Taxpayers are the Fools, Working Is Stupid

Just ask Lucy from Austin, TX. 

Don't Forget to Set Your Scales Back

It's amazing on how this simple trick really works until you try to put your clothes on.  On a more serious note, do you know why we observe Thanksgiving?  Read on and may learn something new today.

The civil war between 1860 and 1865 is the original reason for the observance known today as “Thanksgiving Day.”  (I wonder how many people know that fact?)  A Presidential Proclamation was made in October 1865 by Lincoln’s successor, Andrew Johnson.  His proclamation established the national observance of this secular day, but academia has promoted the idea that the Pilgrims were somehow responsible for it.

  

The Pilgrims were a pious people who were looking for a new life away from religious persecution.  They had a great deal in common with the "Quakers" (Society of Friends) that developed later in the 17th century.  Both sects promoted a separation from the pagan influences that still remained in Protestantism.

   

Below is the proclamation made by the President Andrew Johnson for the observance of Thanksgiving Day, with the reason given. 

(October 28, 1865):

“Whereas it has pleased Almighty God during the year which is now coming to an end to relieve our beloved country from the fearful scourge of civil war and to permit us to secure the blessings of peace, unity, and harmony, with a great enlargement of civil liberty; and

Whereas our Heavenly Father has also during the year graciously averted from us the calamities of foreign war, pestilence, and famine, while our granaries are full of the fruits of an abundant season; and

Whereas righteousness exalted a nation, while sin is a reproach to any people:  Now, therefore, be it known that I, Andrew Johnson, President of the United States, do hereby recommend to the people thereof that they do set apart and observe the first Thursday of December next as a day of national thanksgiving to the Creator of the Universe for these great deliverances and blessings.  (Note: date was changed during the early 20^th century) And I do further recommend that on that occasion the whole people make confession of our national sins against His infinite goodness, and with one heart and one mind implore the divine guidance in the ways of national virtue and holiness.

In testimony whereof I have hereunto set my hand and caused the seal of the United States to be affixed.  Done at the city of Washington, this 28th day of October, A.D. 1865, and of the Independence of the United States of America the ninetieth.”

In addition, President Lincoln made the following proclamation in 1864:

"It has pleased Almighty God to prolong our national life another year, defending us with His guardian care against unfriendly designs from abroad and vouchsafing to us in His mercy many and signal victories over the enemy, who is of our own household.  It has also pleased our Heavenly Father to favor as well our citizens in their homes as our soldiers in their camps and our sailors on the rivers and seas with unusual health.  He has largely augmented our free population by emancipation and by immigration, while He has opened to use new sources of wealth and has crowned the labor of our workingmen in every department of industry with abundant rewards.  Moreover, He has been pleased to animate and inspire our minds and hearts with fortitude, courage, and resolution sufficient for the great trial of civil war into which we have been brought by our adherence as a nation to the cause of freedom and humanity, and to afford to us reasonable hopes of an ultimate and happy deliverance from all our dangers and afflictions:

Now, therefore, I, Abraham Lincoln, President of the United States, do hereby appoint and set apart the last Thursday in November next as a day which I desire to be observed by all my fellow-citizens, wherever they may then be, as a day of thanksgiving and praise to Almighty God, the beneficent Creator and Ruler of the Universe.  And I do further recommend to my fellow-citizens aforesaid that on that occasion they do reverently humble themselves in the dust and from thence offer up penitent and fervent prayers and supplications to the Great Disposer of Events for a return of the inestimable blessings of peace, union, and harmony throughout the land which it has pleased Him to assign as a dwelling place for ourselves and for our posterity throughout all generations.

In testimony whereof I have hereunto set my hand and caused the seal of the United States to be affixed. 

Done at the city of Washington, this 20th day of October, A.D. 1864, and of the Independence of the United States the eighty-ninth."

 

Bitcoin (Digital Currency) Now Worth More Than Gold

You know that this is not going to end well when Bitcoin, digital currency, is selling for what gold is (1 unit of Bitcoin = $1,242).  Just look at that "parabolic" rise in Bitcoin.  It is hard to believe that individuals actually believe that a digital unit code currency is worth the same as an ounce of physical gold.  Can anyone say, insanity/mania?  And, Bitcoin is not the only digital currency; it has 37 brothers and sisters that one can purchase.  I don't know about you, but I will take the physical gold any day over all those digital currencies.

Are Long-Term Gasoline Prices Heading Up or Down?

 

I would not be concerned about the recent 5% jump in prices.  Yes, no one wants to pay higher prices at the pump.  However, I would be more interested in looking at the price action over the past three years, and see if one can ascertain about prices going forward.  That is, look at the above chart and notice the "Lower Price Tops" going back to 2011.  This type of "chart pattern" is referred to as a "descending-horizontal triangle," which bearish (good for consumer) for gasoline prices.  Currently, support for gasoline at the pump is approximately $3.15 on average throughout the U.S., or approximately $2.40 for the wholesale gasoline futures.  If the support at $3.15 is taken out, that would usher in weaker prices at the pump, which is exactly what I expect to happen.  Why?  Because we are in a "deflationary environment," and it is going to get a whole lot worse.  In other words, forget about inflation for the time being, worry about "DEFLATION" on all asset prices!



Why is This Man Smiling?

The man in the picture is Mike Duke, who just retired as CEO of Wal-Mart.  The reason for his smile is that his retirement package, to which he is now entitled, is a whopping $113 million, or about 6,182 times greater than the average 401(k) balance of a typical Wal-Mart worker.  To say the least, Mike Duke will not be your typical Wal-Mart shopper this holiday season.

No "Bears" to be Found

Executive Order #6102

President Franklin Roosevelt signed Executive Order #6102 requiring all gold to be handed over to the government.  The government gave everyone approximately one month from April 3, 1933 to May 1, 1933 to return all gold coins, gold bullion and gold certificates to the Federal Reserve in exchange for $20.67 per ounce.  Failure to do this was punishable by a $10,000 fine, which is equivalent to over $150,000 in today's dollars and/or up to ten years in prison.  Wow!  Could it happen again?  This, of course, is a rhetorical question, and you already know the answer.

Medicaid Consequences of Obamacare

If you have ever enrolled in Medicaid or are contemplating signing up for it, please read on.  “The current law will result in your house and other financial assets being seized to pay all Medicaid-incurred expenses if and when you die.  Sorry, but that is the current law.  Therefore, make sure you spend and/or give away all equity you have to the limit of your ability if you are currently on Medicaid or have ever used this program.  Now, if you have Medicaid or ever have used it, the reverse mortgage strategy makes perfect financial sense, especially for older Americans.”  Why?  You definitely want to draw down the size of those financial assets to make sure Obamacare (federal government) cannot seize those assets upon your death.  In other words, there really is no such thing as a free lunch.

What Happens When the $INDU Reaches Point E, or 16,000 +/- 200?

It's All About Wall Street, Not Main Street!

 I have been posting for quite sometime about the true intent of quantitative easing (QE) by the FED was to benefit Wall Street and not Main Street.  Well, in today's Wall Street Journal, a former Fed official, Andrew Huszar had this to say: "I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time." 

Wow.  What a confession!  But, wait, he goes on to say: "It wasn't long before my old doubts resurfaced. Despite the Fed's rhetoric, my program wasn't helping to make credit any more accessible for the average American. The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn't getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash."

And, the impact to date of all this QE to the tune of the Fed's $4 trillion investment.  Well, the Fed's ROI has been to increase GDP by a mere 0.25%, or $40 billion.  But, the stock prices of those Wall Street banks have seen their stock prices more than "triple" since March 2009.  These institutions are the so-called "Too-Big-Too-Fail" money center banks.  These banks, which are only .2% of all the banks in the U.S., control in excess of 70% of all U.S. Bank assets.  To say the least, the Fed has accomplished its mission of enhancing the wealth of Wall Street Banks at the direct expense of Main Street. 

$INDU Heading Back Down to its 50-Day EMA

Twitter (TWTR)

Twitter just opened-up 75% from its IPO price, which beats Facebook on its opening day.  As of now, Facebook (FB) has a "market cap" of $117 billion; and Twitter (TWTR) has a current "market cap" of around $30 billion.  Can anyone say "irrational exuberance?"  But, then again, with the likes of Bernanke and soon to be Yellen in the "Quantitative Easing" driving seat, the current market believes that it's rational exuberance.