Entries Tagged 'Word of The Day' ↓

WORD OF THE DAY – THE FEDERAL RESERVE – PART ONE

DO YOU REMEMBER the GREAT RECESSION?

I certainly do. Some of my friends lost a lot of money back in 2007-2009. So, I’m not sure that the Fed is going to be able to lasso inflation or recession today using the methods they used previously before the Great Recession 0f 2007-2009.

That financial crisis was a big bust brought on by Wall Street moguls trading ‘insurance contracts’ with each other. These contracts were called ‘derivatives’ i.e. derived from an underlying financial product.

Many of the of the heads of big banks, insurance companies, and  investment mangers hawking derivatives back in 2007-2008 are still residing in comfortable offices on Wall Street today. But don’t think nothing has changed. That crisis seriously changed the face of their financial products.

Money market certificates were the first large financial products to fail along with the banks 2007-2009. Since then another category that working people relied on for savings faded away. Those were U.S.government bills and bonds.

And since then the Federal Reserve began to lower interest rates while hundreds of banks and credit unions in the U.S. declared bankruptcy.

Meanwhile our Federal Government  hurried into action and came up with several programs to protect the “too big to fail” big U.S. corporations, e.g. City Bank, Lehman Brothers, Goldman-Sachs, AIG, etc. using taxpayer money.

THE REASONS THAT THE MOGULS CHANGED THEIR PRODUCTS

Those giant coporations that survived the Great Recession are now hawking ETFs and Index funds. (ETFs) Exchange Traded Funds have almost driven mutual funds out of the stock market by offering low fees.

One lone investment management advisor, Vanguard, is using TV ads to seek out working people who desire to be owners of their mutual fund products. So why is this important to understand?

ETFs are derivatives of mutual fund and index funds. ETFs can be traded on the stock market all day while mutual funds are less flexible – mutual funds trade only once a day. (Index funds, such as the S&P 500 or Russell 2000 are also now widely used by options traders for buying and selling stocks to control risk of losses).

Vanguard’s appeal to those who would be owners of mutual funds reminds me of seeing a money show speaker back in 2007 who claimed that real estate products (REITS) were better than other kinds of investments because they were REAL. I couldn’t help snorting!

At that time I owned a condo unit that was full of mold and could not be lived in, sold, or rented.

This happened because the Homeowners Association Board members refused to remediate my condo, and even kept on watering our porous siding in winter.

That VERY REAL investment was a nightmare that stretched over six years while embroiled in a court suit that ended with our larcenous attorney taking every penny and more from pathetically small settlement she negotiated for us on order of the court.

So why have ETFs and Index funds taken over the stock market?  The Moguls in the Giant Wall Street corporations no longer want to own products that they can’t quickly buy or sell (i.e., liquid products). When there is upheaval in the market, buyer beware! Do your research!

BACK TO OUR SUBJECT – THE FEDERAL RESERVE

I’ve thought for decades that relying merely on two variables out of the many variables in British economist Lord John Maynard Keynes’ 20th century algebraic formulas used by  economists to end the GREAT DEPRESSION of the 1930s are too few to stave off Inflation or Recession.

I still have no idea why the FED has confined itself to balance Keynes’ variable Employment against Keynes’ variable Interest Rates to control inflation and recession.

Our biggest economic challenge right now seems to be broken supply chains, a variable that didn’t exist in Keynes’ life time. (but would probably fall between two of Keynes’ variables Imports and Exports now).

The second biggest challenge is the churn in Employment that’s going on that is causing employees to try to get better jobs and make more money.

THE FED—WHY NOT USE A DIFFERENT VARIABLE?

Why not? There are other choices. For example, in Keynes secondary formula there is a variable called Wages. Wages are workers earnings.

Many working people earn Wages too low to live on in this year. On the other hand, raising the Minimum Wage is hard on Main Street employers who have lost customers when Covid hit.

Ever since 2020, Big Pharma has been working overtime along with Covid vaccinations and opiods as well  to over use the Internet and cable companies to sell products galore on TV.

Also, numerous other small entrepreneurs are shilling online. And we have bought their products with taxpayer money from the government. That tapered off this year. Dramatically!

Right now, there is a scarcity of workers due to the low-wage service sector that has blossomed in past decades. And many workers are losing their jobs because Congress’ Trade Adjustment Assistance for Workers program (TAA) has allowed the program to expire on July 1st.

Wherever I walk on the Main streets or shopping centers where I live, there are “We’re hiring” signs on the windows. The Employment variable has been doing quite well. What isn’t doing well is the Wages variable.

Why isn’t this variable doing better? You’ll notice that after the the GREAT RECESSION of 2007-2009 the FED began lowering Interest rates, thus dampening down savers and encouraging many people to pay off their credit cards and other debts and spend like crazy.

The FED is now raising interest rates in hopes that consumers will start using their credit cards again to offset rising inflation. But what is happening is that there is still too much money chasing too many empty buildings, empty store shelves, and empty car lots and broken-down supply chains. Basic human needs are not being served like they were before.

So where are those good paying union jobs that President Biden promised to spend taxpayer money on???

See my next post, WORD OF THE DAY —INFLATION +THE FED Part 2

WORD OF THE DAY — TANKING

Over many decades of sports watching, I’ve become more and more suspicious about the NFL and NBA referees and coaches with each passing year, growing ever surer that there is gigantic game-fixing going on—with no limits on betting that take poor schmucks to the cleaners. It’s billions of dollars we’re talking about. It’s way more than baseball or horse racing betting! It’s Las Vegas gone amok.

Earlier this year I watched a San Antonio Spurs vs Golden State Warriors basketball game. Right at the end Derrick White was flailing and so were the other great three point shooters in that team.

The Spurs have beaten a lot of great teams this year but always seemed to peter out at the end and they remain at the bottom of the Western league. Even the Golden State announcers commented about this on TV!

Early this year I learned the word for what I observed in many of those games. Continue reading →

Word of the Day – Voter Fraud – Yes Virginia It Does Exist

 Today as the January 6th committee takes a two week break from TV after this last show on Tuesday June 28th, I was surprised to learn that there was news of actual voter fraud this year on June 6th, 2022.

I was alerted to this truly real voter fraud by my step-sister who lives in Pennsylvania.

In the Eastern District of Pennsylvania there really were three people charged with being involved in fraud, bribery, in a conspiracy to deprive voters of civil rights, obstruction of justice, falsification of voter records and other fraudulent practices on June 6, 2022.

(1) Former U.S. Congressman Michael “Ozzie”Myers   was charged with stuffing ballot boxes for specific Democratic candidates in the 2014, 2015, 2016, 2017 and 2018 Pennsylvania elections.

(2) Domenick J. Demuro, was in charge of the 39th Ward, 36th Division in Philly. Demuro’s title was Judge of Elections. Ozzie Myers admitted to bribing Dominic Demuro to illegally add fake votes for certain candidates of their party in the primary elections— some of whom were running for judicial appointments. Domenick got between $400 to $5,000 per election when he practiced “ringing up” the fake votes for Myers’ candidates on Election days, and then certified after the Election that the votes he added were accurate.

(3) Marie Beren was the third fraudster that Myers also admitted to conspiring to commit election fraud with. She was a former Judge of Elections for the 39th Ward, 2nd Division in South Philadelphia. On Election days Myers would give Beren instructions over his cellphone about giving votes to his favored candidates while the voting was going on. Beren and her cohorts then would falsify Polling Books and the List of Voters and Party Enrollment for the 39th, careful to make sure their cheating after the elections would be certified and match the books.

I have many things to say about these people – first of all they were in cahoots, and there were only three of them. But secondly, there was a significant amount of money involved and a lot of fake ballots added to vote counts.

These three fraudsters did not operate like those talked about on TV news programs during 2020. The TV news I saw was focused on people who filled out a second ballot of a deceased relative. Or people who offered to help seniors and then filled in their ballots differently than the individual they collected ballots from wished. Or those who singled out the race of voters they wanted block from counting.

But these three real voter fraudulant individuals in Philadelphia started in 2014 and only made it to 2018 using old fashioned methods like those elections where Americans in the last century used only  paper and pencil.

For those cynics in this century who think there will be no justice done after the January Sixth Committee finishes its work, please think again. The Pennsylvania State Police, the FBI and the Department of Justice did catch these three individuals. All three of the Philly vote fraudsters entered their guilty pleas in court on June 6, 2022.

The Supreme Court may abuse their power and harken backward to the past today, but we cannot afford to harken backward to the days of the early 20th century when political bosses ruled, and paper ballots carried around in wooden boxes made large amounts of voter fraud easier to do. We need the Federal Government to protect voting in every state and make how they secure elections more transparent. And we need them to do this quickly.

It’s truly shocking that all three of these three trusted people were the top insiders in charge for the voting systems they were supposed to protect in their districts. Clearly every State in the Union needs to upgrade their security before our next elections. The wolves were inside the hen house not the lowly volunteer election officials being pilloried today.

No one who is in charge of the people processing votes should be allowed near a voting machine unless they have a proctor overseeing them file only their own personal votes in that election. That practice should go up to the State’s Secretary of State levels and be verified by our Federal Government officials

And I hope too that the January Sixth Committee will take a look at how these three got away with voter fraud for five years in a row!

Source: The United States Department of Justice Office EASTERN DISTRICT OF PENNSYLVANIA