Ask Your Liberal Friends.

What is the difference between a National Socialist and an International Socialist.  Ask them which world view they identify with. I would love to hear their explanation.

What's Good for Cyprus, Should be Good for California.

Fuck Hollywood and the California elite.  The rest of us can play this class warfare card too; if it happened in Cyprus, it can happen anywhere. California is bankrupt and to get more federal money, lets trim the fat of every Californian holding their money in a bank. I say, take every penny in accounts that post over the FDIC limit. Then, take every gun out of the hands of people silly enough to keep their money at home. Then get a bowl of popcorn and watch the entertainment.  We won't have to spend millions to see violent action video emerging from that liberal utopia anymore.

Before too long, Hollywood Hills will look like Obama's Chicago project neighborhood or Detroit. Moonbeam. stick your filthy nose into another pile of coke. Your DC drug dealer will only ask for a small  favor in return.

The Future State.

Several days ago I asked Daniel Greenfield for his thoughts on Cyprus and today he posted another one of his incredibly insightful essays. Read the whole thing.

Here is an excerpt:

The left likes to pretend that removing the middle class will make room for some clean regime of the oppressed. What it will actually do is remove the citizenry with enough power and wealth to keep government in check and replace it with beggars and rebels who depend on government subsidies while hating the government. If you want to see what an extended bout of that looks like, you can travel to the Middle East. These days you can try Europe as well.

What is taking place in Cyprus today, cannot hold a candle to what the former Soviets went through during the last 20 years. One fine day the government announced that all deposited money in the bank or inside your mattress had to be converted into new paper money within  a 2 day period. The banks would convert only up to a said amount, which was about 2,000 rubles. Afterwards, the remaining money would become void. When this happened, 1 Soviet ruble, was equivalent to about 60 US cents. Shortly after this new currency appeared, 5,000 rubles were the equivalent of 1 us dollar. And people complained, and voiced their frustration, and turned on each other, and in the end accepted their fate.  This is what 70 years of Soviet rule accomplished.  A state of beggars.

We are quickly replacing our citizenry with fresh immigrants, coming to us from such regimes. The do not share our culture and our values.  In general, they will vote for the same state that trained them. Our future state is being built.

Bad Loans.

Up until this weekend I had the mistaken notion that money you deposit into a bank, remained your money. I believed that it was there for safe keeping and for such storage, the bank would extract a small percentage of the interest that this money should earn under current inflationary growth.

I was wrong. Once this money is deposited in the bank, this is no longer your money. This is a loan you made to the bank. In return, the bank promised to pay you a very very small interest on your loan. There was also a federal guarantee that, up to a certain amount, that money would return to you even in the case of this bank bankrupting.

That notion of a federal guarantee was destroyed this weekend. So all you have to rely on, is the belief that this bank will honor your particular loan. The truth is that the bank will honor this loan contract as long as it remains in the bank's interest to honor this contract, or more precisely as long as it is in the interest of the men and women running this bank. They are not a moral bunch.

The next equation to calculate, would be are they a sane bunch? Is this bank in financial trouble? Does it use a sound business model? Are its directors people of sound mind? In other words, is this a good loan or a bad loan?

The US justice department believes that the credit rating agencies should share some of the risk for such bad loans. They likely believe that in the end, these financial institutions will forfeit on their loans.

You better take another look at the soundness of business practices of the people you lend your money to.

Looks like Denmark has its own Geert Wilders.

She doesn't have his hair, but still...

Welcome Marie Krarup. Nice.

Banks and Bailouts

So Cyprus banks were declared healthy very recently. Then we learned that they need a large bailout and that the deposit insurance agreement, which guaranteed safety of deposits up to 100,000 euros was a pipe dream. OK. This likely means that FDIC insurance is the same scam as the European banking insurance.

Are the Bank of America, HSBC, or Chase banks holding on to the same toxic assets, that the Bank of Cyprus held? Do they need a bailout?  Where will they get their collateral money from?  Keep in mind, that our justice department recently went after Standard and Poor over giving unjustly high rating to our own securities. Heh, there is that Orwellian terminology again: "securities."  That also, was a desperation move.

The answers to above questions are: yes, yes, and you. Now let me ask another question: does the US need a bailout? What will the US government give as collateral to the Chinese? Answer this one, yourself.

I don't know what the short term solution here is. It may still be a better decision to keep your money in the bank, rather than stuffed into your mattress. After all, this paper money can just as easily be "taxed" via the federal printing press. Metals may seem like an answer, but who are you going to sell your silver and gold to? If you go to some "cash for gold" store, you'll get only 50 cents on the dollar. If you use papers to buy these metals, you'll pay a premium. Furthermore, the government can simply declare possession of gold bullion illegal, like it did under Roosevelt. And lastly, unless you know how to protect your stash, this money is not any safer in your possession, than it is in some bank. Those who want it, will come and take it.

Scary times.

More thoughts on Cyprus.

This attempt to loot the deposited accounts in Cyprus was a desperation move. The whole freaking Ponzi scheme is about to fall apart. That's right folks: GLOBAL FINANCIAL MELTDOWN.