Flash Point: ****-For-Brains Bernanke

The place holder “****” may be filled in by you , dear reader, allowing you to accord Ben Bernanke the degree of respect that you think he deserves. Each “*” is the place holder for a string of characters from 0 to n where “n” is an arbitrary number. So some words that would fit Continue reading »

Socialism in Canada: O Sacred Cow Sore Wounded

The sacred cow of the modern progressive movement in Canada is the Canadian Broadcasting Corporation (CBC), the bloated behemoth that in inverse fashion, milks the Canadian public for a billion or so dollars a year in a totally unaccountable and opaque manner. It is viewed by the progressive movement as their media extension, being the Continue reading »

Flash Point: Which Side of the Red Line?

We know how flexible US Red Lines are. Obama’s latest is the use of chemical weapons by the Syrian regime being the condition for US intervention. But OOPS, UN Finds Only Syrian Rebels Used Chemical Weapons (reported by Zero Hedge). So if the bad Syrian regime – the black hats – didn’t use them, but Continue reading »

Flash Point: More I**amic Terrorism

Given the Obama administration effective injunction against making any association of terrorism with Islam, we present this extract from Zero Hedge this morning: … the first alleged terrorist bomber, 19 year-old Dhjokar Tsarnaev, born in Kyrgystan, … his brother, 26 year-old, Tamerlan Tsarnaev, born in Russia … [who] died overnight in a shootout with the Continue reading »

Flash Point: Bird Flu and You

The following is a letter we received today from Davis Kotok, Chairman and Chief Investment Officer of Cumberland Advisors. It will appear shortly in their archive, but most reading this post are unlikely to see it. If we do the math, we get a 32% kill ratio based on recorded data. This is a bit Continue reading »

Socialism: France and Its Race to the Bottom

We have viewed the percentage of GDP contributed by government spending as a measure of the government adoption of socialist economic principles – entitlement programs. France’s global ranking in 2011, according to Wikipedia, was eighth (highest) at 52.8, superseded only by a number of small island nations including Iceland. Another estimate from eurostat which we Continue reading »

Socialism: The Socialist Revolution Has Begun

We wrote in February 2012, the following essay. It began with: It’s true that major events rarely have single first causes. A strike by a 5 km-wide asteroid would qualify as a single first cause. But no single event in human affairs is likely to provide one. We can however mark events and dates that Continue reading »

Niall Ferguson

We greatly admire Niall Ferguson as one of the most important thinkers of our time. We wait impatiently for any new thinking or discussion from him. This post will capture whatever links to presentations, articles, or any source of information we come across. We will add content at the top of the post like a Continue reading »

Kyle Bass: One Smart Man

We have been catching sight of Kyle Bass in a number of video interviews lately. We are grateful for whatever opportunity we have to listen to him. He has the straight goods and his explanations are not complicated. We inquired of getting more information from the hedge fund he manages but lack the $5,000,000 minimum Continue reading »

Tracking The Downgrade of Europe (and Others)

When mutual and hedge fund managers want to buy fixed asset securities such as bonds, they rely on rating agencies for an assessment of default risk. This helps them to decide what a fair interest rate is on the debt to reflect the risk premium on their investment. Needless to say, if you are an Continue reading »

Flash Point: ****-For-Brains Bernanke

The place holder “****” may be filled in by you , dear reader, allowing you to accord Ben Bernanke the degree of respect that you think he deserves. Each “*” is the place holder for a string of characters from 0 to n where “n” is an arbitrary number. So some words that would fit these rules are: ‘mush’, ‘good’, ‘genius’, ‘outstanding’, ‘eh?’, and so on. The context for assessing respect may be based on the article in the Irish Times, Bernanke warns banks on excessive risk. In particular, this quote:

In a speech in Chicago, the US Federal Reserve chairman said he was watching for signs that banks were resorting to speculation [i.e. risk] because of low interest rates, highlighting the danger that easy monetary policy could inflate new bubbles in asset prices.

Bernanke, has done two things of note. He has driven interest rates to record lows, farther out the yield curve than any of his predecessors. In fact, real interest rates (adjusted for inflation) are negative for short term maturities and close to zero for longer term maturities. This has forced investors, whether they be banks, retail investors or institutions, to buy riskier assets and equities to try and create some positive return on their money.

The second thing that Bernanke has done is flood the market with liquidity, much more than the market could digest since most of it remains locked up in bank reserve accounts at the Fed. Some of this liquidity is undoubtedly driving the stock market to record highs, a fact confirmed by the market’s divergence from economic fundamentals.

In other words, Bernanke has destroyed savers and forced investors of all stripes to chase risk to try and get some return on their money. This guy has the unmitigated gall – we’ve not used this term before, but the alternative is a string of epithets – to create a situation and then blame the logical outcome on the very people whom he has forced his policies upon. Bernanke is blowing bubble after bubble – bonds, stocks – and he can’t even see it. This guy has “***”-for-brains.

Historical Background of ‘Dhimmitude’

Here is Part A of essay Two in the series: The Suffocation of Christian Communities in the Middle East from Paul Merkley, reprinted by permission of Paul and from The Bayview Review. See the links at the end for direct access to the rest of Paul’s work.

In recent months, our journalists and editors have had to think on their feet as they have sought ways to make western audiences aware of a massive fact about the Middle East that these same authorities  have striven for decades not to notice– the methodical suffocation of the Christian minority of the Middle East by the Muslim majority.

This minority (as I noted in my previous essay) is made up of several  widely-scattered communities, some going back  many centuries prior to the time when the Middle East became Arab and Muslim.  To get quickly to the bottom line: they amounted to 13% of the population of the Arab Middle East in 1900,  they have been reduced to 1% today, and that remnant is presently being methodically harassed from the region. As this is happening, our leaders of opinion, including the leaders of the mainline churches, look the other way in order to focus their moral ire upon  the imaginary monster of Islamophobia in our midst.

The key to this present Muslim campaign against Christianity in the Middle  East is the history of the Empire of Islam; and the key to that history is dhimmitude.

Socialism in Canada: O Sacred Cow Sore Wounded

The sacred cow of the modern progressive movement in Canada is the Canadian Broadcasting Corporation (CBC), the bloated behemoth that in inverse fashion, milks the Canadian public for a billion or so dollars a year in a totally unaccountable and opaque manner. It is viewed by the progressive movement as their media extension, being the broadcaster most closely aligned with their doctrinal positions.

In contrast, the Conservative government under Prime Minister Stephen Harper is viewed with a visceral hatred by the progressives. It is therefore no surprise when the government proposes legislation that goes anywhere near the CBC that a firestorm of protest breaks out on the left. The most recent case is that of Bill C-60 and an online petition by the so-called Friends of Canadian Broadcasting.

The petition came to our attention from two different e-mails (emphasis in quoted material in this essay is ours unless otherwise noted):

  1. Please read this and sign it. This affects our DEMOCRACY!
    Stephen Harper wants to silence and control our public broadcaster by sneaking new powers into a monster Budget Omnibus Bill. Please sign the petition: http://bit.ly/10YEGi9 Thanks!
    And the author in a followup email elaborated A democracy requires a free and open media, and, as history has shown, a government that seeks to control the media is a Fascist government.
  2. The second had the subject line You can help Free CBC of political interference and an embedded text asking for donations and sporting an image charging deception on the government’s part.

First we briefly examine the partisan progressive or left-wing bias of the FCB. Then we review Bill C-60 in terms of its purpose and extent. Finally we address the bovine hysteria driving the petition.

Flash Point: Which Side of the Red Line?

We know how flexible US Red Lines are. Obama’s latest is the use of chemical weapons by the Syrian regime being the condition for US intervention. But OOPS, UN Finds Only Syrian Rebels Used Chemical Weapons (reported by Zero Hedge). So if the bad Syrian regime – the black hats – didn’t use them, but it was the good guys – the guys with the white towels – that used them, what is poor Obama to do? Who should he bomb?

This is an ugly sectarian civil war, the kind that regularly pops up in the Mideast. We realize that in their simplistic arrogance, Western progressives (it is so helpful that they have given themselves a handle) are looking for any group that can impose their cultural and political values and doctrines on foreign cultures, but in the case of Syria, who is wearing the white hats? We have no business intervening here, just as we had no business intervening in Iraq or Afghanistan, both countries that are enjoying increased political instability and domestic violence since our benign interventions that set them free.

Postscript

We failed to consider the obvious: White House Says Ignore Facts, Assad “Likely” Behind Syrian Chemical Weapons After All. Manufacture a chemical weapons event! It worked for Iraq, it worked for Vietnam. Hell when you want war you can have war. To paraphrase a recent White House apparatchik: “You never want a serious opportunity to attack another country to go to waste.”

Flash Point: More I**amic Terrorism

Given the Obama administration effective injunction against making any association of terrorism with Islam, we present this extract from Zero Hedge this morning:
… the first alleged terrorist bomber, 19 year-old Dhjokar Tsarnaev, born in Kyrgystan, … his brother, 26 year-old, Tamerlan Tsarnaev, born in Russia … [who] died overnight in a shootout with the local police … was very religious … . His YouTube page can be found here: on it can be found videos of Islamic preacher Feiz Mohammad.
And of Islamic preacher Feiz Mohammad? Wikipedia states:
In 2007, the Australian Federal Police investigated whether 16 DVDs of Mohammed’s sermons, called the Death Series, broke laws against sedition, racial vilification, and inciting violence and terrorism.

In short we expect this to be an Islamic terrorist attack, whether or not it is associated with any Islamic organization. We also expect the Obama administration to portray this as disaffected youth with American society to blame for not reaching out to the poor dears and integrating them, but certainly no connection with radical Islamic teaching.

Supporting the idea that they might be Muslim is the statement from the father cited by Zero Hedge: “Ok, Thanks to Allah you were not close to there and did not suffer.”

Also read: Massachusetts Governor Sowed Seeds Of Islamic Terrorism In Boston Years Ago

Flash Point: Bird Flu and You

The following is a letter we received today from Davis Kotok, Chairman and Chief Investment Officer of Cumberland Advisors. It will appear shortly in their archive, but most reading this post are unlikely to see it.

If we do the math, we get a 32% kill ratio based on recorded data. This is a bit higher we think than the kill ratio for our regular annual influenza outbreaks (sarcasm for those who missed it) and should be watched carefully with precautions taken as David has outlined. This is stay-tuned news rather than stay-tuned-out news. It may peter out and become nothing or it may become a deadly global pandemic. We don’t know yet. His letter follows.

Effects of the Arab Spring so far on Christians in the Middle East

Here is an essay from Paul Merkley: Effects of the Arab Spring so far on Christians in the Middle East, reprinted by permission of Paul and from The Bayview Review. See the links at the end for direct access to the rest of Paul’s work. This is the first essay  in a new series, The Suffocation of Christian Communities in the Middle East.

So far, only one indubitable trend has emerged in the so-called “Arab Spring” and that is towards collapse of all the political structures that were functioning before it began in January, 2012.  Standing out clearly against this noisy background are two unmistakable sub-themes that have received much too little notice in our media.  One is a rising level of menace against Jews, and the other is a rising level of menace against  Christians.

Kyle Bass on Japan: “It All Feels to Me That It’s Right Now…”

We recently featured an essay on Japan titled Japan: Is This a Windshield Which I See Before Me …. It was based on an interview with Kyle Bass. Here is a new interview (hat tip Zero Hedge) with Bass and we extract some of the key points he makes.

Key points are:

  • Japan has never gone through this kind of Schumpeterian period of creative destruction that needed to happen from the financial perspective…
  • The yen will weaken significantly … a loss of confidence in the currency …
  • Interest rates will move uncontrollably once the yen starts to move in a disorderly way.
  • A third of the population is over 60 and almost a quarter over 65. I think they’re going to lose 30 to 50% of their savings. The social fabric will be torn.
  • From Zero Hedge‘s synopsis: At a certain point in time, “nationalist interest takes over the global [G7] kumbaya,” and that is occurring now. If monetary policy is the only lever we have to throw then we’re all in a lot of trouble.
  • There is no way out for Japan in my opinion. It’s a matter … of when and not if…
  • Until the bond rates move and king of call us out we’re going to keep spending.
  • There will be a dramatic spike in (cost-push) inflation in Japan in the next 18-24 months. The US and maybe even Europe are years away.
  • Being complacent today is probably the single most riskiest time to be complacent in our generation.
  • The insidious nature of a run-away inflation is it bankrupts the middle class. … The rich stay rich, the middle class gets wiped out and the poor stay poor.
  • It means social unrest globally.

Socialsim: On Obama’s Watch …

Michael Snyder of The Economic Collapse blog, posting in Zero Hedge today,The 21 Key Statistics About The Explosive Growth Of Poverty In America, compiled the following list of statistics that provide a glimpse into the Greater Depression currently consuming the middle and lower classes in the US. Here is the current state of the Union under one of America’s greatest socialist presidents.

A Love Letter to All Canadians from Your Government: “This Is How We Are Going to Screw You”

We compliment the Canadian Government for its forthrightness and honesty about how it is going to screw its citizens. Unlike the officials and authorities in the EU, the ECB and the IMF who have fumbled the economic rape of Cypriots through a tangle of subterfuge and lies, Canadian officials are much more upfront and direct. Hopefully this essay will help you understand how ruthless and nasty your government is.

We begin with a section on current events – notably Cyprus – that motivated this essay. In Section 2, we highlight certain aspects of the 2013 Canadian budget that may affect bank depositors. In Section 3 we examine the Financial Stability Board’s policy proposal on bank resolution and “bail-in”. Section 4 looks at the Canada Deposit Insurance Corporation in terms of what it insures and what its coverage capability is. We look at the Bank of Nova Scotia in Section 5 to get an understanding of the capital structure of a bank and where the risks reside. This is generalized in Section 6 to a model that allows us to explain the notions of illiquidity and insolvency. Finally, in Section 7, we conclude with  some summary remarks and recommendations on how Canadian citizens might attempt to protect themselves from the depredations of their sovereign. For all figures, click to open in a new window to allow enlargement.

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