tops, for a total of $52,000. So what is $60,800-52,000? $8800. Out of a $50,000 CD, granny has now had $8800 confiscated through the last 5 years of central bank policy. 8800/50000 = 17.6%. Boom. Gone. And nobody seems to care about that. Yet what happens in Cyprus is somehow a problem? They are just following our wonderful brilliant lead: seize people's savings and give that money to wall street...

...And then pretend to be so blind that you cant see what's going on so you can have an excuse to act surprised when this can-of-stupid blows wide open. This country is so far under the propaganda gun that not one person in 100 actually understands that we already had our Cyprus moment. Yet we are so quick to point out how bad it is when it happens somewhere else.

Robotic Hypocrisy

So Foxconn wants to build 1 million robots? The implications are obvious and profound.

How would it feel to build the robot you know is going to replace you? One might ask, why would anyone take such a job?

 Of course, it is easy to see the plight of those Chinese workers in black and white.  But here in the US, we are faced with the same sort of predicament. Most of us just cannot see it as plainly, or even at all. We may not work to build machines that we know will replace us, but we do things that are every bit as destructive. Take television consumption for example. We watch television programming and advertising created by a corporate media conglomerate designed to shape our culture in ways that serve the owners of the media, the top 0.1%. People like Rupert Murdoch have spent billions finding ways to subtly engineer tv Programming "content", and ads, to implant messages to drive our culture right into their hands. The irony is that these people are building robots just like Foxconn is, the only difference is their robots are human.

That's a big reason why the rich get richer and richer... They implant the basis behind our so-called choices. In doing so, they literally pull the lever for us when we do things like go vote. Their level of control is strengthening each year as the people fail to respond to this mortal threat. At least the Chinese can see their enemy being created right before their eyes. Most Americans are programmed to be willfully blind to it. But when you do see it, you know that consuming corporate media really is no different than working on an assembly line to build the robot that replaces you.

Source of the Next Bubble Identified!

It took quite a while to figure this out. At first I thought that unpaid mortgages and people staying in homes for free might create a large enough bubble. Then I thought that maybe student loans could provide enough money to power the next bubble. But alas, both of these frauds can only provide a small fraction of the money required to power the next boom. How much money? Each of them are worth 2 maybe 3 trillion. How much is needed? About 15-25 trillion.

Where in the blazes can that much bubble money possibly come from? It's simple: It comes directly from the future! These are no ordinary loans I'm talking about. 

This latest and greatest scam is called the "capital appreciation bond". It is simply a deferred interest loan. Yes, as unbelievable as it sounds, it is really true, and it is really happening. Imagine taking out a $300k mortgage and not paying any principle or interest for 30 years. At the end of the 30 years, you simply agree to pay the amount due. Exactly how much money would be due in 30 years? Haha it is the truly unbelievable and astronomical amount of $1.3 million!! For a 5% mortgage! But the real kicker is that it wont be 5%. Because it is deemed a higher risk loan, it will be more like 10%. Or 20%. At 10% interest, that same $300k loan comes out to.... an unfathomable $5.2 million. 

3 million such loans is all it takes to produce a $15 trillion bubble.

It's pure insanity. But no more insane than claiming 10 years ago that the Federal Reserve would buy $2 trillion in worthless mortgage backed securities! Well they did it. And they're going to do it again, when the next unforeseeable crisis appears out of nowhere 5-7 years from now.

The key to making this work is getting the number entered onto a balance sheet. That is all the Fed needs now. People are so dumbed down that they are incapable of processing this very simple type of outright open fraud. So it will happen. All these $5 million loans on $300k homes will get packaged into securities and eventually sold to the Fed when the next crisis comes. But not before the financial sector reaps obscene profits from the fees on these loans that will never be paid. 

If you think that the country is not far gone enough to allow this level of fraud... you better drink your Brawndo because we're there. We are that far gone.

Yes, Facebook Stole From You Too

You say "I dont own Facebook stock, so why do I care that Facebook was designed from the ground up to be an investor scam?"

But you would be wrong to say you don't own Facebook. You do own Facebook. Everyone owns Facebook. How many billions of dollars of pension fund money was dumped in there when it went public? How many billions in 401k money?

And guess what happens when those funds lose money because their Facebook stock loses 90%? You know damn well what happens. The government bails them out. One way or another, taxpayer money is going to fill the void left by this Facebook scandal.

It is funny and convenient how only after the stock goes public, does the truth come out about Facebook's ad clicks being mostly bots.

See this article for some background:
http://techcrunch.com/2012/07/30/startup-claims-80-of-its-facebook-ad-clicks-are-coming-from-bots/

From the article:  

The timing here may be a bit questionable, from my opinion: This all occurred “earlier this year,” Mango told me. So why the wait to publicize the situation? “We’ve been too busy to post about it until now since our site just launched out of beta a couple of weeks ago,” he said.

Too busy? Yeah right. More like they didnt want to be crushed by some tentacle of wall street for throwing a monkey wrench into their Facebook IPO scam.

Have the major marketers who have been spending millions on Facebook advertising for years simply not noticed such a thing? It’s possible, but it would be surprising.

Possible? Not just possible. Extremely probable. There is no way a large company, with millions in IT resources, wouldnt know that Facebook clicks are coming from bots. I think they all knew; I think all the major Fortune 500 companies knew Facebook was a scam from the get. Ad revenue would have been much much higher if anyone believed in this model.

Same goes with all the major investment houses. But they saw an opportunity to make billions selling a bag of stinky crap to anyone stupid enough to take it.... such as a pension fund. Now that the general public owns this stinky bag of crap called Facebook, I fully expect the truth to come out. I expect the following headline: "Internal documents show Facebook advertising model designed around click bot fraud." Hell we might even find evidence these bots are running on facebook-owned hardware. Wouldnt that be a hoot. But it doesnt really matter. Why run the bots yourself when you design a system that can be gamed by bots? I mean really, what is this, 1995? Like they didnt know? There is just no way any rational person could ever believe that this company did not know it had bots running rampant through its primary revenue generation stream.

Highlighting the Absurdity of a Broken Health Care System

Here is a very important article:



 High School Freshman Confounds Researchers, Invents New Pancreatic Cancer Test

So a 15 year old with little to no resources develops a test which is 100 times more accurate than existing tests?

This test will save lives and that is a great thing.

Additionally, just think of how much money is going to be saved by this test. All the tens of thousands of dollars wasted on late stage cancer treatments. The last few weeks of life for a cancer victim are what really rack up the medical bills. That is when the health care system almost literally feasts on the cancer victim. That feeding frenzy is what our entire healthcare system has built itself around. So of course they have absolutely no interest in funding research to develop better preventative medicine. It has gotten so absurd that we literally have children independently developing better tests than what this bloated disgusting pathetic shameful health care industry can provide. This is a disgusting sickening in-your-face blatant example of exactly how and why our health care system is broken.

Has a Major Top Been Reached?

I dont usually brag but maybe it is time I should. I called the crash of 2008, just days before it began (click images to sharpen):


















I also called the bottom in 2009, again just days before the actual bottom was put in:



















Including a very specific call on General Electric (GE):



















Check out this chart of GE, which shows just how accurate and prescient this call was:























I have never before or since recommended GE, and I probably will not again for a long time, if ever. I post this stuff not to gloat, but rather to show that I have a pretty good sense about these things. All of the texts I am quoting can be found using google. Here is an example. These calls are real, though they are haphazardly strewn about the web.

I have been waiting for confirmation before posting, but truth is I think the top was in two weeks ago. Now I am not saying I am always right, because "The Bernank" can rally the market any time he wishes, via the printing press. This actually happened last August when the markets looked like they were ready to collapse. Being somewhat wise to his antics, I made the following post, inset onto a chart of HL(Hecla Mining Company, a silver miner):


















Notice that the market rallied immediately following that post. I was wrong then, because I was calling for a major move down. But I made the perfect hedge call for silver to rally hard if Bernanke did something stupid to try to prevent a necessary correction. Well, Bernanke did do something stupid, and we call it QE2. Hecla Mining Company's Dec $6 call options went on to be worth 6 dollars, a nearly 3000% gain. All based on the possibility that Bernanke would print. Well, print he did. And now, he needs to do it again. The market is starting to demand it. A correction is even more necessary now than it was last august. But printing more money is too dangerous an option for this political season. There is a political price to be paid for printing money, because they are basically stealing money from the poor and the retired and giving it to the rich every time they print. I have explained how that works ad infinum and ad nauseum in previous posts. Suffice it to say I see no way for them to stop the correction at this time. Hence the top call here.

Note: I am not a registered investment advisor, and those people can all KMA, because they're a bunch of blathering idiots.

How a $50 billion company can evaporate overnight

Facebook is supposedly worth $50 billion. I have to laugh at that because I know that it isn't worth even a small fraction of that price. At any given moment, another company could come along and completely eviscerate Facebook overnight. Let me give just one example of how simply and quickly it could happen.

There is a portion of the population that seems to love having their every movement and action traced, tracked, logged, recorded, and whatnot. Dumb as these people are, their numbers are growing, and they do present a wealth of new business opportunities. So let's say someone forms a new company, with a website called fbfriendsync.com.

Our hypothetical Friend Sync offers the following wonderful service: it tracks your location (via your phone) and compares that data with the location of all your facebook contacts (if they opt in of course). For example, if one of your facebook contacts is at the bar or club next door to where you are on a friday night, this wonderful service will let you know. But not only that, it can go back in time and tell you all the previous places you both just happened to be at at the same time. It would help find people with the same interests, based on the locations visited. So its as much a match.com as it is a facebook. But considering the fact that most people dont really know most of their facebook contacts, a service such as this is very valuable for providing conversation starters. It could also bring up a map that shows where all your contacts are, so you can arrange a quasi-spontaneous meeting if you happen to be going to that same place. "Quasi-spontaneity" is the key to any app like this. But that is a story for another time.

Ok but how does it actually destroy facebook? Because it is very easy to transfer your facebook data to another site. I mean very very easy. Like 1 button click easy. And once everyone does that, the value of facebook completely evaporates. Facebook has little control over its users data. Facebook cannot copyright your name, your favorite movie, your favorite color, your friend's names, or any information like that! (Though I am certain they will try once the time comes.) So Facebook really has no value at all. What of yours do they really own? They may claim to own it all but obviously that will not stand in court. So they have very little legal protection to prevent a competitor from coming in and overthrowing them overnight. Once a new site comes along that offers a service facebook doesnt, the whole userbase will migrate in an exponential move that will seem like it happened all at once. It WILL happen. It is only a matter of time.

Facebook is sort of like an apartment complex. They may own the walls. But they dont own whatever you put up on your walls. They may claim they do but like I said that is absurd and will never stand in any court. So if you want to take all your stuff off their wall and move it to someone else's wall, there really is nothing they can do. They can't even make you wait until your lease is up! If they somehow manage to keep their rights to your photos and media, then it is not too terribly difficult in today's world to generate new photos. At any rate, going back to the apartment analogy, even if the apartment complex did own the stuff on their walls, it would not prevent people from moving. That precarious right does not add any value to the property. So the question is, what value does facebook have? The obvious answer is very little. About as much as the Hindenberg, the day before it blew up.