From Bleeding to Hemorrhaging?

We are waiting patiently to see whether the “financial clotting system” will work in coming weeks, since the recent market action (to the upside) has been accompanied by record low volume for the year.

Being a “sick puppy” by nature, I am always searching for creative and useful anologies in order to help me understand what’s going on, so this morning, I thunk (sic) that we’d all go on rounds with Dr. Ure, as he diagnoses the patient which is having some financial circulatory issues presently.

Up until this week, it was looking like the patient would recover nicely and go on to new record highs. BP (bond purchases) were normal and so forth.

However, overnight (as he pulls back the covers of the patient) we notice some bleeding in the extremities.

As a resident stock surgeon, you will please flip over here to some classifications of hemorrhages, so we can be on the same page. A Class I hemorrhage is minimal loss, although 15% of blood volume is higher than what either of us would consider “minimal.”

Yet this morning, the markets are minimally hemorrhaging.

Let’s inspect the extremities:

Japan was down 4/10th’s of a percent.

But Hong Kong was down 1.2%. We will keep a close eye on that since the military is ascending in China over the civil government, and one way to fix a broken economy is to pick a fight. If that happens, watch BP (bond pressure) closely.

Our next extremities to review are victims of the train wreck in Europe called the ECB and negative rates.

The Brexit-Brits are down 1.5%, the French were down 1.9%, but the most serious bleeding has been by the Germans, who are into a class II financial blood-loss, down 2.13%. (Did we ever give them their gold back?)

Of critical importance is that the Germans have fallen this week well under the psychologically important 10,000 on the DAX, which is one of our more useful EU vital signs.

The US meantime, was looking to lose about 100 Dow points at the open, so we can begin to pencil up a diagnosis that goes something like this:

We will administer firm talk to the markets today, and parade synchophants on the talking-head circuit over the weekend. Monday, the patient may continue down into the close of about Tuesday or so.

Then, when the US Fed announces next week that rates will not yet be raised, the patient should make a miraculous recovery.

At its sickest, we will remove our short bandage and flip to a long dressing, after waiting for the impulsive first twitch following the Fed announcement and then we will buy in the short correction that usually follows.

As always, this diagnosis is only our best estimate of what should happen. Doctors never issue guarantees, warranties, or free service plans for life.

Economists should consider similar restrictions on their practice. Congress should be sued for malpractice.

We can move on to watching the vital signs monitor when will show the pulse beginning at 9:30 AM Eastern.

Crimllary Hidden?

The UK Daily Mail headlines this morning at “White House calls FBI probe into Clinton’s classified emails a ‘criminal investigation’ – to glee of Republicans – on the same day Obama endorses her.”

Email in the open about a planned drone strike?

Bernie Sanders oughta be having a mimosa for breakfast on this one.

Where is the Other News?

On hiatus. A Hiatus is located 2-inches beyond your reach. This is why you don’t get one.

A minor consumer sentiment dealy and the Baker-Hughes rig count is about all the excitement we can muster to move the monitors in the financial trauma ward. Just as well, I suppose.

The balance of what’s pawned off as “news” includes Mohamed Ali still being dead. And in the Washington Amazon Post we see how they are still writing about how to Dump Trump at the convention.

But the REAL news of the day is that there is a Kim Kardashian look-alike. Since this article came out of the UK, we have to wonder if Kim Kardashian stories will be a major distraction ahead of the June 23 the Brexit vote?

Where to Hide?

Since I will be chatting later today with the publisher of the highly-esteemed Buffalo Gap News, I have to warn him that the Urbanites are coming. This is based on the Wall St. Journal report about the Land Rush *for the rich* out in the Hill Country of central Texas.

I’ll also ask how many of those Buffalo gals really come out at night. And whether he’s interested in joining my Association of Upstart Media, pronounced AUUUMMMMMM. *(rimshot)

Guest Commentary:  Friday in the Police State / War On Cash

Oilman2 is on the mend from hip replacement and trying to make it through the latest wringing out down in Oil Parch South (Houston).  Here lately, he’s become very sensitive to the government/PowersThatBe War on Cash that we’ve covered more on the site than here…

Where we are today with cash….

I have a few thousand dollars in savings. I have a mortgage, another on some land. I own 2 cars and have another financed. That’s my ‘net worth’, excluding the silver, copper, tungsten and a bit of gold I have rounded up in the last 15 years.

From speaking to my friends, I am not atypical. The largest portion of my monthly income goes to mortgage and property taxes. At this point, one mortgage payment is $650, and the property taxes on this mortgage are $715 per month. The other mortgage is $395, with property taxes of $$100 per month.

In order to pay down the smaller mortgage principal, I wanted to take $10,000 put of savings. I asked for cash, and was informed it would be 5 working days for my multinational bank to produce this amount of $100 bills. Five days later, I was informed that bank policy required me to inform them what I was purchasing, and that if it was a physical item, they were restricted to offering me a cashiers check only. I had the cashiers check made out to my daughter. She took it into the issuing bank, whereupon they refused to cash it, but offered her a checking/debit account instead as their only option.

With savings accounts paying .2% interest and checking account service charges now at $10/month or more – the only true service the bank is offering me is a place to put my money and use a debit card against my own cash.

At this point, I am withdrawing all my cash out of the bank in $1000 increments. I vary the amount by a hundred dollars or so, as the teller informed me that repeated withdrawals of the same amount in cash were recorded due to federal banking regulations.

Last month, one of my business friends was pulled over in Oklahoma for speeding. Small town (pop 450) and the speed limit was posted as 55MPH then reduced to 25MPH in a 100 foot distance. Yes, local speed trap.   My friend refused to allow the local LEO to search his vehicle. The local LEO refused to return his drivers license and proof of insurance, and within 10 minutes the state guys showed up with a K-9 unit.

The rousted my friend and his wife from the car, removed all their luggage and searched it on the side of the road. They removed spare tire, door panels and anything else they could pry off the vehicle easily. They found nothing, but than handcuffed my friend and wife, removed his wallet and took her purse. They found $700 in cash, which they confiscated as “drug money”, indicating that their “drug dog” had indicated drugs, and that was the reason for their search.

They were never charged with anything, never arrested – but their car was taken apart and their cash confiscated.  I don’t know about anyone else here, but “highwaymen” used to pull over travelers at gunpoint or swordpoint and take their money. What is the difference between “highwaymen” and Law Enforcement based on the above incident?  Nothing – absolutely nothing.

They then removed handcuffs, issued a speeding ticket and left my friend and his wife with an undriveable vehicle and all their possessions scattered along the ditch next to the highway. They informed him that he could appeal the confiscation of his “drug money” at the county courthouse. The ticket had an appearance date 14 days from the date of their trip.

Then I read the following article:

Here is this company:

So, we have the IRS, which enforces taxation based on political necessity and has code so complex they do not understand it themselves, deep into our pockets. We have state and county governments charging more for property taxes than the mortgage payments of the home (see mine above) and no way to opt out. We have banks that will not allow you to remove your own money without jumping through myriad hoops and reporting every large transaction to some regulating agency with no oversight. And finally, we now have Law Enforcement agencies that are fully finctioning and legally sanctioned highway robbers, even down to mapping your credit card purchases and assuming whatever purpose they can imagine, in order to confiscate your cash, jewelry and vehicles.

There is no way to travel across the country without running the same risk as was present during the post-civil war period – robbery. The difference today is that this robbery is government sanctioned and abetted.

Banks now offer you a place to put your cash, but not a way to withdraw it except in purchases sanctioned by the bank or in smallish amounts. It requires me to schedule small withdrawals weeks in advance if I want to buy a used vehicle and pay in cash. The truth of the matter is that using a bank is a losing proposition – even the convenience factor has been removed. By putting your money in any bank, you support these onerous regulations and their never-ending fee structures, which they enforce by disallowing you access to your own cash – instead you must get a cashiers check, which they will not cash at their own bank counter.

I don’t know where this is heading, what other draconian means they will invent to keep our money in their pockets. I do know that I am getting my money out of banks – they offer you more risk than a mattress stuffed with cash, because you cannot get your money out and they constantly take their ‘pound of flesh’. I know that I do not take any trip with more than a few hundred dollars in my pocket. Consequently, I am taking far fewer trips and spending far less money – because the risk of being legally robbed is constantly rising.

The only way I can see to change any of this is to simply stop – to opt out of a system designed to separate you from your hard earned money at every turn. I don’t know where this will lead me, but I am determined to get out of this nasty nest of non-working and non-productive middlemen.  And honestly, I think it is the middlemen and bureaucrats that we feed that are the problem. Pick your industry – every one is rife with regulators, enforcers, requirements and managers who produce NOTHING – but they all make their living off of those of us who work and produce.

I talked to some friends in Oklahoma about this:  The reason that the law is in place is because people of Oklahoma are genuinely sick of all the drugs and troubles they bring, so it seemed like a reasonable solution.

However, as one told me, the surest way from being ripped off by police tapping into your bank accounts with your ATM card being scanned is to simply keep minimal money there.

On the surface, this might works, but there are issues with it.  For example, if you have a large sum of money and it is in a brokerage account (as an example) then you would likely never get it back in the event of a major cyber gang attack or EMP event. 

But going to cash is no good, either.  That’s because police can get a warrant on any pretext they want and then come raid your home, and in most places, but most especially in :rebel flag” country, even a couple of thousand dollars would be confiscated as “suspect” – even if you have the bank receipts showing legal and lawful withdrawals.

Then there is the matter of bank reporting.  Elaine and I will be going on vacation in July – up to Seattle to see the kids (when the eyes have recovered, so we hope) and in our usual trips plans I always include enough cash to buy gas for the return trip to Texas.  It’s not much – 2000 miles at 26 MPG highway means a mere 77 gallons, but should there be a genuine crisis, that would likely bring on price gouging instantly – and I’m  hoping $10 a gallon would be enough.

Now, in my world $750 is not a huge sum of money, but it is enough to pay close attention to.  By the time I put in for tips and miscellaneous cash deals (I am already tired of crooks double-scanning my credit card, done that dance, thanks) I am very much inclined to pay for things with legal tender.

Except:  The way event-chains have linked up, whether accidentally, or on purpose, the FRN bills that say “Legal tender for all debts, public and private” is an outright lie:  If you have more than $2,000 to $3,000 in cash – even it you have it for a lawful purpose – you can have his hijacked by LEO’s of the highwaymen stripe and there you are.

A check with my consigliore finds that the average wrongful confiscation of cash recovery action will cost $20,000, six months, and even then the outcome is uncertain.  In the event that you are not a “local” and well known in a community, and happen to drive with out of state plates, well, you’re at higher risk.

People who are innocently traveling in America shouldn’t be subject to highwaymen masquerading at police.  But civil asset forfeiture is the newest way for government to steal money far beyond the lawful purposes provided for by duly-elected representatives of the people.

A Reader Notes

It looks like my SSL cert for the Peoplenomics site didn’t get renewed…so I will have that figured up today.  Five to six hours for that, I figure and one more thing on the to-do list.

Great article in PN tomorrow on the coming collapse of shopping malls…you won’t want to miss it.

44 thoughts on “From Bleeding to Hemorrhaging?”

  1. Justice??

    Honestly, I read this and assumed it was from THE ONION, but it wasn’t. I guess you cannot make up things nearly as weird as reality any more:

    Reading in the article, the human in question is a convicted child abuser AND near-animal abuser, according to this freshly rendered court opinion.

    Also of note, I had a debt collector threaten me with ruining my credit score and sending police to confiscate my vehicle – over a debt that was a double-billing of medical charges, FROM 2002! I asked for his mailing address to send him proof of the double-billing – was informed that “thieves like you deserve what you get” before he hung up on me – at 6am today.

    I’m sorry people – with crazy stuff like this and the banks and the highwaymen, I am almost itching for actual government collapse to get rolling. I truly believe that people can sort this stuff out much better than governments and corporations.

    • This had to be a scam. It’s illegal under federal law to call at 6am, and if he didn’t give you an address, how are you supposed to pay him?

    • Did you see

      If I had a few spare bucks, I’d also buy such debt on pennies on the dollar and try to settle on a 15% payoff. Thing is, are you trying to collect “improper” billings? I am consulting for a firm now who does medical billing (biller goes through them to get to the payer). They are a mild mess in some areas and not everything is perfect – and when bills error out (say if a money value ends up with maybe an alpha character in it) then the biller may correct the error or possibly send a 2nd bill through and someone later comes back and corrects the 1st one. I can imagine how easy it is to get a double-billing even with today’s better computer systems. But 2002 – there certainly was good computer software and data checking going on as well. It’s one reason I hate going to the doctor and track all visits and ensure I get the completed EOB for my own tracking.

      You should see some of the multi-million dollar claims that go through such a system for larger issues. Many go against Medicare for older folks. Trying to keep grandma alive for another 3-months can be very expensive.

  2. I guess I wonder why people have a tendency to make things more complicated than need be.

    Forty years ago my dad decided that he wanted to go with me on a trip I was making to Europe. So he gave me a check for a thousand, and I was to purchase his plane tickets, and give him the rest of the money back in cash.

    I said, why don’t you purchase the tickets directly and take as much cash out as you want and I don’t have to be involved? But he didn’t want to do it ‘that way’, and of course his bank tried to get me to open an account with the most money I’d had up to that point in my ‘hot hands’. Thanks, but no thanks.

    Which is why I wonder why Oilman 2 didn’t just have the bank pay down his mortgage directly from his savings account? I figure ‘complicated’ anything just gives one more reasons to be ‘messed up’. (Especially since real estate could be subject to seizure anyway, and the government is the ultimate authority in regards to what happens to the ‘land of the United States’.)

    • When in doubt about the future of real estate put it in someone else’s name second party 30 party, the harder it is for them to trace it to the owner the harder it will be for them to confiscate it they go for the easy ones first like the people like all man was describing on the highway when the financial system collapses as it does now is they go for the easy targets because the Rothschilds money is no good anymore with this behind the Federal Reserve System so the system collapses gradually as less and less money is facilitated 4 Highway funds as it used to be

      • This is extremely helpful if you have hospital bills from those corrupt corporations they are out to get you one way or the other you see they hide behind the loss by deferring everything to another place and another time and that’s the only way that you can come back down until they are unveiled and put into the open where they can be removed of their clothes and says the emperor has no clothes at this particular time and everyone will know it

  3. Please ask Oilman2 to provide the name of the town involved so we can all name and shame it. We can boycott it when in Okla., since some of us can’t always avoid the state. There’s never an excuse for cops to be impolite, and if they search a car they have the moral, if not the legal requirement to put it back to exactly the state that it was in prior, unless they found something that was truly criminal(cash doesn’t count).

    Luckily, some more enlightened states(three so far, I think) have actually reformed “asset forfeiture” to require a criminal conviction, to prohibit state/fed cooperation on this, and to have all such assets go to the state general fund rather than law enforcement. It’s a beginning, but stealing property from anyone to enrich a government is morally bankrupt. The governments already hold all the power and need to use it with care.

    • Yes, please provide the name of the town so we can all put it on social media and shame them. Thank you.

  4. We (the people!) bring it on ourselves thru ‘individual stupidity’ or lack of thinking.

  5. I believe in renting a car when going on vacation, even though I never thought about Oilman’s friends incident, but if it did occur it wouldn’t be your car. Just to give you an example, the last time I rented a car it started of with a little over 300 miles on it, since it was new. By the end of the day it had a nicely smashed in front end caused by running into a herd of deer when rounding a hilly curve.At least it wasn’t my car needing repair away from home and I could exchange it.

    • Excellent advice. Keep your own car at home,and safe. Not cheap, but if something happens,not so much skin off one’s back. Especially driving through Oklahoma,Tennessee. Here in Canada people have to watch out for moose on roads outside of cities such as Quebec,Newfoundland,New Brunswick,…etc

  6. George
    Changing the amount of withdrawals or deposits to avoid federal reporting requirements is a felony. I really hope Oilman2 is a fictional character.

  7. OM–good vibe, good energy.
    AUM–not so much. IMHO…cross check with David Hawkins MD PhD

  8. I do my own income taxes. IIRC, the IRS will not accept cash for payment of income taxes. I do not know if they would accept a check. Mine now get paid electronically to the Dept. of Treasury. Which implies that, at least for income tax payments, they will not accept their own money.

  9. On those debt collectors tell them to prove you owe the bill and you “owe them. Statue of limitations is in place in this case another is they bought the old bill for penny’s. They have no legal standing so ”fear tactics are their favorite weapon. ”Oh and if anyone ever falls for the small payment monthly on the original debt, then the statue of limitations is no longer in effect and you now owe a brand new debt.I was over charged for a account and refused to pay it.10 years later different collection outfits would try to scare or embarrass me about the amount owed so I wrote down the phone number from TV for an attorney known for suing the hell out of Corp.s
    When contacted again by the “bottom feeders” I gave them the name and phone number of my lawyer. Received a letter shortly after that telling me their investigation show there may be a discrepancy of my owing the bill,and I would not be contacted again.
    You can also sue the clowns for harassment and the fact you are being hassled for a old bill. The bad guys lose in court before a judge.
    Never did talk to that attorney, damn hes good! Heh

  10. I asked one of my kitty cats what are we going to do and she said we’re going to butt heads so now you know what the future is

    • My Personal Agenda is to expand my chicken operation because as you have probably seen on YouTube on bryces lazy porch Garden I am going to expand with tomatoes and cucumbers because they expand pretty good you know compared to all the other vegetables and so they will be able to take the leftovers from that that I don’t need and feed the worms which I’m expanding with and also they will be able to feed the chickens after I reproduce a whole bunch more toward the winter time so reproduce your food and worms in the event that you need to feed your chickens and the winter and things aren’t there as you would like them to be and then also at the same token you have extra chickens you have extra eggs that way you reduce your dog and cat pill when the animal feed side and of course that increases your livelihood to heaven egg omelet in the morning cuz you got your eggs you might have some peppers and some onions growing also in addition to the tomatoes and the Cucumbers but I’ll tell you what a cucumber I fried some cucumbers and they were really good so I’m you know I’d like to try an omelet with cucumbers and a few other word ingredients to see how that goes so anyway y’all have a good day

      • Have you ever nuked an avocado it just don’t seem to taste the same I’ll tell you that try it and see if you like it

    • I know you get bored sometimes and don’t know what to talk about but you know that we could talk about the the radio and what’s on there how old is a radio or do you have powdered milk you use hydrogen peroxide do you have a face mask in case something happens have you ever use a motorcycle helmet I know you get bored sometimes and don’t know what to talk about but you know it quick to talk about the the radio and what’s on there how old is the radio or do you have powdered milk use hi truck hydrogen peroxide do you have a face mask in case something happens have you ever use a motorcycle helmet do you have a picture on the wall the one do you think will survive at all do you like peanuts do you have a radiation meter what kind of coffee do you like will your refrigerator hold everything you need what kind of glass you got on the wall and your window what kind of heat do you use

      • What kind of place ‘have’ you come from@. Have you ever strung 2 sentences together bro for the fun of it++++ Do you ever get bored cause I am bored of you put putting along like a bicycle without a brain #.

  11. In RE: Oilman2’s narrative, I have no doubt the OHP drug dog gave a positive on his friend’s car. The money itself will do this. It is virtually (perhaps completely) impossible to find a $20, $50, or $100 FRN, even a brand new one extracted from the middle of a sealed bundle (see Mythbusters), which doesn’t test positive for the presence of cocaine. For years I have ignored the snickers of the street druggies looking for validation for their habit, and wondered if the real reason FRNs test positive for coke is because the Fed’s (revised in, I believe 1981) linen formula actually contains some form of the drug…

    There is no solution: Keep it in the bank, it can be controlled, regulated, confiscated, or evaporated; keep it at home, it can be confiscated at any time and, reeking of drug sign, can justify a search so thorough the cops tear out your walls and floors in an open-ended search for anything, the possession of which might indicate a crime, the ability to commit a crime, or the intent to someday possibly commit a crime. I don’t fault the cops, because they’re enforcing existing statute as directed by the pols, neither do I hold them harmless in a situation such as this, because police can conduct themselves in a civil, respectful manner. These, obviously learned their bedside manner from Stasi training tapes…

  12. after reading all the comments today I can easily understand why this country is having such problems. But cheer up — people like these will get things a lot worse very soon and they all deserve it! As my buddy George Carlin always used to say “Garbage in and garbage out!”

  13. the speed trap in question likely could be Hulbert, oklahoma..

    about 50 miles ssw of Tulsa on Hwy 51..
    halfway between Tahlequah and Waggoner..

    exact profile of their M.O…they have no other funding source and have ticketed @ 2 mph over limit..

    • I visited Oklahoma once for a week.. it was way to long and I won’t ever go back.. the attitude and cultural shock was to much for me to understand.. OH but on a good note.. no matter where you go to eat.. they make the best beans.. and where the bombing was is by far one of the most reverent sites I have ever seen..

  14. I have a modicum of sympathy for oilman2’s friends who got rolled by the police in OK. What happened to them is not right… but in a way they got what they asked for.

    Your generation sold us out for the illusion of safety, for the canards that it’s “for the children” and “for the war on drugs.” Now you’re upset that the chickens have come home to roost?!

    • THEY didn’t ask for it. Some corrupt politicians and opinion makers from the Boomer and Greatest generations made all this noise, and the associated laws. The illusion of “safety” started with “Unsafe at Any Speed”, by Ralph Nader. The “children” nonsense has always been part of the liberal agenda. There’s never an excuse for working for an extortionist/terrorist organization as this PD apparently is. “Just following orders” didn’t fly at Nuremburg, and doesn’t fly now. BTW, police K-9 dogs are taught to alert on body language from their handler, though many will deny it. That’s true even without the cocaine residue in money, and pot residue in damn near anything.

      • Thanks, Mike, Ragnar has that little arrogant attitude of pitting all the baby boomers in the same ring. We didn’t sell anyone out, disgusting generalization!

  15. I think your market prognosis for next week is going to be a home run. I may step in late Monday or sometime Tuesday though. I’m looking for some divergence in the technicals I watch for a signal and of course the volume trend as an indicator for supply and demand. I like watching the short term volume (time and sales) on the options market for the S&P to give me hint on trend changes. Big players (smart money? Manipulators? PTB?) tend to expose themselves when they plop their fat orders on the table.

  16. Holy Crow! From the linked story about central texas land rush:

    “After a yearlong search, Amy and John Miller built a 3,000-square-foot ranch-style home on 2,700 acres that overlooks a spring-fed creek in Vanderpool. The couple paid $9 million for the land in 2008 and $3 million to build the home in 2012. The home’s kitchen and living area have sliding panel walls that open up to the outdoors. “You are hearing nature even though you are in the house,” said Ms. Miller, a 48-year-old stay-at-home mom. Mr. Miller, 57, is a geophysicist.”

    What geophysicist is making this kind of coin unless they either have solid family money or are working as a high-up for oil names? Maybe he bought some hot stocks in the 2001 timeframe and held long. But sheesh.

  17. tell us again, George, why you do not expatriate and take your internet based business offshore.

    My son recently said, “I know you don’t like the government in the USA….” I told him actually, I thought the USA had the government that the people living there deserved, and that at the looks of this election, they were going to get even more of it!

    • What a joke you are. No, we have not got what we deserve, we got what the globalists paid for and what the sell outs got in their coffers. If you are intimating it is time to throw the bums out, that time is coming. Too bad you won’t be here for the FUN! But, for sure, it WILL affect your arrogant self right down there in Ecuador; we expect reports for as long as you can send em up. If we go down, you go down.

  18. Dudes, really ? It isn’t that hard to solve the problem of what to do with the money – BUY !

    Pay off the notes, add to your land holdings, rotate the stock in your pantry, build a real nice barn/chicken house, plant your land holdings in re-sustainable crops, give to local food banks, give to friends/family that will give back in some form or fashion. Creating a “pantry” for your mechanical devices would also be a good idea.

    As I’ve said before, if you keep participating in their games then they control you. The FRN is one of the biggest lies in history, and if you depend to strongly on it you will suffer when TSHTF.

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