Category Archive: 6b.) Acting Man

How the Welfare State Dies

People have become used to the idea that the State is their sugar daddy. Many apparently believe that it has some undisclosed, infinite stash of resources at its disposal which it can shower them with at will. The reality is unfortunately different.

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Down Go the Hopes and Dreams of Three Generations

On Wednesday, Janet Yellen pressed on the broken buttons again. After the two day FOMC meeting, the Fed Chair announced they’d continue pressing the federal funds rate down to just a ¼ to ½ percent – effectively zero. What type of insanity is this? If she keeps it up, and whole thing doesn’t implode, the yield on the 10-Year Treasury note could also slip below zero…along with the hopes and dreams of three generations of retirees.

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The VIX Breaks Out – Market Risk Continues to Surge

  The Sharp Move in the VIX Accelerates In Monday’s trading session, the upward move in the volatility index VIX (which measures the implied volatility of SPX options) continued unabated, vastly out of proportion with the move in the underlying stock...

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Stocks Set Another Valuation Record

Believe It Or Not… There Actually Is Some Downside Risk BALTIMORE – Not much action in the stock market last week. A few little steps ahead to over the 18,000 line for the Dow. Then a few little steps back. Currently  the index sits at 17,732.   Th...

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Brexit Paranoia Creeps Into the Markets

European Stocks Look Really Bad… Late last week stock markets around the world weakened and it seemed as though recent “Brexit” polls showing that the “leave” campaign has obtained a slight lead provided the trigger. The idea was supported by a not...

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Is It Our Duty to Fight When the Deep State Asks?

  Hero or Traitor?   And it’s one, two, three, What are we fighting for? Don’t ask me, I don’t give a damn, Next stop is Vietnam; And it’s five, six, seven, Open up the pearly gates, Well there ain’t no time to wonder why, Whoopee! We’re all gonna di...

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What Congress Really Thinks of Voters

  Battle of Wits  BALTIMORE – On Wednesday, the Dow rose over 18,000, for the first time since April. Hillary is riding high, too. She is a pro. She has the entire Deep State behind her – including almost every crony and zombie in the country – and a...

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A Darwin Award for Capital Allocation

  Beyond Human Capacity Distilling down and projecting out the economy’s limitless spectrum of interrelationships is near impossible to do with any regular accuracy.  The inputs are too vast.  The relationships are too erratic.   The economy – comple...

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Wealth Management Products: What Could Possibly Go Wrong?

Wealh Management Products issuance equaled $1.1 trillion in 2015, a nearly 75% jump on the prior year and equaling 40% of the total growth in credit. Almost one-third of the WMP were bought by credit institutions for inclusion in other WMP – WMP Squared!

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The Trump Risk: Will President Trump Trigger a Recession?

“The economic consequences of a Trump win would be severe,” claims Mr. Summers in the headline. But he has no way of knowing what the consequences would be, let alone if they would be severe. Would they be worse than if Ms. Clinton were elected? No one knows.

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Free Speech Under Attack

  Offending People Left and Right Bill Bonner, whose Diaries we republish here, is well-known for being an equal opportunity offender  – meaning that political affiliation, gender, age, or any other defining characteristics won’t save worthy targets ...

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Janet Yellen – Backtracking Again

  Muhammad Ali Could Take a Punch BALTIMORE – You had to admit. Muhammad Ali could take a punch. Unlike Donald Trump, Dick Cheney, George W. Bush, and Bill Clinton, he was a real war hero. He stood up and faced his enemies on the draft board, rather ...

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The Real Reason We Have a Welfare State

  From Subject to Citizen BALTIMORE – June 5th, the Swiss cast their votes and registered their opinions: “No,” they said. We left off yesterday wondering why something for nothing never works. Not as monetary policy. Not as welfare or foreign aid. N...

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Moving Closer to BREXIT

  Polls Show Growing Support for a Break with the EU In the UK as elsewhere, the political elites may have underestimated the strength of the trend change in social mood across Europe. The most recent “You-Gov” and ICM pools show a widening lead in f...

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Free Money Leaves Everyone Poorer

  Destroying Lives BALTIMORE – A dear reader reminded us of the comment, supposedly made by Groucho Marx: “A free lunch? You can’t afford a free lunch.”   Groucho dispensing valuable advice Photo via imdb.com   He was responding to last week’s Diary ...

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Is it Time to Buy Real Estate? Yes and No

  Is it Time to Buy Income-Producing Real Estate?  No, No, No. Much to the dismay of my real estate buddies, who are complaining about how high prices while watching the cash flow of their portfolios bursting at the seams from a few good years of ren...

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8 Lessons That We Can Learn From The Economic Meltdown In Venezuela

Submitted by Michael Snyder via The End of The American Dream blog, We are watching an entire nation collapse right in front of our eyes.  As you read this article, there are severe shortages of just about anything you can imagine in Venezuela.&nb...

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Swiss Referendum: The new World of Bread and Circuses

9 out of 10 workers could be permanently replaced by robots. The working classes of Rome were put out of work by “robots,” too – slaves captured in Rome’s many successful conquests. Given the Swiss initiative for the minimum income, welcome to the world of bread and circuses!

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Twitter’s Other Growing Problem – A Surging Share Count

It seems like almost everybody has an opinion about Twitter. As for the company it seems that their “window of opportunity” to massively succeed has essentially closed as user growth and revenue have both slowed, quite dramatically, over the past 18 months. Oddly, the strategy at Twitter seems to be not to thrive, but just to survive.

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Turning Stones Into Bread – The Japanese Miracle

  Stuffing the Futon Our friend Ramsey Su just asked what Haruhiko Kuroda and Shinzo Abe are going to do now in light of the strong yen (aside from perhaps doing the honorable thing). Isn’t it time to just “wipe out some debt with the stroke of a pen...

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