Thursday, July 31, 2014

Thursday Afternoon Cigar

Rocky Patel Edge, out at the range.

We just started another book on the subject of the Gold Standard.  This one is The True Gold Standard by Lewis E. Lehrman. 

No opinion yet - keeping an open mind along with plenty of notes.

Today's news:  Argentina is in default.

The GOP's White Flag of Shame

I created the White Flag Spotting blog tag back when I started Ushanka.  It was a great way to collect all the cartoons making fun of liberals who were furious at W's war successes and the millions of newly freed Iraqis and Afghans.  Click on the label below to go back in time to remember a day when it was Democrats waving the flag with tears in their eyes.

That was then.  This is now. 

Hat owner and comrade, Diann, has captured the the flag-wavers of today. 

In one word: disgrace.

Impeachment is long past due - assuming the lower standards of Affirmative Action do not apply to the presidency...

Maybe Obama's impeachment will be a 2-step process:  Step 1) Strip weak Republicans from their leadership roles in congress, and Step 2) Impeach the president of the United States for violating the Constitution.

I'm fine with impeachment dying in the Senate as it did the last time this country elected a Democrat.  The important thing is that people who claim to adhere to values and standards act on those values and standards.  If they can't act, then at least they can answer this question:
How many tens of thousands of illegals must enter this country before the open borders justifies an impeachable offense?

Tuesday, July 29, 2014

Tuesday Afternoon Cigar

Rocky Patel Edge Sumatra

I finally finished Economics of a Pure Gold Standard by Professor Mark Skousen.  Still the best book (of 4 or 5) that I've read yet.

Time to type-up my notes and move on to the next Gold Standard book.  Look out - I are git'n smart!

Related, Hat Owner and Cigar Comrade Captain Capitalism has explained why printing excess money - adding to the Monetary Base - is inflationary and stupid:

U/T: Hayek, Freidman, Austrian School, Mises, Currency School of England, Jackson, Jefferson, Charles Carroll, Amasa Walker, Elgin Groseclose, Murray Rothbard, Howard Katz, henry Hazlitt, Lysander Spooner, W. Stanley Jevons, William Brought, David Ricardo, Lawrence White, George Selgin, and Professor Mark Skousen.

Michelle Nunn - Another Corrupt Democrat

For you young'ins, an excellent way to measure the decline of America is to look to the Georgia politicians, Senator Sam Nunn and his daughter, Michelle.

Senator Nunn is one of those Democrats of America's past.  Yes, liberal.  But an American who put America first.  I remember watching Senator Nunn who was active in our National Security matters.  He was impressive and serious.

The Democrat Party of today would not tolerate a man of Sam Nunn's character and patriotism.

However, his daughter Michelle is a good fit and is running for the US Senate this year.

Eliana Johnson of National Review Online wrote an article yesterday about Michelle: Michelle Nunn's Campaign Plan

Oh my!

Apparently, Michelle's campaign staff accidentally made a confidential document public.  They took it offline but not before some intolerant right-winger got a hold of it. 

Allow this intolerant right-winger to share some key disclosures:
Michelle is advised to target Jewish and Asian donors in Georgia as the source of most of the needed campaign funds,

Michelle is advised to use those fund to bring out the Black and Hispanic votes that normally stay home in mid-term elections,

Michelle, an elite Atlanta resident, is advised to get some photos of her in rural settings to appeal to the rural voters, and

Michelle was the recent CEO of Points of Light Foundation, whose parent company is a Hamas supporter.
Hilarious in and of itself.  But then Glenn posted this Twitter exchange where a Liberal Progressive Communist tried to distract from the article's contents: 

A Ushanka Tip and standing ovation for Eliana:

My post at the article:

The Next Bubble

Hat Owner Glenn discusses "The Money Bubble," as presented by USA Today:  Is the Fed Fueling a Giant Stock Market Bubble?

I think Glenn is wrong when he says this is the "last" bubble.  Bubbles will always occur.  Partly because of the business cycle and always changing monetary and lending standards. Partly because there is never true equilibrium in a market economy. 

I think Glenn makes a good point when he says his timing is always off.  When I started Ushanka nearly 8 years ago, I naively made a point to seek out timing estimates from "experts."   I learned over time that some are sincere, like Glenn, and others are seeking attention.  They are always wrong.

Here is the chart Glenn is using:

Here is a chart from ZeroHedge - same message but measuring the San Francisco housing market:

My current gold standard studies have helped me understand what comes next.
Default - Interest rates will rise to the point where the US cannot afford to pay its debt payments.  Miss a payment = default.  The sky does not fall.  It is just bankruptcy at the national level, and it happens quite often - albeit not to the US.  (Watch Argentina - the next to likely default.)  We'll restructure our debt, likely reducing it by half or so, then start making the new payments with promises of better fiscal discipline going forward. 

Monetary Policy - Major disruptions have led to monetary policy reform in the past.  Only the Libertarians and a few of us Republicans understand what a gold standard is and how it could work if executed properly.  We amount to roughly 2%, and therefore will not get what we want.  What I predict will be a "new and improved Fed" who will promise to implement tighter controls over a fiat currency, which may last a decade.  Again, the sky does not fall.

Bail In - This is when the government decides to nationalize a portion of bank deposits or other assets from its citizens to apply to the debt emergency.  (See Cyprus and the Asset Seizure Risk Cube.)  They might disguise this by issuing a new currency.  For example, a new dollar for ten of the old dollars.  Another:  negative interest rates where you get to pay the bank to hold your money.

War - Like bubbles, wars happen.  Remember, until recently, war was the natural human state of affairs.
What can we do?  Here is some advice I've seen and heard.  Of course - do your own homework.
Stop Losses on all stock investments.  One scenario is that the drop will happen fast.

Sell some stocks and hold the proceeds as cash.  Safer, but understand the SEC just made money market accounts a whole lot riskier.

Understand inflation is around 6% now, and may go a bit higher.  I reject the talk of 'hyperinflation' as the US Dollar is far too stable for that even with the Fed's money printing.  But realize every dollar in savings, and in your wallet, is losing 6% a year - right now.  So even holding cash isn't necessarily the right thing.

Get as debt-free as you can.

Plan on a lower quality of life.

Make the best of it:  Family, friends, faith.  And consider mocking those who gave it to us with a Commie Obama hat...

This change brought to you, on purpose, 
by Barack Obama and the Democrat Party.

Monday, July 28, 2014

Quotes of the Day

Tam drinks Hippie Tears to celebrate the gun news out of DC.  The story, from Huffington Post:
"There is no longer any basis on which this Court can conclude that the District of Columbia's total ban on the public carrying of ready-to-use handguns outside the home is constitutional under any level of scrutiny," Judge Frederick Scullin said in an opinion.

"Therefore, the Court finds that the District of Columbia's complete ban on the carrying of handguns in public is unconstitutional," he added in his 19-page ruling.
As a gun-rights advocate, I waited decades for this decision.

How many died waiting?


Our dear leader's woe-is-me impeachment PR stunt is called out by Rep. Steve Scalise on the FoxNews Sunday show (via DailyCaller, with video):
…the White House wants to talk about impeachment. Ironically, they’re going out and trying to fundraise off of that too.

Look, the White House will do anything they can to change the topic away from the president’s failed agenda.  People are paying higher costs for food, for healthcare, for gas at the pump. And the president isn’t solving those problems. So he wants to try to change the subject.
Distractions are their governing method when they are blocked to "progress" further in their Marxist agenda. 


And Glenn links to a Nick Gillespie Reason article:
However ridiculous such attacks may be, they are a sign that broadly libertarian ideas about fiscal responsibility and social tolerance are gaining ground in all areas of politics and culture. Indeed, as Ames frets, libertarianism is even making “major inroads into the disaffected left.”

As the conservative right and progressive left feel threatened by libertarianism, such attacks will multiply in number and intensify in venom. The main purpose is not to actually engage libertarian ideas—including once pie-in-the-sky beliefs that governments should be financially sustainable, gay people should be allowed to marry one another, and that more immigration is better than less immigration—but precisely to avoid discussing their merits.
Despite Nick's optimism, I suspect the Libertarian Party will remain a 2% voting block only capable of spoiling close races.  They could attract more, but they'll need an optimistic message rather than the tired old yarn: "both parties suck."

I discussed the "merits" of Libertarianism in my May 2014 post titled The Anarchists Among Us

Sunday, July 27, 2014

Quote of the Day

Liam Halligan via Doug: 15 Reasons the Party on Wall Street is About to End in Tears

Number 5:
The reason for this dichotomy is the Federal Reserve’s money-printing machine, which has created thousands of billions of virtual dollars since 2008. Much of this has found its way into global stock markets, sending equity prices sky-high. Designed as an emergency measure, QE has since become a lifestyle choice, the financial and political equivalent of crack cocaine.

I discuss some of these topics in my Precious Metals Investing videos.  Here is the latest, which includes links to the others.

UPDATED 7.29.14:

Link fixed.  Thanks Comrade Robert!

Free Signups!

If you are lucky enough to live in the Wisconsin town of Campbell, you can get free help signing up for ObamaCare.

Police Chief Tim Kelemen did just that to Tea Party leader Greg Luce - without Luce's consent.

It seems the two had a falling out, and the Police Chief thought it'd be a good prank to sign Luce up to ObamaCare.  That must have taken a while....

Chief Kelemen (pictured above while in court this past week) also signed Luce up to some pornography and gay dating services.  How is that for Protect and Serve?

Now, it is odd that a liberal would think it is an insult to sign someone up for ObamaCare, or for gay dating.  Perhaps those sites were already bookmarked in the Chief's browser?  Because, as we've explained here before, Gay is the new Black, and every white male should consider selecting the gay orientation to reap the employment and social benefits. 

Chief Kelemen has plead No Contest to the charges.

Police One:

The charge stems from a feud between Kelemen and tea party leader Greg Luce. It began last fall when the tea party began holding protests on an interstate overpass in Campbell. Concerned the protests were distracting drivers, Kelemen persuaded the town board to ban signs on the bridge.


Intellectual Froglegs

The latest in a great series by Intellectual Froglegs!

And.... It's gone!

Found at Pat Dolard's site:

Video below.  Imagine MSNBC's reporting as you watch:

Anchor:  There is smoke on the rooftop.  Can anyone tell what that is?  Did the Jews bomb the roof of that building?

Producer - speaking in earpiece:  Go with that.  We're thinking it was a Hamas rocket launched off the roof, but there is no proof of that.  It could be a Jew smoke grenade, or something more sinister.

Anchor:  Well, we don't know exactly what the source of the smoke is, yet.  It appears Israel has singled out this apartment building.  Or is it a day care center or a...   WHOA!  Did you see that?  Israel just bombed that day care center! There must have been hundreds of children playing in there!  Oh, the humanity!  We need another cease fire!!