Thursday, April 10, 2014


Report: Emperor Obama Arrives To Celebrate Racist Warmonger LBJ -
His Lord and Majesty Barack Obama arrived moments ago.

For those who glorify Denmark

This is what your nation looks like on Statism. Lovely...

Howard Dean, Democrat Who Seems to Speak for the Party is an idiot.. the WSJ listed things he said.. this one is funny sad about NOAH in the WHALE

 "God knows I'm no theologian, but I preferred the
original New Testament version, where Noah strikes a match inside the
whale and builds a fire and it coughs him out onto the island. It's a
powerful message about man being able to control his own destiny."

In God He Trusts -

Wednesday, April 09, 2014

Death of the Middle Class

This is the essence of this good blog.  It didn't link well. Yet it's so important... I am taking this chance - I hope for forgiveness for cut and paste

The Fed sacrificed the foundation of middle class wealth--stable housing values--to boost bank profits.

Lest you think the phrase "death of the middle class" is hyperbole, please examine these two charts, keeping in mind the middle class by definition must be in the middle of income/wealth distribution--conventionally, between 40% and 80%, i.e. the 40% between the bottom 40% and the top 20%.

See that little red wedge? That's the bottom 80%--the entire middle class and everyone below the middle class.

Here's another look at the wealth distribution: the middle class's share of wealth is modest, unless you define the top slice of households just below the top 1% as "middle class." But since the top 19% cannot be in the "middle," attempting to boost the wealth of the middle class by including the wealthy is truly Orwellian.

Why has the middle class eroded? We can start by looking at income. As noted yesterday in Fed to the Sharks, Part 1, household income for the bottom 90% has stagnated for 40 years.

The next chart shows how financialization boosted asset valuations in waves of boom and bust. Some of the first two waves of financialization leaked into wages, but the Fed's bubble-blowing since 2009 has failed miserably to increase incomes: disposable income fell off a cliff in 2009 and has continued falling, despite the Fed's blowing new bubbles in bonds, stocks and housing.

So what does the Fed have to do with the death of the middle class? As noted in What's the Primary Cause of Wealth Inequality? Financialization (March 24, 2014), the short answer is when investment returns exceed economic growth, the rich get richer, increasing inequality.
And when do investment returns exceed economic growth? When the Federal Reserve makes credit very cheap for financiers and speculators, which drives up asset prices as everyone with access to cheap credit bids up assets.

Low interest rates and free-flowing credit inflate bubbles. We can discern an implicit agenda in the Fed's policy of making credit cheap and abundant: since income for the bottom 90% is stagnating, the only way to boost consumption and debt is to inflate an asset owned by middle class households: housing.

Unfortunately, credit-driven speculative bubbles inevitably burst and housing valuations crashed.

The Fed responded to the housing crash with an unprecedented policy of buying over $1 trillion in home mortgages (mortgage-backed securities), roughly 10% of all existing mortgages in the U.S. In conjunction with the Fed's other policies (purchasing Treasury bonds and relaxing banking rules) and the opening of the loose-lending FHA spigots, housing recovered nicely--until the Fed slackened the pace of its purchases of bonds and mortgages. Housing immediately began trending down.

In response, the Fed restarted buying Treasuries and mortgages in enormous quantities. And sure enough, housing recovered.

But asset bubbles do not replace income or savings. The only way to benefit from bubbles in housing is to trade: buy in at the bottom and sell out at the top.

In essence, the Fed's bubble-blowing forced every homeowner into becoming a speculator.

There's another agenda at work of course: increasing debt and bank profits derived from debt. What better way to insure banking profits than to spark a speculative bubble in the core asset of the middle class--housing. Rising prices created temporary (and enticing) home equity that could be tapped with a loan (HELOCs--home equity line of credit), and the temptation to selling out and moving up the food chain to a bigger home and bigger mortgage was equally compelling.

Even better, banks and Wall Street had perfected the securitization of once-safe home mortgages. Banks had no need to take on the risk of holding mortgages--the big money was in originating the mortgages, packaging them into securities and selling the tranches to investors.

The much-ballyhooed "ownership society" turned out to be ownership of debt, not equity. Debt is profitable for banks; people owning homes free and clear is not. 

In effect, the Fed sacrificed the foundation of middle class wealth--stable housing values--to boost bank profits. Take a look at what happened to financial profits in the 2002-2007 housing bubble: they skyrocketed to new heights. And look what happened when housing and the banks' securitization scams blew up: financial profits completely collapsed.

Middle class wealth was Fed to the sharks. As the current housing bubble deflates, the investor-buyers who fueled the rally are exiting en masse: what's the value of an asset when the bid vanishes, i.e. there's nobody left who's willing to pay today's prices?

The Fed has failed to restore middle class wealth with its latest housing bubble, and the costs of the bubble's collapse will fall not on the Fed but on those who believed the recovery was more than Fed manipulation. 

Tuesday, April 08, 2014

What if the request was for a photographer to film porn or an orgy? Is he obligated to perform that service as well?


Students at American University in Washington, DC can't name a single U.S Senator, and some are Political Science majors! Check out this video! What do you make of this??

Police State

I have had a sense that this would be an answer from long ago... It just may be.... more and faster please...

Monday, April 07, 2014

From Seth's Blog a good one

Meandering toward nowhere special

Five behaviors that often come clumped together, each conspiring to lead you toward disappointment:

Big dreams: The goal isn't consistent impact or meaningful work, it's a huge hit, the star turn and the ability to change the world. It wouldn't be enough to have 1000 true fans, the big dreamer wants a stadiumful in every town.

Poor work habits: Flitting from project to project, waiting for inspiration to arrive, stalling, not taking lessons, repeating the same early steps over and over...

Shortcut seeking: Why bother with the long route when you can find a shorter, faster path? Get-rich-quick schemes, insider access and the quest to get it right now.

Lottery thinking: This is a variation of shortcut thinking, but it involves getting picked. One person, one organization, one Wizard of Oz who will magically make it all happen.

Lack of self-awareness: The self-delusion that your stuff is in fact world-class, and that the critics, all of them that you've managed to interrupt, are wrong.

Sunday, April 06, 2014

Do you remember when the USA was the most powerful nation in the world... Not anymore. Thank the Idiots in the White House and Congress for our collapse.

Why the integrity of the story in the Movie Noah isn't important

 First, a disclaimer, I haven't yet seen it. I will. Probably in 3-D. I like a good action movie and this appears to be that. I did go and reread the whole story again in the Bibles I own. I wanted to not miss a nuance. What is clear is that much of what people don't agree with isn't clear.

It's a little like the Ken Ham Arks and all that. Or the theories of is it possible. Jesus alluded to the story, I know Jesus and even if I don't know all the details... I believe it.

Yet, trying to gain concreteness thru archeology and architecture is not far from my earlier post about relics. IF our faith is so weak we require proof or fidelity from a godless filmmaker, we are really lost.

PLUS some of the events noted in the film (which I have not seen) are a pretty good interpretation. What DID Adam and Eve look like before the fall? IF my Bible Scholarship is of any merit, they are bookends and looked like we will look in heaven.. new Eden.

Look according to my Friend Pastor Phil Ressler many many many unbelievers have once again re read the story of Noah on line via things like Bible Gateway. They are being exposed, perhaps for the first time, to the raw truth of the Word of God.

Holy Spirit is very capable of using this pagan movie to call people to himself. He used Jesus Christ Superstar to call me. You don't go fishing for tuna using strawberries as bait because YOU like strawberries.

Good Move ...

His Pope influenced him to do right.. Now if our evangelical friends who spend money like water (of course all from book and cd sales revenue) would hear the same message. Fasted lifestyle... Don't get stupid... people are watching you... you are all the Bible they may read today.

Evolved to the Enlightened Dark Ages - a new dark age conspiracy - The rigid dogma of secular liberalism

We’re so lucky we live in such a tolerant, enlightened society.
There are backward parts of the world where women are stoned to death for wearing the wrong kind of dress. There are some backwaters stuck in the Middle Ages where gays are publicly hanged. These actions are to punish the “perpetrators” for their deeds. But another purpose is to set an example to others: if you don’t follow our established laws and norms, there will be consequences, and you will suffer. This mentality is stuck in the Dark Ages, where thought is monolithic, where conformity is demanded, and where punishment is swift, public, and extreme.
Good thing we don’t live in a place like that!
We’re so lucky we live in such a tolerant, enlightened society. There are backward parts of the world where women are stoned to death for wearing the wrong kind of dress. There are some backwaters stuck in the Middle Ages where gays are publicly hanged. These actions are to punish the “perpetrators”...