 There are quite a few problems with this article. Willie starts with the claim "The greatest myth of all is that the USDollar is money." He may not like it and it may not last much longer, but those Federal Reserve notes are money. Anyone not thinking so is utterly delusional. In the future, gold and/or silver may one day be used to represent money again, but for now, they are not. Money is the unit of account. It is what everything else including gold and silver is priced in. You cannot find any store selling anything that does not price their goods or services in dollars and cents. And that goes for those who would sell us gold and silver as well. It is priced like everything else, in dollars and cents. So please, stop trying to alter the meaning of words.
When he moves on to speak about US pension funds, he claims "Next on the reality tap is the forced conversion to special USTreasury Bonds, where they will earn no interest yield and be vulnerable to USGovt debt default writedowns." All of that is true but for the unfounded and ridiculous claim that they will earn no interest. Such an absurd claim is tantamount to fear mongering at its ugliest. It is a claim that cannot be backed up by a single fact or even one example from history.
With respect to bank bail-ins, he wrote: "The Bail-in plans are an insurance policy against the big banks ever being forced to capitalize to proper levels. The Bail-in plans are an insurance policy against the big banks ever being prosecuted for grand fraud and grand larceny and grand counterfeit. Attack the big banks, and the people will lose a large portion of their life savings. Therefore, the big banks will be left alone to go about their business, whatever that is, to be sure mostly criminal."
Firstly, the big banks all have what the Fed considers to be adequate reserves and most of them actually have what are deemed excess reserves. That is easily verifiable. The bail-ins as insurance policy is nonsense for the simple reason that they have never been criminally prosecuted. Furthermore, there is nothing in any of the various bail-in laws that i have researched that prohibits criminal prosecutions....As well, better informed sources than Willie have stated that the Fed has been letting the big banks know that they will not be protected from any of their future trading losses, should any occur.
With regard Fannie Mae, he makes a factual error claiming "Fannie Mae was hidden under the USGovt wing to conceal its multi-$trillion fraud." Fannie Mae from its inception has always been an agency of the government. Everyone knows that.
Willie is also confused about the ZIRP. His claim is that "The reality is that the 0% rate is a gigantic wet blanket on the USEconomy, offering pitiful low yields to savers." The reality is that the ZIRP applies only to the rate the Fed charges the big banks at their discount window. It has nothing whatsoever to do with any other rates, such as bond yields, 30 year mortgages or anything else you might care to mention. This is very basic stuff. Willie should know this like the back of his hand.
With regard to US monetary policy, he claims "The USFed monetary policy is killing the nation, rather than anything remotely resembling a solution, and surely not stimulus." While it is true that the US economy has not regained its old footing, it is stupid crazy to think that it has not been stimulative. Just imagine what the landscape would look like had everything been allowed to fail....As well, it must be noted that the Fed, with its QE programs, loses all control of how the money gets used as soon as it is transferred to the big banks. Furthermore, it should be stated that in and of itself, money creation is not hyperinflationary as Willie claimed. It is the velocity of money that creates the proper atmosphere for such an event. At this stage, the velocity of money is at near record lows. As well, Willie fails to appreciate that the capital destruction he speaks of has outpaced capital creation, making hyperinflation all the less likely. Sorry, but he cannot have it both ways.
Willie is completely misinformed when it comes to the United Way with his ludicrous assertion that "The charities are best exemplified by United Way, which devotes 5% of donations toward actual projects, with a ripe 95% devoted to executive compensation, their perks, and overhead." Charity Navigator, the most respected voice on charities, rates the United Way very near the top, with an efficiency rating of 89%. Only the American Red Cross and UNICEF rate slightly higher at 91%. It can only be assumed that Willie has some personal issue with the United Way to have fabricated such obvious and malicious nonsense.
Willie may not like who is buying up housing and he may be correct that this will lead to future problems, but it is absurd to claim that the market is not recovering when prices are rising. If rising prices do not make for a recovering market, then what would? This is Ranting Andy stupid.
Willie then goes on to pontificate about the stock market, saying "The myth is a bull market in stocks has been underway for two years." It is no myth. The numbers do not lie. The last 2 year have seen a 25% gain in the DJIA. Going back 4 years the numbers are even more spectacular, going up from 6,550 to 15,000 today. Those numbers beat inflation and every other investment out there. To claim it is a myth makes him incapable of acknowledging reality.
Willie then goes on to make a pair of claims for which he provides no proof, as none exists. He firstly claimed that "The ugliest secret associated with granting China the Most Favored Nation status was the deal cut by Wall Street banks to lease Mao Era gold. It was not returned to China under contract, causing enormous resentment and tremendous anger, in addition to ample motive to render the USDollar to the dustbin." And that is followed up with his assertion that China "which alongside Russia, have accumulated over 30,000 tons of gold together." There is not a shred of evidence to back either claim. They come from fantasy land.
Willie started this excursion off with these words: "Many are the myths held so firm by the public. Many are the lies told so boldly by the leaders." That may be so, but what about the misinformation he has fed us for years without ever a retraction when his pronouncements have been shown to be dead wrong. Remember from 2-3 years ago when we were told month after month that Morgan Stanley was on the verge of bankruptcy. Well guess what, they are still open for business. And how many times were we told that Prince Bandar bin Sultan had been killed by the Syrians. Surprise, he is still very much alive and well. And the Saudi king was reported to be in a coma from which he would never recover. Oops, the man is not in a coma and may never have been in one. i could go on, but let me leave you with these words from Willie: "The nonsense is endless and truly moronic, the stuff of mental midgets to consume and lap up."
Please don't forget to click on that down arrow.
 Commented 3881 days ago |
