My friend Wally, whom I haven’t heard from for years, introduced me to the old saying “Screwed the Pooch and sold the Pups…” around 1999, or so. You can follow the notion, probably.
So, our first point is that America (land of the Pooch) is maxed on wrong-headed solutions – promoted only because they are “easy monetization’s.” Which is systematically “painting [Once Great] us/US into a corner.
Led by ever-more appeasement of the leech classes – and not looking to improve their lot and instead feathering their own nests – the collected dim-wits in Washington will sign anything put before them for a price. Usually without reading it.
This morning, a tromp through assorted “Realities.” And it’s a hard lesson in self-delusion, denial, and Bubble Spotting.
We will keep this simple. Because a lot of people don’t share our fascination with short-term stock trading.
The Big Picture is that America has been in a growing stock (and money) bubble since perhaps 2003, although arguably the basis may be Nixon’s unplugging the US from the Gold Standard in 1972.
When we gave up stated convertibility, it took the reins off D.C. and things like inter-agency debt (a form of govt. check kiting) could be applied to “holy concepts” like Social Security. The “money” may still be there, but convertibility to tangible assets worth a certain amount is a wet dream. Trust fund? Joking, right?
In its place, America is running on Made Up Money. This foolishness is promoted by socialist “economists” who couch their crap with explanations and excuses. Like “Well, if Zimbabwe had only done it THIS way…” or like “What Venezuela failed to do was…” Praises of Cuban, Fidel, and Che… (AOC means Another Onslaught of Communism.)
How This Impacts You
One year ago this morning, our Aggregate Stock Index stood at 28,880.
This morning using the same calculation basis, the Aggregate stands at 36,242.
Put in terms the One Percent understand, the Market is UP: 25.49%
But now, let’s think about this officious number for a moment:
- Are more Americans working such that specious gains of 25% could be rationalized? No.
- Has there been a breakthrough tech that is powering higher stock prices to come? Sorry.
- Is America returning to the fore as a World Leader with Energy Independence? AYFKM? With Joe the Pipeline Destroyer and best rail tanker car salesman in history? Uh…umm…NO.
- While O’Biden is killing energy independence did you notice where Kremlin Says U.S. Should Focus on Texas Instead of Nord Stream 2? If U.S. can’t build pipelines, Russia and China won’t be hampered (or so stupid). But, Mr. Railroad didn’t bankroll Putin, did he? O’Biden is killing oil and natgas just as surely as Obama killed coal. Power and control. The noose tightens.
- If warming was real we wouldn’t be in the dark and cold, now, would we? And yet the climate change push is continuing in articles like this one. ViseGrips, please. Fact-free and emo-driven.
What is presently powering the Bubble is Made Up Money.
We owe far more to third parties than our entire Gross Domestic Product. It’s at dangerous levels. Levels that have led to bail-ins, and the like. Anyone else cogent enough to recall Cyprus?
We are spending our free processor clicks trying to judge when to move our meager savings into government bonds which (TreasuryDirect.gov) may be one of the few capital pools that doesn’t get smashed. Because when countries default on their own debt, that can set off other problems – like global War.
Notwithstanding, we would not be surprised to see this outcome. Terrible though it will be.
10-million Americans have run out their job prospects and 40-million (and more) face foreclosure.
That sound like a solid “investment” or a Ponzi Scheme?
Meanwhile: Bitcoin Idiots
Since the U.S. dollar not longer has stated convertibility, where does one put money? For people who believe normalcy bias, cryptos have been the latest hot money game in town. This morning BTC is $51,356.
However, we would wryly note that a BTC only works if the grid is up. In Texas and Snowklahoma this morning, maybe not such a hot ticket.
ANYONE WHO USES CRYPTO IS A CLIMATE-WRECKER. Politicians lack the guts (OK, and brains) to tell you this simple truth and ban it.
How many megawatts of energy do we want to piss-away into making up “secret numbers?”
Skip the mining and just go make them up! Blockchain is just another buggy whip waiting for history. Killing power along the way…dandy, huh? Blockchain is a “use once” number…nothing more, nothing less, and nothing to believe in any more than tulips.
ERCOT – The Good, Bad, and Ugly
The Good: Since my raving session about the Electric Roulette Council of Texas this week, the power (remarkably, and thank you) has come on and stayed on.
The kitchen temp this morning is 74 and the gas has not been running much. We ran dishes last night and all laundry is done.
Still, the neighbor up-hill from us brought over a stack of paper plates. One fine point of forced downscaling that doesn’t need the rocket stove and chunk charcoal to boil dish water. Please make a note of it: For week-long problems, paper plates and plastic dinnerware has its place. Much more appreciated.
The Bad: Talking with Oilman2 Tuesday was enlightening. He told of how ERCOT was behind the move to force major pipeline operators to remove the natural gas-fired pipeline pumps and replace them with electrically controlled units.
The Ugly: This is at least the second time around for ERCOT (whose employees donated more to the demagogues than repugnants by a better than 2:1 margin, if it matters). They were in butt-covering and crisis mode in 2011, notes my consigliere when they made promises like:
“The planned projects included in this report are estimated to cost almost $8.7 billion over the
next five years and are expected to improve or add 6,693 circuit miles of transmission lines and 17,336 MVA of autotransformer capacity to the ERCOT system. These totals include that remaining unbuilt portion of the CREZ additions that are slated to be in service by 2013.”
It all sounded so good. Except, here we are.
Apparently, the Big Money Energy Crowd (think Enron) didn’t want to spend the money required to be part of the National Grid.
“Free Market Solutions” is a common Texas rally cry. But, people forget “You get what you pay for” and in this case, the “least cost bidders” are “open markets” are about to stick Texans with power bills of thousands of dollars.
“You know, it was ERCOT that mandated electrical control of the nat gas pipelines, right?” reminded Oilman2.
Yep. Power Mad World
We have warned you repeatedly that there’s not enough news to go around what with Trump gone. At some point that monetization ends.
In it’s place? In Australia, Facebook is barring users from sharing news on the flat-form. This is all about making digital platforms charge for journalism.
We’re eyeing this as a possible “beginning of the end” for runaway social media which has become cancerous.
“Talent on Loan from God” – Rush Limbaugh passed away. Not sure what will be listened-to in the American heartland on local radio, now…
Shades of the Moody Blues “Breathe Deep, the gathering gloom…” as Feds seize more than 11 million fake N95 masks.
Strategic Relocation: Although Elaine and I looked long and hard at Arizona 20-years ago before settling on Texas, that looks to be a good call as here we go again: Democrats to unveil Biden-backed immigration overhaul bill. O’Biden will rubber stamp anything. We pity anyone who doesn’t see the strategic attack on White America as co-equal with the injustices done Black Americans and other PoCs (People of Colors). And vote with their location choices accordingly. In Texas, people are still people…and not political monetization’s. As much, anyway.
Thing is: We still understand what the word Border means.
Options Week Madness
Earlier, stock futures were down, again. Before the fresh jobless data, Dow was down 88 while the S&P was down 16. My, tech isn’t doing so hot, either.
Here’s how the weekly unemployment filings went:
Just remember, as always two things: First, the unemployed number is horse plucky in that it only covers people who haven’t run out their benefits, year. Second thing is my weekly rant bout the use of Seasonal Adjustments – which is why the yellow highlighted data matters most.
Here – have some housing starts with that:
Incentives In Life
I think I told you my favorite bricklaying story, some time back.
It was 1974, and the Ex and I have just purchased a brand new four bedroom, three bath, greenbelt, view, well-made home 15-minutes from Microsoft HQ. $43,850 which today is north of $800K.
Since the basement was unfinished, I decided to bring in outside air through a brick hearth that would hold a Lopi fireplace insert.
The motivation to get the bricks laid was to put a cold beer at the far end of the hearth. Lay brick like mad, drink the beer. Rinse and repeat. Sure, a slight “wobble” to the face of it, but still, got ‘er done in no time.
Which is Mentioned WHY?
Because the Ure clan has always been Big on incentives. We are slavishly hard-working people. But – and this goes back to being a kid and Pappy was rowing all over Elliott Bay in Seattle chasing King salmon. In the tackle box was always a Hershey bar with almonds. On several occasions – rowing in modest chop and an outgoing tide – he would pop open the tackle box and eat the Hershey bar for enough energy to row us safely back to the boat house. This was when Haury’s Boat House was out on Alki Drive in Seattle. Demolished for “progress” in 1984.
[Dick Wagner, who I used to rent a cat boat from down on the Ship Canal decades back, has a good article in a back issue of the Center for Wooden Boats ) “The Mystique of the Boat House” over here several pages in…]
Well, to make a long story longer, the point Pappy taught was that hard work deserves Big Rewards.
So there we were…power finally came back on here in Texas…and I whipped out a loaf of frozen white bread.
After a good thawing and rise, it was some of the best bread we have ever eaten.
Thus ends this morning’s Superior Prepping Point: When the worst is passing (OR PAST) you roll out the rewards for a job well done.
For some, this will be roast a bowl, for others and handful of gummies. Or, here in Texas, a home-baked premixed frozen loaf. Swimming in honey and butter, few things are so savory.
On that note, off to the kitchen to whip up a light breakfast: chicken fried steak with pan gravy, hash browns, some of the aforementioned loaf, toasted, couple of eggs over easy, black cherry juice, and a splash more coffee.
It will be a busy day: “The Biggest Lie in America” needs to be written on the Peoplenomics side of the house.
And Elaine needs to get up and walk about more.
BTW, as we were cracking one-liners (at 1:30 AM, lol) question came up whether any couple in America has named a female daughter Ester-Jenn….
Dow futures after the numbers down 140 and S&P down 20.. Gee, is someone else figuring this out, too?
Write when it thaws more,