Sunday, November 22, 2009

Gone Walkabout

My Dear Readers,

The time has come for me to put this blogging project to rest and go walkabout.

Being so plugged in has given me a serious case of cabin fever and a renewed desire to see the world, while it still is as most believe it to be.

I feel satisfied, that more than scatter bread crumbs, I have pointed out the preferred path to a secure future. Hopefully, you have done more than read and will live prosperously ever after, as this is my sincere wish for you all.

Though a walkabout is traditionally a six-month venture, I have set no schedule for my return.

Until such time, be well, be prepared and be safe.

Thank you for reading.

All My Best,


~ ~ ~

“Men go back to the mountains, as they go back to sailing ships at sea, because in the mountains and on the sea they must face up.” -- Henry David Thoreau

The Day The Dollar Died

Death of the Dollar by Sharon Hodgson, 2007.

By John Galt via Shenandoah, h/t: Jim Sinclair

The following story is a potential fictional time line for the day the dollar died. I hope not to instill fear or loathing but to give everyone some perspective on a POSSIBLE outcome which does not really take much of a reach to come to this conclusion. Despite popular belief and promises from those who wish to rob you of your savings and investments, the collapse of the dollar might just be an event measured in hours, not days, as their control is not what it seems...

Mike was less than an hour from home in Minnesota after dropping his load off in Fargo but knew he needed to top his tank off this Sunday evening to insure his rig would make it home. He pulled into the Petro Truck Stop just outside of Fargo and hopped out of the cab into the bitter twenty below temperatures which he could not believe had already hit at ten o’clock at night. He slid his fuel card into the pump waiting for the next prompt when the “SEE ATTENDANT” message flashed in the screen. He blustered, figured it was another card problem and whipped out his Master Card and slid it in after the pump reset and again the “SEE ATTENDANT” message flashed up. “What the hell is going on?” he thought to himself as he wandered into the long line of drivers boisterously yelling at managers and clerks alike.

Tom finished up his shift on the docks at the Nestle warehouse in Hampton, Georgia at exactly 11 o’clock at night and decided that because of the scuttlebutt he had been reading on the message boards, it may not be a bad idea to pick up a few cans of food and some toilet paper at the local WalMart Super center. Even though it was a Sunday night, they were always stocked and it was just five minutes out of the way to his home. As he walked inside the store, his mouth dropped. It looked like the day after Thanksgiving sale with every register open and ten plus people deep at 11:30 p.m. “Oh my God!” he gasped as he walked in grabbing the last shopping cart with the wheel that was half locked up. As he walked as fast as he could to the aisle with the paper goods, he looked at all the shelves then noticed the clerk who looked stunned himself. “How in the SAM HELL does WalMart sell out of Toilet Paper son?” he screamed at the eighteen year old kid. “Sir, I don’t know what is going on. Is the world ending? I’m a little freaked out!” the clerk stammered. Tom realized that he was not to blame and as he calmed down said to the kid “Son, I don’t know what is going on either. It must be an ice storm on the way. Are you folks getting another truck soon?” The clerk said in a very low voice “Sir, I think there are two coming at 2 a.m. I would wait here if I were you.” With that information Tom slinked outside to his car and called his wife at home just before midnight to tell her he would be staying to wait on the WalMart trucks.

1730 ET…February 21, 2010

It was a typical Sunday night in my household, a tremendous dinner, nice weather in Florida and of course a chance to chat with my friends online about the events of the world. The big news was that on Friday, February 19, 2010 the US Dollar Index closed at 69.07 far below any level in history and of course shattering all known technical support. As I grabbed a glass of Port and settled in front of my computer at 5 p.m. Eastern to watch the Asian fireworks and watch Bloomberg and CNBC-Asia on my computer, I noticed the Middle Eastern markets closed in horrid shape. The Israeli market closed three hours after the open and down 22% for the session. The Saudi markets closed after one hour and down 41%. Other regional markets did not open or were shut down due to national emergency declarations. As I tuned in expecting the usual repeat on Bloomberg, it was live with a somewhat excited news babe reading information from a blog reporting “rumors” that the CEO’s of Citigroup and Bank of America were in meetings since 11 a.m. with the New York Fed. At that point, it was time to put the port up and break out the hard stuff.

Gold had closed at a record high again, up some $37 to finish Friday’s session up at $1289 and change so I figured it would be jumping again with all of this worldly instability on display. I searched the boards and feeds like mad, looking for anything on an Iranian attack or outbreak of war elsewhere in the world but nothing was found at all. As 6 p.m. Eastern flipped up on my watch, CNBC interrupted their programming with a live update from New York instead of Australia or Tokyo about the meeting at the NY Fed. Bloomberg also broke from their Asian coverage with a brief story but no details as to why there was a meeting today or who else was there. As the New Zealand markets opened, the prices went nuts but shockingly to the upside. Their markets shot up 11% on the open to break over the 3900 price level but that was not the story. As the futures opened in Chicago for the evening session, no matter where you were in the world that day or night, you printed that screen at 6:04 p.m. Eastern time as the prints were staggering:

Gold UP $212.15 to $1501.15

Silver UP $39.13 to $81.06

US DOLLAR INDEX DOWN 9.5869 or just over 14% to 59.4830




Holy Smokes! This was an absurd way to start the night and my phone started ringing along with text messages and emails out my wazoo. The sense of panic was evident on Bernie Lo’s face as he came on to the air discussing what was happening in the futures market and fortunately he announced that Jim Rogers would be joining him after the next break. As the commercial started at 6:09 p.m. Eastern the scroll at the bottom of the screen was bright red with the headline:


By 6:15 the Euro was trading at $1.92, the Kiwi (New Zealand Dollar) at $1.26, the Aussie Dollar well beyond par at $1.39 and the Canadian Loonie rocketing past par to $1.33. The U.S. Dollar was in a full fledged collapse and the world was putting money anywhere they could to escape the carnage. As the New Zealand equity markets struggled to handle the order flow an announcement emerged at 6:27 p.m. Eastern time that they would no longer accept U.S. dollars within their nation for the next 72 hours until the United States Federal Reserve Bank introduced stability measures. That instantly turned a huge move to the upside to down 17% in less than three minutes and soon thereafter, trading was suspended by 7 p.m. Eastern time. Instead of waiting to see what was next, I left at 6:51 p.m. to run down the street and take $500 from the local grocery store ATM, returning just in time for the top of the hour news.

1900 ET

The Australian markets attempted to open but due to order imbalances they were delayed twenty-seven minutes. It was a buying frenzy in Australia also as the Aussie Dollar was skyrocketing higher and gold continued to gain, now up $273.20 per ounce in less than two hours of trading. The Chicago board was going to make a statement at 8 p.m. ET and the world was holding its collective breath because something bad was happening again in the United States and everyone wanted to buy into foreign markets to escape the American disaster on the horizon. After a brief opening, the Australian government followed suit with the New Zealand announcement and suspended acceptance of the U.S. Dollar for commerce until further notice. The Japanese were very quiet in the mean time as they announced at 7 p.m. they would keep their markets closed but the huge move in the Yen caused massive concerns as noted by the central bank. The yen appreciated from a close of 79.8213 on Friday the 19th to an opening of 48.7326 in less than an hour of trading. Nobody wanted dollars and even fewer people it was discovered wanted the British Pound. The Pound for the first time in its history was worth less than 100 yen and it was well on its way to joining the US Dollar in a death spiral.

2000 ET

The internet is crawling. Message boards were lit up with record numbers of participants. Rumors swirled about declarations of martial law, bank holidays, secret wars and other crazy things. Yet my phone messages, conversations, texts and emails told me there was something very very wrong. Two of my friends called me to tell me the consequences of the failed 30 year bond auction last Thursday came home to roost over the weekend. Citi and BoA were rumored to have a huge CDS obligation due to the interest rates being blown outside of the norm and the 6.05% yield from the auction cost the banks an estimated $400 billion each if they were forced to settle open swap contracts and derivative issues by Monday or the end of the month. The swaps and derivatives which were to prevent the collapse may actually have finally started it but nobody could verify anything that was happening as the NY Fed looked like a war zone with hundreds of cameras around the building and reporters speculating endlessly on every cable channel.

2100 ET

I did not know who to believe but when Bloomberg played the excerpt from Jim Rogers’ interview just after the top of the hour where he said “this is what a currency collapse looks like and if you were not prepared, you were wiped out” really resonated with everyone on the Bloomberg set and throughout the news worldwide. The Chicago Futures were closed by order of the CFTC and SEC and that was the big announcement but it was assumed anyways because there was no way the COMEX or anyone else could possibly have kept up with the demand for precious metals as the last print had gold over $1579 per ounce and worse, the base metals closing at obscene prices like $6.79 per lb. for copper! The Shanghai markets were ordered open for domestic participants only and no overseas selling was allowed nor trading in US Dollars thus allowing the communists to manage their banking situation without outside influence. Unfortunately a rumor was confirmed on FNC later in the hour that Chinese troops were deployed to all U.S. and British bank branches inside their nation. That only permeated the panic already felt on the internet and in the air. The news at the top of the hour was even more shocking.

2200 ET

CNN led the hour off with coverage of the “FINANCIAL CRISIS OF 2010″ with breaking news about two hedge fund managers committing suicide in their offices in New York. That did not help the confidence level nor did the statement from Treasury Secretary Timothy Geithner at 10:09 p.m. Eastern that the “government was in full control of the situation and that the panic world wide was unwarranted.” When he finished the statement assuring that the financial markets would probably open on time in the morning, the snicker from CNBC’s team of Gasparino and Griffith spoke volumes about what was really occurring.

2300 ET

Somehow a picture of Goldman Sachs CEO Blankfein and JP Morgan’s CEO Jamie Dimon entering the New York Federal Reserve building was leaked out and broadcast on cable news and financial news outlets causing more discussions and a genuine sense of panic to grip everyone. Reports about credit cards not working for the last two hours nationwide were swamping the newsrooms but no comments from VISA, Master Charge or anyone else was forthcoming.

0000 ET February 22, 2010

It was officially a panic. Reports on local news stations about grocery store shelves being cleaned out and ATM machines running out of money hours ago and not being refilled were broadcast nationwide. Even my local station had a story about accessing the reporter’s bank account online and all they got was a very scary message as they attempted to reach his bank’s web page:


0100 ET

WWOR and WCBS started reporting that gas stations in the New York City and northern New Jersey areas were running out of gas even though credit cards did not work. The cable news stations and financial news networks just recycled earlier news with updates at the top of the hour. The world markets were closed and everyone was holding their breath to see what happened the next morning.

0200 ET

As I struggled to stay awake, NY Federal Reserve President Denis Hughes came to the microphones with Dimon, Blankfein and shockingly Ben Bernanke. Hughes immediately deferred to Bernanke who said that the President would address the nation at 7 a.m. Eastern Time and that he felt the crisis was averted for the moment and that everyone should have faith in the United State’s policy of a strong currency and banking system. After that statement was concluded, Bloomberg switched to a banking analyst from Singapore who said that the U.S. was now a hulking smoking black hole in the ground and the only thing it was good for was to return those worthless dollars back to “THAT” nation so “THEY” could burn them to stay warm this winter.

0300 ET

Someone on the message board posted a story from WTOP that military police were seen setting up roadblocks throughout Washington, D.C. There was no video or other confirmation within that hour. I had to make double strength coffee at that point in time but instead set my alarm for 0500 to try to grab a nap. I was not about to miss what was going to be a day to remember in American history.

0509 ET

So sue me! I hit my snooze button then realized I fell asleep with the computer and television on and the news was flying. In big bold red at the top of CNBC’s screen was the announcement COUNTDOWN TO SPEECH and a counter moving towards 0700 Eastern. As I flipped the channels half awake, I noticed a BREAKING NEWS announcement on CNN and there was a feed from WSB in Atlanta, GA with their helicopter video of the Georgia State Patrol closing off all streets within three blocks of the Federal Reserve Bank in Atlanta and also around the Federal Home Loan Bank. That sent a chill down my spine as I flipped back on to the computer to see over two hundred unread emails and message upon message about shortages, internet outages, credit card problems and worst of all, gas stations running out of fuel. The other shocker was the suspension of international flights in many U.S. cities as the suppliers put every airline on C.O.D. effective immediately at 2:30 a.m. Eastern Time and that suspended a ton of flights inside the United States and worldwide. The cascading effects were stunning, even to those of us who were warning about it.

0530 ET

Several European markets attempted to open in coordination with Middle Eastern markets but the declines were so severe that within ten minutes of trading the authorities shut them all down within a half hour:

Russia -35%

Saudi Arabia -43%

Israel -22%

Switzerland -17%

Germany’s DAX -41%

CAC 40 – 29%

FTSE 100 – 32%

The Euro was up another 10% against the dollar and the Swiss Franc was now worth over $1.40 U.S. As the discussions about the problems with the U.S. dollar accelerated, banks were being shut down in Europe in nation after nation to prevent runs. Sadly for the Brits, the Sterling was now trading so poorly in Europe that it was worth just 1/3 of a Euro at some trading desks. By the top of the hour, video of riots in front of banks in Frankfurt and Glasgow were broadcast nationwide. At 5:55 a.m. Eastern the news took a dark turn with this BREAKING NEWS headline:


0600 ET

The speech was low key, solemn and to the point. Obama announced a one week bank holiday. All credit card transactions and all collection actions of any sort were hereby suspended for seven days. All financial markets were closed until further notice. All mortgage and bill payment due dates were suspended for thirty days and no past due notices nor penalties were to be allowed by Federal Law. All schools were closed for seventy-two hours be they public or private. The city of Washington, D.C. was hereby declared to be under a state of martial law and all citizens were ordered to observe a curfew from 8 p.m. to 8 a.m. daily. Just as that sunk in, Ben Bernanke stepped up to the microphone to announce that President Obama, Treasury Secretary Geithner and all of the Federal Reserve Presidents along with himself were going to depart for Geneva for an emergency meeting of the G-20, IMF, World Bank and United Nations Financial Stability Working Group. Bernanke also announced that Citigroup, N.A. and Bank of America were hereby nationalized and placed under control of the United States Treasury under the auspices of the FDIC and that Sheila Bair would have an announcement at 8 a.m. Eastern. As he finished the announcement, an obviously exhausted Federal Reserve Chairman concluded by assuring the citizens of the nation that a stable currency was their only goal from this meeting of world financial leaders. I noted he did not say what currency though he was referring to.

0800 ET

By now, CNBC, Fox Business and Bloomberg were knee deep in wall to wall coverage but so were the broadcast and cable networks. America was on the brink was the preaching and screaming and the “bulls” were being gored by the permabears every time they uttered any statements about “how we’ve been through worse” etc., etc.

The announcement of the seizure by the FDIC of two of the largest banks in the world was pretty standard and short. The follow up statement by Ms. Bair though is what caused every newsroom to take pause when she stated that “further consolidations will be announced in the next seventy-two hours.”

The Bubblemedia was stunned and even shocked when Canada announced that they would attempt to open their financial markets for two hours of trading and that their banks would be open for normal domestic customers and business from 10 a.m. until noon Eastern time. Everyone on television looked at each other and just asked “How?”

0900 ET

I had forgotten to call in sick to work but then again the phone call from the company owner was pretty much a “well now what” as we laughed in a gallows humor discussion. He understood why I was home and he had already told the employees that he was closing at noon and would reopen when we could actually collect real money on what we sold and leased out. I told him I would call him at home later or meet him with a bottle on the golf course in the morning, weather permitting.

The chilling video of the Federal Reserve heads, Geithner and Obama boarding Air Force One to leave for Geneva from Washington, D.C. really had an impact on me.

1000 ET

The Canadian markets opened up 10% in ten minutes then rolled over down 31% by 10:30. The scary part was that the Canadian dollar kept on rising even though commodity trading was suspended and everyone was wondering just what gold would be priced at if the markets were allowed to trade.

As the day wore on, it was a blur of shocking story after shocking story. The President and his entourage arrived in Switzerland along with other world leaders but little was discussed or disclosed. The reports of banks being fire bombed by nuts throughout parts of the U.S. made the international news and caused all of us to feel somewhat uncomfortable as to what was next. The 8 p.m. interruption of normal prime time programming with a FEMA NEWS ALERT which lasted ten minutes and was repeated at the top of every hour with little if any information caused even more panic in the masses. Today I watched our dollar die in a matter of hours even though I knew how it was killed months if not years ago. I just wondered how bad the announcement out of Geneva was going to be as our bankers and politicians sold our souls out to save their rear ends.

I also wondered if I would ever sleep again.

Saturday, November 21, 2009

Boy Scouts and Prostitutes

Kellogg's Kid, Boy Scout by J.C. Leyendecker, circa 1912-1917, via Smith Kramer. h/t: wolfeblog via Bash.

Properly Equipped

Marine Corps General Reinwald is planning to host some boy scouts at the training center for a few practice exercises. The general is being interviewed by a female radio host.

female interviewer: So, General Reinwald, what things are you going to teach these young boys when they visit your base?

General Reinwald: We're going to teach them climbing, canoeing, archery, and shooting.

female interviewer: Shooting! That's a bit irresponsible, isn't it?

General Reinwald: I don't see why. They'll be properly supervised on the rifle range.

female interviewer: Don't you admit that this is a terribly dangerous activity to be teaching children?

General Reinwald: I don't see how. We will be teaching them proper rifle discipline before they even touch a firearm.

female interviewer: But you're equipping them to become violent killers.

General Reinwald: Well, you're equipped to be a prostitute, but you're not one, are you?

The radio went silent and the interview ended.

You gotta love the Marines! Semper Fi!

~ ~ ~

“Some say opportunity knocks only once, That is not true. Opportunity knocks all the time, but you have to be ready for it. If the chance comes, you must have the equipment to take advantage of it.” -- Louis L'Amour

~ ~ ~

Hellooo kitty. -- Not mine!

Gone shooting. - c

Friday, November 20, 2009

Ding Dong Global Warming Treaty is Dead

Breaking News 11/20/09 - Scroll to end.

China, India Cancel Out Copenhagen

Excerpt via IBD Editorials

Climate Change: With less than two months to go before the big Copenhagen Conference on global warming, two major nations have said "no thanks" to the no-growth agenda. For that reason alone, so should we.

Following a deal signed late Thursday between China and India, anything we might agree to do in Copenhagen is likely moot anyway. The two mega-nations — which together account for nearly a third of the world's population — said they won't go along with a new climate treaty being drafted in Copenhagen to replace the Kyoto Protocol that expires in 2012.

They're basically saying no to anything that forces them to impose mandatory limits on their output of greenhouse gas emissions. Other developing nations, including Mexico, Brazil and South Africa, will likely reject any proposals as well.

The deal was already in trouble. Three weeks ago, the Group of 77 developing nations met in Thailand to discuss what they wanted to do about global warming. Their answer: nothing.

So, thanks to China and India, Copenhagen is dead — just as Kyoto was when it was signed in 1992, though no one knew it at the time. Without them, no global treaty on climate change will be workable.

Al Gore could not be reached for a comment.

Related: Al Gore Sued by Over 30,000 Scientists for Global Warming Fraud

Glenn Beck Interviews Lord Monckton On Climate Treaty

Lord Christopher Monckton: Obama Poised to Cede US Sovereignty

Physicist Howard Hayden's one-letter disproof of global warming claims

~ ~ ~

The Wizard of Oz - Munchkin Land Song

~ ~ ~

Alex Jones ClimateGate - Final Cut!

UPDATE 11/20/09: "Global Warming" SCAM - Hack/Leak FLASH

Apparently a "Global Climate Center" was hacked and the contents have been posted to the Internet. A ZIP file exceeding 60MB and containing a huge number of emails and other documents has been posted worldwide.

Original speculation as to whether the files posted were legitimate or some sort of spoof appears to now be confirmed as legitimate:

“It was a hacker. We were aware of this about three or four days ago that someone had hacked into our system and taken and copied loads of data files and emails.”

I have not had time to read all of the material yet (there are over a thousand files involved!) but what I have skimmed looks VERY damning. Contained within the documents are what appear to be admissions of intentional tampering with data as well as intentional falsification of results to "show" man-made global warming. -- Read more of this updating story at The Market Ticker.

Don't miss: Global warming exposed as UN-funded fraud

Al Gore still can't be reached for a comment.

12/04: Gore cancels climate lecture in Copenhagen

... because of "all the events going on with the summit."

"Don't worry Al, I'm sure you'll have a very nice cellmate."

The Social Security Shipwreck

Title: The Shipwreck, 1805
Artist: Joseph Mallord William Turner (English 1775-1851)
Medium: Oil on Canvas
Permanent Collection: Tate, London, Bequeathed by Artist, 1856
Image Courtesy: National Gallery of Art, Washington

~ ~ ~

The Social Security Trust Fund wracked up another monthly deficit for October. The shortfall was $4.2 billion. This is the 5th consecutive month of red ink for the Fund. The total for the period comes to $15 billion. Blame the economy and the boomers for this problem. Some basic measures of the Fund's performance are rapidly deteriorating.

A critical measure is the ratio of Payroll Tax receipts to Benefits paid. The following chart looks at that ratio over time. That ratio will fall below 1.0 for the full year 2009. As of today we are living off of the interest.

Click chart to enlarge.

Health care is small beer compared to SS. My estimate on the current imbalance of the fund is close to $7 trillion on a NPV [net present value] basis. We are on a ship traveling at high speed toward a rocky shoal. And it is foggy and no one has a clue.

SS is too hot a potato to come up for a resolution prior to next year’s elections. That would imply it comes up for discussion sometime in 2011. The Fund can’t wait that long. I just keep wondering when the MSM will wake up to this. -- More at Zero Hedge.

Off With Their Heads?

Guillotine by excontemporain.

These Are DEAD Bankers

By reland1

The following are bankers, financiers, hedgefund managers and a congressman who have died under suspicious circumstances since the market took a dive:

Andrei Kozlov, Central Banker

Seth Tobias, CNBC Contributer, Hedge Fund Manager

Paul Gillmore, US Congressman

Oleg Zhukovsky Hedge Fund Manager

Rene-Thierry Magon de la Villehuchet, Hedge Fund Manager

Michael Klein, Hedge Fund Manager

Peter Wuffli Hedge Fund Manager

Kirk Wright Hedge Fund Manager

Alex Widmer CEO Bank of Switzerland

Adolph Merckle German Financier

Kirk Stephenson Wall Street Banker

David Kellerman FreddieMac CFO

William Parente New York Tax Attorney (+wife and 2 children)

Richard Egan Co-founder EMC

Anjool Malde Deutsche Bank Equity Sales

Finn Casperson Former Head of Beneficial

Danny Pang Newport Beach financier

James MacDonald Rockefeller CEO

Chris Kelly Blagojevich fundraiser

James Vellanti JNF Asset Management, LLC

Building a Discount Bushcraft Kit

Building a Discount Bushcraft Kit - Part 1

Building a Discount Bushcraft Kit - Part 2

Building a Discount Bushcraft Kit - Part 3 (Food)

Building a Discount Bushcraft Kit - Part 4 (Take Down BuckSaw for Ten Dollars)

Building a Discount Bushcraft Kit - Part 5 (Wool Blankets)

Building a Discount Bushcraft Kit - Part 6 (Cheap Small Game Snares)

Building a Discount Bushcraft Kit Part 7 (The Blanket Pack)

Pink Floyd - Comfortably Numb

Pink Floyd - Comfortably Numb

Is there anybody in there?
Just nod if you can hear me.
Is there anyone home?
Come on, Come on, Come on, now,
I hear you're feeling down.
Well, I can ease your pain
Get you on your feet again.
I'll need some information first.
Just the basic facts.
Can you show me where it hurts?

There is no pain you are receding
A distant ship's smoke on the horizon.
You are only coming through in waves.
Your lips move but I can't hear what you're saying.
When I was a child I had a FEVER My hands felt just like two balloons.
Now I've got that feeling once again
I can't explain, you would not understand
This is not how I am.

I have become comfortably numb.
I have become comfortably numb.

Just a little pin prick.
There'll be no more aaaaaaaaah!
But you may feel a little sick.
Can you stand up?
I do believe it's working, good.
That'll keep you going through the show
Come on it's time to go.

There is no pain you are receding
A distant ship's smoke on the horizon.
You are only coming through in waves.
Your lips move but I can't hear what you're saying.
When I was a child
I caught a fleeting glimpse
Out of the corner of my eye.
I turned to look but it was gone
I cannot put my finger on it now
The child is grown,
The dream is gone.
But I have become comfortably numb.

Audit the FED Amendment Passes

Rep. Alan Grayson on the Paul/Grayson Amendment

Rep. Alan Grayson argues in support of the Paul/Grayson amendment, which would subject the Federal Reserve to a complete audit.

Ron Paul argued:

"This is the bill that would allow the American people to win."

"Who's benefiting and where are the trillions of dollars going?"

"We live in an age where the American people are sick and tired of secret government and government out of control, and Congress passing TARP funds...and now that the people have found out that this is going on at the Federal Reserve, they're demanding to know details!"

The amendment passed the House Financial Services Committee 43-26 as part of the underlying financial reform package.

The committee is now poised to pass the entire bill (H.R. 3996) and has scheduled its final vote on the legislation for December 1.

~ ~ ~

Courtesy of The Market Ticker (who writes a great piece on this - you should read it), here's a handy list of nays to send pink slips to: [PDF]

NAY - Rep. Barney Frank, MA
NAY - Rep. Paul E. Kanjorski, PA
NAY - Rep. Maxine Waters, CA
NAY - Rep. Carolyn B. Maloney, NY
NAY - Rep. Luis V. Gutierrez, IL
NAY - Rep. Nydia M. Velázquez, NY
NAY - Rep. Melvin L. Watt, NC
NAY - Rep. Gary L. Ackerman, NY
NAY - Rep. Gregory W. Meeks, NY
NAY - Rep. Dennis Moore, KS
NAY - Rep. Michael E. Capuano, MA

NAY - Rep. Carolyn McCarthy, NY
NAY - Rep. Joe Baca, CA
NAY - Rep. Stephen F. Lynch, MA
NAY - Rep. Brad Miller, NC

NAY - Rep. Al Green, TX
NAY - Rep. Emanuel Cleaver, MO
NAY - Rep. Melissa L. Bean, IL
NAY - Rep. Gwen Moore, WI

NAY - Rep. Keith Ellison, MN
NAY - Rep. Ron Klein, FL
NAY - Rep. Charles Wilson, OH

NAY - Rep. Joe Donnelly, IN
NAY - Rep. Bill Foster, IL
NAY - Rep. Andre Carson, IN

NAY - Rep. Mary Jo Kilroy, OH
NAY - Rep. Jim Himes, CT

Why don't you give 'em a call and tell 'em what you think of 'em?

I'm sure they'd love to hear from you - you can find their phone and fax numbers at

Add to the traitorous bunch above Former Federal Reserve chairman Alan Greenspan and Paul Volcker who wrote the House Financial Services Committee early this month that they opposed the provision, backed by Paul and Grayson. Read the letter from Greenspan and Volcker.

“We can assure you that this protection of internal deliberations in reaching decisions that will affect market conditions and could expose sensitive information about particular institutions is indispensible in the Federal Reserve’s conduct of monetary policy,” Greenspan and Volcker said. -- WSJ

~ ~ ~

Click chart to enlarge.

Prepare yourselves for one hell of a stock market crash when this financial reform package passes and the FED is forced to unwind its illegal positions. [<-- View FED balance sheet here.]

Related: FED Controls Stock Market: Sell! Sell!

Thursday, November 19, 2009

Moraine Lake, Banff National Park, Canada

Moraine Lake, Banff National Park, Canada. Photo 1024x768. December 27rd, 2006. Via

Poison Ivy, Poison Oak: A Mountain Cure

Poison Ivy, Poison Oak: A Mountain Cure

Here's Shawn with a helpful hint for countering the effects of poison ivy, poison oak, stinging nettles and eczema: jewel weed.

"Grab a piece of it... split that stem... all of that lovely salve inside... just rub it on the spot."

Advice from this old redneck is not intended to replace advice from a doctor, RN, Grandma, or other health professionals.

Touch-Me-Not Or Jewel-Weed. (Impatiens biflora.) Via Chest of Books.

Preferred Habitat - Beside streams, ponds, ditches; moist ground.

Flowering Season - July - October.

Distribution - Nova Scotia to Oregon, south to Missouri and Florida.

how to split wood

how to split wood

1. Place your feet shoulder width apart.

2. Place the head of the axe on the wood to be split, and while comfortably holding the end of the axe with one hand, step back as far as you can with your arm fully extended.

3. With right hand up near the head of the axe and left hand down at the base of the handle (reverse if left-handed) raise the axe in front of you and bring it down on the wood to be split, shifting the right hand towards the base of the handle as the axe falls.

It's that easy. Now, go make yourself useful and split some wood!

~ ~ ~

Ronald Reagan chopping wood. Via University of Texas.

~ ~ ~

“The nation needs to return to the colonial way of life, when a wife was judged by the amount of wood she could split.” -- W. C. Fields

“People love chopping wood. In this activity one immediately sees results.” -- Albert Einstein

“Before enlightenment; chop wood, carry water. After enlightenment; chop wood, carry water.” -- Zen Proverb

Our Governments are Insolvent

Click chart to enlarge.

No wonder one of France's oldest banks is telling its clients how to prepare for potential 'global collapse'.

PDF Report or read here:

To read click "Fullscreen" (top center) then "Zoom +" (lower left).

h/t: gb_Joe, STICOMYTHIA, Zero Hedge, Jim Sinclair

Related: Countries faced with three brutal options in 2010: inflation, high taxation or default

Audit the FED already!

Ahead of tomorrow's hearings on various Fed transparency initiatives, Rep. Elijah Cummings is calling for a complete tear down of the existing Fed structure, and demands an overhaul to the "minimal accountability" that the Fed is subject to courtesy of the current Wall Street perpetuated (and lobbied) status quo.

Full Cummings letter below. -- Zero Hedge

To read click "Fullscreen" (top center) then "Zoom +" (lower left).

Squirrel: Hunting & Preparing

Cooper Outdoors Squirrel Hunting

Liberal & PETA warning: This video is on hunting and cooking wild game. It does have dead animals in it. How to cook squirrel over a fire is demonstrated.

How to quickly and easily skin a squirrel [trt: 0:46].

Related: Squirrel Soup

Wednesday, November 18, 2009

The View From The Left

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"Non semper ea sunt quae videntur." -- Phaedrus, book IV, fable 2, line 5

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In the spirit of doing one's best to know what the other guy's thinking...

I submit a view of The Right from The Left.

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Pitchforks and Pistols

By Charles M. Blow, The New York Times

Lately I’ve been consuming as much conservative media as possible (interspersed with shots of Pepto-Bismol) to get a better sense of the mind and mood of the right. My read: They’re apocalyptic. They feel isolated, angry, betrayed and besieged. And some of their “leaders” seem to be trying to mold them into militias.

At first, it was entertaining — just harmless, hotheaded expostulation. Of course, there were the garbled facts, twisted logic and veiled hate speech. But what did I expect, fair and balanced? It was like walking through an ideological house of mirrors. The distortions can be mildly amusing at first, but if I stay too long it makes me sick.

But, it’s not all just harmless talk. For some, their disaffection has hardened into something more dark and dangerous. They’re talking about a revolution.

Some simply lace their unscrupulous screeds with loaded language about the fall of the Republic. We have to “rise up” and “take back our country.” Others have been much more explicit.

For example, Chuck Norris, the preeminent black belt and prospective Red Shirt, wrote on the conservative blog WorldNetDaily: “How much more will Americans take? When will enough be enough? And, when that time comes, will our leaders finally listen or will history need to record a second American Revolution?”

Representative Michele Bachmann of Minnesota, imagining herself as some sort of Delacroixian Liberty from the Land of the Lakes, urged her fellow Minnesotans to be “armed and dangerous,” ready to bust caps over cap-and-trade, I presume.

And between his tears, Glenn Beck, the self-professed “rodeo clown,” keeps warning of an impending insurrection by saying that he believes that we are heading for “depression” and “revolution” and then gaming out that revolution on his show. “Think the unthinkable” he said. Indeed.

All this talk of revolution is revolting, and it hasn’t gone unnoticed.

As the comedian Bill Maher pointed out, strong language can poison weak minds, as it did in the case of Timothy McVeigh. (We sometimes forget that not all dangerous men are trained by Al Qaeda.)

At the same time, the unrelenting meme being pushed by the right that Obama will mount an assault on the Second Amendment has helped fuel the panic buying of firearms. According to the F.B.I., there have been 1.2 million more requests for background checks of potential gun buyers from November to February than there were in the same four months last year. That’s 5.5 million requests altogether over that period; more than the number of people living in Bachmann’s Minnesota.

Coincidence? Maybe. Just posturing? Hopefully. But it all gives me a really bad feeling. (Where’s that Pepto-Bismol?!)

Open Letter To President Obama

Letter authored by Karl Denniger, The Market Ticker. Corrections by me.

Yesterday you undoubtedly saw my letter to The Chinese Premier. Today, it's your turn.

You could have made quite a splash over there in China - and made a difference for all Americans. But instead, you did nothing of the sort - you simply continued the sell-out that has been going on for the last two decades in the so-called "strong relationship" between China and America.

That "strength" has included selling China advanced radar technology allowing them to shortcut 20 years of development time off their ICBM targeting, making their nuclear weapons far more lethal to potential targets - including targets in the United States. It has included turning a blind eye to the blatant and outrageous technology rip-offs that go on over in that nation every day. You won't see them because your Presidential Motorcade will never be allowed in the street markets found all over the nation, but if you were, you'd see literal millions of unlawfully-made copies of US-created software and music sold openly while the cops stand by to protect the vendors instead of enforcing internationally-agreed to laws that the Chinese pay only lip service to. And it has included granting virtually tariff-free "trading" status to a nation that forces poor farmers off their land and into sweatshop factories, away from their families where they are paid a buck a day in US equivalent wages, turning out products for sale in the US.

And let's not forget who these companies are. They're the WalMarts, Apples and Nikes of the world - many of them huge American firms. Oh not directly - that would bring these firms under US labor and regulatory stricture. No, they're "independent companies" owned by Chinese slave-drivers who instruct their employees to lie when the "auditors" from WalMart and Apple show up, telling them to a single employee that they're "complying" with reasonable wage and hour laws under penalty of losing their job, being blacklisted forever and literally starving to death. Since there are no whistleblower protections in China (it is, after all, a Communist government) the big US companies can claim to be "responsible" while in the background you hear the slave-driver's whip crack - and everyone smiles (except the Chinese worker who is being outrageously exploited.)

You ought to know something about this, given your heritage. Kenya featured prominently in the global slave trade until the British put a stop to it. There's nothing like a bit of history to screw up the revisionism that finds its way into American Politics, is there?

You ran on a populist platform and won on the basis of "hope and change." But hope and change is not working at WalMart while offshoring the production of our various consumer goods to China where the replacement for our US workers are paid a buck a day. Indeed, many of the 8 million American jobs lost since the top of the employment market in mid-2007 will never come back, simply because the small and mid-sized businesses that once dotted the landscape have been destroyed by this "offshoring" activity. It is clearly not possible for a US supplier or vendor to compete with $1/day wages or anything approaching it, yet this is the "competitive supplier" environment over in China and elsewhere.

The Truth is that America and China are locked in a deadly embrace. They're not buying our Treasury Debt to be nice or "support" us. They're buying because we have exported our inflation to them for more than two decades, and they're desperately trying to prevent it from destroying them. See, when you make $1/day (or $2/day) inflation is the difference between eating and not eating, and hungry people have a habit of reaching for pitchforks. Since there are about 1 billion of them (ordinary Chinese) and a much smaller number of military and leadership, well.... you do the math.

But that "buying" of our Treasury Debt has fueled your (and your Republican Democratic cronies) desire to spend beyond all reason. This distortion has allowed the government to blow money it does not have for more than a decade without watching interest rates ratchet inexorably upward, as happened to Bill Clinton and those before him.

The problem is whatever can't continue forever won't, and if you've been induced to borrow "interest only" (as our government always has) and the interest rates start to rise you can be bankrupted even if you stop borrowing. Your refusal to recognize that nobody can survive for long when you take in only half of what you spend, borrowing the rest, is an outrage and insult to anyone with an IQ larger than their shoe size.

Speaking of outrages, let's go down the list of current ones. We can start with the SIGTARP report on AIG and their counterparties. While AIG might have been free (under the law) to sell "insurance-like contracts" with no capital behind them, there is nothing that forced The NY Fed (and The Federal Reserve generally) to allow regulated bank-like entities to purchase those swaps and count them as "money good hedges." Yet the very boob who apparently did that, along with intentionally overpaying counterparties, was appointed by you to head the Treasury. I suppose none of us should be surprised at this revelation by Mr. Barofsky, given that one of Timmy's qualifications to head the Internal Revenue Servive Treasury was that he didn't even bother paying his own taxes. You do realize the example this set for other Americans, right? Is that wise, given that the government is undoubtedly going to try to extract more and more tax money from the rest of us in the years to come?

Then there are people like Lloyd Blankfein, who yesterday "apologized" for "participating in things that were clearly wrong." I know you created a "government-wide task force" as of yesterday to "fight financial fraud", but somehow I doubt we'll see the person who made a public admission yesterday of "participating in things that were clearly wrong" in the dock. Indeed, yesterday we were treated to a revelation that Sacramento is suing a bunch of banks for bid-rigging and kickbacks - suspiciously similar to what apparently happened in Jefferson County Alabama, in which JP Morgan/Chase agreed to a fine and "foregone profits" of nearly three quarters of a billion dollars - while "not admitting guilt." Pardon my cynicism, but I've yet to see anyone willingly hand over nearly 3/4 of a billion dollars unless they're concerned that they might lose a lawsuit or worse, be found guilty in a criminal trial. It would seem to me that this "task force", if it really is intended to do something productive, would start at the top - with Racketeering prosecutions aimed at our largest financial firms. But that's not going to happen, is it?

Speaking of "OCCE" (operating a continuing criminal enterprise), what about drug companies? There's a bit of a problem there too, no? Are not the drug companies one of the beneficiaries of your alleged "Health Care Reform"? After all, you're not going to strip them of their re-importation protection, are you? Why not?

Far more important however is where a "gentlemen" (Kindler) wound up after not one but two criminal guilty pleas by Pfizer for the same crime. He was elected to the board of the NY Fed. Are you as proud of Pfizer's record as is Mr. Kindler is as their former CEO and General Counsel? It appears so - not only does your "health care" proposal not bar deals with drug companies that have twice pled guilty to the same felony, not only is Pfizer still operating as a corporation (where any "natural person" who did the same sort of thing would be sitting in the hoosegow) but in addition you've sat back silently while their CEO is appointed to one of the chief banking regulatory positions in The United States!

Here's the problem at the end of the day Mr. President.

You were elected on a platform of "Hope and Change." In point of fact the only change we got is the change at the bottom of our pockets - all the rest of our money has been siphoned off by the very same robber barons and banksters that have corrupted our nation for decades. You've done exactly nothing to prosecute them for their previous actions or prevent them from doing the same things in the future. Nearly a year after your election Citibank served upon the American people a 29.9% "rate jack" on their credit cards - an "atomic bird" served up by one of the largest financial firms in The United States, and one that the government now owns a large stake in. This was a slap in the face of Americans by THE GOVERNMENT - that is, YOUR ADMINISTRATION.

You claim to be for the working class people in this country, yet you bow down to China paying people $1/day to assemble junk products, from capacitors that explode (found in literally millions of pieces of electronics) to melamine-laced "food products" to poisonous toothpaste to corrosive drywall that destroys wiring, plumbing, and, allegedly, the lungs of US Citizens.

We continue to hear that we "must reform health care" yet just recently Pfizer pled guilty to a criminal felony that it previously, years ago, pled guilty to before. Nobody went to prison, and the fine levied was less than 1% of the firm's market capitalization. A mere cost of doing business. These are the "engines" of Americans' health you wish to protect with laws that force we the people to pay for the development of drugs and medical devices that are then used worldwide - without the rest of the world paying "their fair share" for the developments that save their lives. We're a generous people but don't you think such charity should be by choice rather than extracted at gunpoint?

You refuse to step in and force The Fed to be audited, even though you could get behind Representative Paul and demand it happen. Why? Is it because you're protecting the very people who ripped us all off? There are those who believe the true purpose of your Chinese trip is to find a way to pry open the doors in China so our Banksters can loot them, since the blood all seems to be gone from Americans - the vampires simply drank too much and killed us all. There's one small problem with that plan, if indeed it is your intention - in China they shoot people for the sorts of things that the banksters did over here. Call it a "feature" of Communism if you'd like.

Let's face it: America may need some protectionism. Americans can't be expected to compete with $1/day - or $2/day - in wages. While this "looks good" for a little while as prices come down just as business profits look good when you fire people in the quarter you do it (witness the last two quarters of "earnings") those employees who lost their jobs can't buy anything in the future, as their income has evaporated! They wind up on the dole, and this drives our budget deficit from 20% of our Federal Budget to roughly 50%. The pegs and forced buying of Treasuries that have allowed this to happen won't last forever, and when (not if) they snap they will force a Federal Government default. Thus, my statement in the open letter to China's Premier - we're not going to pay you.

Some have claimed in comments I received that my views in that letter are some sort of jingoistic orgasm. Nothing could be further from the truth; my views are simply an expression of mathematical fact. Math is the only true science.

Speaking of the math, I'm sure you're aware that about half the nation loved you at the time of your election and the other half hated you. That's a "feature" of American politics, of course. But I would be concerned for your job security down the road if you don't change course. After all, the SEUI and UAW both were strong supporters, as were the "ordinary people" who bought into your "hope and change" mantra.

The problem is that you haven't kept any of those promises. Your "stimulus" didn't, your "Recovery Czar" has refused to certify the jobs "saved or gained" numbers (that's because they're flat lies, as is obvious from the employment situation report's household survey) and a huge stock market rally aside, there hasn't been any real turn in the economy. Instead Wall Street is feasting on the destruction of the dollar, which is a direct consequence of your policies - spending more than one makes eventually destroys confidence in the strength of your balance sheet, and the puerile acts of a Fed Chairman who you claim to support for re-appointment in his futile attempt to keep the musical chairs game going isn't helping matters. You could stop this tomorrow by demanding that Bernanke raise rates to a mere 2% immediately or you'll replace him with someone who will - after all, his reconfirmation has not yet occurred, and your nomination can be withdrawn.

Best of luck to you Mr. President - from where this commentator sits, given the underlying realities of the economy and exploitation of our working class and your willful blindness to the mathematical realities of our fiscal and economic situation, you're going to need it.

Peter Schiff: Gold soon at $5000 or more

Peter Schiff: Gold soon at $5000 or more

"[The dollar] might even lose all of its value." -- Peter Schiff

h/t: MRinvestment, Zero Hedge

To read click "Fullscreen" (top center) then "Zoom +" (lower left).

Related: Martin Armstrong: GOLD $5000+

Trap Preparation

Trap Preparation - pt. 1

A discussion about several different types of traps and how to prepare them.

Trap Preparation - pt. 2

Related: Animal Traps: Dead Falls

Food Procurement 2 of 3: Traps, Snares, Killing & Fishing Devices

Coffee Filters: 15 Household Uses

h/t: Ike

Coffee filters!... Who knew?

And you can buy 1,000 at the dollar store for almost nothing. (A dollar?)

1. Cover bowls or dishes when cooking in the microwave. Coffee filters make excellent covers.

2. Clean windows and mirrors. Coffee filters are lint-free so they'll leave windows sparkling.

3. Protect China. Separate your good dishes by putting a coffee filter between each dish.

4. Filter broken cork from wine. If you break the cork when opening a wine bottle, filter the wine through a coffee filter.

5. Protect a cast-iron skillet. Place a coffee filter in the skillet to absorb moisture and prevent rust.

6. Apply shoe polish. Ball up a lint-free coffee filter.

7. Recycle frying oil. After frying, strain oil through a sieve lined with a coffee filter. (Note: Oil of any kind which has been repeatedly heated to its smoking point will lose it's natural antioxidants and begin to accumulate free radicals and other cancer causing substances. Whether this has actually caused cancer in humans has never been proven. - source)

8. Weigh chopped foods. Place chopped ingredients in a coffee filter on a kitchen scale.

9. Hold tacos. Coffee filters make convenient wrappers for messy foods.

10. Stop the soil from leaking out of a plant pot. Line a plant pot with a coffee filter to prevent the soil from going through the drainage holes. (I love this use!)

11. Prevent a popsicle from dripping. Poke one or two holes as needed in a coffee filter.

12. Forget expensive strips for waxing those eyebrows, etc. Use strips of coffee filters.

13. Put a few in a plate and put your fried bacon, french fries, chicken fingers, etc. on them to soak out all the grease.

14. Keep in the bathroom. They make great "razor nick fixers."


Tuesday, November 17, 2009

Open Letter To The Chinese Premier

Letter authored by Karl Denninger, The Market Ticker. Photo: EPA.

Dear Wen Jiabao:

We in America have noted with concern your nations' expression of alarm at our Federal Reserve's blatant money-printing, debt monetization, and interference in the free markets, in particular the recent commentary of China's bank regulator cited here:

“The continuous depreciation in the dollar, and the U.S. government’s indication, that in order to resume growth and maintain public confidence, it basically won’t raise interest rates for the coming 12 to 18 months, has led to massive dollar arbitrage speculation,” he told reporters in Beijing today at the International Finance Forum.

Liu said this has “seriously affected global asset prices, fuelled speculation in stock and property markets, and created new, real and insurmountable risks to the recovery of the global economy, especially emerging-market economies.”

Mr. Liu is correct, of course. However, yesterday afternoon Ben Bernanke gave you the finger, first in his speech and then later in the Q&A in which he said:

Nov. 16 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said it’s “not obvious” that asset prices in the U.S. are out of line with underlying values after a 64 percent jump in the Standard & Poor’s 500 Index from its March low.

Donald Kohn, another Fed Governor, erected his middle finger in your direction as well with his comments last night and Yellen added her view this morning in which they also both said "we see no bubble." That's three.

How many more times do you need to be flipped off before you get it: The Fed isn't going to do what you want, and neither is Obama. Get over yourself.

On the objective measures the price/earnings multiple of the S&P 500 currently stands at over 130, more than double its previous record and vastly beyond anything achieved even in China's manipulated and overheated markets. In short, they're lying and they don't care.

Welcome to American Politics Mr. Jiabao.

(In the event you're not aware, "the finger" is the extended middle finger pointed in your direction, a universal American insult that, roughly translated, asks that you be fornicated. I do not know what an equivalent insult is in Chinese.)

Now that I have your attention by making sure you that you realize that our Central Bank has flipped you off, let me point out something you should be aware of:

The so-called "paper" you hold denominated in our dollars will not be paid in full.

Let me put forward a few realities you may not be aware of, since you are the Premier of a Communist Nation where there is no freedom of the press nor, for that matter, any of the other freedoms guaranteed in our Bill of Rights. That is, you head a nation where you believe the government has rights and the serfs, er, population has privileges you grant, where our founding documents express the precise opposite view - we believe that all people have rights that are endowed by our creator, that government can secure and protect rights but is incapable of bestowing them (since it didn't have them in the first place), and that government has mere privileges granted by the people - and that the people have the right to revoke those privileges.

Here's the problem you face, in a nutshell, just to make sure you read it correctly the first time:

We're not going to pay.

First, we (the citizens) didn't enter into these obligations. You pursued a mercantilist strategy that involved, among other things, near-literal enslavement of your citizens under working conditions equal to or worse than those we imposed on the Africans we forcibly imported into this nation (that is, kidnapped) in the 1600s and 1700s. We eventually figured out that this was abusive and stupid, although it took a civil war for us to do so. You've yet to figure it out - you punish dissent with tanks and bullets while refusing to recognize basic human rights. You build schools and other structures that collapse in minor earthquakes or when 3" of snow falls on their roofs, claiming this is "progress", when the native Americans that inhabited this nation were capable of constructing buildings of nothing more than sticks and animals skins that remained standing under similar conditions. Using this slave labor, having destroyed our middle class workforce via offshoring, you have then sent back to us poisoned children's toys, toothpaste and drywall, and demanded that we pay for these poisonous and dangerous products with good money. As a consequence we the people don't like you very much. In fact, some of us would be quite content to invite you to dinner - as the main course.

Next, it is clear that you have strong-armed our government into exchanging toxic securities you bought from private actors for "good credit" US Treasuries. You are among those who have played the "Financial Armageddon" card with a fair measure of success. Precisely what you said and to whom you said it has not been publicly disclosed, but that threats were part of the negotiation is essentially assured, since nobody in their right mind would exchange used toilet paper for good Treasury Debt otherwise. Yet our government wasn't the agent of the original fraud - those were private corporations and actors. Instead of doing what reasonable people do - that is, sue in a US Court and hold the guilty to account - you decided to play geopolitics. You have that right, but we have the right to tell you to stuff it - today or tomorrow. That day will come I can assure you.

Third, there is the matter of our citizens waking up to the scams - including your scams. An increasing number of citizens in this country have had enough of the BS and, having been ignored when EESA/TARP was debated (by over 100:1 we told Congress not to bail out those bastards who ripped both us and you off) are intentionally reducing their output. This of course reduces the tax base against which our government can extract money to pay you with. Further, our government has over the space of more than 30 years embarked on programs that allow any US Citizen to effectively live for free, paying nothing. There's not a thing you can do about this, and we both can and are de-funding our government's ability to tax. Have a look at tax receipts - the government is running a near-$2 trillion deficit for this reason above all others. Attempts to raise taxes on the remaining productive citizens simply cause more of them to decide to join those who erect their middle finger toward Washington DC, choosing Food Stamps and Medicaid over hard work. There's a phrase for this: "Going Galt." I recommend you read Ayn Rand's "Atlas Shrugged" - I'm sure there's a Chinese translation somewhere, although I suspect you shot the translator after he completed the work, lest he gain "subversive" thoughts and communicate them to others.

Trust me when I tell you we're just as pissed off about the frauds and scams as you are, but that doesn't give you the right to obligate we the people who were not the architects of these scams and frauds to pay for them, and we will not accept any such putative "obligation." Go take your gripe up with Mr. Paulson, Bernanke, Geithner, Obama, Bush and those who peddled all this crap worldwide. Your beef is with them, not us, and we hold that those who commit bad acts are where the liability for same beings and ends.

Finally, we have the matter of our children and those yet unborn. They did not consent to any of this - not even the rampant consumerism you fueled in this nation with your slave labor and pegged currency. They have no obligation whatsoever to you or to any debt contracted by anyone prior to their coming of age, and it is highly unlikely they will consent to be bound to it. The privation necessary for us and our children to pay - that is, reducing our working class to an income of $2/day to match your serfs (who thus far have surprisingly not found their 750 million pitchforks yet) isn't going to happen.

You proceed from the unfounded belief that our government will be able to extract this effort from us via either voluntary compliance with ever-rising taxation or the employment of naked force at arms. This is not a sound assumption. Americans have a long history of suffering various usurpations and injustices, but Americans also have a history of "snapping" when pushed too far. Ask the British about what happened at Concord on April 19th, 1775.

Sooner or later, whether by peaceful election or less-than-peaceful means, a leader will arise in America who will contemplate erecting the middle finger back in your direction, just as many Americans have flipped off Washington DC. Ben Bernanke, Mr. Kohn and Ms. Yellen are just the first three you've seen in our officials who are willing to tell you where to stick your expectations - the day will come, I assure you, where a decision is made to simply tell you to stuff it at the highest levels of our government. Yes, such a declaration - that your alleged and dear "Treasuries" are in fact nothing more than toilet paper - would have severe geopolitical consequences. So what? By then our nation will be incapable of paying anyway - a default by any other name is still default. But our citizens, unlike yours, are and will be armed - go ask Admiral Hirohito about the wisdom of considering an attempt to enforce your alleged debt by force.

Worse for you, while we would suffer were America to turn isolationist, we would survive. Your nation and its people would not.

Let me give you a piece of advice: Sell your Treasuries and dollars while you can.

Oh, you'd love to do that, wouldn't you? But you can't, and you know it. See, you've entered into a pact with the devil - a devil of your own creation. Should you sell a material amount of your holdings you would collapse the Treasury market and receive only pennies on the dollar. Further, you would instantaneously cut off your trade flow into the United States - the rise in interest rates this would provoke over here would force our citizens to spend only what they earn, as the cost of credit would rocket higher - much higher. It would also force an immediate default on whatever was left of your alleged "Treasuries" as our government would be forced to repudiate your holdings to remain solvent. When it comes down to "you or us", let me assure you, it will be us. This in turn would cause all your poison toy, drywall, toothpaste and melamine-laced baby food factories to close. Without that meager $2/day salary you would have 750 million hungry and angry Chinese who just might figure out what a pitchfork's best and highest use is. We, on the other hand, would chuckle mightily as we returned to actual hard work - for our benefit, not yours.

So let's cut the crap Mr. Premier. You have no good way out of this dance with the devil. The amusing part of this is that you're reduced to the position of a petulant child who can't have that next candy bar - you scream loudly but have the balls of a baby, unable to do a damn thing about the increasing number of middle fingers erected in your direction - now by our Central Bank, and soon by the highest levels of our government.

If you have trouble reading the intent behind those three birds being flown in your direction, I assure you - those are only the first three of many you will recognize in the months and years to come. We the people of America, having been abused with your poisoned toys, toothpaste and construction materials, are taking great amusement in the fact that an alleged "superpower's" Premier in reality has no more power to effect geopolitical outcomes than the incessant howling of a 2-year old child.

Have a nice day.