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The Science of Getting Rich: CHAPTER VII [excerpt] by Wallace D. Wattles #Gratitude

--- Gratitude THE ILLUSTRATIONS GIVEN IN THE LAST CHAPTER will have conveyed to the reader the fact that the first step toward getting ...

Friday, February 26, 2010

They're Aliens

And they're trying to tell us something. Trying to communicate with us...
Can you hear them?
Pink Floyd - On The Turning Away


Pink Floyd Learning To Fly Lyrics


Pink Floyd Learning To Fly Lyrics
Into the distance, a ribbon of black
Stretched to the point of no turning back
A flight of fancy on a windswept field
Standing alone my senses reeled
A fatal attraction holding me fast, how
Can I escape this irresistible grasp?
Can't keep my eyes from the circling skies
Tongue-tied and twisted Just an earth-bound misfit, I
Ice is forming on the tips of my wings
Unheeded warnings, I thought I thought of everything
No navigator to guide my way home
Unladened, empty and turned to stone
A soul in tension that's learning to fly
Condition grounded but determined to try
Can't keep my eyes from the circling skies
Tongue-tied and twisted just an earth-bound misfit, I
Above the planet on a wing and a prayer,
My grubby halo, a vapour trail in the empty air,
Across the clouds I see my shadow fly
Out of the corner of my watering eye
A dream unthreatened by the morning light
Could blow this soul right through the roof of the night
There's no sensation to compare with this
Suspended animation, A state of bliss
Can't keep my eyes from the circling skies
Tongue-tied and twisted just an earth-bound misfit, I

Please... Learn to fly with me...


Game Over

Stealing more stuff from books... I truly hope they don't mind and sue me...

This is excerpted from Game Over 'How to prosper in a shattered economy' by Stephen Leeb, PhD

I do highly recommend the book...

It's easy to imagine a Tom Clancy novel in which a small group of CIA operatives scheme to prevent peace in the Middle East. After all, if a lasting peace were ever achieved in that region, it would be a disaster for the West. Certainly, capitalism and democracy would get a firmer foothold during peace time. But that's just the problem. Capitalism and peace would lead to economic growth. If oil producing nations in the Middle East grew to the point that they were using all of their oil to sustain their own economies, where could the developed nations turn for oil?

Consider, for example, Iran and the controversy over its nuclear program. Because Iran is OPEC's second-largest oil exporter, most people assume it has all the energy it needs. Therefore, they conclude that the only motivation Iran could have for building nuclear reactors must be to create fuel for nuclear weapons.

However, it's not that clear cut. Iran's economy is growing by 4.3 percent a year, which means it's energy consumption is rising. Rodger Stern of John Hopkins University analyzed the growth of Iran's domestic energy demand, the depletion rate of it's oil production, the cost of raising production, and other factors ("The Iranian Petroleum Crisis and United States National Security," Proceedings of the National Academy of Sciences 104.1, January 2, 2007: 377-82). He found that under even the most optimistic scenario, Iran's oil exports will decline to zero by 2015. The Iranian government depends on revenue from oil exports. Therefore, the country has a good reason for wanting nuclear reactors. By using nuclear power to meet its domestic energy needs, Iran hopes it can continue selling oil. Otherwise, it will become a net importer.

If Iran can run out of oil to export, so can every OPEC member. Most Middle East countries are classified as developing nations. So are many other resource-rich countries. We can expect their energy and commodity needs to increase at a rapid pace for the foreseeable future. Eventually, world wide growth could lead to a situation where, when the united States goes shopping for the commodities it needs, the entire world says, "Sorry, we have nothing to spare." At that point, our economy and our standard of living would be in serious trouble. We would see inflation higher than ever before experienced.

This is spooky stuff if you ask me... I think as many people as possible should be aware of the real problems faced by the entire world, including the United States.

Those being the lack of adequate commodities in the world and our own dependence on those commodities here in the United States. When/if these problems occur, or worsen, it will have a dramatic effect on our standard of living here and around the developed world.

What we U.S. citizens get is an endless stream of hopeful propaganda about how everything is going to be just fine...

Bullshit it is!

There are reasons the powers that be lie to their own people... Please try to keep that in mind and please try to educate yourself as much as possible about what is 'really' going on in the world around you...

There is a never ending cycle of government elite propaganda from most all governments all over the world.

Take responsibility for educating yourself.

Knowledge is power...


Wednesday, February 24, 2010

On Consumer Confidence

Two headlines above the fold on today's local paper 'Your Money' page...

(on top)
Consumer Confidence falls

(and below that)
Wall Street bonuses shot up in '09

It 'looks' like a disconnect... but I'm not really so sure it is... I think it just clearly shows that since this particular economic storm began there has been a concerted (some might say manipulative) effort, by government and the federal reserve, to find or create positive economic numbers to point at. I would imagine thinking that goosed, manipulated, government/federal reserve spending induced, imaginary, improving economic numbers might improve 'consumer confidence' and spur the Holy Grail of 'consumer spending'.

That many of those positive numbers happen to be showing up on the balance sheets of banks should be no big surprise to anyone... Jeeze...

The government and the federal reserve/central banks have been very busy trying to paint a rosy picture of an economic recovery in progress for many months. I wonder if this is the maturation of those green shoots maybe? Remember those? The government, our government, and the federal reserve, unfortunately also ours, need to do one very important thing...

Prove to the American people that they are relevant!

-Clipped from the AP story- I like to capitalize the words BILLION and TRILLION, just me... so that emphasis is mine)

"Broker-dealer operations associated with the New York Stock Exchange earned a record $49.9 BILLION through the years first three quarters. The firms probably closed out the year $55 BILLION in the black, DiNapoli's office said."

Banks seem to be doing very well.. And why wouldn't they be with all the smothering attention they have received?

From the top story on consumer confidence... also an AP story
(blah, blah, blah)... "That bodes ill for the sort of uptick in 'consumer spending' that normally powers economic recovery, and could raise pressure on the obama administration and congress to create jobs themselves."

Create jobs themselves? WTF does THAT mean? More immigrant gardeners at the White House???

From the article...
"Many economists say business investments and exports can help drive the nascent turn-around in the short term, but a rise in 'consumer spending' is essential to keep it going."

And this is the part that really got me...
"Without a sustained acceleration in 'consumption growth', this recovery will eventually fade," said Paul Ashworth, senior U.S. economist at Capital Economics Ltd."

Are these people insane?!

All they ever seem to talk about is 'consumer spending' and 'consumption growth'!

I hope I'm not losing my mind... but isn't that pretty much exactly what got us into this dire situation in the first place?! The fact that our own government and financial system did such a FANTASTIC job of spurring 'consumer spending' and 'consumption growth'?! In cars, housing, every electronic gadget imaginable?!

"...a sustained acceleration in 'consumption growth'"?! What planet are these people on?

Have them go here and look around... Consumer debt statistics

Talk about running around in circles chasing your tail...


Tuesday, February 23, 2010

My Manifesto

Lets do some basic stuff and start with what I AM for...

I am for cleaning out as many incumbents as is humanly possible in November of 2010. BOTH parties.

I am for ending a fraudulent Federal Reserve banking system that has intentionally eroded the value of our dollar through hidden inflation for decades. A federal reserve banking system that engages in, probably illegal, secret currency swaps with foreign central banks. A federal reserve that has kept interest rates artificially low since the dot com bust of 2000 to drive an economy based solely on debt, a house of cards. A federal reserve and government that intentionally fueled an artificially created housing boom that relied in large part on risky bank loans. A federal reserve bank that was instrumental in the bank bailouts via TARP. A federal reserve banking system that twisted law makers arms to give the banks whatever they wanted in exchange for "saving" our economy. A federal reserve banking system and government that offered NO reliable financial over-sight what-so-ever!

I am for ending whatever the hell form of government we currently have. Our representatives, for the most part, are completely ridiculous, ineffective and irrelevant. Politicians driven ONLY by the pursuit of MONEY from whatever source they can find it and nothing more than that.

Sometimes I think it would be so cool if money simply vanished off the face of the earth, instantly. Can you imagine the sheer panic and horror?! lol

That we, Americans, people and governments and business' around the world, have allowed ourselves to become so horribly addicted to small pieces of paper and electronic zeros and ones that many people KILL for it! In fact nearly ALL governments are willing to kill for it in the end...

Money? What is the source of the power it wields over mankind?

It seems that nearly all that is wrong in the world is the direct or indirect result of not having enough of the commodity we call money... Worthless little scraps of paper... meaningless digital zeros and ones stored on a secure hard drive somewhere in cyber space...

Tax revenue is collapsing everywhere. I see it in my local paper on a daily basis. Tax revenue has collapsed in nearly every state, county, city and township in America...

Most of our banking system is currently insolvent right now. Propped up by government and federal reserve accounting shenanigans... Government and federal reserve manipulations of economic data to paint the picture they want people to see. (Check ShadowStats.com for more on economic data manipulation).

The entire medical industry is in a monetary panic. Including insurance companies, medicaid, medicare, drug companies, hospitals and doctors. They have ALL priced THEMSELVES right out of business! And now they all need more money...

Where is all the money supposed to come from? As always... American tax payers... Our government seems a little leery about borrowing freshly printed dollars from the federal reserve forever... Thank God for small favors...

The total debt has increased over $500 billion each year since FY 2003, with increases of $1 trillion in FY2008 and $1.9 trillion in FY2009.

The United States Congress has raised the debt limit several times in recent years. The debt limit was raised to $12.394 trillion by H.R. 4314, which was signed into law on December 24, 2009 (Pub.L. 111-123). A further increase in the U.S. debt ceiling to $14.3 trillion by H.J.Res. 45 was sent to the president on February 4, 2010. President Barack Obama signed this ceiling of $14.3 trillion on February 12, 2010.

source Wikipedia: United States public debt

Talk about bailout fatigue... Bailing out banks and companies and people is ALL we have done as a nation for two solid years now!

This is, supposedly anyway, real debt people. We can't pay back that amount, ever. China knows that. So does the rest of the world. Nothing 'good' can possibly come out of any of this.Things eventually, I do not know the exact date, will collapse. These sort of economic problems, historically, have ALWAYS ended in disaster. Disaster defined as depression, deflation, hyper-inflation... whatever the poison ends up being.

Whether we like it or not America is in decay and decline. And it is happening on our watch. I might predict that someday soon China may be the lone Super Power in the world. And that India will surge into a leadership role on the world stage. Shit happens, the world changes. Sometimes, sometimes, even America gets the short end of the stick...

We just don't have anymore money! Not the government, except through fraudulent federal reserve monetary manipulations and trickery. Not business. Cost cutting and layoffs to drive profits can last only so long... Not the American people. Saving has become something that our parents parents worried about long ago...

It seems that all the American people, government, business need is forever easy credit so our entire lifetime can be 'party like it's 1999'...

Trouble is... the money is gone now. The bill is coming due. The party's over.

America needs to return to her roots... Built on the self-reliance, prudence and thrift of her citizens. Not on the military might and financial manipulations of a corrupt government and corporate sector. A plutocracy, oligarchy or kleptocracy (please choose your favorite definition).

So what is wrong in America this very moment?

In a single word debt/credit/money...

What happens when the federal government itself can no longer afford to pay the salaries, with tax payer dollars, of all those policemen, firemen and teachers whose unions got them such nice wage and pension plans?

So what happens when the federal government itself can no longer afford to pay the missing wages, through extended unemployment benefits, of millions of unemployed Americans who need to make car payments, mortgage payments or buy FOOD?

So what happens when the federal government itself can no longer afford to prop up AIG, GM, Chrysler, Fannie Mae, Freddie Mac, subsidies, medicare, medicaid, welfare, food stamps and national freaking parks? What then?

So what happens when the federal government itself can no longer afford to fund multiple wars all over the globe? Wars for which the purpose of seem to have been largely forgotten now...

17 million Americans cannot find work. Where are all those jobs anyway? China, India, Mexico. Wherever our corporations can find cheap/slave labor... to... produce something.

We don't actually produce much of anything anymore in America. There was a time in America that blue collar jobs could comfortably support a family. For the most part those jobs no longer exist. If you don't work in the 'services' industry you're pretty much out of luck these days as far as finding a job. But the 'services' industry is being hit hard by this economic downturn as well... Seems all those 'people' they have been forced to let go to support, largely imaginary, profits can no longer afford to purchase their 'services'.

Darn that viscous cycle anyway...

I knew that this could not, would not, last forever. The federal government cannot afford to prop up itself, every business sector in America and every American family who needs help indefinitely...

The government's main problem is that it panicked and made bad decisions... When the government saw that the entire financial system was imploding it panicked and falsely believed that it could prop up EVERYTHING, with the complicity and encouragement of the federal reserve and central bankers, until the economy had enough time to recover on it's own.

The government's main problem, in my opinion, is that it went 'all in', pushing not only every chip it HAD to the center of the table but continued pushing TRILLIONS of chips in that it DIDN'T have! Borrowed from the same federal reserve banking system that is largely responsible for the majority of our problems.

None-the-less, the government went 'all in' with every dollar it could beg, borrow or steal, with little or no regard for what might happen on the outside chance that the economy did not recover... Which, as it turns out it hasn't... Regardless of how government and the federal reserve might play with the numbers in an attempt to make it appear otherwise (ie; CPI (inflation), GDP, unemployment...)

It is my opinion that our economy will not recover... Why? Because 'trust' in the American systems of government and finance have been utterly destroyed like they haven't been since the early 1930's. It will take MUCH more than manipulated numbers to correct that... Now nearly everyone in America is onto the financial slavery game played by Washington and Wall Street.

Fool me once, shame on you. Fool me twice, shame on me...

More than two years ago the entire banking system fell into bankruptcy itself but for the government 'seizure' of tax payer dollars, against an uproar of protest, to save them.

Thus far our 'reward' for our 'generosity' has been the continuation, and even ramping up, of usurious interest rates of 20% and 30%. This while the banks themselves continue to be coddled by government and the federal reserve, given the ability to borrow money themselves at 0 to 0.25% !!!

These financial 'games' need to stop! The banks borrow money at 0% from the federal reserve and use it to buy treasuries from an insolvent government to 'simulate' earnings. lol What a joke! The federal reserve prints TRILLIONS of dollars out of thin air to 'loan' to a federal government that is, or at least should be, a higher risk than most, if not all, sub-prime housing borrowers...

It's total insanity, in my opinion, to think that the government can spend it's way out of debt, a recession/depression, or deflation. It's pure folly! Especially when consumer trust is now, for all practical purposes, non-existent.

This is indeed a time for thrift and self-reliance.

If you can't take care of yourself and your own family then I suggest you start looking in earnest for someone who CAN take care of you. It's not going to be the federal government forever. It can't be... they're broker than you are...

It appears that raising taxes may be the next fiscal trick employed by our government... If they do so it will only cause even more damage to our shattered economy. Tax revenue is collapsing everywhere due to economic problems. Raising taxes will only exacerbate the problem.

An unconstitutional individual mandate on American citizens to purchase a product from a private sector (ie; health care 'reform') amounts only to a bailout of greedy insurance companies by placing their own financial burdens directly onto the backs of healthy young Americans who, many for financial reasons, choose not to purchase inflated insurance premiums. Healthy young Americans already burdened with too much personal debt if not job loss as well...

It would do more harm than good...

Cap and Trade legislation that would increase, some/many say double, the utility bills of millions of Americans who are already struggling just to get by and pay the bills. American families struggling to keep a roof over their head and food in their mouths.

The government already placed a hefty new tax on tobacco. I smoke and I feel like everyone, including government, should do everything in their power to convince people either to not start smoking or to quit. It never should have been legalized. The federal government legalized a poison to be distributed to it's citizens in the name of profits for big business. So what else is new?

But, besides that point, how is it a good idea to hammer, largely, the poorest in our society with a large tax increase at the outset of a recession/depression?!

It did more harm than good...

We don't have any more money with which to pay increased taxes! Doesn't our kleptocratic government get that?!

So sure... *I* wonder about what 'could' happen... Doesn't everyone? And I feel the best place to look for answers is in history. As we all should know, history tends to repeat itself...

Argentina, the British Empire, Rome... and many more examples are available. They all experienced economic and social collapse. Due for the most part to debt and eventually hyper-inflation as their money became worthless.

America in 2010 is not some special case protected from the historical norm... That would be preposterous.

Being the committed and admitted pessimist that I am ;) I say our future looks bleak indeed.

Is it possible our economy could collapse?

Many authors seem to think it's both possible and plausible.

I have read 'The Great Depression Ahead' by Harry S. Dent Jr. myself... Much of his focus is on demographic changes which are occurring over which we have no control.

I have read some others as well...

A Google search on 'book economic crisis' returns 23,600,000 hits... So you shouldn't have much trouble finding one to read yourself... Arm yourself with knowledge. Knowledge is power.

This is a crisis in economic terms and I also feel it is a crisis in political terms as well...

So what could possibly happen? without even going into 'worst case' scenarios?

Our entire financial system, banking system, economic system could experience a total collapse. I'm pretty sure I'm not the only person out there who believes that this is a possibility.

It could collapse for any number of reasons... It's only barely propped up with imaginary government cash right now... It wouldn't take much to send it toppling.

The point that I like to try to make is that IF our economy does collapse completely there no doubt would be dire consequences. It is my opinion that total economic collapse would soon be followed by total governmental collapse. That is the definition of anarchy.

I, personally, am not nor do I ever 'call for' anarchy. I merely attempt to warn that it is a distinct possibility that could be the result of economic collapse.

I, personally, do not 'call for' civil unrest and violence. I merely attempt to warn that it is a distinct possibility that could be the result of total economic collapse.

I DO call for peaceful resistance and civil disobedience at every opportunity because it seems to me that the ONLY people on the side of the American people are the American people themselves! And I feel we can remedy the situation by eliminating greed and corruption throughout government and corporate America. i hope the ballot box in November of 2010 will be a sufficient way to accomplish this.

If Americans can all agree to stop working, stop borrowing and stop spending then we ourselves can take matters into our own hands and put a stop to all the dishonest economic manipulations that we are being subjected to.

But I fear also... That any attempt by the American people to take matters into their own hands would be met forcefully by an American government out of control.

Some out there have been known to call me paranoid... or on the lunatic fringe of this party or that... I'm not on the side of any political party... I'm only on the side of fairness and honesty, the side of the American people.

I have suggested and stand by the suggestion that faced with total economic collapse and civil unrest our own government's reaction would likely be very nearly identical to the government reaction we have seen taken recently by the Iranian government...

Outrageous? I don't think so... Because what would that mean?

To me it would mean the government would put down, using force as necessary, a public uprising of citizens against a fraudulent insolvent government. That our own government would use every means available to it to stop anything it considered close to anarchy. Including the arrest and detention of American citizens.

Argue with that thought as you like...

I suggest that the laws that give the president of the United States the legal authority to enact Martial Law have been on the books since at least the 1980's.

Those are not the only laws that have been slipped on the books over the last few decades that give the federal government the legal authority to execute ever more power and control over the American populace.

it never seems important to anyone when it's happening... Except maybe those on the 'lunatic fringe'.

But 'laws' currently exist and or are in the works at this moment that give American government ever more control over our lives. Who the hell has time to keep track of what government is up to while trying to raise a family and do all the things we Americans feel are expected of us?

Much of what goes on in government is done in secret, behind closed doors, slipped into bills that have absolutely nothing to do with the added content. We have been unknowingly, unwittingly surrendering our individual freedoms in this country for decades now...

My point is the government already has the legal authority to institute Martial Law for ANY reason the president decides, personally, to 'declare' a national emergency.

I suggest that such a national emergency declaration is a possibility in the event of economic collapse followed by civil unrest. I also would further suggest that anyone who thinks otherwise is fooling only themselves...

You see I truly believe that there has already been a sea change in public opinion when it comes to debt and credit. Apparently our government hasn't yet caught on lol But *I* feel that millions of eyes have been opened to now be able to see the debt trap, and financial slavery that was intended to ensnare as many millions of Americans as possible.

Capitalism is not at fault... In my opinion, consumerism is at fault. When American business decided to make a science out of consumer emotional triggers and behaviors we were doomed to this current fate. The, even attempted, mass manipulation of consumer purchasing was an experiment doomed to failure and implosion from the start. The very concept of consumerism and planned obsolescence was and is evil on the face of it. It was never about improving value for consumers it was always about taking ever more money from American consumers, in part, to support a fraudulent debt/credit driven economy.

I often complain about complexity in society... And how *I* believe it is used intentionally to trick and/or control people. As it was on sub-prime loans. As it is in cell phone contracts and nearly every other consumer product you can think of. Complexity, in my opinion, is used at great length by our government as well. Through tax code as well as many other legal areas.

I feel most Americans are now interested in a simpler life. And I think that is a wonderful concept.

But if our economy were to collapse for any of a large number of reasons what effect would it have on our government? And why does our government seem to be in such a huge panic constantly these days?


Apparently NOTHING in society works without it... Not people, not business' not governments.

I guess some of the best advice that I have received is to just ignore them... Just ignore the government and corporate elites and their own irrelevance will bring them to an end...

Sounds good to me...


Monday, February 22, 2010

FX and Central Banks

FX - Forex. An over-the-counter market where buyers and sellers conduct foreign exchange transactions. also called foreign exchange market.

Is that what FX is to traders who attempt to take pips from the market everyday?

That particular definition seems a bit over-simplified huh?

To me FX market movements seem perfectly choreographed...

Choreographed by whom? You might ask...

From Who Are the Major Players in the Forex Market?
Central Banks and Governments- Monetary Policies such as Interest Rate that are implemented by central banks or governments can play a major and critical role in the Forex market. Central banks provide financial stability by controlling a country's money supply.

Banks- A major portion of the Forex market turnover is from banks. Large banks literally trade billion and billion of currency every working day. This could be in the form of hedging or speculative purposes.

Hedge Funds- By now, you should know that the Forex market has high liquidity, hence it is a major attraction for trading. Hedge Fund managers have increasingly allocated big portions of their portfolios to speculate on the Forex market. Another advantage is a higher degree of leverage available to them as compared to the stock or equity market.

Large Multinational Corporation (MNCs)- The reason why Forex market is in existence is due primarily to global trade. With the highly interrelated global market place, goods are imported or exported to many countries. Payment for these goods and services may be made and received in different currencies. Billion and billions of dollars are exchanges every day for global trade transaction.

Retail Investors and Speculators- In reality, there isn't much difference between the two. Both are in the market hoping to make money by exploiting the movement of a currency pair. Each has their reason to believe why a currency will move up or down and in turn long or short a currency accordingly. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform.

You and Me- When we have our holiday aboard or traveling overseas on business trips, we would naturally need to buy that country's currency and upon return, revert back to our own nation's currency. When we are using our credit cards to make overseas purchases, our credit card company has to convert our purchases into out home currency in order to bill us. Not knowingly, we are already trading currencies.

When it comes to 'moving the markets' in FX we can immediately throw out vacationers, Retail Investors and Speculators and I would say likely Large Multinational Corporation (hedgers etc...).

That just leaves Central Banks, Banks and Hedge Funds...


Teeny tiny pimple on their butt FX traders...

We all know, have heard, the number that frequently floats around everywhere... That 90% of ALL FX traders lose money! Or maybe some more upbeat estimates of 80% 'losers' or maybe we could even find somewhere that says ONLY 70% of all speculators lose money in forex... Nice...

I like to ask myself not only WHY is this the case but HOW is such a thing even possible?!

If it is in fact true, which I believe it is, then by now shouldn't everyone be flipping a coin to make trade entry/exit decisions?!

I mean come on... everyone KNOWS that flipping a coin will produce BETTER results than the 10%, 20% or even 30% winners that seem to afflict all, or almost all, forex speculators...

So??? What is it really that causes so many forex traders to be... well... losers?

A combination of things...

We can't move the market

-Try as we might, with our tiny little accounts of a few thousand dollars US here and a few thousand euros there, it's not going to be independent FX traders who move the market... If we are smart we are trying to figure out (guess if you prefer) the direction that the major players WILL move the market. Our 'job' is to see into the future... To have the ability to 'see' in our mind where currency prices may be 5 minutes from now, 5 hours, 5 days, 5 weeks, 5 months... Our 'job' is to see into the future. Not with a crystal ball but with the 'tools' of our trade... All of our wonderful charts and indicators but mostly the power of our own brain and intelligence.

But how can we claim to have any 'intelligence' at all when/if as many as 90% of us are losers?!

We are set up to lose...

-leverage & volatility- These are the very things that attract us TO forex trading... These are the 'hooks', the 'drugs' that get into our veins, as traders, and give us the high (or low) that we are seeking... These two things, taken TOGETHER are tremendous weapons of mass destruction when it comes to forex accounts... Traders have incredible leverage available in forex. Leverage that is found NO WHERE ELSE!

Your credit score can be the worst out there BUT the Central Banks & brokers are still dying to give you an INCREDIBLE amount of credit with which to buy/sell currencies!

Some micro accounts have leverage equal to 400:1 !!! There is NO application process... NO ONE is turned down for an account due to a bad credit history. Because it is all a cash based business. You cannot lose more cash than you have in your account because of the wonderful mechanism of a margin call... When your money is gone it is just gone... At least until you add more money to your account and the process repeats... For as many as 90% of us!

Volatility is so incredible that it can take your breath away... Obviously because when we trade currencies we are looking for pips...

What are pips... here's a decent definition from easyforexonlinetrading.com
Pip is short for "percentage in point" and you may sometimes hear people refer to pips as points.

Put simply, a pip is the smallest unit of price for a currency. It's the last decimal point in exchange rates or currency pairs.

For most currencies its 0.0001. So if you bought USD/CHF 1.2475 and sold at 1.2489 you made 14 pips.

One common exception is USD/JPY. In this currency pair there are only two decimal places so a pip is equal to 0.01.

The reason pips are so important is because they are the basis for calculating profit or loss in forex trading.

Pip Value.

With all these different currency pairs to deal with and with prices fluctuating all the time, how do you know the value of a pip?

It's a simple calculation.

For currency pairs in which USD is the base currency, just divide a pip (usually 0.0001) by the exchange rate.

For currency pairs in which USD is the quote currency, its even simpler. The pip value is always one pip (for example, 0.0001).

So in our example above, when the exchange rate for USD/CHF is 1.2489:

0.0001 / 1.2489 = 0.0000800704

That's a pretty tiny number.

But remember that in forex trading you are able to leverage small sums of money to move large quantities of currency.

In other words, you can use leverage to make big profits off of that tiny number.

Let's say your forex broker allows you to trade with leverage of 100:1. This means that in order to buy a standard lot of $100,000, you only need to put up $1,000.

You can see how trading in larger lots affects the pip value, and therefore your profit or loss:

If you are only trading $1,000 in currency, the pip value is calculated as follows:

0.0000800704 X 1000 = $0.08 per pip.

The price would have to go up by a whole lot of pips in order to make a significant profit at that rate. That 14 pip profit only made you $1.12.

But by using leverage to buy a lot size of $100,000 your profit increases.

0.0000800704 X 100,000 = $8.01 per pip.

That's a profit of $112.14. Now you're talking!

"Now you're talking"?! VERY flippant... This little definition completely leaves out the fact that you can just as easily LOSE that 112.14... And not ONLY that but you can lose 14 pips about as fast as you can blink your eyes! That is volatility... and when combined with leverage it is capable of destroying an entire account with just one bad mistake. ONE mistake... We all live or die by the grace of our stop losses...

My worst is not fear or greed... Though I do experience those... My single biggest emotional problem with FX is ANGER! I get SO MAD when I understand how the Central Banks have duped me into handing my money over to them... once again! It seems to me that they set the most wonderfully elaborate traps for us traders! Here we all are TRYING to follow all the rules, trying to correctly read all the indicators, worrying forever over the placement of our stops and profit targets, trying to convince ourselves that we truly ARE the great forex trader that we think we are...

All the while KNOWING, somewhere in our collective heads, that flipping a coin would likely yield better results for most of us...

Central Bank / Bank market manipulation and cheating...

So what IS the real deal with forex trading?

It is WAR!

And you MUST arm yourself not with SOME of the knowledge but with ALL of the knowledge! If you are serious about taking money out of the forex market you should be prepared to work harder and smarter than you have ever worked before. And that doesn't mean 'confusing' yourself with news and indicators...

We, as serious forex traders, must understand, in addition to everything technical, not only our own emotions but also the emotions and intentions of the major players in the market. Their 'job' is to take YOUR money! Sure the banks trade against each other... We forex traders are considered to be insignificantly small time. We can't 'move the market'. But the Central Banks, IMO, have devised a master 'system' of controlling market movement in all time frames and combining that control with remarkable volatility and leverage. The sole purpose of this market manipulation/choreography being to suck the money out of the accounts of anyone brave enough (or foolish enough) to enter the forex market.

So what must WE do?

I believe being the best technical analyst in the world is not enough. I believe staying on top of every single news event in the world is not enough.

To me the main key to successful FX trading is anticipating the market manipulation designed to take your money and acting upon that information! I suggest that it is the extreme HEAD GAMES brought on by Central Bank market manipulation, leverage and volatility that sink most FX traders.

NEVER forget WHO your opponents are! They are Central Banks and governments around the world! Very formidable opponents indeed! Never take trading the forex market lightly... If you do you will quickly be eaten alive by it's gyrations.

In reality FX is simple and easy to trade!

Want proof?

Try this experiment for awhile... Rather than trading $EURUSD for awhile switch to trading $FXE. Stop trading $AUDUSD for awhile and instead trade $FXA. Don't trade $GBPUSD, instead trade $FXB. These ETFs are priced in pennies... not pips... The average movement in a days time is very small by comparison to their FX counterparts. Leverage your account by buying more of these ETFs. Use all the same technicals that you use now, trend lines, bollinger bands, stochastics, whatever but use them on these ETFs rather than actual currency pairs and see what happens. See how much better you are able to guage market direction when you are not scared to death by leverage and volatility...

That's what I'm going to try for awhile...

But I'll probably continue giving some money to Central Banks too... Just for fun ;)


Saturday, February 20, 2010

On crony capitalism

Grabbed this from a post on the net this morning but lost the link or I would have supplied it for the full article...

But demonstrated here in the part I excerpted is clearly the root of our economic problems, IMO.

It truly IS as simple as Wall Street OWNING Washington... Don't allow politicians to try to turn it into something more complex than the crony capitalism and special interests party that it is...

My question, after reading this, is how much tax payer money did these people receive in return for these contributions?

Simple corporate/Washington elite Pay to play 'games'...

In addition to the public demands for immediate action to help families cope with our continued economic crisis, Public Citizen released a report today analyzing how bailed out banks and the financial industry continue to try to buy Congress and fight needed reforms. The report details that this year, Senate Banking and House Financial Services Committee members received on average two and half times what other members received from the financial industry.

Since November 2008, the financial industry -- including banks, investment firms, insurance companies and real estate companies -- gave $42 million in campaign contributions to members of Congress and their leadership political action committees. The 94 members of the two committees charged with drafting financial reform legislation have received $14.9 million overall.

Taxpayers will continue to take their demands directly to Wall Street and members of Congress over the coming months until action is taken to rein in Wall Street greed and build an economic recovery that benefits Main Street.

We need a National usury law right now, just like we did two years ago. They are stealing from the poor and unemployed...


Friday, February 19, 2010

Stop playing the game


It's not that I 'enjoy' giving free (and that's exactly what it's worth too ;) advice to middle class citizens on ways in which to gum up the current system...

But I'm a concerned American citizen and it bothers me deeply to see what Wall Street and a greedy corrupt government are doing to the country I love...

That is why *I* say it is past time for a debtors revolt...

Stop borrowing, stop buying and stop paying... Just stop playing...

If you have credit card debt that you cannot pay then just STOP paying it! It's unsecured debt. I mean if you can't pay your bills already then who cares what your credit looks like... What can the banks do to you? Sure they'll try to make your life miserable to get your money but just tell them to F off! Credit card loans, student loans, just stop paying them...

This is exactly what we need, IMO.

I usually say that it's time to 'stop playing the game'.

No one in this country should ever pay 20% or 30% interest rates for anything! It's ridiculous and it's stupid. And it's a sin as well... one as old as mankind. Called usury.

What are the banks attempting to do? Point out the stupid people for us?

IMO, we need serious deflation to flush out all the greed and corruption in the system, including that found in government.

This type of activity, on a large scale, just might do the trick.

Did you see how consumer credit continues to plunge?

People don't WANT to borrow any more money to buy more junk from China. People are sick of consumerism. It's over, get used to it. And I say that's a good thing.

We need to crash and start over. It's the only way.

The banks expect to receive some 24 TRILLION DOLLARS in federal guarantees and tax payer dollars to bail their sorry asses out... But they STILL want to rip people off to the max with horrendous loan terms and unintelligible fine print.

This 'system' of ours passed the point of no return likely a couple of decades ago, in my opinion. There is no 'fixing' it now short of a total collapse. Economically and socially...

Like one of my old bosses told me once after I lost hours worth of code... It's always easier the second time around ;)


Joe Stack (1956-2010) The Letter

If you’re reading this, you’re no doubt asking yourself, “Why did this have to happen?” The simple truth is that it is complicated and has been coming for a long time. The writing process, started many months ago, was intended to be therapy in the face of the looming realization that there isn’t enough therapy in the world that can fix what is really broken. Needless to say, this rant could fill volumes with example after example if I would let it. I find the process of writing it frustrating, tedious, and probably pointless… especially given my gross inability to gracefully articulate my thoughts in light of the storm raging in my head. Exactly what is therapeutic about that I’m not sure, but desperate times call for desperate measures.

We are all taught as children that without laws there would be no society, only anarchy. Sadly, starting at early ages we in this country have been brainwashed to believe that, in return for our dedication and service, our government stands for justice for all. We are further brainwashed to believe that there is freedom in this place, and that we should be ready to lay our lives down for the noble principals represented by its founding fathers. Remember? One of these was “no taxation without representation”. I have spent the total years of my adulthood unlearning that crap from only a few years of my childhood. These days anyone who really stands up for that principal is promptly labeled a “crackpot”, traitor and worse.

While very few working people would say they haven’t had their fair share of taxes (as can I), in my lifetime I can say with a great degree of certainty that there has never been a politician cast a vote on any matter with the likes of me or my interests in mind. Nor, for that matter, are they the least bit interested in me or anything I have to say.

Why is it that a handful of thugs and plunderers can commit unthinkable atrocities (and in the case of the GM executives, for scores of years) and when it’s time for their gravy train to crash under the weight of their gluttony and overwhelming stupidity, the force of the full federal government has no difficulty coming to their aid within days if not hours? Yet at the same time, the joke we call the American medical system, including the drug and insurance companies, are murdering tens of thousands of people a year and stealing from the corpses and victims they cripple, and this country’s leaders don’t see this as important as bailing out a few of their vile, rich cronies. Yet, the political “representatives” (thieves, liars, and self-serving scumbags is far more accurate) have endless time to sit around for year after year and debate the state of the “terrible health care problem”. It’s clear they see no crisis as long as the dead people don’t get in the way of their corporate profits rolling in.

And justice? You’ve got to be kidding!

How can any rational individual explain that white elephant conundrum in the middle of our tax system and, indeed, our entire legal system? Here we have a system that is, by far, too complicated for the brightest of the master scholars to understand. Yet, it mercilessly “holds accountable” its victims, claiming that they’re responsible for fully complying with laws not even the experts understand. The law “requires” a signature on the bottom of a tax filing; yet no one can say truthfully that they understand what they are signing; if that’s not “duress” than what is. If this is not the measure of a totalitarian regime, nothing is.

How did I get here?

My introduction to the real American nightmare starts back in the early ‘80s. Unfortunately after more than 16 years of school, somewhere along the line I picked up the absurd, pompous notion that I could read and understand plain English. Some friends introduced me to a group of people who were having ‘tax code’ readings and discussions. In particular, zeroed in on a section relating to the wonderful “exemptions” that make institutions like the vulgar, corrupt Catholic Church so incredibly wealthy. We carefully studied the law (with the help of some of the “best”, high-paid, experienced tax lawyers in the business), and then began to do exactly what the “big boys” were doing (except that we weren’t steeling from our congregation or lying to the government about our massive profits in the name of God). We took a great deal of care to make it all visible, following all of the rules, exactly the way the law said it was to be done.

The intent of this exercise and our efforts was to bring about a much-needed re-evaluation of the laws that allow the monsters of organized religion to make such a mockery of people who earn an honest living. However, this is where I learned that there are two “interpretations” for every law; one for the very rich, and one for the rest of us… Oh, and the monsters are the very ones making and enforcing the laws; the inquisition is still alive and well today in this country.

That little lesson in patriotism cost me $40,000+, 10 years of my life, and set my retirement plans back to 0. It made me realize for the first time that I live in a country with an ideology that is based on a total and complete lie. It also made me realize, not only how naive I had been, but also the incredible stupidity of the American public; that they buy, hook, line, and sinker, the crap about their “freedom”… and that they continue to do so with eyes closed in the face of overwhelming evidence and all that keeps happening in front of them.

Before even having to make a shaky recovery from the sting of the first lesson on what justice really means in this country (around 1984 after making my way through engineering school and still another five years of “paying my dues”), I felt I finally had to take a chance of launching my dream of becoming an independent engineer.

On the subjects of engineers and dreams of independence, I should digress somewhat to say that I’m sure that I inherited the fascination for creative problem solving from my father. I realized this at a very young age.

The significance of independence, however, came much later during my early years of college; at the age of 18 or 19 when I was living on my own as student in an apartment in Harrisburg, Pennsylvania. My neighbor was an elderly retired woman (80+ seemed ancient to me at that age) who was the widowed wife of a retired steel worker. Her husband had worked all his life in the steel mills of central Pennsylvania with promises from big business and the union that, for his 30 years of service, he would have a pension and medical care to look forward to in his retirement. Instead he was one of the thousands who got nothing because the incompetent mill management and corrupt union (not to mention the government) raided their pension funds and stole their retirement. All she had was social security to live on.

In retrospect, the situation was laughable because here I was living on peanut butter and bread (or Ritz crackers when I could afford to splurge) for months at a time. When I got to know this poor figure and heard her story I felt worse for her plight than for my own (I, after all, I thought I had everything to in front of me). I was genuinely appalled at one point, as we exchanged stories and commiserated with each other over our situations, when she in her grandmotherly fashion tried to convince me that I would be “healthier” eating cat food (like her) rather than trying to get all my substance from peanut butter and bread. I couldn’t quite go there, but the impression was made. I decided that I didn’t trust big business to take care of me, and that I would take responsibility for my own future and myself.

Return to the early ‘80s, and here I was off to a terrifying start as a ‘wet-behind-the-ears’ contract software engineer... and two years later, thanks to the fine backroom, midnight effort by the sleazy executives of Arthur Andersen (the very same folks who later brought us Enron and other such calamities) and an equally sleazy New York Senator (Patrick Moynihan), we saw the passage of 1986 tax reform act with its section 1706.

For you who are unfamiliar, here is the core text of the IRS Section 1706, defining the treatment of workers (such as contract engineers) for tax purposes. Visit this link for a conference committee report (http://www.synergistech.com/1706.shtml#ConferenceCommitteeReport) regarding the intended interpretation of Section 1706 and the relevant parts of Section 530, as amended. For information on how these laws affect technical services workers and their clients, read our discussion here (http://www.synergistech.com/ic-taxlaw.shtml).


(a) IN GENERAL - Section 530 of the Revenue Act of 1978 is amended by adding at the end thereof the following new subsection:

(d) EXCEPTION. - This section shall not apply in the case of an individual who pursuant to an arrangement between the taxpayer and another person, provides services for such other person as an engineer, designer, drafter, computer programmer, systems analyst, or other similarly skilled worker engaged in a similar line of work.

( b ) EFFECTIVE DATE. - The amendment made by this section shall apply to remuneration paid and services rendered after December 31, 1986.


· "another person" is the client in the traditional job-shop relationship.

· "taxpayer" is the recruiter, broker, agency, or job shop.

· "individual", "employee", or "worker" is you.

Admittedly, you need to read the treatment to understand what it is saying but it’s not very complicated. The bottom line is that they may as well have put my name right in the text of section (d). Moreover, they could only have been more blunt if they would have came out and directly declared me a criminal and non-citizen slave. Twenty years later, I still can’t believe my eyes.

During 1987, I spent close to $5000 of my ‘pocket change’, and at least 1000 hours of my time writing, printing, and mailing to any senator, congressman, governor, or slug that might listen; none did, and they universally treated me as if I was wasting their time. I spent countless hours on the L.A. freeways driving to meetings and any and all of the disorganized professional groups who were attempting to mount a campaign against this atrocity. This, only to discover that our efforts were being easily derailed by a few moles from the brokers who were just beginning to enjoy the windfall from the new declaration of their “freedom”. Oh, and don’t forget, for all of the time I was spending on this, I was loosing income that I couldn’t bill clients.

After months of struggling it had clearly gotten to be a futile exercise. The best we could get for all of our trouble is a pronouncement from an IRS mouthpiece that they weren’t going to enforce that provision (read harass engineers and scientists). This immediately proved to be a lie, and the mere existence of the regulation began to have its impact on my bottom line; this, of course, was the intended effect.

Again, rewind my retirement plans back to 0 and shift them into idle. If I had any sense, I clearly should have left abandoned engineering and never looked back.

Instead I got busy working 100-hour workweeks. Then came the L.A. depression of the early 1990s. Our leaders decided that they didn’t need the all of those extra Air Force bases they had in Southern California, so they were closed; just like that. The result was economic devastation in the region that rivaled the widely publicized Texas S&L fiasco. However, because the government caused it, no one gave a crap about all of the young families who lost their homes or street after street of boarded up houses abandoned to the wealthy loan companies who received government funds to “shore up” their windfall. Again, I lost my retirement.

Years later, after weathering a divorce and the constant struggle trying to build some momentum with my business, I find myself once again beginning to finally pick up some speed. Then came the .COM bust and the 911 nightmare. Our leaders decided that all aircraft were grounded for what seemed like an eternity; and long after that, ‘special’ facilities like San Francisco were on security alert for months. This made access to my customers prohibitively expensive. Ironically, after what they had done the Government came to the aid of the airlines with billions of our tax dollars … as usual they left me to rot and die while they bailed out their rich, incompetent cronies WITH MY MONEY! After these events, there went my business but not quite yet all of my retirement and savings.

By this time, I’m thinking that it might be good for a change. Bye to California, I’ll try Austin for a while. So I moved, only to find out that this is a place with a highly inflated sense of self-importance and where damn little real engineering work is done. I’ve never experienced such a hard time finding work. The rates are 1/3 of what I was earning before the crash, because pay rates here are fixed by the three or four large companies in the area who are in collusion to drive down prices and wages… and this happens because the justice department is all on the take and doesn’t give a frak about serving anyone or anything but themselves and their rich buddies.

To survive, I was forced to cannibalize my savings and retirement, the last of which was a small IRA. This came in a year with mammoth expenses and not a single dollar of income. I filed no return that year thinking that because I didn’t have any income there was no need. The sleazy government decided that they disagreed. But they didn’t notify me in time for me to launch a legal objection so when I attempted to get a protest filed with the court I was told I was no longer entitled to due process because the time to file ran out. Bend over for another $10,000 helping of justice.

So now we come to the present. After my experience with the CPA world, following the business crash I swore that I’d never enter another accountant’s office again. But here I am with a new marriage and a boatload of undocumented income, not to mention an expensive new business asset, a piano, which I had no idea how to handle. After considerable thought I decided that it would be irresponsible NOT to get professional help; a very big mistake.

When we received the forms back I was very optimistic that they were in order. I had taken all of the years information to Bill Ross, and he came back with results very similar to what I was expecting. Except that he had neglected to include the contents of Sheryl’s unreported income; $12,700 worth of it. To make matters worse, Ross knew all along this was missing and I didn’t have a clue until he pointed it out in the middle of the audit. By that time it had become brutally evident that he was representing himself and not me.

This left me stuck in the middle of this disaster trying to defend transactions that have no relationship to anything tax-related (at least the tax-related transactions were poorly documented). Things I never knew anything about and things my wife had no clue would ever matter to anyone. The end result is… well, just look around.

I remember reading about the stock market crash before the “great” depression and how there were wealthy bankers and businessmen jumping out of windows when they realized they screwed up and lost everything. Isn’t it ironic how far we’ve come in 60 years in this country that they now know how to fix that little economic problem; they just steal from the middle class (who doesn’t have any say in it, elections are a joke) to cover their asses and it’s “business-as-usual”. Now when the wealthy frak up, the poor get to die for the mistakes… isn’t that a clever, tidy solution.

As government agencies go, the FAA is often justifiably referred to as a tombstone agency, though they are hardly alone. The recent presidential puppet GW Bush and his cronies in their eight years certainly reinforced for all of us that this criticism rings equally true for all of the government. Nothing changes unless there is a body count (unless it is in the interest of the wealthy sows at the government trough). In a government full of hypocrites from top to bottom, life is as cheap as their lies and their self-serving laws.

I know I’m hardly the first one to decide I have had all I can stand. It has always been a myth that people have stopped dying for their freedom in this country, and it isn’t limited to the blacks, and poor immigrants. I know there have been countless before me and there are sure to be as many after. But I also know that by not adding my body to the count, I insure nothing will change. I choose to not keep looking over my shoulder at “big brother” while he strips my carcass, I choose not to ignore what is going on all around me, I choose not to pretend that business as usual won’t continue; I have just had enough.

I can only hope that the numbers quickly get too big to be white washed and ignored that the American zombies wake up and revolt; it will take nothing less. I would only hope that by striking a nerve that stimulates the inevitable double standard, knee-jerk government reaction that results in more stupid draconian restrictions people wake up and begin to see the pompous political thugs and their mindless minions for what they are. Sadly, though I spent my entire life trying to believe it wasn’t so, but violence not only is the answer, it is the only answer. The cruel joke is that the really big chunks of crap at the top have known this all along and have been laughing, at and using this awareness against, fools like me all along.

I saw it written once that the definition of insanity is repeating the same process over and over and expecting the outcome to suddenly be different. I am finally ready to stop this insanity. Well, Mr. Big Brother IRS man, let’s try something different; take my pound of flesh and sleep well.

The communist creed: From each according to his ability, to each according to his need.

The capitalist creed: From each according to his gullibility, to each according to his greed.

Joe Stack (1956-2010)



The main goal of insurance companies is to make a profit; not to help those in need. Helping those in need is the idea they use to sell their product, though it is not really their main goal.

I wonder why anyone would give their money to an insurance company every month instead of putting it in a savings account for an emergency. The money spent on insurance is gone with no return unless there is a disaster and the money in a savings account is there generating more. Well it use to generate more, before the government/FED destroyed the economy.

One can not drive a car in this country unless they have insurance. The government has decreed that all must buy those services from a business in order to drive. That has given those companies the leverage to charge anything they desire for their product: and they do.

Government mandated health insurance would do the same thing. Line the pockets of greedy insurance companies...

I kinda believe that insurance STARTED out to be a fair, practical, good thing... But that it has been corrupted through the decades so that now it is but one more way to pry dollars out of the pockets of American citizens. Simply another part of the financial system.

I hate to spring this list on you... But just skim through it and take a look at the different types of insurance that are available...

How many of these do you have? And, if you're looking to kill some time this weekend, drag out your polices and actually read them...

I guess my main beef is that all insurance companies write and interpret their own policies to maximize THEIR profits, not your protection... They will deny a claim in a heartbeat given the opportunity.

God forbid you should actually file a claim... That's simply reason for an insurance company to raise your premium or cancel your plan altogether.

To me, it's all just more 'services industry' bullshit designed to cause a loud sucking sound as it extracts money from everyone's pockets...

Auto insurance

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:

1. Property coverage pays for damage to or theft of your car.
2. Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
3. Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances exclude certain types of disasters, such as flood and earthquakes, that require additional coverage. Maintenance-related problems are the homeowners' responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets.[15]

Main articles: Health insurance and Dental insurance
NHS Facility

Health insurance policies by the National Health Service in the United Kingdom (NHS) or other publicly-funded health programs will cover the cost of medical treatments. Dental insurance, like medical insurance, is coverage for individuals to protect them against dental costs. In the U.S., dental insurance is often part of an employer's benefits package, along with health insurance.
[edit] Accident, Sickness and Unemployment Insurance

* Disability insurance policies provide financial support in the event the policyholder is unable to work because of disabling illness or injury. It provides monthly support to help pay such obligations as mortgages and credit cards.
* Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work.
* Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.
* Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury.

Casualty insurance insures against accidents, not necessarily tied to any specific property.

* Crime insurance is a form of casualty insurance that covers the policyholder against losses arising from the criminal acts of third parties. For example, a company can obtain crime insurance to cover losses arising from theft or embezzlement.
* Political risk insurance is a form of casualty insurance that can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loss.

Life insurance

Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.

Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kinds of actuarial and investment management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance.

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed.

In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.

In U.S., the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation.

Property insurance
This tornado damage to an Illinois home would be considered an "Act of God" for insurance purposes

Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.

* Automobile insurance, known in the UK as motor insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the insured's vehicle itself. Throughout the United States an auto insurance policy is required to legally operate a motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to a no-fault system, which reduces or eliminates the ability to sue for compensation but provides automatic eligibility for benefits. Credit card companies insure against damage on rented cars.
o Driving School Insurance insurance provides cover for any authorized driver whilst undergoing tuition, cover also unlike other motor policies provides cover for instructor liability where both the pupil and driving instructor are equally liable in the event of a claim.
* Aviation insurance insures against hull, spares, deductibles, hull wear and liability risks.
* Boiler insurance (also known as boiler and machinery insurance or equipment breakdown insurance) insures against accidental physical damage to equipment or machinery.
* Builder's risk insurance insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis covering damage due to any cause (including the negligence of the insured) not otherwise expressly excluded. Builder's risk insurance is coverage that protects a person's or organization's insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.[16]
* Crop insurance "Farmers use crop insurance to reduce or manage various risks associated with growing crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or disease, for instance."[17]
* Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. Most earthquake insurance policies feature a high deductible. Rates depend on location and the probability of an earthquake, as well as the construction of the home.
* A fidelity bond is a form of casualty insurance that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.
* Flood insurance protects against property loss due to flooding. Many insurers in the U.S. do not provide flood insurance in some portions of the country. In response to this, the federal government created the National Flood Insurance Program which serves as the insurer of last resort.
* Home insurance or homeowners' insurance: See "Property insurance".
* Landlord insurance is specifically designed for people who own properties which they rent out. Most house insurance cover in the UK will not be valid if the property is rented out therefore landlords must take out this specialist form of home insurance.
* Marine insurance and marine cargo insurance cover the loss or damage of ships at sea or on inland waterways, and of the cargo that may be on them. When the owner of the cargo and the carrier are separate corporations, marine cargo insurance typically compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss.
* Surety bond insurance is a three party insurance guaranteeing the performance of the principal.
* Terrorism insurance provides protection against any loss or damage caused by terrorist activities.
* Volcano insurance is an insurance that covers volcano damage in Hawaii.
* Windstorm insurance is an insurance covering the damage that can be caused by hurricanes and tropical cyclones.

Liability insurance

Liability insurance is a very broad superset that covers legal claims against the insured. Many types of insurance include an aspect of liability coverage. For example, a homeowner's insurance policy will normally include liability coverage which protects the insured in the event of a claim brought by someone who slips and falls on the property; automobile insurance also includes an aspect of liability insurance that indemnifies against the harm that a crashing car can cause to others' lives, health, or property. The protection offered by a liability insurance policy is twofold: a legal defense in the event of a lawsuit commenced against the policyholder and indemnification (payment on behalf of the insured) with respect to a settlement or court verdict. Liability policies typically cover only the negligence of the insured, and will not apply to results of wilful or intentional acts by the insured.

* Public liability insurance covers a business against claims should its operations injure a member of the public or damage their property in some way.
* Directors and officers liability insurance protects an organization (usually a corporation) from costs associated with litigation resulting from mistakes made by directors and officers for which they are liable. In the industry, it is usually called "D&O" for short.
* Environmental liability insurance protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants.
* Errors and omissions insurance: See "Professional liability insurance" under "Liability insurance".
* Prize indemnity insurance protects the insured from giving away a large prize at a specific event. Examples would include offering prizes to contestants who can make a half-court shot at a basketball game, or a hole-in-one at a golf tournament.
* Professional liability insurance, also called professional indemnity insurance, protects insured professionals such as architectural corporation and medical practice against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession may be called malpractice insurance. Notaries public may take out errors and omissions insurance (E&O). Other potential E&O policyholders include, for example, real estate brokers, Insurance agents, home inspectors, appraisers, and website developers.

Credit insurance

Credit insurance repays some or all of a loan when certain things happen to the borrower such as unemployment, disability, or death.

* Mortgage insurance insures the lender against default by the borrower. Mortgage insurance is a form of credit insurance, although the name credit insurance more often is used to refer to policies that cover other kinds of debt.
* Many credit cards offer payment protection plans which are a form of credit insurance.

Other types of insurance

* Collateral protection insurance or CPI, insures property (primarily vehicles) held as collateral for loans made by lending institutions.
* Defense Base Act Workers' compensation or DBA Insurance provides coverage for civilian workers hired by the government to perform contracts outside the U.S. and Canada. DBA is required for all U.S. citizens, U.S. residents, U.S. Green Card holders, and all employees or subcontractors hired on overseas government contracts. Depending on the country, Foreign Nationals must also be covered under DBA. This coverage typically includes expenses related to medical treatment and loss of wages, as well as disability and death benefits.
* Expatriate insurance provides individuals and organizations operating outside of their home country with protection for automobiles, property, health, liability and business pursuits.
* Financial loss insurance or Business Interruption Insurance protects individuals and companies against various financial risks. For example, a business might purchase coverage to protect it from loss of sales if a fire in a factory prevented it from carrying out its business for a time. Insurance might also cover the failure of a creditor to pay money it owes to the insured. This type of insurance is frequently referred to as "business interruption insurance." Fidelity bonds and surety bonds are included in this category, although these products provide a benefit to a third party (the "obligee") in the event the insured party (usually referred to as the "obligor") fails to perform its obligations under a contract with the obligee.
* Kidnap and ransom insurance
* Legal Expenses Insurance covers policyholders against the potential costs of legal action against an institution or an individual.
* Locked funds insurance is a little-known hybrid insurance policy jointly issued by governments and banks. It is used to protect public funds from tamper by unauthorized parties. In special cases, a government may authorize its use in protecting semi-private funds which are liable to tamper. The terms of this type of insurance are usually very strict. Therefore it is used only in extreme cases where maximum security of funds is required.
* Media Insurance is designed to cover professionals that engage in film, video and TV production.
* Nuclear incident insurance covers damages resulting from an incident involving radioactive materials and is generally arranged at the national level. See the Nuclear exclusion clause and for the United States the Price-Anderson Nuclear Industries Indemnity Act)
* Pet insurance insures pets against accidents and illnesses - some companies cover routine/wellness care and burial, as well.
* Pollution Insurance which consists of first-party coverage for contamination of insured property either by external or on-site sources. Coverage for liability to third parties arising from contamination of air, water, or land due to the sudden and accidental release of hazardous materials from the insured site. The policy usually covers the costs of cleanup and may include coverage for releases from underground storage tanks. Intentional acts are specifically excluded.
* Purchase insurance is aimed at providing protection on the products people purchase. Purchase insurance can cover individual purchase protection, warranties, guarantees, care plans and even mobile phone insurance. Such insurance is normally very limited in the scope of problems that are covered by the policy.
* Title insurance provides a guarantee that title to real property is vested in the purchaser and/or mortgagee, free and clear of liens or encumbrances. It is usually issued in conjunction with a search of the public records performed at the time of a real estate transaction.
* Travel insurance is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, loss of personal belongings, travel delay, personal liabilities, etc.


The danger of Cyber Security

We all know about, and I hope understand by now, how our government uses crisis (Rahm Emanuel: You never want a serious crisis to go to waste), and the associated fear, to drive policy in Washington. I truly do believe that 'they' know that we know... And, further, that what we have at this moment in time is a stalemate between the United States government and American Patriots.

If we allow them to do so they will remove all of our freedoms...


Thursday, February 18, 2010

Who are the Oath Keepers?

*I* hope to be able to share with as many people as possible who the "Oath Keepers" are and what they represent, namely the Constitution of the United States of America. And, additionally, how they are portrayed now by the U.S. government and government controlled media.

As resistance to the plutocracy in the United States of America grows we will no doubt see any and all Patriotic organizations portrayed as extremist right wing militia movements.

At least make yourself aware of information that is available, apply your own sense of logic and arrive at your own conclusions.

Stop allowing others to decide what is 'best' for you...

Here, first is CNN's take on the Oath Keepers... it is followed with interviews with some of the members of the actual group itself... Please enjoy and learn. It is vital that we all do so...

Just knowing that there is a group of American Patriots out there, consisting of our own military personnel and law enforcement officers, who plainly state that they will do everything in their power to uphold constitutional law in this country helps me sleep better at night.

Thank God they have our backs... is my own personal opinion...

The full article, including the provided videos, can be found here...


Monday, February 15, 2010

Be VERY afraid

I saw this comment on some website... Probably infowars.com

=================begin quote
# albinojones Says:
February 15th, 2010 at 8:31 pm

ATTENTION… Here’s how to take America back FAST:

Organize a CITIZEN BANK RUN. Print flyers and start websites. Specific Banks would be focused on during a given period. For example, all members of ‘Citizen Bank Run’ having Bank of America accounts would close their accounts (or draw them down to minimal balance) within a specific two week period, ie 03/01/2010 to 03/14/2010, or the like, and so forth for other large chain banks.

# albinojones Says:
February 15th, 2010 at 8:33 pm

ALSO, Demands could be made via littering the streets with fliers… “Stop foreclosures in such and such city, or we will stage a run on your bank”.

# albinojones Says:
February 15th, 2010 at 8:34 pm

If you’re unable to start this ‘Citizen Bank Run’ project yourself, spread the idea across the net until someone does!

# albinojones Says:
February 15th, 2010 at 8:36 pm

If a bank closes it’s doors to prevent a run, the run would commence as soon as it’s doors reopen!
=====================end quote

It sounded like a brilliant idea to me! Puts the power back into the hands of the PEOPLE, where it belongs. Something like this would allow the American people to put a stop to all this government non-sense themselves! Stop all the bailouts and lying and Federal Reserve abuse.

Then I actually saw Chertoff talking today about the cyber-attack 'war games'... And how it's possible we could see something like 'losing the ability to access our bank accounts'...

This government is doing so many things right now that should scare the living daylights out of EVERY AMERICAN! 'They' are passing new laws left and right that not too long ago would have been completely UNIMAGINABLE!

Such as a law that allows the might of the United States military to be used against it's own citizens...
"What troubles many Americans -- at least those aware of this latest Obama power grab, is that last year an agreement with Canada -- defined as a Civil Assistance Plan -- that was not submitted to Congress for debate and approval, nor did Congress pass any law or treaty specifically authorizing this military agreement to combine the operations of the armed forces of the United States and Canada in the event of domestic civil disturbances ranging from violent storms, to health epidemics, to civil riots or terrorist attacks," explains Baker.

In Canada the agreement paving the way for the militaries of the US and Canada to cross each other's borders to fight domestic emergencies was not announced either by Prime Minister Harper's administration or the Canadian military. The agreement met with protests and demonstrations by Canadians opposed to such treaties with the US.

"This is a military plan that's designed to bypass the Posse Comitatus Act that traditionally prohibited the US military from operating within the borders of the United States. Not only will American soldiers be deployed at the discretion of whoever is sitting in the Oval Office, but foreign soldiers will also be deployed in American cities," warns Lt. Steven Rodgers, commander of the Nutley, NJ Police Department's detective bureau.

"While the rationale for using the US military domestically had been debated for years, President Barack Obama appears intent on using our military at least until he can create his promised 'Civilian Security Force' which he said would be as big and powerful as the military," said political strategist Mike Baker.

"The fact that the military -- in this instance NORTHCOM -- is being trained to operate within our borders should be setting off alarms throughout this nation. But it's being ignored even by those who profess to be conservatives," he said.

(In the actual executive order! Go read it via the link below.)

(d) synchronization and integration of State and Federal military activities in the United States

please see the full story here...

Not ONLY is this government preparing to use it's military against it's own people, if need be...

This government also seeks to grab complete control of the internet and by extension communications networks...

Bill Allows Obama Power to Shut Down Internet
A legislation proposed on April 1 is no joke. The proposed bill would grant President Obama the authority to shut down public and private networks -- including the restriction of internet traffic -- as part of a cybersecurity emergency plan.

The bill was introduced by West Virginia Democratic Sen. John Rockefeller and Sen. Olympia Snowe, a Republican from Maine. The aim of the bill is to unite both public and private network operators to develop regulations for what to do in case of a cyber attack.

For obvious reasons, many are concerned about what such power could mean if the wrong actions were taken. Leslie Harris, president and CEO at the Center for Democracy and Technology (CDT), said in a NetworkWorld story, “This is pretty sweeping legislation. Seems the President could turn off the Internet completely or tell someone like Verizon to limit or block certain traffic. There is a lot to worry about in this bill.”

It is my own personal opinion that 'we', the American people, are running very short on time...

This government has proven itself already to be completely out of control. This government has already proven itself capable of completely IGNORING the Constitution of the United States of America.

If we, the PEOPLE, of the United States of America do not awaken soon to put a stop to this then there will be no stopping it.

The government is bound and determined to lock this country down.


Because NOTHING that was wrong has been fixed. All the government has been doing for these many months now, since the collapse of our banking/financial system, is buying TIME. Time to pass 'laws' that give the government the 'legal authority' to DO anything it pleases at ANY time it pleases.

With the Patriot Act and God only knows what other 'laws' and/or Executive Orders... the government already has the use of warrant-less wire taps and unfettered access to financial records.... And God knows what else...

Any American citizen can be detained indefinately RIGHT NOW! All the government has to do to enable itself to do so is call an American citizen, an American patriot, by a different name... An enemy combatant...

Are we sheeple or people???

The government continually throws around the terms 'National Security Threat' and 'National Security Interests'. How long will we allow this government to use fear to herd us into the direction they desire? How long will we allow government to use the term 'National Security' to justify any and all actions? How long will we allow this government to give itself 'legal authority' to do anything it wishes?

All the way to martial law, a police state and dictatorship?

Our economy is still shot to hell and if you listen you will hear the economists and government experts talking about the fact that it will not improve for YEARS.

All of our banks are currently INSOLVENT! (Shhhh... big secret there...)

Our government itself is dangerously close to defaulting on it's debt... Our government is BANKRUPT! INSOLVENT!

The debt/deficit incurred by our government and the Federal Reserve over these past months and years has dwarfed anything we have seen in our history. And it simply HAS NOT WORKED! This is a consumer/consumption driven economy and it is NOT coming back! Certainly not while we have unemployment north of 17% projected for YEARS to come.

There is a total collapse coming... Soon... There will be NO financial system, NO economy, NO government, NO social safety nets at all!

Only chaos and anarchy...

This is what our government is preparing for! The dictatorship and police state that lies just ahead!

These new 'laws' that they are passing don't mean sh*t to anyone! Just because the government passes a 'law' that states it has the right to use the United States military against it's own citizens does NOT make it so!

Just because this government passes a 'law' that states it has the authority to shut down the internet for any reason it sees fit does NOT make it true!

Can no one see that we are being set up for the dropping of the BIG government shoe?! This thing is starting to look like BIG BROTHER on steroids!

At this very MOMENT in time this government is seeking the power, through the use of 'law' to...

Institute Martial law with the assistance of the United States military. Thereby instituting a Police State, a dictatorship.

Disrupt and shut down communications, the internet.

Freeze all bank accounts, personal and business.

We, the American people, seem willing to stand idly by and just watch all this take place!

I truly fear that if we do not wake up soon and put a stop to this insanity that it will forever be too late!

I like to think that if push ever came to shove that the fine people in our military, our brothers and sisters, fathers and mothers, aunts and uncles all, would not fire on American citizens... I have hope that they, instead, would turn on this dictatorship and put a stop to it...

If our government ever does try to pull any of this crap on the American people they will be asking for the 'mother of all insurgencies'.