Thursday, September 30, 2010

Ponzi Is Angry As The Revolution Will Not Be Televised.

Ponzi Is Angry As The Revolution Will Not Be Televised.

Sunday, September 26, 2010

Ponzi Declares Czech President Vaclav Klaus His Hero.

While 99,99% of all political leaders are weasels and sit on their hands playing stupid, there is one politician in this world (can't believe this!) talking sense.

Vaclav Klaus, the President of the Czech Republic has always a contrarian but telling the UN to take a hike in their quest for global econimic and financial dominance is front page news. He said:
"this is the time for international organizations, including the United Nations, to reduce their expenditures, make their administrations thinner, and leave the solutions to the governments of member states".
Ponzi has never seen this kind of reasoning in the newspapers or on TV. The schmucks who created the financial crisis and did not see it coming are repeatedly calling for more money, more power (to themselves), more regulation and more laws.

What Ponzi likes is less regulations, less laws, fire 50% of the civil servants and let the free market do the rest.

Ponzi salutes Vaclav Klaus!

Czech president tells UN to stay out of economics

Opposes calls for increased UN role in economics Says more regulation is wrong way out of crisis


UNITED NATIONS, Sept 25 (Reuters) - Czech President Vaclav Klaus on Saturday criticized U.N. calls for increased "global governance" of the world's economy, saying the world body should leave that role to national governments.

The solution to dealing with the global economic crisis, Klaus told the U.N. General Assembly, did not lie in "creating new governmental and supranational agencies, or in aiming at global governance of the world economy."

"On the contrary, this is the time for international organizations, including the United Nations, to reduce their expenditures, make their administrations thinner, and leave the solutions to the governments of member states," he said.

Klaus appeared to be responding to the address of the Swiss president of the General Assembly, Joseph Deiss, who said on Thursday at the opening of the annual gathering of world leaders in New York that it was time for the United Nations to "comprehensively fulfill its global governance role."

Deiss suggested the world body should get more involved in economic and financial issues and not leave them solely in the hands of forums like the Group of 20 club of key developed and developing nations.

Klaus, a free-market economist who oversaw a wave of privatization in the 1990s after communism collapsed in his homeland, also said the world was "moving in the wrong direction" in combating the economic crisis.

"The anti-crisis measures that have been proposed and already partly implemented follow from the assumption that the crisis was a failure of markets and that the right way out is more regulation of markets," he said.

Klaus said that was a "mistaken assumption" and it was impossible to prevent future crises through regulatory interventions and similar actions by governments.

That will only "destroy the markets and together with them the chances for economic growth and prosperity in both developed and developing countries," he said.

The Czech president, a vocal skeptic of global warming, said the United Nations should also keep out of science, including climate change. U.N. Secretary-General Ban Ki-moon has made fighting climate change one of his top priorities. (Editing by Paul Simao)

Wednesday, September 22, 2010

Ponzi Goes To Russia

Today, Ponzi listens to a Mr Mike Maloney who gives a speech at the Russian Bankers Association. He listens, as his mother told him, and does his best. But does not understand everything. What he does know is he like ice cream and looks forward to the end of the meeting. Why is that banker next to him sweating? Is it something Mr Mike said?

Ponzi Goes To Russia

Tuesday, September 21, 2010

Ponzi learns about numbers......

Today, it is Ponzi's first day at school and he now learns about numbers. 1 trillion, 2 trillion, 3 trillion....huh.....then he forgets..oops..... not to worry.....he will certainly learn as he wants to become a Keynesian ecomomonist or a shadow banker.

US$ 60 Trillion In Debt

NY Post

How bad is the nation's debt problem?

While the official number -- $13.4 trillion, according to the Congressional Budget Office -- is frightening enough, some analysts say the actual figure is much, much higher. Like a shopaholic who hides their credit card bills, the government pretends certain obligations and expenditures don't exist. Uncle Sam really owes closer to $60 trillion, or more, and the country is close to bankrupcy.

"The government is lying about the amount of debt," says Laurence Kotlikoff, an economist at Boston University and co-author of "The Coming Generational Storm: What You Need to Know about America's Economic Future." "It is engaging in Enron accounting."

The National Debt Clock
The National Debt Clock

"The problem is we're seeing an explosion in spending," adds Andrew Moylan, director of government affairs for the National Taxpayers Union.

In 1980, the debt, the accumulated red ink incurred by the federal government, was $909 billion. This represented some 33 percent of gross domestic product, says the Congressional Budget Office (CBO).

Thirty years later, based on this year's second-quarter numbers, the CBO said the debt was $13.4 trillion, or 92 percent of GDP. The CBO estimates the debt will be at $16.5 trillion in two years, or 100.6 percent of GDP.

But these numbers are incomplete. They do not count off-budget obligations such as required spending for Social Security and Medicare. Those programs represent a balloon payment for the government as more Americans retire and collect benefits.

In the case of Social Security, beginning in 2016, the government will be paying out more than it is collecting in taxes. Without basic measures, such as payment cuts or higher payroll taxes, the system could be on the road to bankruptcy, according to officials.

"Without changes," writes Social Security Commissioner Michael Astrue, "by 2037 the Social Security Trust Fund will be exhausted. There will be enough money only to pay about 76 cents for each dollar of benefits."

Include those obligations and other off-budget items and the debt increases, but by how much is debated. Kotlikoff contends that every tax will have to be doubled to pay for entitlements. The problem, he says, is that the federal government's accounting practices are corrupt. And he contends that federal officials who tried to point out the severity of the problem have been ignored or removed.

Kotlikoff says Paul O'Neill, President George W. Bush's first Secretary of the Treasury, was fired because he said the country couldn't afford a tax cut because of the debt problem. How much is the real number for all government debt and obligations?

Kotlikoff and Moylan agree it is much more than the official $13.4 trillion number that one sees on the clock in Midtown. But they disagree over how to add up the exact number. Kotlikoff says the debt is actually $200 trillion.

Still, Moylan says the number is likely about $60 trillion. That is close to the figure quoted by David Walker, the US Comptroller General from 1998 to 2008. He has launched a campaign to convince Americans that the federal spending and debt is a greater threat than terrorism.

But whichever figure is accurate; all three agree that the problem has worsened in the last few years. They say it is because Congress and the administration, whether Republican or Democrat, consistently overspend.

"Recent efforts like the $700 billion Wall Street bailout and the $787 billion stimulus package have heaped on record amounts to our obligations with no end in sight," Moylan warns.

What should be done about the government's rising debt load?

Calls to five lawmakers from the New York area brought few answers. Reps Carolyn Maloney, Peter King and Anthony Weiner along with Senators Charles Schumer and Kirsten Gillibrand either didn't have time to respond because of a heavy schedule or had little to say.

"The way to get our fiscal house in order is by reducing wasteful spending," said Senator Gillibrand through a spokesman. There was no explanation of what constitutes wasteful spending.

More economists and former government officials are pulling back the curtain on what Uncle Sam actually owes in debt. Spoiler alert: It’s probably not the amount on the Midtown sign, below right. Here are some estimates:

$13.4T Congressional Budget Office

$ 50T+ David Walker, Ex-US Comp Gen.

$ 60T Andrew Moylan, National Taxpayers Union

$ 200T Laurence Kotlikoff Boston Univ. economist

Monday, September 20, 2010

Ponzi Goes Ballistic

“All safe deposit boxes in banks or financial institutions have been sealed… and may only be opened in the presence of an agent of the I.R.S.”

- President F.D. Roosevelt, 1933

Congressmen Weiner and Waxman Set Gold Hearing

Seeking Alpha; Ira Stoll

Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television."

From the press release: "Under Rep. Weiner's bill, companies like Goldline would be required to disclose the reasonable resale value of items being sold." That's great. Are Mr. Weiner and Chairman Bernanke also going to agree to print on every dollar the reasonable expectation that its value will be eroded by inflation?

Gold investors (or speculators) are already punished by the federal government by having their investment, even in a gold exchange-traded-fund, taxed at the higher rates that apply to collectibles rather than long term capital gains.

Not to mention the fact that Mr. Weiner's regulatory push seems as much aimed at conservative journalists as at the gold-dealers. The press release says, "Goldline employs several conservative pundits to act as shills for its' [sic] precious metal business, including Glenn Beck, Mike Huckabee, Laura Ingraham, and Fred Thompson. By drumming up public fears during financially uncertain times, conservative pundits are able to drive a false narrative. Glenn Beck for example has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president."

Imagine the uproar if a Republican-majority Congress started investigating and having a regulatory crackdown on big advertisers in liberal outlets such as the New York Times. The First Amendment freedom-of-the-press crowd would be marching in the streets.

The whole situation is amazing. If Mr. Weiner really wants to calm fears about hyperinflation, the last way to do it is to have a government hearing cracking down on the people warning of it.

The press release reports that "invitations to the hearing have been sent to the representatives of Goldline International, the Federal Trade Commission, the Consumers Union and other potential witnesses, including former Goldline employees." Mr. Weiner might also consider calling John Paulson and George Soros, who have also reportedly been buying gold lately, though Mr. Soros was also quoted as calling it a bubble. But Mr. Paulson saw the housing bubble coming so he might be right about the inflation risks, and Mr. Soros is a big funder of left-wing causes, so neither of them would fit with the objective of the hearing.

Anyway, we are looking forward to the hearing, which should be quite a show

Thursday, September 16, 2010

Greenspan’s Warning on Gold

The Maestro said:

"Fiat money has no place to go but gold"

"..he’d thought a lot about gold prices over the years......concluded that gold is simply different....If all currencies are moving up or down together, the question is: relative to what....? "

"Thanks, Now he f#cking tells us".

Greenspan’s Warning on Gold

Editorial of the New York Sun; september 15th 2010

Alan Greenspan spoke at the Council on Foreign Relations earlier today, and what was his advice? That central bankers should be doing what these columns, among others, have been rattling on about, namely that they should be paying attention to gold. “Fiat money has no place to go but gold,” the former Fed chairman said at the Council, according to economist David Malpass, who quotes Mr. Greenspan in one of Mr. Malpass’ emails on the political economy. Mr. Malpass writes that the former chairman of the Federal Reserve’s board of governors was responding to a question in respect of why gold was hitting new highs.

Mr. Greenspan replied that he’d thought a lot about gold prices over the years and decided the supply and demand explanations treating gold like other commodities “simply don’t pan out,” as Mr. Malpass characterized Mr. Greenspan. “He’d concluded that gold is simply different,” Mr. Malpass wrote. At one point Mr. Greenspan spoke of how, during World War II, the Allies going into North Africa found gold was insisted on in the payment of bribes.* Said the former Fed chairman: “If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.”

To which, forgive us, one can only say, “Now he tells us.” The fact is that if Mr. Greenspan governed the Fed with an eye on gold, it wasn’t a particularly steady eye. He might argue that when he left the chairmanship of the Fed, in January 2006, he left a dollar worth a 400th of an ounce of gold, slightly more valuable than the 461st of an ounce of gold that it was worth when he came in nearly 20 years before. But in the first five years of the 21st century, when he was in the last quarter of his years as chairman, the value of the dollar started its long collapse, plunging from the 282nd of an ounce of gold that it was worth on January 4, 2000. In the years since, it has cratered to record lows once imagined only by such sages as Ron Paul.

Mr. Greenspan’s remarks at the council were not the first time he gave us a glimpse of his views on gold. He discusses gold on several pages of his memoir, “The Age of Turulence,” reminding that he once told a Congressional committee that “monetary policy should make even a fiat money economy behave ‘as though anchored by gold.’” He wrote that he had “always harbored a nostalgia for the gold standard’s inherent price stability.” But he confesses that he’s “long since acquiesced in the fact that the gold standard does not readily accommodate the widely accepted current view of the appropriate functions of government — in particular the need for government to provide a social safety net.”

The American people, he asserted in his book, have for the most part “tolerated the inflation bias as an acceptable cost of the modern welfare state.” And he claimed, “There is no support for the gold standard today, and I see no likelihood of its return.” We’ll hazard a guess that the statement makes him a man more of the past than of the future. But at least some politicians are hearkening to his advice about the price of gold. They’re people like Congressman Ron Paul and his son, Rand, who may yet be a senator, and Governor Palin, who was one of the first to warn about the gold price, and Congressman Paul Ryan, who asked Mr. Greenspan’s successor, Ben Bernanke about gold.

And, by the way, a few journalists, like Glenn Beck, who are students of history and just can’t believe their eyes that the dollar has plunged to the level it has with so few people raising an alarm. We are in a period when gold is more than a canary — to cite Mr. Greenspan’s bird of choice — it’s a full-throated rooster, cock-a-doodling at the top of its lungs. It was nice to see Mr. Greenspan mark the point at the Council. Would that he’d taken more of his own advice. And nice to see Mr. Malpass mark the Greenspan comments so prominently in his letter to his economic clients. He is more for a gold price rule in monetary policy than a gold standard, but we hope he makes another run for high office at the first chance, and presses the principle for all its worth. It’s what we need in the national debate, and none too soon.


* Not just in World War II did the special role of gold come into focus. Covering the fall of free Saigon for the Wall Street Journal in April 1975, your editor witnessed a bank run in which panicked Vietnamese citizens, in the streets outside the financial institutions, bought, when they could, gold that had been pressed into sheets the size and approximate thickness of cigarette paper.