The Lives Of Americans Are Now Under The Control Of Their (Fascist) Superiors In Washington And Wall Street

There are probably 51 weeks a year when I wake up thinking “Thank goodness, it’s Monday”. But I will admit that, this week, I thought to myself that it’s a good time to take a break. To see the whole picture, ‘the rest of the story’ (as I pointed out last evening), its best done by stepping back.

Last night I got more sleep than I have had for weeks. In bed at 9:30 and up at 5:30. And when I awoke, believe me when I say I had one thought in mind: Stimulus 2.0. Washington, you see, doesn’t understand the natural trends and cycles of capital markets, nor do they give a whit. They think politics is the solution, which is why government is growing bigger, and bigger and bigger, and in the process getting more self-absorbed and the Beltway further removed from Main Street.

Believing they can get the job done, we are hearing too much from Obama, Pelsosi and Frank, and not enough from entrepreneurs and small business owners, who are the ones who employ 80% of what Washington refers to as the employable. When the people from Main Street speak up at Town Hall meetings, they are ignored or, worse, referred to as extremists, which smacks of fascism.

Whether or not it’s good for the US Dollar, good for future interest rates, or inflation or taxes, we are going to get jammed with Stimulus 2.0. And just like Paulson’s Folly took the equity market higher - probably 3000 points on the DJIA index - and further - about 15 months longer in a cycle that had already peaked when Paulson moved from Goldman Sachs (GS) to his White House job as Treasury Secretary - we are about to see the 2.0 version.

To me, this is insanity, but I think when you read the current Wiki description of the new Treasury man, Teflon Tim, you will immediately see why Main Street is being dismissed.

Timothy Franz Geithner (pronounced /ˈɡaɪtnər/; born August 18, 1961) is the 75th and current United States Secretary of the Treasury, serving under President Barack Obama. He was previously the president of the Federal Reserve Bank of New York… Geithner’s position includes a large role in directing the Federal Government’s economic response to the financial crisis which began after December 2007. Specific tasks include directing the allocation of the $350 billion of Wall Street bailout funds. He is currently dealing with multiple high visibility issues, including the survival of the automobile industry, the restructuring of banks, financial institutions and insurance companies, recovery of the mortgage market, demands for protectionism, President Obama’s tax changes, and relations with foreign governments that are dealing with similar crises.

Life in America is now all about politicians telling the people what’s good for them, which is that bigger is better, more power in the hands of politicians is better. The mind boggles when puppets like Fed head Ben Bernanke lie to our faces that he is going to take actions to firm up the dollar - because a stable dollar is the Fed’s mandate.

Look, the Fed has no mandate other than to protect its banks. A stable dollar, which means a stronger dollar, would cause the banks to fail. An unstable dollar is the result of a zero Fed Rate, Discount Rate and market T-Bill rate. The wealth of old people who rely on fixed income (at very long-term average interest rates) is being destroyed. Big corporations have walked away from their pension funding obligations, and they have stolen the worker’s pension money as well, so the financial position of the workers has been severely damaged. The only people doing well in America today are those in politics or in government jobs.

What is the solution? These politicians are telling us Stimulus 2.0, and in their usual back-handed fashion are telling us it is not going to happen. Bernanke too is telling us a weak dollar will not get weaker. Well, they are all lying. Whether they think it’s a white lie or not, it’s a lie.

If these Interventionists want the DJIA index back to 14,000 in a year or two, that’s what will happen. Prudent investors will have missed the boat. Who will care about a market PE multiple at 30 if the Wall Street analysts have a consensus agreement that such a ridiculous number is ok? We’ll be told that Obama is the Miracle Man.

But, then, we are dealing with fascists aren’t we? The lives of Americans are now under the control of their superiors in Washington and Wall Street.

This weekend, I will be reading the Stimulus 2.0 Playbook - the marching orders for America. Whether I like it or not, I have to play along. But the minute these fascists impose a Trader Tax on me, I will be directing 100% of AuM capital to other markets.

You see, these people in Washington and Wall Street do not know what’s best for those of us who value freedom above all.

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Comment by DJ

2009-10-23 08:14:49

Right on - and it’s only going to get worse with Obama 3-card Monte double speak - he’s moving us rapidly to the European world - a very wealthy class and the remaining majority serfs. What’s even more scary are the idiots in the financial press and media - like the morons today asking Bernakne to make consumer educational videos. America is being run and represented by grade C silver-spooned Ivy League greedy idiots that have zero scruples or a sense of public service. The feeding at the troughs is beyond comprehension. Nuke em all like the cockaroaches they are.

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