Fraud Is Mathematically Guaranteed

It's Alive, the Mortgage is Alive. I am about to lose some libertarian "creds." It seems to me that the government power of definition could be used to help our financial mess. I do not know that I would call this regulation, but self honesty compels me to admit it is. If there is a known definition of mortgage for example, then one who issues or resells a "mortgage" that does not meet that definition is guilty of fraud.

To a large extent, due to rather utopian ideas of the market by regulators, "loans" that in years past would never have been issued were issued. These were the infamous "ninja" loans—no income no job. They were issued due to the way executive compensation works in our modern financial Babylon.

I suggest you listen to the 2012 Bill Black interview I embed below as it explains exactly how this works.

Or if you do not have time to listen, consider these words:

“When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it."

- Frederic Bastiat

This is our modern Babylon that calls evil good and good evil. No non-psychopath ever wants to think of themselves as evil, so a little redefinition is needed.

Control of definitions, or as I call it here the template, predetermines the outcome. We need better definitions, and a better template to look at the world.

Malashock Dance - 25th Season Celebration Concert

This is quite a bit different than my usual musical offerings, but I actually found it interesting. It helped that I know the choreographer personally, as we went to high school together. Probably going to various dance competitions with my daughter changed my perspective. I really do not know enough to know if something is good or not, but I do know what I like, and this I like. It is full of life.

Europe Is Toast

On Monday I posted a video that showed rather convincingly that Japan is toast. But of course all of us with French surnames are confident that Europe is quite safe. Maybe I should change my name to Ivan DeJarnetoff for as this video shows, Europe is also toast. (As long as oil and gas prices remain high, Russia will do fine.)

Many European workers do not understand that their employer cannot pay them more in salary than they produce.  There will be a "payday" someday.



While this video is pro-gold, I think that gold and silver is the best option for speculative investment. But only after you have done your pre-investments.

We live in a world where investment is nearly impossible, as the risks of even "safe" investments outweigh the returns. As this video points out at the beginning, a very wealthy man who invests 10 million in 2 year US treasuries would have received an income of over $400,000 ten years ago. Today that same investment yields just over $20,000. This is nuts.

Get ready for a continuation of the Great Recession. It will not be pretty.

Do Not Talk to the FBI

If you talk to the FBI, you set yourself up for disaster. Do not think this is a modern problem, remember J. Edgar Hoover. 

Japan is Toast

As Herb Stein famously said, "What can't continue, won't continue." So in that spirit I am embedding a video by OtterWood Capital. I know nothing about them, but I thought that the charts in the video explain the issues with regard to Japan. 

Japan is Toast. 

Perversely enough this may be positive to the US economy as money flees the Yen and looks for a "safe" home. The US will be the last castle standing, but even it will fall. One wild card is the over one trillion of US government debt owned by the Bank of Japan. Will they be forced to sell that debt rapidly? 

I think all the economic pundits are missing the power of the system. It will weather a number of storms. It will continue on for some time, and then since it can't continue, it won't continue. 

And the change will occur with great rapidity. Get ready as best you can.