Update: linkys added
How long can it go on before the falling dollar slips from the control of Rahm and Timmeh and we get slammed with hyperinflation? MiM is long HARD assets now, like ‘drop it on my foot go ouch’ hard as the guys on FastMoney would say…it may seem like a brilliant idea to these fools on the Hill to let the dollar slip to reduce the ginormous debt, but Americans buy goods with American dollars ya dig? maroons, all of them. No nation ever got strong by devaluing its own currency, was that Reagan? Kudlow opines:
Smells like the 1970s.Just look at two ominous headlines in the news: First is the global shift out of the dollar and into commodities. Second is the dollar losing its reserve status to the yen and the euro.
In the second quarter ending in June, central banks around the world invested 63 percent of their new cash reserves into euro and yen, and put only 37 percent into dollars. Over the past six months, the dollar has lost 15 percent while gold has climbed nearly $150. If this continues, spiking inflation and interest rates will choke off the bull market in stocks and do serious damage to the economy. It could happen fast.
Yet markets are rallying hard off the weakened greenback. They think consumers will feel BETTER about spending as their dollar value shrinks?? (exports may help the MNCs and unions short term but it is a fool’s game) The DOW is up >100 b/c the retail sales only fell 1.5% (consensus was over 2%) IMO any bump on anything but sustained job growth is premature, I dont give a flying frak if they say it is a lagging indicator*, the US Consumer is STILL 70% of GDP and TOTUS is off the rails of the crazy train spending like it’s going out of style (and it has gone out of style!)…
How bout some Metallica? The Bell is Tolling for the US Economy and the fools don’t hear it.
October 14, 2009. Tags: commodities, DOW 10000, Gold, hyperinflation, Inflation, Larry Kudlow, Metallica, recession, US Dollar collapse, US Dollar weakness, Wall St. Economy, Finance, Heavy Metal, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. .
This picture cried out for musical accompaniment…
Uhm, the markets are ignoring the continuing housing collapse and driving financials higher based on, wait for it..one consumer confidence survey reading…yeah Sell in May, Go Away, the Lunatics are running the floor…..
Vodpod videos no longer available.
Vodpod videos no longer available.
created by SchokoGlibber:
“Am I evil? Yes I am. Am I evil? I am man. Yes I am.”… this vid is about the evil sides of the Winchesters. All Winchesters.
I wonder which Sandman Larry hears in his head, The Chordettes or Metallica?….and I wonder if Freddie Kreuger ever makes an appearance slashing the spending….
April 23, 2009. Tags: Credit Card Summit, Enter Sandman, Larry Summers, Larry summers sleeps through WH meeting, Metallica, Mister Sandman, Obama Administration, The Chordettes. Economy, Entertainment, Finance, Heavy Metal, Music, Obama Administration, Politics, Popular Culture. 1 comment.
Sounds like it’, Rangel was on CNBC this morning and specifically mentioned this ‘group of people’ we (Congress) do not think DESERVED those bonuses. Well it is certainly a tax targeted at a specific group’ of people as a punishment, sounds like Bill of Attainder action to me…
Vodpod videos no longer available.
….this idea that Congress is floating about a targeted tax on AIG that would essentially take 100% of that bonus money away from the executives who received them. The reason I hate this idea so much is that I think it is blatantly unconstitutional. Art. I, Sec. 9 states “No bill of attainder or ex post facto Law shall be passed.” What Rangel (who I’m sure has never even read the Constitution and is a known tax cheat) and the rest of Congress is considering here is a Bill of Attainder…. The basic question is whether the legislature has usurped a judicial function in an attempt to hand out a punishment to some targeted individual or group.
Apparently the language of the congressional action will apply to “any company in which the U.S. government has a 79 percent or greater equity stake.” Gee, I wonder who they are referring to? There is no question that this legislation is specifically targeted at only one group, AIG. So, the next question is whether this “super-tax” on AIG executives is punitive as required by the Constitution. According to at least one case and Justice Brenan, it is:
In determining whether punitive or nonpunitive objectives underlie a law, United States v. Brown established that punishment is not restricted purely to retribution for past events, but may include inflicting deprivations on some blameworthy or tainted individual in order to prevent his future misconduct. 381 U.S. at 458-459. This view is consistent with the traditional purposes of criminal punishment, which also include a preventive aspect . . . Brown left undisturbed the requirement that one who complains of being attainted must establish that the legislature’s action constituted punishment, and not merely the legitimate regulation of conduct.
Of course aside from the Creeping Socialism and unConstitutionality of these actions, there is the fact that this is counter productive to Timmeh’s plan for private public partnership, would YOU enter into a deal with this government and expose yourself to losses and targeted tax hikes if you actually make a proft? Exactly.
The Democratic leadership in the House says they expect the bill to pass with overwhelming bipartisan support. The rule would cover 75 percent of the companies that got bailout funds….It was reportedly drafted yesterday, which probably means that it contains scores of loopholes and provisions that will have unintended effects on corporate behavior.
The 90 percent tax would apply to employees with overall income exceeding $250,000, including bonuses. The tax would apply to bonus payments made after Dec. 31, 2008. If it takes effect, it seems likely that companies will simply respond by changing payment structures to deliver higher salaries rather than bonuses. This could hurt incentive pay measures, although critics will say that the incentive pay at many financial firms are broken anyway.
In New York City, we would expect the effect tax rate on bonuses would approach 100%, once state and city taxes are added on. This pretty much guarantees that none of these bonuses will ever be paid. Instead, TARP firms will find other ways to pay employees.
March 19, 2009. Tags: AIG, Charlie Rangel, Congressional Leadership, Creeping Death, Economic Stimulus, Economy, Metallica, Obama Administration, Pelosi, Politics, Rangel AIG Tax, recession, Stimulus Package, TARP, Wall St. Economy, Entertainment, Finance, Music, Obama Administration, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 2 comments.