LIKE LICORICE

Contrary to any realistic fundamentals, the stock market has risen over the last few weeks, and Greg Hunter of USAWatchdog has some ideas that might explain what is going on. He has attached a video from Xtranormal to illustrate his points. Inspite of the video having some crude language, which I don’t think is necessary as a rule, it does convey the message very well.

“They [insider traders] are selling at a rate of more than 80 to 1 over buyers. It is obvious this market is not growing organically but is simply being pumped.”

A person who won’t read has no advantage over one who can’t read.

Do the right thing. It will gratify some people and astonish the rest.

Any emotion, if it is sincere, is involuntary.

Facts are stubborn, but statistics are more pliable.

Good breeding consists in concealing how much we think of ourselves and how little we think of the other person.

It’s good sportsmanship to not pick up lost golf balls while they are still rolling.

Be careless in your dress if you will, but keep a tidy soul.

Education is always a hot topic, primarily as a result of educational results. We spend huge amounts, and increasing amounts, on our schools only to see educational performance continue to drop. Patrick Buchanan evaluates the rankings of students in an international education test, and discusses a book by Dr. Robert Weissberg, “Bad Students, Not Bad Schools”.

“But the “brutal truth” is that we invest more per pupil than any other country save Luxembourg, and we are broke. And a closer look at the PISA scores reveals some unacknowledged truths.”

As chief investment strategist for Sprott Asset Management John Embry has gained a enviable reputation for forecasting investment trends. He talks about gold, quantitative easing, Ben Bernanke, and Warren Buffett. This piece is from Investor’s Digest of Canada.

“The fundamentals remain impeccable. The U.S. Federal Reserve is going to print staggering quantities of money as a matter of necessity.”

The municipal bond market is looking into the crystal ball and seeing trouble, the kind that Business Insider is talking about in this article. Gus Lubin and Leah Goldman describe the financial woes of sixteen cities that could be the first of many that default on their bonds. This debate has been in large part sparked by analyst Meredith Whitney who has predicted municipal bankruptcies coming up in 2011. Whitney appeared on CBS 60 Minutes, and since then the pop media has been scrambling to deny that there is any such problem. This article from CNBC gives some background on the Whitney prediction.

One result of the feminist agenda is the massive demographic problem that China faces, a dwindling and aging population. Carey Roberts looks at the issue as presented by professor Jing-Bao Nie.

(Simone de Beauvoir) “”No woman should be authorized to stay at home to raise her children.…Women should not have that choice, precisely because if there is such a choice, too many women will make that one.”"

But you, Bethlehem Ephrathah, though you are small among the clans of Judah, 
out of you will come for me one who will be ruler over Israel, whose origins are from of old, from ancient times.”

In those days Caesar Augustus issued a decree that a census should be taken of the entire Roman world. (This was the first census that took place while Quirinius was governor of Syria.) And everyone went to their own town to register.

So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David, because he belonged to the house and line of David. He went there to register with Mary, who was pledged to be married to him and was expecting a child. While they were there, the time came for the baby to be born, and she gave birth to her firstborn, a son. She wrapped him in cloths and placed him in a manger, because there was no guest room available for them.

And there were shepherds living out in the fields nearby, keeping watch over their flocks at night. An angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were terrified. But the angel said to them, “Do not be afraid. I bring you good news that will cause great joy for all the people. Today in the town of David a Savior has been born to you; he is the Messiah, the Lord. This will be a sign to you: You will find a baby wrapped in cloths and lying in a manger.” Suddenly a great company of the heavenly host appeared with the angel, praising God and saying, “Glory to God in the highest heaven, and on earth peace to those on whom his favor rests.”

When the angels had left them and gone into heaven, the shepherds said to one another, “Let’s go to Bethlehem and see this thing that has happened, which the Lord has told us about.” So they hurried off and found Mary and Joseph, and the baby, who was lying in the manger. When they had seen him, they spread the word concerning what had been told them about this child, and all who heard it were amazed at what the shepherds said to them. But Mary treasured up all these things and pondered them in her heart. The shepherds returned, glorifying and praising God for all the things they had heard and seen, which were just as they had been told.

She will give birth to a son, and you are to give him the name Jesus, because he will save his people from their sins.

For the wages of sin is death, but the gift of God is eternal life in Christ Jesus our Lord.

Salvation is found in no one else, for there is no other name under heaven given to mankind by which we must be saved.

For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.
(New International Version)

“One of the founding myths of the modern global financial system was that governments, especially of the developed democracies, could borrow endlessly without consequence.”

This is the time of year to look into the crystal ball for 2011, and John Browne of Euro Pacific Capital has his prognostication.

If you repeat a lie often enough, it will become fact in the public mind. The New York Times is definitely commited to repeating the lie as demonstrated in their article on global warming this week. Federal agencies as well as the pop media continue to promote global warming as a manmade crisis, and that alone should convince one that there is more than a little deceit going on here. As an antedote to the bogus science presented in this piece, I refer you to the post of March 5th of this year.

Texas Congressman Dr. Ron Paul clarifies the language of the tax policy debate in this editorial from The Daily Bell. As usual, our pop media tries to frame the issue in words that are either meaningless or misleading.

Bill Fleckenstein discusses gold, the stock market, bubbles, and the economy with his usual wisdom.

“After living through the stock and real estate bubbles, you’d think it would be impossible to be surprised by how foolishly people can act. But with the amount of machismo, bravado and downright cluelessness that I see on display, I must admit I am dumbfounded.”

This is a fun Youtube video. More than 200 dancers break into dance at the Antwerp Train Station, with apparent spontaneity. Watching the travelers as they take this in is as enjoyable as the dancers.

Investors Business Daily carried this editorial on the “net neutrality” power grab by the FCC. Julius Genachowski, FCC Chairman, is eager to get authority to regulate the internet, in some form, any form. If you have an opinion on this, please contact your senators and congressman.

“This policy, as we’ve said before, would institute a dangerous system that would violate free speech and property rights.”

That is a very good question. The general attitude among our political elite is that the question is irrelevant, since a genuine constitutional test of law is almost outmoded. Doug Bandow of the Cato Institute has written an excellent piece that explains the significance of the basic law of our country.

“It has been years since the Constitution has had any meaningful impact on what is done in Washington.”

Just when everything seemed to be going pretty well, we are informed that President Obama has convened a White House Forum on Environmental Justice. Obviously, we have been ignorant of a grave national problem, environmental injustice. Can the courts address this problem? Don’t know. Whatever it is, we do know that the federal government must act swiftly and decisively.

When leftists/Marxists use the term justice you can be sure that the agenda is to force certain groups to conform to government dictates. Secretary of Homeland Security, Janet Napolitano, described the focus of the conference as: “identifying and assessing the impact that climate change could have on the missions and operations of the Department of Homeland Security.” There you have it. You can sleep more easily tonight, or maybe not. The article appears on CNSNews.com.

The Pacific Research Institute has provided us with a comparison between California public schools and those in Florida. Vicki E. Murray evaluates the differences that reforms in the Florida schools made vs. California, over a ten year period.

It seems like the Eurozone nations are starting to line up like dominoes on the sovereign debt issue. Here is a piece on the threat of a downgrade of Belgium’s debt carried by ABC News. First there was Greece, then Ireland, Spain, and now Belgium, or have I missed one.

Richard N. Haass provides us with this commentary on compromise in Congress. Mr. Haass is for it. However, to fully understand where Mr. Haass stands, you must know first that he is president of the Council of Foreign Relations, and second that the CFR has been the shadow government of the U.S. for more than sixty years. They can take credit for our steady march toward socialism. Every administration, Democrat or Republican, has been top heavy with CFR members. Had the NRA had as many members in high office, the media would have screamed conspiracy, but that c-word is not our topic, compromise is.

As his first example of the beauties of compromise, Mr. Haass points us to the Constitution which he says was the product of compromise. That is definitely true, but keep in mind that those men who wrote the Constitution, and compromised in the process, were men of principle. There are few men of that quality in Congress today. Now that we are governed by a Constitution, which all of our elected officials are sworn to uphold, how about respecting that oath. Hardly an elected official up there gives a fig about upholding his oath; they are only too quick to compromise. Today we have departments and layers of bureaucracy which have nothing to do with the very limited functions of our federal government as defined in the Constitution.

An impediment to compromise is the loss of influence of ABC, NBC, and CBS, according to Mr. Haass. He complains that the rise of “narrow-casting” via specialized channels and the internet has promoted single issue biases among Americans, which hinders compromise. The Tea Party is a product of this type of narrow minded bias. As for me, any decrease in the influence of the major networks, who for many years told Americans what to think, is a genuine blessing. And I view the rise of the internet, as an alternative media, to be a wonderful thing.

We conservatives and Constitutionalists have elected our congressmen and senators to take a stand for Constitutional government, not compromise. Do we really want their campaign promises diluted with the same old socialism? Whenever the liberals and leftists find themselves in a position of weakness, they plead for bipartisanship, meaning compromise. Simply put, compromise is destroying our country.

Spain may be next on the list of troubled economies in Euroland. Moody’s Investors Service has warned that it might downgrade Spain’s debt rating. Keep in mind that it has not, but such a warning might create the same effect among investors as an actual downgrade. Kerri Shannon provides us with the story on Moneymorning.com.

Here is a thoughtful question: If a ratings agency were to lower the rating for a country (even the U.S.), that would raise bond yields and would cost that government much more on its bond sales, is it likely that the ratings agency would come under political pressure to maintain the rating, even when a lower rating was justified. The conclusion may be that ratings for major nations are largely fictitous.

“Spain’s substantial funding requirements, not only for the sovereign but also for the regional governments and the banks, make the country susceptible to further episodes of funding stress,” said Moody’s analyst Kathrin Muehlbronner.”

There are probably few people who can claim to have written a market newsletter for 52 years, and have a good track record to boot. Richard Russell is such a man. Based on his years of experience in the stock market he knows a bull market when he sees it and has been advising his subscribers accordingly.

Bob Siegel is a talk show host and Christian apologist and authored this punchy piece on separation of church and state.

Oil demand is steadily growing in the emerging markets, but oil production is also increasing. CNNMoney carried this piece on the demand and supply balance. In spite of the oil market being very politically controlled, there is still a market mechanism that functions to keep the users supplied.

As the cost of servicing the federal debt grows, Russ Winter speculates about the possibility of the U.S. getting getting caught in a debt trap. This post from July addresses the same topic from a different angle.

“The latter is the key variable because a move of only one percent in interest rate cost takes the debt service percent up quickly.”

David Solway has done a great service for mankind in advancing the scientific study of socialists. This treatise may explain the origins of leftist thinking which seems to be spreading and mutating among the normal population.

Every now and then it is fun to digress from the heady things of politics and economics and discuss the really mundane, like light bulbs. What was low-tech has become medium-tech with the advent of newer types of consumer lighting, like the compact fluorescent light (CFL) and LED bulb. Most of us have probably only encountered high powered LED lighting in traffic signal bulbs, but now LEDs are moving into consumer lighting. Martin LaMonica writing on CNET introduces us to a more affordable version of the LED bulb now available in a 60 watt rating. This is probably the “Holy Grail” for light bulb manufacturers because of the popularity of that wattage.

As with most new technologies, price is the limiting factor initially, but that is coming down. At $30 per bulb it may find a customer base only among the technophiles or in labor intensive applications where long life is a factor. It would take two or three years to recoup the price on energy savings.

Some issues to consider when buying the techie bulbs are: color temperature which can be warm white to blue-white, is it dimmable, beam width, and how quickly does it come up to full brightness. For most of us, the high color temp versions that give a blue-white light are not inviting. It is just too stark. If you want to dim the bulb, then the CFL and the LED will not be the bulb of choice; a basic incandescent bulb should be used. LED bulbs, by the nature of the narrow beam emitted by the LED device, give spot illumination or a flood light effect, as opposed to the spherical illumination of a CFL or an incandescent bulb. For closet lighting, the delay in coming to full brilliance for the CFL is annoying. But be patient, newer technologies will correct most of these limitations.

You have to read this to believe it. As if the government did not meddle enough in our lives, it has now passed a law aimed at what our children eat at school, and it will cost us $4.5 billion over the next ten years. Penny Starr writing on CNSnews.com provides the story.

“We can’t just leave it up to the parents.” (Michelle Obama)

Some are claiming that there is no China bubble, but Ambrose Evans-Pritchard would disagree, as would the Royal Bank of Scotland. As inflation rises in China, and the government is most assuredly underreporting it, officials will be forced to take action, but suppressing inflation may burst the bubble. After reading the article, take a look at the first comment, by “Weijei”. My impression is that he is well informed and understands the economic issues in some detail.

“I remain convinced we are witnessing a bubble of epic proportions which will burst – catching investors as unawares as the bursting of the Asian bubbles of the mid-1990s. Ignore these indicators at your peril,” he said.”

Rumors of a squeeze in the silver market continue to pop up. This article on Benzinga.com names J.P. Morgan as the holder of large silver short position. Compound that with a general shortage of physical silver, and we could witness some remarkable fireworks. An intriguing question: Where is the federal government in this, since they do have a vested interest in suppressing the silver price?

“The price of silver has absolutely exploded in recent months as these reports have surfaced and it is clear that blood is in the water. The predator (J.P. Morgan) has now become the prey.”

Not long ago I ran across a group called the Association of Free Thought that was meeting in a local Starbucks store. With my curiosity piqued, I did a search on the internet and discovered a whole range of organizations that are devoted to “free thought”. Agnosticism and/or atheism appear to be the core of their beliefs. One website provided a list of definitions to clarify some of their principles. I confess I had not given much thought to exact definitions of some of these terms, but for your edification there are some important distinctions. An agnostic can either hold that he personally is not sure of the existence of god, or he can believe that man simply cannot know anything about a supernatural god, ie. knowledge of god cannot be attained by reason and logic. The athiest contends that there is no god, and also believes that reason and logic provide the sole guides for human behavior.

While we are talking logic and reason, how do logic and reason explain logic and reason? By that I mean, how does one account for the self awareness that humans possess? If the brain were just a collection of molecules, how could self awareness develop, along with the ability to use logic and reason.

As an atheist, or agnostic, an individual must think that man’s life consists of 70 or 80 years on this earth, and there is no afterlife, no eternity. Whatever good he might have done or accomplishments that were achieved may benefit others, but as for his life, it is over. He dies, and his soul, his spirit is annihilated. Does that sound grim and hopeless? It does to me, because I believe that eternity gives meaning to life.

It is my opinion that believing in “no god” has to stretch the limits of credulity. As a case in point, take the human body with its almost infinite complexity extending from organs, nerves, vessels, down to the extreme complexity of each cell. Yet the agnostic or athiest is forced to say that this all happened by a series of happy accidents, called evolution. I suppose I don’t have that superhuman faith to believe in evolution.

Paul, the apostle, writing in the book of Romans had the following to say, “For since the creation of the world God’s invisible qualities—his eternal power and divine nature—have been clearly seen, being understood from what has been made, so that people are without excuse.” He could not have been clearer.

Being a “free thinker” and having a commitment to logic and reason may not be a wholesome doctrine. Logic and reason do not carry any real connection to morality, and may be considered based in pragmatism. Any morality founded solely on human reason is highly suspect. Thus logic and reason might dictate that the French aristocracy should be executed in the French Revolution, and logic and reason would excuse Mao Zedong’s ruthless methods to make his country “great”. Man has a pragmatic nature that tends defend logic and reason.

Members of these “free thought” groups apparently do not hold to any religion, and believe that as free thinkers they have the decided advantage of not being fettered by religious dogma. However, it is my contention that all men have some kind of religion, that is they hold certain beliefs by which they guide their lives. Maybe they don’t believe in a supernatural god, but they probably believe in the divinity of man. Whatever one believes to be good or sacred, the principles by which to conduct life, is one’s religion. Are reason and logic supreme, then that is a religion. Is a belief in the goodness of man at the center of life, then that is a religion. Is your life guided by a self-centered drive to satisfy your personal desires, then that is your religion. Each of us has a religion. For some of us it is a belief in a supernatural, holy god who is both just and merciful.

King World News carried an interview with Rob McEwen in November. I am a little late in finding this, but it is an great source of expert information from someone who has earned the right to be heard in the area of mining and investments. Rob McEwen is best known as the founder and former CEO of Goldcorp., one of the world’s premier gold miners. He is still heavily involved in the business as the CEO of two mining companies. My preference is a transcript of an interview, but an MP3 file will have to do here (go to this link and select MP3).

Max Borders is an interesting fellow. He is an atheist, and yet is tolerant in his beliefs. In this piece on the Daily Caller he examines how god is being supplanted by government. And the truth is his arguments make sense.

We have just witnessed the compromise between Republicans and Democrats whereby taxes will not be raised and unemployment benefits will be extended. Is that not just par for the course with Congress? Peter Schiff writes about this mentality in Washington that sweeps the problems under the rug.

“Those who understand the implications of the “inflation tax” have already moved savings and investments out of U.S. dollars, expecting that the value of their savings and investments would diminish as a result of the inflation the Fed creates.”

Something in me likes to believe that in decades past the American people admired personal responsibility and understood what Constitutional government was. After reading Marc Rudov’s commentary on Social Security, I am brought out of my fantasy world and made to realize that Americans were just as ignorant of government in 1935 as they are now. Where was rugged, American individualism when the socialist bait of a government retirement plan was dangled before us? Marc Rudov correctly analyzes Social Security on AmericanThinker.com.

The bond market is not going to let the U.S. get off unscathed with its fiscal problems. Congress may be unconcerned, and the public may be oblivious to what is happening, but the bond market is paying attention. A piece in The Telegraph by Ambrose Evans-Pritchard addresses the rising yields on Treasuries.

“At the same time we’ve seen a loss of confidence in Fed strategy. There is a feeling that the Fed doesn’t care about inflation – in fact, wants more of it – and that is certainly not in the interest of bondholders,” he said (Stephen Lewis).”

Governor-elect Scott Walker of Wisconsin is a bold man. Wisconsin is only one of numerous states that are in financial trouble, but Walker is proposing what the others are probably afraid to consider. Mike Shedlock gives us the story.

For several years the pop media has sung the praises of the Chinese economy. It is the manufacturer to the world that just keeps expanding. Their GDP grows at double digit rates, and the economy appears to be the very definition of dynamism. But appearances can be deceptive.

Vitaliy Katsenelson provides us with a different view of the Chinese economy. I highly recommend this interview by The Casey Report.

“…the Chinese built an entire city, Ordos, in Inner Mongolia for 1.5 million residents and it is completely empty. These are classic examples of the sort of excesses going on in China.”

I suppose the logical question is: Are we as stupid as the politicians think we are? Take a look at this piece from Townhall.com.

“Let’s face it, politics is largely the art of deception, and political rhetoric is largely the art of misstating issues.”

We seem to be in the interview mode lately, so here is an interview with Rick Rule. He is founder of Global Resource Investments, and I think, a very knowledgeable fellow. His topics are gold, silver, rare earths, and market volatility.

“I believe—to lay my cards out on the table—that we are half or two-thirds of the way through a commodities supercycle. I think we are in a secular bull market; I think the broad economy is in a secular bear market. I think the collision between a secular bull market and a secular bear market is going to resemble the collision of two very large weather systems. And I believe we are in for a period of just absolutely unbelievable turbulence.”

This presentation occured in October at an investment conference. Frankly, I have never heard of Paul Brodsky, though he is a financial advisor, apparently of some repute. His analysis is carefully laid out, and he does look at our economy with a little different perspective than most analysts that I follow, but his conclusions are basically the same.

“But I do think there will be a major transfer of wealth – manifest through unimaginable inflation — and that investors that begin to view asset values in real, inflation-adjusted terms today will benefit at the great expense of those that don’t.”

Government officials frequently issue misleading statements and downright lies, but when it is done on a public news outlet, and goes unchallenged, then it is especially egregious. Greg Hunter documents an interview with Ben Bernanke on CBS TV’s 60 Minutes. You will have to read the piece with Bernanke’s comments to fully appreciate the deception that is being perpetrated.

“He told 60 Minutes reporter Scott Pelley he is “100%”sure inflation will remain under control and will not soar higher. In my opinion, what Mr. Bernanke said could not be further from the truth.”

The more I read about this the more I am convinced that the FCC is trying to initiate internet regulation that will grow into government control of the internet, access and content. FCC chairman Julius Genachowski has said:

“I sought an approach consistent with the limited but essential role that government should play with respect to broadband communications,” said Genachowski, who noted that he did not wish to burden the thriving broadband industry with a heavy regulatory hand.”

But once the FCC acquires regulatory authority, then then degree of regulation can always be increased. That is the threat. This is a piece from the Washington Post on the subject and an article from the Washington Times. If you are concerned about this, contact your congressman and senators.

If there is a popular idea that is totally misunderstood it is sustainable development. The words sound nice, at least in the generic meaning, but that is not what is being sold to the public. Sustainable development comes from the U.N.’s Agenda 21 scheme. Go to this link at the American Policy Center for the details.

“Sustainable Development is not a partisan issue. Both parties are guilty of its enforcement. The Bush Administration did more to help entrench Sustainable Development policies than the Clinton Administration could have hoped for. Of course, Obama continues the assault.”

A number of financial advisors rank up at the top in my estimation, and Eric Sprott is one of them. He operates Sprott Asset Management and has been in the investment industry for 35 years. Time has shown that this man knows what he is talking about. This is an interview by Shirley Won for the Globe and Mail.

“I think gold is the reserve currency today. There is not a currency in the world that it hasn’t appreciated against by at least 300 per cent.”

John Mauldin, a financial advisor, presents some of his thoughts on the EU, Texas, Ireland, and Iceland. He sheds some light on the sovereign debt crisis.

“What would happen if California and Illinois and New York came to Texas and said, “We think your taxes should double so that we can finance our debt, and please buy even more of our debt next year to pay for our unfunded pensions.”

As with many government programs that provide monetary incentives, they generate industries which become constituencies supporting those programs. The ethanol fuel industry is a great example. The benefits of ethanol are highly debatable, but it is now a vocal industry that wants its privileged status maintained. Dennis Byrne at Realclearpolitics.com writes on ethanol from the budget angle. Can we afford to subsidize an industry that is dependent on government for its existence?

“This is extraordinary. And insane. Here, the government creates a fake market for ethanol, then subsidizes the market, and then protects the market against foreign competition.”

With the holidays upon us some of you might be looking a unique food treat for a festive gathering. Hank Shaw, a food blogger, provides just that. His acorn dishes will surprise and delight friends and family. So don’t think of those acorns that fall from your oak tree as just squirrel food, you can enjoy them too.

According to the chairman of the Shanghai Gold Exchange China has imported almost five times more gold in 2010 than in 2009, apparently from concerns over inflation. This Bloomberg piece gives the details.

““Given China is the world’s biggest gold producer, the sharp increase in its imports is a big surprise,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo.”

Terence P. Jeffrey, writing on CNSnews.com is right. What he describes in the Smithsonian display is decadence and pornography, which should not be considered art even by the loosest definition.

“When I studied English at Princeton, I had the good fortune to be taught by a series of scholars who in their lectures and precepts drove home the point that art, whether it be in literary or other form, must ultimately be measured by its capacity to make better human beings.”

It’s like stomping out a grass fire. While you stomp in one place the fire rekindles in another. The debts of several EU countries are flaring up to unmanageable levels, and the ability of the central bank to deal with each and all of them is getting tenuous. At the same time investors are able to react quickly to news and outpace the politicians’ and bankers’ efforts to fix things. I wonder how much exposure U.S. banks and investors have to Irish, Portuguese, Spanish, Greek, and Italian bonds. Here is a Reuters article on the subject.