The News

Today it occurred to me. I am happy about the recent turn in news coverage in this country. The economy has taken a good tumble and now Uncle Sam is getting ready to kick it while it is down. The catch is he will offer a hand up while he plans his next kick.

While I disagree with many about the correct course of action, I find economic policy fascinating. It was just a few short months ago when the media started to focus less on international issues (e.g. Iraq) and more on domestic issues (e.g. the U.S. economy). I am elated. Economics is interesting, impacting, and challenging. It as about time we focused more on our own problems at home rather than abroad. In fact, the financial crisis may even for an end to a war that has become a tedious, fruitless endeavor.

Personally, I support the do nothing approach. Let us allow the market to function. If the market collapses it will eventually rebuild at a cost to the investors who took the risk. Not me. I am not concerned about people who invested blindly. It is your money and there is risk where there is opportunity.

And to my earlier point: Crude Oil Has Biggest Gain Ever as Dollar Drops Against Euro

Just as I suspected, energy and food prices are shooting through the roof. This is not rocket science. The problem is we have buffoons at the helm of this ship. This makes me want to revolt. I should have know, with all the idiots in this country, that they would eventually try to destroy the financial prosperity we all enjoyed over the last decade and a half. This thing isn't even close to over either. Brace yourself. McCain is insane, and Obama seems to becoming more and more deceptive (e.g. FISA). We cannot trust either man. I honestly think the most qualified presidential candidate, based on the current economic situation, is Ron Paul. If that caught your attention I dare you to argue with me.

Investors looking to hedge against the dollar's decline earlier this year have helped lead oil, gold, corn and gasoline to records.

Sept. 22 (Bloomberg) -- Crude oil climbed more than $25 a barrel, the biggest gain ever, as the dollar weakened the most against the euro since January 2001, boosting the appeal of commodities as a hedge.

Crude oil for October delivery rose $18.05, or 17 percent, to $122.60 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Futures climbed as much as $25.45 to $130 a barrel, the highest since July 22.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPhXLrPjePjQ&refer=home

Dollar Devaluation

Well, the market is dropping again today and I suspect consumer prices may turn around and start rising again after one month of slowdown. We can thank the government for taking on more debt which in turns makes our currency less valuable. I suppose I am in a decent situation since I owe so many of those dollar my debt is actually contracting. But, that is only true relative to the rest of the world so I either need to move or start asking for my paycheck in euros or maybe even pesos. We'll have to see how bad it gets. I am sick of paying for other peoples mistakes.


http://www.bloomberg.com/apps/news?pid=20601087&sid=aBHEzyX6N2Rk&refer=home

Spellcheck Insight

Another random side note, have you noticed spell check picks up Obama and suggests Osama? Coincidence? I do not believe in coincidence. Not to say that he is a terrorist, but at one point, and still to some people, Osama is a revolutionary--a maverick. All I mean to say is people should think carefully before lining up behind any candidate. I wish more people could, or would, think for themselves. But, I digress; a lot today, it seems.

Is that last sentence legit?

Wreck Less Regards

As a side note, I am infatuated with the word reckless. If things made sense in this world is would be spelled wreckless. But, that wouldn’t make sense either since it would imply a lack of wreck, right? Well I know that wreck less definitely implies a lack of wreck. The bottom line is our language is a big sham, but I still love it.

McCain Says He Would Fire SEC's Cox If President

This man is possibly a better liar than Bush. I love the claims that he makes; especially when they conflict with his previous positions. I can't wait to vote for this man and ride the top of the wave to the demise of this fair land. Let us all hope for a cultural to develop where I am a pirate of sorts. I shall roam the earth piecing scraps of metal together to build weapons and wandering down abandoned highways to loot. For this first time in years I am starting to get excited about the direction this country is taking. Anarchy, or even a feudal system could work out well for me. There is just something magical about becoming a rogue nomad in a world with no legal recourse.


McCain Says He Would Fire SEC's Cox If President

Technically, the president can't remove Cox from the five- member SEC against his will, though Bush can pick one of the other four commissioners to serve as chairman. The SEC commissioners are appointed for fixed terms. Cox's term runs until June 2009.

The Arizona senator, while not naming Cox, said the SEC ``kept in place trading rules that let speculators and hedge funds turn our markets into a casino.''

``We cannot wait any longer for more failures in our financial system,'' McCain, who has supported deregulation in the past, said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZurn_3dmJjg&refer=home

U.S. Economy: Pending Home Resales Decline More Than Forecast

About time...
Wachovia Corp. in June stopped offering option adjustable-rate mortgages, which let borrowers skip part of their payment and add the balance to principal. Chief Executive Officer Robert Steel said today the Charlotte, North Carolina, bank next year will cut $1.5 billion of expenses as it's ``tapping the brakes'' on risk.

Can you say prices need to drop significantly to find equilibrium in the market?
At the July sales rate, it would take 11.2 months to sell all the houses on the market, about twice the supply that reflects a balanced market, according to the agents' group.

Obviously they prices were too high. Eventually market forces. Even government intervention can only delay and exacerbate problems.
Home prices in 20 U.S. metropolitan areas fell in June by 15.9 percent from a year earlier, the most on record, the S&P/Case-Shiller home-price index showed on Aug. 26.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZFgAxUK63y8&refer=home

Fannie Mae, Freddie `House of Cards' Prompts Takeover

Preface: This information started to leak out over last week and I am have been enraged for a few days now. I thought it might happen, and I maintained a healthy fear of it. I hate paying for other people's mistakes. I also despise expansion of government control and regulation.

If you aren't already aware Fannie and Freddie are going to be taken over by our increasingly overbearing big brother--the government. And, if it hasn't occurred to you yet, the write downs--aka losses due to defaults--will more than likely be capitalized into our national debt since Fannie and Freddie are quickly running out of assets. Awesome! Then I can pay for other people's poor decisions. I hope we go into a deep depression. Maybe people will then realize how messed up this country is. I am not worried anyway because I will survive and thrive. Besides, unemployment, starvation, riots and looting could be interesting.


Fannie Mae and Freddie Mac used accounting rules that created a ``house of cards'' as the housing market descended into its worst slump since the Great Depression.

Fannie counted $20.6 billion in so-called deferred tax credits toward its $47 billion of regulatory capital as of June 30, according to company disclosures. Freddie applied $18.4 billion in deferred-tax assets toward its $37.1 billion in regulatory capital in the second quarter.
Fannie and Freddie have posted four straight quarterly net losses totaling a combined $14.9 billion and have said they anticipate more. The tax credits don't have any value unless the companies are generating profit.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYidZnvS7ykg&refer=home

McCain May Privatize Fannie, Freddie; Obama Sees

Another example of slighlty better economic policy from McCain. I get tired of people complaining about Obama's lack of foregin policy. What about economic policy? Strong economic leadership is what this country needs.

John McCain and Barack Obama agree the Treasury needed to step in to rescue Fannie Mae and Freddie Mac. They disagree over how much the U.S. government should be involved in the housing market once the immediate crisis is past.

Republican Senator McCain of Arizona wants the government to take over the two agencies, split them up, and then exit the mortgage-finance business by selling them off. Democratic Senator Obama of Illinois is suggesting a more lasting federal involvement.

http://www.bloomberg.com/apps/news?pid=20601068&sid=a1ujoLiLLz78&refer=home

Song of the Week (9/13/08)

Atmoshpere - Trying to Find a Balance

Bubba is a Genius

When the temp is up and you have been hiking all day without drinking any water and need to get cooled down quick, take a tip from bubba.

Speaking of Guns...

A friend of mine is planning to purchase a gun soon. He knows the government is no tlooking out for him so he is ready to excersize his second ammendment right. That is if anyone recognizes the constitution in this country anymore.

The following story may persuade you to reconsider your vote; as if my banter about the predetermined election has not already. Besides the fact that the election will be rigged, here is another reason you might consider voting for McCain / Palin.

Obama refused to sign the Heller brief, and supports reinstituting the Clinton gun and magazine ban. He also supports Ted Kennedy's bill to ban semi-automatic handguns in the guise of "micro-stamping," and supports banning inexpensive handguns as "junk guns." Sen. McCain's running mate, Alaska Gov. Sarah Palin, is a NRA Life Member and hunter who says, "I support our Constitutional right to bear arms and am a proponent of gun safety programs for Alaska's youth," adding "I have always strongly supported the personal use of fish and game by Alaskans. I grew up hunting and fishing in Alaska, and I am proud to raise my children with this same uniquely Alaskan heritage."

To put it simply, Gov. Sarah Palin would be one of the most pro-gun vice-presidents in American history, and Joe Biden would definitely be the most anti-gun.

http://www.nraila.org/Legislation/Federal/Read.aspx?id=4156

Discounting Costco to Wal-Mart Signals Surge on Sales

It is interesting that their has long been a relationship between Costco and Wal-Mart stock price movement. They are both discount retailers, so it makes sense. With Americans straped for cash and bleeding benjamins at the pump, it may be time to go to Wal-Mart and Costco and take stock in them as well.

If I wasn't buried in debt, I would purchase some Costco stock.

Sept. 3 (Bloomberg) -- Costco Wholesale Corp., the biggest U.S. warehouse club, may have its best holiday-shopping season since going public 23 years ago because most U.S. retailers are preparing to have their worst since 1979.

Over the next 12 months, that will change with the warehouse chain likely to outperform the world's largest retailer [Wal-Mart], gaining 27 percent to $85 a share, according to estimates by Edward Weller, a ThinkPanmure LLC analyst in San Francisco. A surge in the stock would follow an historical relationship between the two chains' shares, based on data compiled by Bloomberg. Costco lagged behind run-ups in Wal-Mart at least four times in the past four years before rallying to surpass it.

Costco's price-to-earnings ratio of 23 is ``low compared to where they've been historically,'' said Patricia Edwards, a portfolio manager at Wentworth Hauser & Violich in Seattle.

http://www.bloomberg.com/apps/news?pid=20601213&sid=a0AFVOR4NeYI&refer=home

Palin Steps Forward to Fill In Blanks as National Candidate

Now I know for sure that she is a weak candidate that will make a lousy VP.

``America will have a strong and principled vice president,'' Bush said in a speech delivered via satellite from the White House.

Then, there are the increasing examples of her questionable actions. Looks like her and McCain will win for sure because no one pays attention to this. All they seem to care about is her gender.

Palin's reputation as an agent of change rests on her record as governor. She says she broke with the ``old-boy network'' by facing down oil and gas companies over energy development and tax rates and canceling a project to build a bridge to an island with 50 full-time residents. That project, dubbed the ``bridge to nowhere,'' was to be funded by a $223 million federal budget earmark that became a symbol of congressional spending excess.
In fact, Palin supported the bridge while running for governor, telling the Anchorage Daily News on Oct. 22, 2006, that she would continue state funding for it.
Veco Money
She also accepted $5,000 in campaign contributions in 2001 from executives of Veco Corp., an Anchorage-based oil-services company, when she was running for lieutenant governor. Veco is at the heart of a federal investigation of alleged political corruption; two executives pleaded guilty last year to bribing state politicians.

http://bloomberg.com/apps/news?pid=20601087&sid=aXRFPlbM7wuM&refer=home

Credit Card Bond Spreads Reach Record Over Benchmarks

Silly Americans, you cannot prosper while drowning in debt. Oh wait... there is always bankruptcy. Go ahead, spend away and let the investor eat the loss. They can spin it as write down and charge new borrowers a higher interest rate. Besides, you don't need good credit if everyone defaults at the same time. You credit score will still be relatively good.

I was taken back slightly as I read the following lines. Consumer debt is $2.59 trillion. That is about 1/3 of the national deficit. Without doing the calculation, I estimate that is roughly $10,ooo in debt for every man woman and child in this country. It would be interesting to find the per capita income and then derive the percentage of income paid out in interests each year. It kind of seems like share cropping all over again. History repeats itself in mysterious ways.


U.S. consumers borrowed more than twice as much as economists forecast in June. Consumer credit rose by $14.3 billion, the most since November, to $2.59 trillion, according to the Federal Reserve.

http://bloomberg.com/apps/news?pid=20601087&sid=a2qvrELyaqmA&refer=home

Song of the Week (9/6/08)

Aesop Rock - How To Be A Carpenter

This song is dark and mellow like a fine chocolate. It appeared on Aesop Rock's second album: Float (1999). Like usual, the lyrics are deep, unorthodox, and riddle with satire. Dreams are easily crushed by the people who want to tell you how to do it. Think it trough. Commit to it, buckle down and get it done. This is inspiration to the "people who keep an impressive wingspan even when the cubicle shrink (None Shall Pass 2008)."

"know your limits only to break your limits. Are you listening? God dammit boy, pay attention!"

"Dream away the blame pain, yeah but it seeps through the cracks,And drips from the ceiling and smells the rich scent of my tracks.All I ever really wanted was a jungle, and a jungle I got,See it ain't the vision it's the plot that makes me stop."

Song:
http://www.youtube.com/watch?v=9W2SbJbR6ys


Lyrics:
http://www.musicsonglyrics.com/A/aesoprocklyrics/aesoprockhowtobeacarpenterlyrics.htm

More of St. Paul via I-Witness Video

I-Witness Video uses video to protect civil liberties. We probe police actions at First Amendment events. I-Witness Video has uncovered perjury and abuse by police officers and prosecutors, revealed illegal police surveillance and exposed official lies.

http://iwitnessvideo.info/blog/index.html

Twin Cities: Police State

Blogging about blogging that blogs about blogging is ridiculous, but this is well wroth the read. I can't stand it when the government takes away our rights.

Twin Cities: Police State

via ACLU Blog: Because Freedom Can't Blog Itself: Official Blog of the American Civil Liberties Union by Suzanne Ito, ACLU on 9/2/08

Scary news has been coming out of Minneapolis since Sunday, where police have been
raiding homes and making mass arrests. Glenn Greenwald has been all over the story. He writes:

Beginning [Sunday] night, St. Paul was the most militarized I have ever seen an American city be, even more so than Manhattan in the week of 9/11 — with troops of federal, state and local law enforcement agents marching around with riot gear, machine guns, and tear gas canisters, shouting military chants and marching in military formations. Humvees and law enforcement officers with rifles were posted on various buildings and balconies. Numerous protesters and observers were tear gassed and injured.

U.S. Manufacturing Contracting

Good news. Manufacturing in this country is now over the threshold and officially contracting again. Now we can all get moving towards a service based economy where there are a few super elite and the rest of us serve them for minimum wage and tips if we are lucky. It is just like slavery, but it will be legal. The future of this country looks bright.

http://www.bloomberg.com/apps/news?pid=20601068&sid=aZefCZbvH2lM&refer=home

Intructables: Portobello Mushroom with Grilled Feta Burger

Instructables is a fascinating website where people create instruction to build stuff. I use stuff as a loose term because I have seen everything from computer tutorials to custom bikes to usb soda coolers and now to food. Many of the food instructables seem questionable, but this one looks appealing. I will be trying it tonight and reporting back.

http://www.instructables.com/id/Portobello_Mushroom_with_Grilled_Feta_Burger/

Oil is Moving Down Again

The Price of oil is dropping again. Right now it is hovering around $107 a barrel or about $2.79 a gallon for gas at the wholesale level. Keep watching for the target of $80 a barrel. I think that is where it is headed; by market forces or government regulations.

http://www.bloomberg.com/apps/news?pid=20601087&sid=afYvxHexr7PY&refer=home

Tall Bike Update

Here is a picture, taken in the dark, of my tall bike with it's new paintjob. Yesterday I rode it over a mile. Next step will be to take it 5 miles and see if it hold up. The biggest problem now is that it only has 7 low gears. Something to work on. I need to have this thing dialed by next weekend for an 18 miel ride.