Wisdom from The Action Wisdom In Action

Previous article.

"Whitney is warning about a financial meltdown in state and local governments. “It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States, and certainly the largest threat to the U.S. economy,” she told Kroft. Asked why people aren’t paying attention, Whitney said, “‘Cause they don’t pay attention until they have to.”…”The lack of transparency with the state disclosure is the worst I have ever seen,” Whitney said."

That's just the states. Now for Europe (from the Guardian):

"Istanbul

Turkey's ancient metropolis is one of the few European cities with a "junk" credit rating. Its impeccable location, linking Asia and Europe, does not compensate for its serious weaknesses – including "low revenue flexibility and a lack of predictability regarding future reforms", according to a recent report from the Standard & Poor's credit-rating agency. The city also has high investment demands, leading to large deficits, and mounting debt, the agency said. It is trying to develop other sources of income, especially by developing its emerging financial industry, hoping that new glass towers will appear on its famous skyline of mosque domes and minarets. The prime minister, Recep Tayyip Erdogan, said this month that he planned to move the stock exchange across the Bosphorus to the Asian side of the city as part of plans to turn the Atasehir district into a financial centre.

Naples

The credit rating on this historic city in southern Italy is just one notch from junk level. If two thousand years ago the nearby town of Pompeii was a model of public administration, today's Naples has one of the lowest tax-collection rates in Europe – and the worry is that not enough is being done to change it.

In a recent report by Standard and Poor's, analysts expressed concern that 30% of the debts owed to the city in 2008 were of "doubtful collection" as some of the bills are too old to collect. With higher unemployment and a greater dependency on state and EU help than other Italian capitals, Naples faces increasing delays in paying for some of its running costs. The city could also face liabilities from some of its controlled public companies, S&P said. Overall, the town's liquidity position is "less than adequate", the ratings agency said. At least the city – with a population of almost a million – has a higher percentage of children than the national average and a lower percentage of over 65s, limiting the costs of its care for the elderly.

Florence

The Tuscan capital was warned about a possible credit downgrade last week, following its decision to stop payments on some derivatives contracts to banks including UBS and Bank of America. "The review will focus on the assessment of the potential, legal and financial risks facing the municipal administration and their implications for bondholders," Moody's said.

In 2006, the city signed contracts with a group of banks, setting a fixed interest rate on about €200m (£170m) of debt. The move was aimed at protecting the city coffers from any potential interest rate rises. Florence, however, has been caught out by two years of record low interest rates, which make their current agreement substantially more expensive than prevailing market rates. Florence, due to pay the banks €9m this month, now says that it would be illegal, under Italian law, to honour those obligations. Some of the creditor banks have already filed a claim at London's high court. S&P has an A+ rating on the city, one of its highest, based on the strength of its tourism industry.

Madrid

Spain's capital city, with a staggering €7bn of debt, was recently stopped from rolling over some of its obligations by the central government. Fighting the scepticism of international investors over Spain's sovereign debt, the finance minister, Elena Salgado, recently urged Alberto Ruiz-Gallardón, Madrid's mayor, to stop spending and start paying back.

Years of a booming property market pumped up the city coffers, leading officials to start multibillion-euro projects such as covering the city's orbital motorway. In 2007, at the peak of the market, the city hall also moved buildings in a change that cost locals millions. But the tax take has fallen sharply while the doors to international financial markets remain mostly shut. Investors are worried about the city's high debts, projected to reach as much as 155% of its revenues by 2012. Madrid's payments to some of its trade creditors, including cleaning service contractors, are severely delayed.

Barcelona

Catalonia's capital was placed on review for a possible downgrade by Moody's last week, amid plunging revenues and a tougher control on central state transfers. "In Spain, the municipalities' budgets essentially rely on sizeable transfers stemming from the national government, increasing the linkages between both governmental levels," Moody's said. Despite the recent tourism boom, Barcelona and Catalonians are struggling to recover from the effects of the property sector's collapse. The regional government recently had to issue bonds to its own citizens as it faces ostracism by international bond investors, given its high debts. However, with almost 1.6 million inhabitants, Barcelona is still one of Spain's richest cities, with a dynamic services sector that accounts for almost 86% of salaried employment, S&P said in its latest report."

From Politico.

"Elizabeth Warren is known for her frugality — after all, she's helping the Obama administration whip the financial industry back into shape. Still, her extreme thriftiness might surprise you. During an interview with Warren earlier this fall, Vogue contributing editor Rebecca Johnson was taken aback by one of Warren's money-saving habits.

"If Elizabeth Warren offers you a cup of tea, don't accept," Johnson writes in a profile (appearing in the magazine's January issue) of the woman President Obama has tapped to run the new Consumer Financial Protection Bureau. In the feature, Johnson notes that while she too has been known to "pinch a penny," she was still surprised when Warren pulled an already-used tea bag out of her desk drawer.

Warren laughed off the moment in the magazine: "I just can't stand the waste of throwing out a tea bag after one use. It's like a knife in the gut for me."

Johnson, who spent about two days off and on with Warren in Washington and New York, tells POLITICO she found it "a bit surprising." "But that's just who she is," she said."

...

"Though when the 61-year-old grandmother and law professor was asked about her favorite labels, the native Oklahoman said she preferred to wear L.L. Bean. The answer didn't exactly impress Johnson and ultimately didn't make the final story.

"I thought, 'That's not going to work,'" Johnson told POLITICO.

"She doesn't care about fashion, so that was an awkward moment," Johnson said with a laugh. Then, more to the point, Johnson added: "She's just not going to spend a lot of money on clothes. That's just not in her values."

Still, Warren does seem to appreciate the value of looking sharp if you want nice things and can afford them. In the feature, she said she is "not against spending money on clothes ... as long as you are straight on your fixed expenses and you have put aside 20 percent in savings, go ahead and by those $400 shoes. That doesn't make you a bad person."

"I want to live my life with color," Warren says in the piece. "People who can't enjoy their money are missing the colors in life."

And while high fashion isn't her top priority, she isn't out of touch when it comes to designers who create it. When Warren ran into designer Isaac Mizrahi backstage at "The View," she squealed "like a teenager," according to Johnson."

...

"Even though she's not into A-list designers and is perhaps a surprising woman for Vogue to profile, Warren is "kind of your ideal subject," Johnson said.

"She's not motivated by money," she said. "She's pretty pristine and inspiring."

From CNN Money.

"The legislation provides for 13 more months to apply for extended jobless benefits, but not everyone who's unemployed will be eligible for these extended benefits.

In fact, residents in at least five states won't have access to the same level of unemployment benefits as their peers nationwide.

That's because the unemployment rate in those states is improving, so, according to federal law, the jobless there can't receive checks for as long as those in harder-hit states."

Surprise! The 99-weekers are done. I mentioned this stuff when the legislation first passed a week ago. CNN is just now getting this picture?

"Here's how the system works: The jobless collect up to 26 weeks of state benefits before shifting to the extended federal program. Federal benefits consist of up to 53 weeks of emergency compensation, which is divided into four tiers, and up to another 20 weeks of extended benefits. The maximum is 99 weeks.

But not everyone can collect benefits for that long. Extended benefits, as well as the last two tiers of emergency compensation, are tied to state unemployment rates. So as their state job picture brightens, the jobless stop qualifying for long-term benefits.

To be eligible for the fourth tier of emergency benefits, which last up to six weeks, the average state's unemployment rate must be above 8.5% for three months. Similarly, states lose their eligibility for the third tier of benefits, which last up to 13 weeks, if their rate falls below 6%. Extended benefits have a more complicated formula tied to different gauges of unemployment."

Either they find work, or they accept the new reality--frugality and a one-income family.

"Those in the midst of a tier can continue to collect benefits until they exhaust that tier, but they cannot advance to the next level. This does not sit well with those who cannot find a job."

...

"Those that had opposed continuing benefits say another extension would be too expensive and would dissuade people from finding jobs.

Advocates argue that the safety net has always existed during periods of high national unemployment. The Obama administration echoes their position, saying that people will naturally fall off the rolls as state unemployment rates improve."

Poverty should be uncomfortable--Ben Franklin. Why should it be uncomfortable? To encourage you to work hard to get out and stay out of it--it should be something you avoid, not embrace! These people have already had a nearly two-year paid vacation--how much more do they want?

From Yahoo News. Why does this affect you? It could cut off your supply of cheap generic drugs in the future, making health insurance that more costly, and don't even mention what it does to Medicare!

"AIDS patients in Africa are nervously awaiting the outcome of talks launched Friday between Europe and India on a new trade deal that could slash the world's supply of cheap generics.

Health activists warn a new agreement that raises protection for intellectual property rights for European drugs could have dire consequences for millions of people in developing countries who rely on drugs to treat diseases like AIDS, high blood pressure, diabetes and heart disease."

...

"...leaked passages of the draft treaty, seen by The Associated Press, give health experts cause for concern. One is a clause known as "data exclusivity," which raises the bar for Indian companies trying to get their products to the market.

For years, generic producers have simply had to prove their medicines are equivalent to the original drug to be approved. Under new rules, they would have to conduct clinical trials, which cost millions of dollars, to duplicate the data produced by the original company.

Activists are also worried about attempts to extend patent protection to beyond 20 years and measures to seize generic medicines as they cross borders."

Oh great--so now medicine is intellectual property. I suppose patenting someone's DNA is next.

"For European drug makers, the ability of Indian generic companies to make knockoffs without respecting patent rights gives them an unfair advantage.

"It is in the interest of European pharmaceuticals to have a more balanced approach to intellectual property," said Colin Mackay, a spokesman for the European Federation of Pharmaceutical Industries and Associations, which represents the continent's top 40 drug makers.

"For companies that have spent millions developing a new drug, it's only fair they should get a return on their investment."

Mackay added that there are adequate mechanisms in place when drugs are needed for a public health emergency, and European pharmaceuticals often grant local manufacturers licenses to make their medicines.

But some health officials say any increased protections for patented medicines could put many Indian pharmaceuticals out of business."

So Britain is moving from drug price controls to cornering the generics market-this is what socialized medicine get you.

"Generic medicines from India cost from one-third to one-tenth the cost of the original brand-name drug. Von Schoen-Angerer said the cost of medicines could skyrocket if the supply of knockoffs from India is slashed and that donors would only be able to afford a fraction of needed drugs.

Last year, dozens of shipments of generic medicines from Asia were seized as they passed through European ports, ostensibly because the drugs infringed copyrights. The new trade deal, some health activists say, is an escalation of Europe's continuing fight against generic drugs."

...

"There's no profit in selling drugs to poor people," said Ken Shadlen, a reader in development studies at the London School of Economics. "If you make that more difficult, they might start selling something else," he said, citing generic Viagra as a more lucrative possibility."

Having fewer generics on the market as a whole means YOUR access to them might be suddenly cut off. Here's a plan to prevent the need for drugs at all.

From the Globe and Mail.

"Just a year ago, 15,000 of the world’s leaders, diplomats, and UN officials were gearing up to descend on Copenhagen to forge a global treaty that would save the planet."

...

"After two weeks of chaos, the talks collapsed in a smouldering heap of wreckage. The only surprise was that this outcome should have come as a surprise to so many intelligent people. These people actually seemed to believe that experts and politicians have supernatural powers to predict the future and control the climate. They believed that experts know how fast temperatures will rise by when, and what the consequences will be, and that we know what to do about it. They believed that despite the recent abject failure of Kyoto (to say nothing of other well-intentioned international treaties), the nations of the world would willingly join hands and sacrifice their sovereignty in order to sign on to a vast scheme of unimaginable scope, untold cost and certain damage to their own interests.

Copenhagen was not a political breakdown. It was an intellectual breakdown so astonishing that future generations will marvel at our blind credulity. Copenhagen was a classic case of the emperor with no clothes."

...

"The delusional dream of global action to combat climate change is dead. Barack Obama’s cap-and-trade scheme is dead. Chicago’s carbon-trading market is dead. The European Union’s supposed reduction in carbon emissions has been exposed as a giant fraud. (The EU is actually responsible for 40 per cent more CO2 today than it was in 1990, if you count the goods and services it consumed as opposed to the ones that it produced.) Public interest in climate change has plunged, and the media have radically reduced their climate coverage.

The biggest loser is the environmental movement. For years, its activists neglected almost everything but climate change. They behaved as if they’d cornered the market on wisdom, truth and certainty, and they demonized anyone who dared to disagree. They got a fabulous free ride from politicians and the media, who parroted their claims like Sunday-school children reciting Scripture. No interest group in modern times has been so free from skepticism, scrutiny or simple accountability as the environmental establishment."

...

"Now that global warming has stopped sucking all the oxygen out of the room, some of those who care about the planet will turn to other – and more pressing – problems. There are plenty. Humans are encroaching everywhere on habitats and species. Don’t worry about the polar bears, which have survived hundreds of thousands of years of melting and freezing ice. Worry instead about the lions and tigers, which face extinction within our lifetime. Their problem isn’t climate change. It’s us."

...

"Then there are the lions. They’re not as scarce as tigers – yet – but their habitats are ideal for ranching, and they face increasing pressure from population growth. Or how about the bluefin tuna? This one is close to home – we catch them and sell them to Japan – and Canada is on the wrong side of the issue. If the World Wildlife Fund could whip up as much alarm over the bluefin tuna as it tried to whip up over fictitious drowning polar bears, I might even be persuaded to send them money again."

Lions and tigers and bears--oh my!

"Before they were sucked into the giant vortex of global warming, environmentalists did useful things. They protested against massive Third World dams that would ruin both natural and human habitats. They warned about invasive species and diseases that could tear through our forests and wreck our water systems. They fought for national parks and greenbelts and protected areas. They talked about the big things too – such as how the world could feed another three billion people without destroying all the rain forests and running out of water. They believed in conservation – conserving this beautiful planet of ours from the worst of human despoliation – rather than false claims to scientific certainty about the future, unenforceable treaties and radical utopian social reform.

“How high a price must the world pay for green folly?” asked the thinker Walter Russell Mead. “How many years will be lost, how much credibility forfeited, how much money wasted before we have an environmental movement that has the intellectual rigour, political wisdom and mature, sober judgment needed to address the great issues we face?”

The answer is too high, too many and too much. Please grow up, people. You have important work to do."

They're too busy ushering in the tiny house movement. Governments are too busy ushering in the bailout movement. Even Al Gore has moved on to the electric car and residential fuel cell movement.

From Prudent Bear. Yes, it's another big-picture economic post, but it tells you why dollar devaluation is important to you, and how it's affecting you right now with purchasing power. It's the other half of the inflation coin--the half Bernanke doesn't want you to see.

"With our economy sagging and our international clout waning, one of the few assets upon which the United States can rely is the confidence that the rest of the world has traditionally showered upon us. That confidence is the reason why the U.S. dollar was elevated to global reserve status more than 65 years ago.

With so much riding on perception, Treasury Secretary Tim Geithner's recent statements denying the existence of a dollar debasement campaign could not be seen as anything less than foolhardy."

...

"Over at the Federal Reserve, Chairman Bernanke doesn't talk about currency debasement. Instead, he extols the virtues of "pushing up inflation to levels consistent with our mandate." He hopes that no one will understand that he is using different adjectives to describe the same action. With the possible exception of the New York Times editorial board, he is fooling no one.

Given that the Administration and the Fed are prepared to sacrifice precious credibility for the goal of currency debasement, many may assume that there is some benefit for America that would be derived from a weaker dollar. Unfortunately, there isn't."

...

"History shows that, over the medium- to long-term, a devalued currency leads to increased trade deficits. Furthermore, a currency debasement policy for the U.S. dollar, still the world's reserve currency, is bound to spark a climate of international competitive devaluation –a currency war–as each nation fights to protect its balance of trade. If not corrected, such currency battles lead all too easily to trade wars, and they, in turn, often result in armed conflict.

The second, and more compelling, argument for Washington to pursue currency debasement is that a devalued dollar would wipe out large amounts of dollar debt. This amounts to a huge subsidy to debtors at the expense of savers, and no one owes more than the U.S. government."

...

"So if we assume a conservative 40% devaluation of the dollar over the past ten years, our current $13.4 trillion federal debt is equivalent to an only $8 trillion liability in 2001 dollars–the rest is just inflation. The $189 trillion of unfunded obligations to Social Security, Medicare, government pensions, etc., would appear as $113 trillion a decade ago!

It is clear that a debased currency suits the U.S. government, but what of Americans? The 40% devaluation equates to a 40% tax on every holder of U.S. dollars, rich and poor alike. It has hindered, rather than encouraged, consumer spending. It forces Americans to make do with less, purchase shoddier products, and deal with inferior service. Sometimes it's hard to perceive slowly ebbing living standards, but take a look around and think whether you feel richer than a decade ago."

We've been living with a 30-40% less amount of purchasing power--this means it takes 30-40% more money to buy what $1 did a decade ago. This is INFLATION that Bernanke doesn't want you to see or be aware of. Even though the Fed hasn't announced any inflation by interest rate rises, there is HIDDEN INFLATION in the form of dollar devaluation. We would be in the streets in open revolt if there were 30-40% rate hikes, and using the back door to get the inflation is how we contain civil unrest.

We have rampant inflation, people--it's just cleverly disguised. You see and feel it, though, every time you go into a store--now you know where it STARTS, and where it travels (through commodities, making your food more expensive before you've even bought it). The manufacturers pay a higher price, turn the commodities into processed foods, then have to charge us more because of THEIR costs.

This is ON TOP of the ongoing drought/bad weather happening around the world, leading to crop shortages, and the Wall Street traders snapping up commodity contracts as fast as they can...well, until recently. Most of Wall St. had placed bets on China's climbing demand, but that demand isn't materializing, and China's government is implementing price controls--there soon will be no money to be made from their demand. This means commodity and fuel prices will come down slowly over the next year, when better crop yields and oil drillers get the Obama offshore drilling constraints yanked off them.

C'mon 2012! In the meantime, we deal with a 30-40% loss of money while our government enjoys the fruits of its labors--a discounted national debt, a better-looking trade imbalance, and discounted liabilities (like Social Security).

From Daniel Island News.

"Let’s say you don’t like oil from countries that don’t like us, or from the oil sands of Canada. Let’s say that you don’t want any offshore oil drilling. Maybe you don’t like coal fired power plants. You may not want any energy from nuclear power because you believe it is dangerous or you worry about toxic waste. You don’t want any concentrated solar facilities on pristine California desert, or noisy windmills to disturb the peaceful island life of Vinalhaven, Maine. Maybe you want to zone your community to prevent unattractive solar panels from appearing on your neighbor’s roof. You may not like to use corn to drive to the store when the world’s per capita grain supply is dwindling. If you are uncomfortable with the trade offs of any or all of these energy sources, what can you do?

Use less."

Notice natural gas isn't anywhere on the "avoid" list, but I digress. I've mentioned multitudes of ways we can use less energy ourselves, bypassing the efforts (or rather non-efforts) of regulators, politicians, and utilities themselves. We need to keep profits in our own pockets, and get profits anywhere we can.

"Right now, electrical utilities make their money on the amount of energy they sell their customers. Transmission companies get paid for the amount of energy they transmit. The fact that 10 percent of the electricity that leaves the power plant is lost before it ever gets to a customer is not a big problem for utilities as they are currently constituted. The utilities will, under the prodding of regulators and for public relations reasons, go kicking and screaming toward smart meters to "empower the consumer", but they are not anxious to provide that consumer with tools to reduce energy usage because those tools will decrease their revenues."

...

"If we survive the coming energy crisis with our standard of living intact it will be because of innovative thinking and reconstruction of basic activities. An interesting example comes, surprisingly enough, from the military.

One hundred and fifty Marines of Company I, Third Battalion, Fifth Marines arrived in Afghanistan last month carrying portable solar panels, energy conserving lights, tent shields that provide both shade and solar electricity, and solar chargers for computers and communications equipment.

Did they equip themselves that way to save energy or to launch a recruiting PR drive? No. They needed to decrease their reliance on dangerously extended supply lines for the transportation of liquid fuels.

Our future depends on all of us thinking that way."

No--it requires all of us to be more rational with WHAT energy we use, how we use it, when we use it, and what we use it for. Instead of throwing money at solar panels when we have perfectly good fuel cells that convert natural gas to electricity, or hybrid cars when we (again) have fuel cells that can make cars run on water, and methanol that can be made from our trash, why do we need to submit and resort to the most expensive yet least efficient forms of energy production?

Alternative energy is just a dressed-up wealth redistribution scheme, as is the profit-redistribution scheme described in this article--renovating existing power supply systems to be more efficient so utilities can give US back money each month!

You want money? You want profit? Learn to use less AT YOUR LEVEL.

Further reading (my previous articles on energy saving):
The Amish: Their Past and Present may Hold the Key to Our Future

Living Small

Saving Energy Begins at Home, Part II, Part III

8 Energy-Saving Investments That Will Never Pay Off

How to Unplug Your Best Friend (the Freezer)

How to Unplug Your Next Best Friend (the Refrigerator)

Beating the Summer Heat in the Kitchen and Elsewhere

Late-Night Energy Examination, Examining Efficiency Again, Beating the Efficiency Dead Horse, and One More for the Efficiency Train

Using Energy Star Ratings to Save Energy? Think Again!

From Martin Weiss Research.

"Fed Chief Bernanke’s going to buy another $600 billion in Treasury securities to pump liquidity into the economy. But it’s all one big, fat lie.

Here’s why:

First, because the whole concept of “buying Treasuries” is a smokescreen. What Bernanke is really doing is running the money printing presses, and it’s no secret. Even the emperor himself knows he has no clothes.

Second, because Bernanke also knows — all too well — that he’s not truly pumping money INTO the U.S. economy. In reality, the U.S. economy is leaking like a sieve. So for all practical purposes, he’s pumping the money OUT OF the U.S. economy — to countries overseas.

Third and most important, the “big number” — $600 billion — is meaningless. The Fed says quite bluntly that they will …

“regularly review and adjust the program as needed to best foster maximum employment and price stability.”

In other words, they’ll blow right past the $600 billion mark whenever and however they darn please. "

...

"Meanwhile, yesterday’s elections have left one political party in a state of shock and the other basking in the warm glow of success. And our readers are not the least bit surprised! "

...

"That means Congress is now officially OUT of the stimulus and bailout business. It also means that many in Congress will be fighting to actually reduce government spending at every opportunity.

Most importantly, it means all the gas that was fueling the meager recovery of the past two years is no more. President Obama couldn’t push a new spending bill through the new House or Senate even if his life depended on it!"

This is why Obama circumvented Congress and went directly to the Fed, who can spend all the money it wants and Congress (or we) can't do a thing about it--the Fed is an appointed post, not an elected one.

"Obama & Team know that the 2012 presidential campaign effectively starts TODAY … that voters will hold the president personally responsible for turning the economy around … and that ANY FAILURE TO SLASH UNEMPLOYMENT WILL DOOM THEIR CHANCES in the next election!

But new spending bills are no longer a possibility. So that leaves the president with one and ONLY one weapon of last resort: The Federal Reserve.

That’s why today’s Fed announcement — that it will print only $600 billion to buy Treasuries and other securities — is just a down payment. Merely a small tip compared to the truly big money-printing binge yet to come."

In other words, the faces in Congress may have changed, but the intentions of the Democrats/Progressives have not. They've just found a new way to carry it out.

"...in the new world that has just dawned, the game has changed. Radically! Congress and the Treasury are on the sidelines. The responsibility for stimulating the economy now falls on the Fed ALONE.

That’s why you need to take today’s Fed announcement with a grain of salt. Yes, the Fed is firing up the printing presses again."

...

"Every dollar you earn and own is about to be gutted of its value.

Even just the dollars the Fed has printed so far are ALREADY driving the price of essential everyday items through the roof.

Just since last July, margarine prices have risen 6 percent. Women’s dresses are up 6 percent. Beer is up 6 percent. Milk prices have risen 6.5 percent. Candy is 13 percent more expensive. Butter is up 19 percent. Shoes are up a whopping 45 percent. All in just over four months!

Now, with the Fed set to flood the world with unbacked paper dollars, it’s time to get ready for even greater destruction of your buying power … an all-out assault on your standard of living … a brutal frontal attack on your financial security.

Plus, this sea change in the management of the U.S. economy will have an enormous impact on every investment market. It will impact stocks … bonds … foreign currencies … precious metals … oil and other commodities, especially food."

Take the above underlined items as hints of where to put your money if you hope to have any retirement savings left by 2013. Stocks will go down, bonds will go up (but stay away from the long-term Treasuries), and currencies, precious metals, oil, and commodities will also go up.

Even if the economy WERE to recover, prices would still go up--it would be generated by TRUE DEMAND instead of GOVERNMENT MANIPULATION. In true demand, the consumer generates the inflation through demand spending, while the government generates inflation through dollar depreciation.

UPDATE: Wall Street isn't waiting--they're already acting. From Prudent Bear:

Gold Gains as Dollar Weakens--Silver at 30-Year High

Euro At 9-Month High After Fed Move

Oil Climbs to New High After Fed Announcement

Stock Index Futures Advance--Qualcom and Whole Foods Jump

From CNN Money.

"Several financial experts said it's highly likely that federal spending geared toward getting the job market and housing market (the two biggest laggards in the economy) back on track will be a lot lower than the past two years.

That may mean the economy remains stagnant throughout next year because of a lack of stimulus and a focus on deficit cutting.

"Now is the time to face the music. There may be little growth without government intervention," said John Lekas, principal with Leader Capital Corp., an investment firm in Portland, Ore.

That doesn't sound very delightful. But one could argue that the midterm results are a sign that more Americans are willing to suffer through another tough year or two if it means that government gets smaller and the federal debt load and budget deficit come down."

...

"Lekas took it a step further. He thinks the best medicine for the economy is for the government to completely butt out and let the private sector sort out the mess.

"Free markets are absolutely necessary and healthy," he said. "It's not good for the economy in the short-term but we need to get through the foreclosures and find a bottom in the housing market before the economy and job market can truly improve."

Well--two more years of this crap and worse. Got enough supplies? Too late to get them now. Now we frugalites sit back and let the spendthrifts go crazy like last-minute grasshoppers scurrying around trying to get something together for this winter (both seasonal and economic). The buying time has come to an end and will return in about another 10-30 years.

Unless Obama gets re-elected in 2012, look for growth to start building from then on--time to start investing in earnest to make up for the losses from previous years, and to prepare for the next 20-30 years and/or retirement. Save, save, save while the saving is good and the buying will be bad. Let the grasshoppers spend!

Economic control no longer lies with the president or Congress--it ultimately lies with the Federal Reserve and Wall Street. The president and Congress have been rendered useless and have been bypassed in the control game.

I wrote this back in 2008:

"While you're taking the martial law taste test, start practicing your "liters" and "meters" because we're going to be swallowed whole by the metric system that surrounds us. If gas and food prices get high enough, we'll cut out the retail middleman altogether and either grow/hunt/fish our own food, or go to the large outdoor farmer's markets that will have sprouted up in place of the defunct grocery stores (or at least in their parking lots). Like in Europe, whatever non-perishable manufactured foods that can be sold over a counter without electricity will be there too, like bagged pasta, rice, and beans, as well as loose bulk (but you'll likely be buying it in kilos and not pounds). Selection by brand will have largely gone out the window, as the vendor will have likely bought the cheapest type of bulk food for resale—the only real selection left will be price and which vendor to buy from. "Stores" will become luxury places to shop, featuring refrigerated and high-end gourmet items, and no discounts available. Just think—-bread, meat, eggs, milk, and cheese will be considered high-end due to price.

The future of most food sales (and many other things) will actually be a huge step backwards, technologically speaking. Many middlemen and structures will be cut out of the buy-sell process, and the coupon won't be the only thing dying. Our only discount will be the value of the dollar--the higher the value, the more we can buy.

For FUTURE reference (literally), a kilo is 2.2 lbs., and a pound is roughly half a kilo. You want a pound of something? Just ask for a half-kilo. We WILL get here one day soon, and you might want to prepare your kids and grand kids for this. We would've gotten here a lot sooner, but America is stubborn about adopting the metric system (and getting rid of the penny).

...

Then, we will be completely reliant on global currency rates for any "discounts" after that. Welcome to the REAL world! Europe's been doing it for years now with the Euro.

How will you survive between now and then? Stock up on foodstuffs, clothing in future sizes (for yourself and the kids), guns/ammo, gold coins (if you can find any), and things valuable for barter (like cigarettes, booze, OTC remedies, tampons, toilet paper, etc.), fuel (for the car, and oil lamps/torches), car maintenance items, a radio and batteries (because power may get expensive and limited, as will the press and internet), how-to books of all kinds (anything from medical to home and car repair)...use your imagination."

With the consolidation in corporations through mergers, bankruptcies, and simply going out of business, there will be less competition and fewer choices when it comes to high-value commodities. With the coming drought, every commodity will be high-value, and producers will have to learn to do more with less (mainly water), leaving manufacturers having to sell less for more (meaning price hikes), and downsizing will be the name of the game. Armageddon starts tomorrow, and if you didn't heed my warnings from as far back as 2008, you're going to have a tough road ahead. We will be invaded, but not so much by politicians, but rather the kilo and other metric equivalents. Political INACTION is what will storm us from The Hill.

Price comparisons will no longer be done by the pound or ounce--when it comes, you will find that pound and ounce prices will have risen beyond tolerable levels, and things will now be doled out to us in metric measures. The per-kilo price will seem a bargain until that too rises out of contention (which will happen during the following century). Everything Britain has suffered through since the war will be coming here, but don't expect a return to standard measure over there--that train left the station decades ago. Even though their politics have made signs of returning to conservative power, don't expect a return to "the good old days" of British Empire-style markets and consumer earning/spending levels. The clock can only be turned back so far.

Coupons will become a thing of the past (like they are in Europe), and markdowns will be few and far between. Due to the foreseen drought, food prices will only escalate from here, and unfortunately, there will always be traders to capitalize on it--you may as well join them and get paid for having to shell out on a retail level. This is what Britain did with BP, and look what BP's corner-cutting did to them: overly-dependent stockholders and pensioners were held captive while the Gulf became a big oil pit itself. Now BP is still having to pay cleanup costs and damages, while British stockholders and pensioners are bearing the burden.

More from 2008:

"Back to the grocery store: along with those old-fashioned coupons will go the traditional meal-planning (like anybody with a full-time job does THAT anyway) and plans to stock up, and this is exactly what retailers want you to do—forgo the forethought and operate on impulse, letting each aisle be a surprise for you when you visit—that way, they can take maximum advantage of you.

The way the future economy's predicted to go, you'll no longer be able to afford stocking up anyway."

This may come true in the next 25-30 years (maybe even sooner), because severe drought will mean we'll also be highly dependent on imported foods. Get ready for it and teach your kids and grandkids how to handle it: hunting, fishing, gardening, foraging, bartering, and teaming up with people who CAN when they CAN'T.

Other moves include: live in Washington, shop in Oregon—and any other advantageous arrangement such as this one. Washington State has no income tax, and Oregon has no sales tax. Other useful arrangements may include Texas/Mexico (some taxes, but still very low cost) and northern states/Canada (don’t know the details, but someone will fill me in, I’m sure). Other states with no income tax are: South Dakota, Wyoming, Tennessee, Florida, Texas, New Hampshire. If you go there to shop, make sure that's ALL you do, because some of these no-sales-tax states have fast-food taxes, hotel taxes, and other tourist traps. Take your own food, and don't plan on staying overnight.

Over the next few years, this may change--if the economy gets bad enough, tax-free may become tax-full. Do your research before attempting to try any of these potentially money-saving moves. By the time you (or your kids/grandkids) get to the point of needing these, the tax laws may have changed.

Seen the movie Mad Max or any of the Thunderdome movies? Though glamorized by Hollywood, they give you a glimpse (however surreal) of what our long-range future could be like. While greenie-weenies have the movie Waterworld on the brain, I've got Mad Max on my brain.

From Fox Business News blogs.

"Meet Lighting Science Group. One year ago they had 35 employees, today it's 400. Many of those are in manufacturing jobs in their Florida factory. Business is so good they want to build another plant, preferably in the United States.

But that may not happen.

As the CEO explains, the government's stimulus plan is offering up help with bonds and credit, but the credit process takes so long - 18 months - that he may have to move jobs offshore because countries like China are offering credit right now. Companies in industries like this cannot wait for a year and a half to grow because a competitor will come in quicker and take the business. It's not that they don't want to hire more American workers, it's that they don't want to risk losing the business they currently have.

He also dispels the myth that labor costs are the big problem.

The point? America is falling behind in efficiency of capital and credit, and we had better wake up or we'll lose more growth companies like this to overseas competitors."

Article contains a video. You see--it doesn't matter how low interest rates go, or who offers them, but it's the time it takes to get the credit (on the business side) that holds back progress that our so-called president likes to flaunt in constituent crowds. The proof is in the pudding, and we're stuck holding vats of Jello.

From Prudent Bear.

"...the world is learning that the U.S. consumer is a drag on the world economy, not an engine for growth. As "decoupling" becomes more apparent, emerging economies are forming trade links among themselves, accelerating the process of decline for the United States.

To get a better understanding of how decoupling works, it helps to picture a train in motion. Together, the cars and engine travel together on the track. Now imagine that last car, the caboose, detaches from the rest of the train. At first, the caboose travels at nearly the same speed as the rest of the train. The distance between the two is hardly discernable. Over time, however, the car slows down as friction and gravity take their toll. Meanwhile, the engine powers ahead. The distance between the caboose and the train gradually becomes greater and greater, until finally the engine is gone from sight, leaving the caboose sitting idle on the track."

...

"As trade links grow between countries far from our shores (such as those being solidified between Asia and South America), the distance between the United States and the rest of the world is becoming larger, and decoupling is becoming more and more pronounced."

...

"Economies that have long enjoyed a trade surplus are now less likely to loan money to broke and bloated deficit economies such as the United States. They are now more inclined to consume their own production or trade with other exporting nations. Indeed, China is now the largest trading partner for several of the world's major economies, including Japan, South Korea, India, Hong Kong, Taiwan, Australia, Russia, and Brazil. Slowed by the gravity of excess debt and the friction of increasing taxes and regulation, the American caboose is straining to keep up."

...

"The trend also extends to producers of the single most important commodity in the world: oil. According to the Department of Energy, the U.S. imports over 60% of its oil consumption; however, new production is increasingly being diverted to international markets, leaving our country vulnerable to 1970s-style shortages."

...

"Whether you are looking at ASEAN, OPEC, or the EU, it is clear that decoupling is the order of the day. The world economy is rebuilding itself with China as its engine and hub. This is the essence of decoupling, and until recently, it was thought by many respected figures to be impossible.

In the old days, it was said that when the United States sneezed, the rest of the world caught a cold. This time, they might just excuse themselves and move to the next car."

Not only will the weather be weird AGAIN, and the crop availability in the spring be hit-and-miss AGAIN, but we have dreaded POLITICS and MONEY from outside forces (in other words CHAOS) to battle with--this should prove to be a very busy winter.

Well outside the realm of home and hearth, there is a war shaping up, and this war involves global currencies. I know the only currency you want to think about right now is what's in your pocket after taxes, but this is where the root cause of government-produced inflation comes from: how much your own currency's worth compared to other global currencies, and who's doing the manipulating.

As we all know, Obama's (and other presidents before him) plan is to devalue the currency in order to devalue the debt. He's not the only one using this plan--several other countries are also planning to use the devalue-and-conquer debt repayment plan as well. In other words, they aren't actually GOING to repay the debt--they're just going to call the dollar value shrinkage "payment in kind". Other countries with large national debts are doing the same thing, making 2011 a giant race to the bottom as far as currency devaluation (money-printing) is concerned.

How this affects you: As your currency loses value, it takes more of that currency to get the same purchasing power you used to have. This is called inflation, and it's going to be generated by governments as well as producers.

Just as a small leak in the budget adds up to a torrent of lost money, the same is true when it comes to inflation, only it works in the opposite direction--a small increase will add up to a torrent of loss to the government and producers in the form of higher costs. None of this HAS to happen, but our administration has chosen to pay down the debt this way because there is no more money from ANYWHERE! Obama can't entice us to spend more, so he's going to FORCE us to spend more through inflation.

America isn't the only country that going to suffer this winter and in 2011--the only "safe havens" from inflation (really, they'll just see less of it) are emerging markets in countries not economically big enough to be members of the G-12, but are members of the IMF.

Speaking of the IMF, a meeting of the G-12 was just recently held concerning the devaluation of the currencies and a "global rebalancing." Dynamic Duo member Tim Geithner (the Boy Wonder) was sure to bring along his global rebalancing idea, which was promptly shot down (I think this was planned), and now G-8 governments are free to conduct a currency war (a race to the bottom).

2011 will usher in inflation from all sides, folks, with no investing way out except through gold (which is already over-priced IMO)--I believe this was engineered. Stocks will tank, bonds will be worthless, and real estate isn't going anywhere soon (at least in THIS country), so what's left to invest in? Certainly NOT currencies! Traders have already told us the answer: commodities and energy. Dividend plays are also going to look good in a presumably-declining stock environment, and the Dogs of the Dow might very well turn out to be the small investor's savior for the next two years.

This is why I've been screaming about debt and pantry for the last year. You have less than a week before we see the first signs of November's offerings. The faster the race to the bottom goes, the less purchasing power you have with your money. They think we stopped spending BEFORE--wait till they see what we're going to do in 2011!

Here in America, this will only last until January of 2013, when we usher in a new president. Other places in the world might not be so lucky as to name an ending date.

From CNN. This won't be good for farmers or gardeners.

"Federal forecasters on Thursday called for another winter of extremes, with the Pacific Northwest expecting a wetter and colder season than average and the South and Southeast yearning for rain.A moderate to strong La Niña will be the dominant factor influencing weather, the National Oceanic and Atmospheric Administration's Climate Prediction Center said. NOAA defines La Niña as "cooler than normal sea-surface temperatures in the central and eastern tropical Pacific ocean that impact global weather patterns." It is related to El Niño, which brings warmer than normal sea temperatures."Last winter's El Niño contributed to record-breaking rain and snowfall leading to severe flooding in some parts of the country, with record heat and drought in other parts of the country," the center said. "Although La Niña is the opposite of El Niño, it also has the potential to bring weather extremes to parts of the nation."

...

"Mountains in the Pacific Northwest may get more snow than average. That's good for water replenishment, but it may also increase the chance of avalanches and flooding.

The Southwest will be warmer and drier than average, exacerbating drought conditions in those areas, the center said. The Northern Plains will be colder and have a higher risk of flooding.

The Southern Plains, Gulf Coast states and Southeast will be warmer and drier than average, forecasters said.

"All Southern states are at risk of having above-normal wildfire conditions starting this winter and lasting into the spring," the center said.

The Ohio and Tennessee valleys will be warmer and wetter than average. The Northeast, mid-Atlantic states and the Central United States have an equal chance for above- or below-average temperatures and precipitation, the center said.

NOAA cautions that its seasonal outlook, which looks at conditions through February 2011, does not project where and when snowstorms may hit or total seasonal snowfall accumulations. Winter storms are generally not predictable more than several days in advance."

Stock up on flood insurance NOW, have an evacuation plan, replenish emergency supplies as needed, replenish winter clothing as needed, and prepare for higher producer prices for food next year (in addition to the coming inflation and chaos already going on--traders will jack up the price of commodities grown during winter months, leaving US to pay the bill come springtime).

Apparently we're going to have another Winter of Discontent--just like last year. I guess you could say this is Reason #4 for a November last call.

From USA Today. North Korea's falling down...falling down...falling down!

"South Korea prepared Monday to send 5,000 tons of rice to flood victims in North Korea in its first humanitarian rice shipment to its communist neighbor since a conservative, pro-U.S. government took office in 2008.

For a decade, South Korea was a major donor of food to North Korea before President Lee Myung-bak halted unconditional assistance following his inauguration in early 2008 with a tough line on Pyongyang. Lee's government also drastically slashed trade with North Korea after tension spiked over March's deadly sinking of a South Korean warship blamed on Pyongyang."

One administration's decisions (actually ONE MAN'S decision) affects the lives of a Communist country--it doesn't take a war to combat communism. In the words of Mrs. George W. Bush, "just say NO!" In this case, it's no to food aid.

"Heavy flooding swamped farmland, houses and public buildings in Sinuiju in August. An estimated 80,000-90,000 people were affected by the flooding, and the 5,000 tons of rice can feed about 100,000 people for 100 days, according to the Red Cross.

"It's a response to the North's conciliatory measures," said Kim Yong-hyun, a North Korea expert at Seoul's Dongguk University. "I can say it's a small but considerably meaningful start of assistance to North Korea."

Lee's two liberal predecessors seeking reconciliation with North Korea had sent about 300,000-400,000 tons of rice to North Korea annually. Lee, however, suspended such unconditional aid linking it to progress in the North's denuclearization process.

South Korea's last rice shipment to North Korea was made in December 2007. Rice is a key stable for both Koreas."

...

"The North's economy is in shambles due to the communist state's mismanagement and tight controls on business, and the country has relied on outside food aid to feed much of its 24 million people. The North's chronic food shortage was feared to worsen following the latest flooding."

This is how Russia fell--Cuba actually drained Russia dry, then swiftly found a new sugar-daddy in Venezuela. North Korea is not so lucky--there is no new sugar daddy for them! Sure, China does what it can (which is minimal at best, and only for the high-ranking), but as far as the society as a whole? Zippo.

From Yahoo Opinion.

"British budget cuts unveiled today are the most severe in decades, promising to eliminate the country’s deficit in five years. What lessons do they hold for the fiscally challenged United States?

The race to a zero deficit in London is faster than in almost any other Western capital. Indeed, President Obama has warned that cutting too quickly could crash today’s struggling economies in another recession ditch.

But British Conservative Prime Minister David Cameron and his Liberal Democrat coalition partner, Nick Clegg, are willing to take the risk."

...

"The next five years will show whether they can pull this off safely. But even while that question remains hanging, two big conclusions can already be reached about this British experiment and how it might apply across the Atlantic.

First, it’s clear that where there’s political will, there’s a political way – even on a subject as contentious as reducing government spending."

...

"The Greek tragedy helped win voter acceptance in Britain, as has a generally even-handed approach to the cuts. No one is spared – not the banks (which will see a permanent tax based on the size of their balance sheets); not middle- and upper-income families (they will lose child benefits). The pension age will rise sooner than expected, affecting everyone.

The second lesson is the strategy of the cuts themselves: a certain fairness in how they're distributed, but with an eye toward increased spending for national priorities and competitiveness."

...

"...the British budget shows that even sacred cows, such as defense spending, can’t be exempted. Defense Secretary Robert Gates has made it his mission to cut Pentagon costs – hardware that doesn’t align with counterinsurgency needs as well as personnel expenses. He’s gotten some cuts past Congress, but he still has a long way to go.

In the US, nothing is more sacred than the entitlement programs: Social Security, Medicare, and Medicaid. They’re seemingly untouchable, and they’re hugely expensive. Instead of avoiding this debate, lawmakers must embrace it."

...

"This December, President Obama’s bipartisan commission will deliver its report on how to reduce the national debt. Political leaders from both parties have an opportunity – in this window of relative calm provided by the financial markets – to solve this problem. As in Britain, they can work together to return the country to a more sustainable fiscal path.

And if they act sooner rather than later, they may find they can take that turn on four wheels, instead of two."

Ahhhh...the guys at Top Gear will show 'em how it's done! Yes, Britain, I'm watching on the web, and wondering who the next Stig will be--I understand his cover is finally blown.

A recap:

Reason #1: The coming congressional gridlock.

Reason #2: Another round of quantitative easing.

Drumroll please....

Reason #3: The Bush tax cuts will be allowed to expire (thanks to gridlock), and we'll all (in America anyway) be launched back into Clinton-era tax brackets. Now, if you're a low-income earner (or just have lots of credits and deductions), this shouldn't move your needle too much, but people currently in the 15% bracket or higher will see one hell of an INCREASE starting in 2011.

This is just one more thing going against you after November--you thought 2010 was the year of uncertainty? 2011 is going to top it! Count on higher taxes, more fees, inflation on the retail level, a shaky job market continuing, a beyond-shaky housing market continuing, and Congress trying to raise the debt ceiling (and avoiding setting a budget) so they can continue to spend to their hearts' content.

This is all coming regardless of how you vote in November. Just keep your eyes on the prize--voting out incumbents.

From Yahoo News. This is Step 1.

"A group of eminent Chinese Communist Party elders has issued a bold call to end the country's wide-ranging restrictions on free speech, just days after the government reacted angrily to the awarding of the Nobel Peace Prize to imprisoned dissident Liu Xiaobo.

In an open letter posted online, the retired officials state that although China's 1982 constitution guarantees freedom of speech, the right is constrained by a host of laws and regulations that should be scrapped."

...

"China implements overlapping and usually unwritten rules and regulations on what can or cannot be published, but the final call is made by the Communist Party's shadowy Central Propaganda Department. Members of the department regularly notify editors about what topics are taboo, usually by telephone to avoid leaving a paper trail, with the list changing constantly depending on events.

The letter described the department as an "invisible black hand" and questioned what right it had to override both the government and the premier."

...

"Members of the group have signed other letters in the past, including one addressed to the Beijing leadership in early 2009 that voiced support for the government's $586 billion economic stimulus package but warned that without transparency it could be frittered away by corrupt officials."

When communist officials start getting uppity, things have begun that cannot be undone. And to think all it took was a Nobel Peace Prize...

Like Raul Castro, the newest Kim Jong will also loosen the reins of power on his citizens, and eventually China will soon crumble as the largest communist nation on earth.

From Martin Weiss Research.

The article is a transcript of a conversation between Martin and John Zogby (of the Zogby polls). Here are the pertinents:

"The entire world is watching, and make no mistake: Global investors are already voting with their money, already dumping the U.S. dollar, already rushing to nearly any asset that can go up when the dollar goes down.

Will these trends continue after the elections? Or will they suddenly reverse? How can you protect your wealth and build it in the face of global investor reactions to our elections? What are the most profitable enduring trends ahead?"

...

"I see three possible scenarios: In the first scenario, fiscal conservatives sweep into Washington. A growing number of Republicans, Independents and even Democrats — whether incumbents or newcomers — come to town with a mandate to block any new spending programs or even cut the size of government.

In the second scenario, neither party gains operational control of either the House or the Senate.

And in the third scenario, Democrats retain a majority, but only by a very slim margin. So even in this third scenario, they are unable to ignore the public rebellion against bailouts, and it becomes next to impossible to pass more bailout laws."

...

"My take-away is that this boils down to just one single scenario which is the most probable: A tug of war. Everyone else calls it GRIDLOCK."

...

"Which side is going to win? Neither! For a while after the elections, it may look like austerity is the big winner. But as soon as investors realize that means a collapse in the economy, they’re going to sell like crazy and run for the hills. And as soon as markets fall apart, the politicians are going to get cold feet and they’re going to back off. That’s the tug of war. I don’t care how fiscally conservative they are. Politicians are politicians. When they see things falling apart, they’re going to scramble to do something about it."

...

"...if Congress and the administration are locked in a tug of war or if you see gridlock in Congress, you have to ask: Who or what is going to step in to fill that power vacuum? What is the only institution that still has the power to act? Ben Bernanke! The Federal Reserve!

Exactly. As soon as it looks like markets are falling apart again, Bernanke will jump in with a second major round of money printing."

...

"The problem is they can print all they want whenever they want … but they have no control over where that money goes! So instead of going into the U.S. economy, investors pour money into other things."

...

"...if there’s a major Republican victory, you’d see a correction in gold … and then you’d get another rally if the Fed steps in."

...

"So the question boils down to, how low could the dollar go? To brand new, all-time lows."

...

"Right now, I see three opportunities. The first is gold. We’re already in gold and we’re doing great. But if you’re not in the gold market now, I’d wait for the correction. Then buy a gold ETF like GLD. Second, I’m watching the currency markets very carefully, and the great thing about the currency market is that there’s at least one bull market in currencies all the time. Which currencies? Which ones are going to be the biggest beneficiaries of the political changes we see ahead and of the falling dollar?

They will be countries that are big commodity exporters, such as Australia and Brazil. I want to wait for a correction and then buy the Australian dollar ETF, symbol FXA. This gives you a pure play on the Australian currency itself — no stocks, no bonds.

The third major opportunity I see is in the agricultural commodities. Again, you don’t have to buy the commodities themselves. You can simply buy the PowerShares DB Agriculture ETF, symbol DBA. They diversify across the agricultural commodities."

In other words, your pantry-stocking time is up in November. You think it's bad now, wait until AFTER the election! Gridlock will mean two things:

1. There will be no further deterioration of policies by Obama and his gang.

2. There will be no progress toward undoing the damage that's already occurred, and will occur in 2012, 2014, and afterward. For that, we're going to need a new president, and one that isn't Democrat.

In other words, we're going to be stuck in a situation slightly worse than this one for the next two years. If you haven't stocked up, paid off debt, moved your savings, and found something else to invest in (like yourself and your home), then I guess we won't be seeing each other until 2012--you'll likely have to cut the internet so you can eat. I presume you've already cut the TV.

CONSIDER THIS YOUR LAST CALL.

Inflation won't be coming from the Fed, but WILL be coming from corporations and companies who produce things--higher prices, shrinking product size, and dwindling-to-dying availability. It will also be coming from states and localities with higher taxes and new taxes. You'll find that what little paycheck you brought home before will be even smaller after November, in spite of the Fed's quantitative easing, coming further bailouts, and coming stimulus checks.

When the Fed finally pulls it's head out and raises rates, that will be ON TOP OF all the other hiked taxes, fees, and new revenue creations. You'll be lucky if you have anything to bring home! Your paycheck won't be worth the paper it's printed on.

Welcome to Europe.

From San Jose Mercury-News.

"I was walking out of the grocery store a couple weekends ago when, before I even got outside, I was assaulted by a group of little men dressed in paramilitary outfits.

They were wielding bags of a lethal toxin cleverly disguised as a movie theater snack. As the first one moved in, I dropped into my Kung Fu fighting stance and waited for him to make his move. He babbled something about whether I wanted some "popcorn," which I took as teen Karate slang for "You ready to be twisted around and POPPED like a fresh sheet of Bubble Wrap, old man?"

Three others in matching uniforms fanned out in classic VanDamme/Seagal attack formation. Well, I knew it would eventually come to this. I've prepared for a martial arts showdown with my enemies (uniformed militias, people who switch sports allegiances, squirrels) since I was a youngster, training with the Deathly HAIYAH! Dojo. I may be old, but I was well-trained and ready to fight to the death."

Hew's referring to some Boy Scouts selling popcorn outside a grocery store. I get assaulted every Saturday outside Sam's Club by the same groups: Scouts of some gender selling crap I can't eat, flag football teams/cheerleaders selling MORE crap i can't eat, the Lions Club selling crap I don't want, or drug/alcohol awareness/prevention groups handing out crap I don't want.

I even got waylaid by a church group outside a Kroger store--they were roaming the parking lot looking for victims. What killed me is the church was 30 miles away in another town. Why weren't they assaulting THEIR OWN citizens?

"And they sell popcorn? Really? They couldn't come up with anything better than popcorn? Like, I don't know, bagel dogs?"

See what I mean? I'm coming out of a GROCERY STORE, where I can buy MY OWN popcorn for a hell of a lot cheaper than what these paramilitary parasites are asking for theirs. Marketing needs to get on this NOW!

"The shadow organization run by the secret cabal of Swiss bankers known as the "Girl Scouts" at least delivers yummy cookie treats while attacking civilians in the name of giant corporate dominance. (My oldest kid once sold something like 300 boxes of cookies, for which she was to be rewarded some sort of stuffed animal made in Taiwan for 17 cents. That was 1997. The girl's in college now and still -- STILL — hasn't seen the stuffed animal.)"

...

"An adult can't go near a school these days without someone asking for money. It's like the Hare Krishnas attacking Rex Kramer in "Airplane!" We went to Back to School night last month and the amount of the suggested donations for this and that were staggering."

...

"You know who we need as governor? My grandma. But being that she's dead, we need to another little old lady who clips coupons and hides money all over the house until she finds a good reason to hand it out. Or make the politicians start pestering people at grocery stores by selling baked goods."

She's probably way too smart for the job, dear.

In deference to the paramilitary parasites, little league beleaguered, cheerless cheerleaders, and other kiddy groups asking for money, I give them money instead of buying their food (since I can't eat it). The Girl Scouts have at least taken me up on the idea of selling more nutritious fare, even if I can't eat it myself--last time I saw them, they were selling canned nuts...LOW SODIUM ones...and Hubby can eat them. As for the rest, I slip 'em a couple of ones for keeping the kids off the streets, and out of the store I just came from.

I usually regale the Cub couts with the tale that I, too, used to be one of them--a story for another time.