Monday, June 30, 2014

Generational Poverty Is the Exception, Not the Rule

...while lots of Americans experienced a “spell” of poverty during those years, only 3.5 percent of the population was poor for all 36 months. So how we think about poverty is all wrong: it’s a much more common occurrence than people realize and the chronic, persistent, generational poverty that features so prominently in political rhetoric and media coverage is very much the exception, rather than the rule.
...more than 40 percent of Americans between the ages of 25 and 60 will be poor for at least a year.

...poverty in the US is, in fact, a much larger problem than we think it is, and it’s one that most Americans will face.

Maybe if more Americans understood what their own personal stake is in committing to poverty reduction, they might be more inclined to press for higher wages, better access to affordable child care, more generous social welfare programs, a reinvigorated right to form a union and so on. These are not policies that benefit some group of Others, but policies that serve the majority of us. If we can’t count on empathy to improve well-being, maybe selfishness will do the trick?

Don’t fight poverty because you feel sorry for other people; fight poverty because the odds are increasingly high that you and your family will be poor someday, too.

James Steele: America's mystery man in Iraq - video

A 15-month investigation by the Guardian and BBC Arabic reveals how retired US colonel James Steele, a veteran of American proxy wars in El Salvador and Nicaragua, played a key role in training and overseeing US-funded special police commandos who ran a network of torture centres in Iraq. Another special forces veteran, Colonel James Coffman, worked with Steele and reported directly to General David Petraeus, who had been sent into Iraq to organise the Iraqi security services

8 Common Traits Of Happy People (That They Don’t Talk About)

Happiness. It’s the term thrown around more often than any other term when people are asked what they are looking for in life. A loving partner, a fun high-paying job and endless world travel are also amongst some of the most common answers, however all of these are preference-based means to the one ultimate end, which is happiness. Being so sought-after, I thought I’d comprise a list of common traits that seem to be found in happy people -and I’m talking about the genuinely happy people, and not just those who appear to be so on the surface.
By compiling this list I’m not suggesting that these are the only keys to happiness, I’m simply shedding light on some common characteristics I’ve come to find.

1. Love Themselves For Who They Are

On the surface this may sound incredibly egotistical, but by it I simply mean that they are truly comfortable in their own shoes. They accept and embrace themselves physically, they maintain their true character traits regardless of whether or not they receive approval and they work to make the best of the human experience they are living -rather than wallow in what others would define as weaknesses or shortcomings.

2. See Relationships As An Extension To, Rather Than The Basis Of The Human Experience

Relationships, whether friendly, familial or romantic, are certainly one of the greatest parts of the human experience. However, far too many of us let their presence or absence, and even more so the value we attribute to them dictate our overall happiness in life. I’ve found that genuinely happy people tend to find complete contentment within themselves, and see all relationships as the awesome extension to their self-content. It’s often when we are not looking for others to fill a particular void, or to make us feel a certain way, that most of the truest and most-valuable relationships are formed.

3. Embrace Change

Life is a constant lesson and happy people tend to be well-aware of that. Not only are they always open to change, but they truly listen to suggestions, respect and consider all opinions and take criticism constructively rather than offensively.

4. Celebrate Rather Than Compare Themselves To The Accomplishments Of Others

Jealousy is a killer, and as Gary Allan once said, “You can be the moon and still be jealous of the stars.” We are all capable of accomplishing anything in this life and are the only ones that are going to find the drive within ourselves to do it. Rather than observe and compare to those who have accomplished, the truly happy tend to celebrate it and use it as motivation to accomplish things within their own lives.

5. Never Dwell In Being A Victim

We’ve all been the so-called ‘victim’ to several things in life. Whether it be an unexpected break-up, getting fired from a job, or even something as serious as the recipient of domestic abuse. Truly happy people tend to be those who choose not to dwell in it. They choose to let the victimization strengthen them, rather than wear it as a badge of weakness or as the thing that makes them consistently worthy of receiving sympathy.

6. They Live In The Present

As fun as reminiscing about the past or fantasizing about the future can be, nothing will ever be done in anything but the present and happy people tend to realize that. Not only do they realize it, but they tend to use it as motivation to make the most of it. In addition to being motivating, presence can also come in handy for truly appreciating those moments of relaxation, allowing yourself to be truly in them, rather than projecting future concerns into them.

7. Trust That Everything Happens For A Reason

This can very easily be paired with the choice to not be a victim, but happy people tend to trust the process and existence of everything in their life. They know that nothing is ever too big to handle and choose to embrace what life is currently throwing at them rather than cowering at the sight of it.

8. They Don’t Let Money Dictate Their Lives

Nobody is denying that in this world right now we all need money to exist, and as a result many of us spend the bulk of our lives doing things that help us earn it. What I’ve found to differentiate happy people is that they don’t let money be the ultimate dictator in their life. They still make sensible choices within their means, but they never let money: A) prevent them from pursuing a so-called “risky” passion, B) be the factor that is blamed for why their life is so miserable, C) complain about how little they have. There are creative ways to do everything in this world, and seeing money as only being possible to make in the standard ways is the most crippling thing to that creativity.

9. Look Within For Solutions

One of the most powerful realizations a genuinely happy person will often operate based on is “change starts within.” The empowerment that comes as a result of not only realizing this but even more so in using it as the backbone to everything in life can be quite remarkable. There are thousands of books, mantras, techniques and practices out there that can all help us to find solutions to so many things in life, but they all require one thing to truly be serviceable: the consciousness to support them.


The Press Keep Talking The Market Down – Historically this is Very Bullish Indeed

I have warned about how the press had constantly written negatively about the rising stock market during the 1920s.  Once again, the press are now hanging on the hope that the Fed will start to raise rates to justify their bearish bias swearing the market cannot be justified at these highs. However, I have shown the evidence that a bull market ALWAYS rises with rising interest rates and declines with dropping interest rates. These people who think markets will decline because of a rise in rate repeat the same propaganda they have never once investigated or bothered to check the facts. If you think the market will rise by 25%, you will borrow at 10%. You will not borrow at 0.1% if you do not believe the market will rise at all – i.e. Japan for 23 years.
Sorry, but the Fed DOUBLED interest rates from 1924 into 1929. The Wall Street Journal accused Jesse Livermore of trying to influence Presidential elections back then for they could not understand that there were international capital flows pouring into the USA. This domestic analysis is simply lethal.
True, in the past week, James Bullard, president of the St. Louis Federal Reserve bank, told Bloomberg News that the economy was improving enough to handle an increase in short-term rates next year. The Fed fears that unless they raise rates, they will have no leverage when the economy turns down. The Fed is not entirely convinced about the negative interest rate scenario put forth by Larry Summers.
1927-Secret Cental Bank Meeting
The press will go nuts when stocks rise with rising interest rates. In 1927 there was a secret meeting where the USA tried to lower its interest rates to deflect the capital inflows from Europe that was creating a shortage there and set the stage for the defaults in 1931. History is repeating. US and UK rates will rise while Europe will go negative. This will set the capital flows to the USA and may yet create a bubble top.
If we see rising US rates, the dollar will rise and capital will flow to the USA especially when smart money begins to realize that the IMF solution is to freeze all public debt in Europe so you cannot liquidate and/or seize everything in the pension funds. Once you extend 30 day government paper into 10 year, how do you sell anything next year? These IMF solutions are made by lawyers who are brain-dead with zero understanding of the credit markets or human nature.
We may be seeing history repeat again like an old record that is scratched and cannot move forward. So welcome the press and their perpetual talking down the market. As long as they keep this up, we are nowhere close to a major high.

Sunday, June 29, 2014


What do you Want for Free?

QUESTION: Mr. Armstrong; Why shouldn’t the rich pay more taxes? You defend the billionaires at the expense of the average person. How do you justify that?
ANSWER: There are not enough billionaires to pay the bill for everyone else. Job growth since 1948 in government reached 310% in 2009 compared to 170% in non-farm private jobs. Male job growth has increased only 65% since 1948 on par with population growth while female job growth has increased about 135%. Women won the right to work, but lost the right to stay home.
The problem is NOT that the rich do not pay enough, it is that government takes too much from the economy as a whole. You can listen to the propaganda all you want and believe they will only target the rich. But they ALWAYS go after everyone. There are videos of IRS agents dragging pregnant women out of their cars leaving them on the streets and confiscating the cars. The latest is taking your money claiming some family member owed them money.
My point is not to protect the billionaires – it is to protect society from those that plunder everything we have. The only viable solution is to restrict the size of government. I disagree with the social state for it would be cheaper for just about everything to be private and far less corruption. They started the income tax swearing they were only targeting the rich – lie. Then they started the payroll tax so they could give you social security – now people pay more in SS than taxes and they keep raising the age and reducing the payouts. If you want to believe these people are honest and care about you, great. Have a nice dream. When it comes time to collect – well you will discover your entire life trusting them was wrong. Then what? You die in some ditch dead broke and nothing to support you when you can no longer work? Believe what you want. The Jews were offered free showers. What do you want for free?

Christine Lagarde – The Most Dangerous Woman in the World – IMF Advocates Taking Pensions & Extending Maturities of Gov’t Debt to Prevent Redemption

I have gone on record that the most dangerous organization is the now French led IMF with Christine Lagarde at the helm, which has presented a concept report that debt cuts for over-indebted states are uncompromising and are to be performed more effectively in the future by defaulting on retirement accounts held in life insurance, mutual funds and other types of pension schemes, or arbitrarily extending debt perpetually so you cannot redeem. Yes you read correctly, Thenew IMF paper is described in great detail exactly how to now allow the private sector, which has invested in government bonds,  to be expropriated to pay for the national debts of the socialist governments.
I have been warning that there is an idea that has been running around behind the curtain that the national debt of the USA could be settled by usurping all pension funds in the country. Here is a remarkable blueprint that throws all previous considerations concerning the purchase of government bonds over the cliff. The IMF working paper from December 2013 states boldly:
“The distinction between external debt and domestic debt can be quite important. Domestic debt issued in domestic currency typically offers a far wider range of partial default options than does foreign currency–denominated external debt. Financial repression has already been mentioned; governments can stuff debt into local pension funds and insurance companies, forcing them through regulation to accept far lower rates of return than they might otherwise demand.”
Already in October 2013, the International Monetary Fund (IMF), suggested the Euro Crisis should be handled by raising taxes. The IMF lobbied for a property tax in Europe that should be imposed where there are no such taxes. The IMF has advocated for a general “debt tax” in the amount of 10 percent for each household in the Eurozone, which also has only modest savings.
People are blind. They think this is authorization to go get the rich. They are going after everyone for the “rich” are tiny players in the game. People do not want to hear that. They want to think the rich can pay the bills for everyone else. That is not practical and even Julius Caesar recognized that they may be a small group, but they are the engine of the economy that creates jobs. It would have been popular for him to wipe out all the rich who he was against. But in the end, he had to solve the debt crisis by simply retroactively attribute all interest to capital in order to solve the debt crisis that led to the first civil war.
There is no discussion whatsoever of reforming the system. They are merely planning to default on savers expropriating their savings, but continue to borrow forever. Nobody is even bothering to look at the structure that simply cannot work.
The money people have saved the IMF maintains should be used for debt service by sheer force. To reduce the enormous national debt, they maintain that government has the right to directly usurp the savings of citizens. Whether saving money, securities or real estate, about ten percent could be expropriated. This is the IMF view. 
Because the government debt of the euro countries has increased a total of well over 90 percent of gross domestic product, they suggest that the people should sacrifice their savings for the benefit of the state. Socialism is no longer to help the poor against the rich, but to help the government against the people. The definition has changed.
In January 2014, the Bundesbank joined the IMF project focusing on a “wealth tax”. In its monthly report they had announced: “In the exceptional situation of an imminent state bankruptcy a one-time capital levy could but cheaper cut than the then still relevant options” if higher taxes or drastic limitations of government spending did not meet or could not be implemented.
In the latest June 2014 working paper of the IMF, they have set forth yet another scheme – extending maturity. So you bought a 2 year note? Well, the IMF possible solution would be to simply extend the maturity. Your 2 year note now become 20 year bond. They do not default, you just can never redeem.
Possible remedy. The preliminary ideas in this paper would introduce greater flexibility  into the 2002 framework by providing the Fund with a broader range of potential policy responses in the context of sovereign debt distress, while addressing the concerns that  motivated the 2002 framework. Specifically, in circumstances where a member has lost  market access and debt is considered sustainable, but not with high probability, the Fund would be able to provide exceptional access on the basis of a debt operation that 
involves an extension of maturities (normally without any reduction of principal or interest). Such a “reprofiling” operation, coupled with the implementation of a credible adjustment program, would be designed to improve the prospect of securing sustainability and regaining market access, without having to meet the criterion of restoring debt sustainability with high probability.
Now the June 2014 report has a new, far-reaching proposal. This shows how lawyers think in technical definitions of words. There is no actual default if they extend the maturity. You could buy 30-day paper in the middle of a crisis and suddenly find under the IMF that 30 day note is converted to 30 year bond at the same rate.
The huge national debts could be reduced also according to the IMF by just expropriating all private pension funds. The vast amount of people are watching TV shows, sports, or something other than government and they know that. The press will not report the real risk for that is boring news. Hence, where his occupational pensions exist, you can suddenly wake up and find your future is now applied as a contribution to government – thank you for your patriotism. They have successfully convinced the evil is the rich so pay attention to them and you will miss the political hand in your back pocket.
What investor can really judge what is hidden in his fund when the government is denying democratic processes and control the press?
One thing is certain: For years, all pension funds bought government bonds because they were “conservative” and “safe”. I have been warning that the threat would be the Sovereign Debt Crisis. The idea of a pension fund is really now seriously an outdated assumption that government bonds are extremely safe. And you want to even think that the stock markets are over priced and will crash? Where will money go? Government bonds again?
The IMF is an unelected dictatorship over people’s lives and it is now calling the “New profile” of the strategy for public debt must be reassessed. The paper is nothing more than an orderly liquidation of government debt – at the expense of bondholders who can be forced pensioners without their knowledge. The focus is on countries that either have no access to the financial market, or “whose debt is considered sustainable, but not with a high probability.”
The Eurozone is trying to federalize because they know what is coming. The IMF is telling them the path of options ahead but all are designed to sustain the power-base, not what is good for the people. The Euro-leaders have now given up and decided to make more debt while maintaining lip-service to savings. Thus, the Eurozone is likely to soon be directly affected by the IMF plans for when the market get wind of this on the horizon, it will be too late. For you see, pension funds do not THINK out of the box. Nobody will be the first to sell-out government bonds entirely. What if they are wrong and nothing happens? Then the manager loses their job. Even if they find themselves trapped by government either extending their maturities or expropriating all their assets, they will justify themselves as everybody else lost so they did nothing wrong.
Obviously, these ideas from the IMF would mean that if the debt is no longer manageable, then the power of government entitles them to just usurp everything to maintain the power-base. The plan of the IMF I believe will result in widespread civil unrest AFTER the fact. The mere fact that these proposals target investors in government bonds who must adjust to debt forgiveness or negative interest rates shows this is all about sustaining government power. Recently, the IMF has argued the ECB must purchase government bonds in the euro countries to sustain the Eurozone. They are like the terrorist leaders who brainwash kids to blow themselves up for the good of the cause while they would never do the same thing themselves.
It is noteworthy that the IMF imagines this haircut on private creditors as a kind of condition that bankrupt states must do to get any further loans from official creditors. Do as we direct of else. This is what the IMF is doing to Ukraine, no less what they did to Cyprus.
However, unlike private corporate debt where there are the real balances and tangible assets secured by real products and business, the IMF proposal amounts to a global nationalization of public finances, which are unsecured debt. This distinction is important. You get nothing from defaults in government debt but a portion of what remains in private debt. Because the states with the this infinite loop of perpetual borrowing with no intent on paying anything back, we are captured in a world of financing that has become completely corrupted.
The debt load of governments on a global basis is so oppressive, we are rapidly approaching not just the collapse in Democracy, but the collapse or the elimination of all market mechanisms in the public finance. If they cannot sustain the debt, default and FORCE the so many unsuspecting pensioners to surrender their future to allow politicians to live comfortably. They see no problem with people holding government debt should be punishable with massive losses, and are blame for extorting government even demanding interest.
The IMF proposal comes during the World Cup knowing that the press will not cover it much and the average person cares more about who wins what than the sneak attack upon their own lives. This far-reaching plan for the expropriation of savers, investors and retirees clearly shows the reality of socialism.


Collapse of Democracy in Europe


Merkel Congratulates her boy - Jean-Claude Juncker
In an unbelievable move, in an open letter to the next President of the EU Commission, Jean-Claude Juncker, the national MPs have called for a bigger say in EU legislation. The letter is warned that “there are indications that in the EU fades the democratic legitimacy”. Indeed, the EU Commission needs not listen to the elected MPs. It is rapidly becoming a dictatorship in Europe and the people are simply ignored assuming they are too stupid to know what is best for them. Now, 20 out of 28 Member States have signed the claim.
National parliaments are now demanding a greater say in the legislation coming out of Brussels. There is a rising tide within Europe that is against the federalization and in a join letter setting out this complaint to the next European Commission president, we are beginning to see the signs of discontent even at the political level.
The letter is warning that “Europe [needs] a new relationship of cooperation between the Union and its Member States.” To this end, the national parliaments are to be strengthened, not ignored. But in Brussels, they fear the people will reject the federalization of Europe and as such they intend to just push it through regardless of what the people think they want.
The next President, Jean-Claude Juncker, was nominated by the Heads of State and Government. He is France and Germany’s boy. Merkel and crew are selling out their own governments because they fear what will happen in the coming debt meltdown. I have explained numerous times that to cover up defaults, you need to change the system. This is what we see underway here in Europe. They are pushing even Basel IV that will be the usurpation of all control to the Bank of International Settlements and the IMF. They fear massive bank failures and sovereign debt failures and they are not prepared to reform the monetary system for fear of a loss of power. Therefore, they are seeking to usurp ALL power and create essentially a de facto communist-style state that controls every aspect of the economy. They will stop short of communism insofar as actually taking title to all property. Instead, this will be more of a fascist type state where you retain ownership in name, but they dictate what can and cannot be done. Moving to electronic currency is part of the game. They will cut off the underground economy in their eyes and force everything into the open. Spain has passed new laws allowing the taxation of bank accounts directly. This is what we see on the future after 2015.75.
This letter was signed by 20 of the 28 national parliaments and it is an open confirmation that there is a federalization of Europe underway. The letter demands that the National parliaments must play a more active role in European decision-making. Just as we see a battle inside the Republican Party in the USA, we are starting to see the same rising tide toward third-party activity in Europe. This is a major war against Democracy.

Europe Snubs Britain

Cameron David
It is increasingly becoming clear that the message to Britain is either join the euro or get out. Cameron took a stand that the EU had to reform after the rising tide in elections are clearly against the federalization of Europe that was witnessed in the UK and France. The agenda is to federalize Europe and the battle cry is now to save the Euro, everyone needs to yield sovereignty to Brussels. This real problem is that those demanding this result are all in Brussels and if the Euro goes, there goes their jobs. Hence, there is no unbiased position here and the refusal to reform at all is a serious crisis.
It is appearing more and more that Britain is going to be pushed to the limit. If they look at the laws coming down from Brussels, they will wipe out the financial sector in Britain. On the other hands, many have used Britain as the gateway into the EU for it has the lowest taxes to bring goods into the trading bloc. Talking to those in the city who are in the financial industry, they fear the EU transaction tax and the restrictions on short-selling. If you talk in the West End, those importing goods into the EU using Britain fear they will be forced to move back into Europe. Meanwhile, the international rich would probably leave if Britain went into the Euro and surrendered its sovereignty to Brussels. Then there is the Scottish vote to break away from the UK come September. The slap in the face to Cameron by the EU stands to increase the pro-separatist vote like never before.
It was made very clear – the EU basically is taking the position join or get out and they had enough of the British pound. It is time to surrender to the Euro of leave. Europe will not save the Euro nor will they reform. This is all about saving Brussels – not Europe.

It’s About Fairness

I stopped in the local Starbucks that has a drive through near the office. One person must have had a very good day and they told the server they wanted to pay for the car behind them. When the next car came up, the server informed them the car before had paid for them, yet they did not know who they were. So in turn, they paid for the car behind them. I stayed and watched and finally left after this had passed 12 cars all paying for the car behind them. A socialist, of course, would never do that. It is all about taking what someone else earns to get even with the world for their own failures.
Most of us give something at Christmas or Hanukkah for two reasons – (1) we like to see a smile of their face, and (2) it does feel good to give. You can tell a greedy socialist from the outset. They only take and give nothing back and use socialism as a scoreboard to justify themselves basically robbing other people using a pen.
School-KidsWhen my case started, Alan Cohen and Tancred Schiavoni were just ruthless. They did everything they could to hurt everyone around me. They came across an invoice for hundreds of computers and demanded they be turned over. I had bought computers for all the children in the grade school I had gone to because I felt computers would be important for the future. The school wanted to put on a big public celebration and honor me. I told them no, it had to be anonymous. The joy was knowing I was helping, not in being told thank you publicly.
Cohen-SchiavoniSchiavoni was particularly nasty and simply refused to believe that anyone would buy that many computers back in the day when they were a lot more money than today. The school had honored my request but send these photographs to show me that the children were actually using them. My view, perhaps one day just one of those students would be the next Bill Gates because they had access to something schools could not afford back then.
I had to send these photos to Schiavoni to prove some people do give back. He even checked with the school because he refused to believe me. This illustrates my point. Society does not need to be ordered to be charitable. It ceases to be charity when the administrator takes 50% for themselves. This is what government is all about. They only pretend to care, when it is about how much they can pocket for themselves.
Socialism has actually destroyed a lot. Family structure has decayed because government created all sorts of programs that sounded nice like Social Security. To implement it, well then they needed to introduce payroll taxes in 1935 toFORCE you to save. Families were bigger for it was the family unit that was important. The children took care of the parents. Today, parents have to take care of the kids because they cannot find work in the field they went to school for and are saddled with student loans they cannot even discharge in bankruptcy. The children no longer save to take care of the parents for that is now the state’s job. What happens when the state fails? This is the crisis in socialism. It has torn the fabric of society apart and the greedy people are the ones in charge.