Thursday, September 18, 2008

WHAT THEY DO!

Sent in by Uncle Vlad.

http://blog.wired.com/sterling/2008/09/effect-measure.html

Effect Measure : Why would any sane person put a Level 4 biodefense lab in Galveston?

"It's not like no one thought Galveston could ever be hit by a monster storm. The city was almost destroyed in The Great Storm of 1900 which struck on September 8 of that year and killed 6000 people. The Thomas Edison Company has historic film footage of the destruction. So it seems a bit odd (I understate) that the geniuses at the Department of Homeland Security and NIH decided that Galveston was a good place for one of the first two high containment biodefense laboratories to be built after 9/11 (the other is situated in a densely populated neighborhood in Boston, another sterling choice).

"But put in Galveston they did and now it's almost built. And another monster storm (track it in real time here) is bearing down on Galveston so the lab is being evacuated before it goes under water. Some of the locals are wryly amused:

"Here at the Biodefense Barbeque, we tip our hats to the visionaries in Washington and at the University of Texas System that decided to put a huge lab handling the most dangerous and exotic diseases in the world on a barrier island known for periodically being cataclysmically obliterated by hurricanes. Maybe they were taking George Bush's rhetoric denying global warming a little more seriously than prudent planners would. (Texas Biodefense Barbeque)

"Whether you are amused or not depends on whether you think it's funny to scare people so you can rack up pork barrel projects with no particular value but significant downsides (and here, passim). The site selection certainly speaks to a colossal incompetence, a monumental stupidity and a cynicism almost unparalleled in the annals of American politics.

Picture these guys digging around for the infected rhesus monkeys, ferrets, mice and rats...

GOLD, SILVER, AND CON ARTISTS

I thought I might write a few things about the market and precious metals and rules and regulations.

The market went North today and gained a bunch. The media is going to tell you that it is coming back and people are gaining confidence and blah, blah, blah. Bullshit.

The market probably rose for the express purpose of short sellers, especially naked short sellers, making up their margin calls. You place a naked short sale of stock on the market and you are in essence selling something you don't have and you don't even have a promise of having. You just walk bold as brass up the phone and sell your thousand shares or ten thousand share of whatever floats your boat, as a short sale. Now a short sale is a sale of borrowed stock. You acquire it for a fee, sell it at the market price and wait for the price to go down. If it goes down then you buy the proper amount of shares back with some of the money you made from selling the original shares to begin with and return the shares to the lender. The left over money is what we call profit and the short seller gets to keep that. See, you borrow $100 stock and hold it for a couple days and it goes to $80 and you have made $20, after you purchase a share of stock to replace the one you borrowed. This is much like what happened on 9-10-2001 with airline stock, but that is another story. But someone made a bundle that day!

Getting back to the naked short sales, when you sell and don't have the stock borrowed, the Security and Exchange Commission, commonly referred to as the SEC, made doing that shit illegal again, which it was anyhow but we had the wink, wink, nod, nod, thing going and it was being over looked and nobody was getting into any trouble for it. Honor among thieves you know. But Wednesday the SEC dropped the hammer and said that was all of the naked short selling and things had to be made up immediately if not sooner. Failure to do so would result in time served. Ouch! So all of these crooked ass brokers were in the market trying to buy stocks today to make up their naked shorts, which were a tremendous amount of money. And things got a little tight, because there ain't anyone that HAS TO SELL YOU THE FUCKING STOCK! In fact, they can hold you up like an armed robber and there ain't much you can do about it. "Oh Dad, poor, Dad. Momma's hung you in the closet and I'm feeling so sad." The naked short guys had their sex organs in the wringer and they were not going to get out unscathed. They had to buy or serve time. La te da.

So, the market was being hit with buyers today looking to make up for an enormous volume of naked short sales. And the market has a ball. Those naked short guys have been paying through the nose all day! Several hundred guys out on the trading floor playing SMEAR THE QUEER. And the market went up $400 or so today. Wonder how it did that? Hah! And you are going to hear about investor confidence and all kinds of Mickey Mouse shit. But it ain't true. It was a bunch of guys who did not want to dance with Bubba at Attica, was what it was. A man will pay a lot of money to keep his ass from belonging to someone else. And wearing that lipstick and miniskirt in the cell gets to be such a drag. Pun intended.

On the Silver and Gold front we have some interesting news. BY LAW, the U.S. Mint has to stamp out as much silver and gold coinage as anyone wants to buy. And they quit late last week or early this week because the said they couldn't buy any 'rounds'. No rounds, no coins. And that is a bunch of horseshit, but who can go in and examine the vaults? I know, I know, we are the taxpayers and we OWN the Gold and Silver but we ain't allowed to look because of NATIONAL SECURITY or what ever the excuse is that particular day.

So anyhow, Ol' Hugo Chavez has said HE will mint gold coins for the US market and sell them all they want. And he took in 15 tons of gold to start his mint operation. Whoa! All of a sudden the fedgov cannot force people to stay in dollars! Venezuela will sell them Gold and Silver. So you can go the the stock window or the withdraw window and get your FRN's and Hugo will sell you Gold and Silver. Laughing my ass off! This is a riot!

And to make matters highly interesting, just 3 seconds before the market closed, someone dumped a bunch of Gold and Silver on the market very cheaply. So the price officially went down for the day's business. Spent most of the day in the up area and then went down at the closing bell. And the fedgov did that. That is how they got the price down from $950 to just $750 last week. Is that called manipulating the market? Ron Paul says it we have a shadow government that can do this shit without congress saying or doing a damn thing. The Constitution says all money appropriations have to start in the House and go forward from there. Apparently the Bush administration doesn't care for this mechanism and just does what it damn well pleases. Ahh. The sweet life. The head of the Federal Reserve, the Secretary of the Treasury, and Dubya have taken over the rule of this country and do as they see fit.

I'll sign off for now. You all stay alive and I'll see you when I do.

Michael

mboone@rtccom.net

MORE ECONOMICS

Just few thoughts here. The majority of the Central Banks in the developed world have seized up. They are constipated. This is my way of telling you how things are going in the banking world these days. Money generally moves in a circular pattern. One guy pays another guy who pays another guy who pays another guy and so on and so forth. But with Lehman Brothers and probably AIG out of the loop, the money has stopped flowing. The gears have seized up. The machine is not working. So the Federal Reserve is spreading money around the globe to major Central Banks in the form of gross amounts of cash that the foreign banks can loan out for use to people in paying their bills. And it ain't like these people don't have the money owed to them, because they do. It's just that no one can pay their bills because the banks have a very low amount of cash and cannot cough up the big chunks to keep the system running and all greased up and smooth. Bernanke is loaning out incredible amounts of money. "Here. Take this ten billion dollars and cash these people's checks and we'll settle up later. We know you are good for the money." Modern day banking, Federal Reserve style. Here is an article for you to peruse.

http://www.reuters.com/article/ousiv/idUSPEK4365020080917?sp=true

China paper urges new currency order after "financial tsunami"
Wed Sep 17, 2008 1:45am EDT

BEIJING (Reuters) - Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.

The commentary in the overseas edition of the People's Daily said the collapse of Lehman Brothers Holdings Inc "may augur an even larger impending global 'financial tsunami'."

The People's Daily is the official newspaper of China's ruling Communist Party, and the overseas edition is a smaller circulation offshoot of the main paper.

Its pronouncements do not necessarily directly reflect leadership views, but this commentary by a professor at Shanghai's Tongji University suggested considerable official alarm at the strains buckling world financial markets.

China's central bank earlier this week cut its lending rate for the first time in six years, a move analysts said was aimed at bolstering the economy and the battered stock market.

"The eruption of the U.S. sub-prime crisis has exposed massive loopholes in the United States' financial oversight and supervision," writes the commentator, Shi Jianxun.

"The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States."

But Vice Premier Wang Qishan, on a visit to the United States, told U.S. trade officials in a meeting on Tuesday that China and the United States needed to maintain close economic ties with global markets going through such turbulence.

"The Chinese government is well aware of the fact that the United States, which is the world's largest developed country, and China, which is the world's largest developing country, should have constructive and cooperative economic and trade relations," he said.

China is a major buyer of U.S. Treasury bonds, and through its sovereign wealth fund it has taken stakes in two large U.S. financial institutions.

In July 2005, China revalued the yuan and freed it from a dollar peg to float within managed bands. But the yuan and China's trade remains tightly linked to the fortunes of the dollar.

The commentary suggested China must brace for grave economic fallout and look to alternatives, saying the crisis brings to mind the Great Depression of the 1930s.

"Lehman Brothers announced bankruptcy will not only have a domino effect on the global financial world, it will bring a shock to the world economy," the front-page comment stated.

Wednesday, September 17, 2008

AIG, ETC.

The Bush administration bailed out AIG yesterday to the tune of 85 billion dollars. I can hardly fathom that much money. But I can fathom that the Fascists have used us again to to socialize their loses. The system is still going to fail but Bush is going to help his buddies as long as he can. We need some Internet Detective to go back through some records and see if AIG gave much to the RNC in support of Bush's election or re-election. The Detective might also check to see how much was donated by wholly owned subsidiaries of AIG. Lehman Brothers must have given to the DNC.

I have had a couple nice comments from readers in the last 12 or 16 hours. Less than 1% of my readership. I would much rather be a help to a very small number of people interested in surviving than to be a source of entertainment to a larger number.

Put away about 20 pounds of shell-outs yesterday. They got their freezing and their Bay Leaves and they got put away. I love having that food around. It can prolong life. In reading TEOTWAWKIAIFF this morning I got inspired to get me some more candles. You can catch this fine fella at http://teotwawkiaiff.blogspot.com/. PAY ATTENTION TO WHAT HE SAYS YOU NEED! If it ain't perfect it is way down the road from what most people consult with. A whole lot further down the road. This is not a time to be emotional. It is a time of enforced rationality on the part of those intending to survive. THINK!

Over at SurvivalBlog our guy James W. Rawles had a very good post from a guy in Cincinnati, OH. He had friends who went to stores for survival items at the approach of the remnant of Hurricane Ike. And he duly noted that all the exact things Rawles said would be grabbed off the shelves in the stores were exactly what was gone. Ain't it wonderful to have a good man like Jim Rawles tell you these things? And haven't you shown your appreciation by at least stocking up before hand? Sigh... The truth of the matter is that most of you haven't done a damn thing. And these bloggers out here are telling you every day of the week to get ready!
What a world. That is what pisses me off about writing about survivalism. You tell the people what to have on hand, the latest economic and political news that can affect them, the latest danger signals on the horizon. And most of them are not ready. Shame on ye!

But I am not quitting. I am going on, preparing my food storage and my security and what ever else is necessary and I can afford. What I cannot afford costs me a bit of time while I figure out how to get it.

I go for now. Stay alive.

Michael

mboone@rtccom.net

Tuesday, September 16, 2008

READING AND WRITING

It's a nice chilly morning here in southern Indiana. My coffee is hot and my electricity is on and I am dressed warmly. Hey. What do you want? Breakfast is cooking and I will soon be stomachly satisfied.

I read James Rawles this morning at http://www.survivalblog.com/ and thoroughly enjoyed it. He was on top of his game and I appreciated it. He said he felt smug because he had told us so concerning the meltdown of yesterday's market. He also felt good because he was prepared and then asked the question, "Are you?" All in all it was a very good post. I'd give it a 9.5 out of a possible 10. Now if I could only figure out why it isn't a 10. Tight fisted with those 10's I reckon.

If you go over and read Mr. Rawles be sure to click on his REM link and listen to the music. Very good choice of entertainment. Almost profound.

I have an article from my friend on the East Coast coming soon, I have been told. He is a very astute businessman and I think you will like his observations. I have left his identity up to his discretion. The article has been promised as soon-to-be forthcoming. Knowing him, I would imagine you will find it enlightening.

The stock market blew up yesterday and there is not much to add to the news of it. I will use today to see whether or not it will survive. Another $500 drop and we can go ahead and sounds "Taps" over the body financial. But we could very well be going into a new era that Americans are in no way accustomed to going. Got preps? I do. And I have a lot of friends in the area who will be with me on the survival trip. I have pretty much concluded that Rawles has a group that will join with him should the SHTF. He is that intelligent.

I have an apple trip to do this week. Grumpyunk is bringing me over a bushel of free apples and I will meet him in town for coffee. Should be a pleasant morning. I am looking forward to it.

And after all of this I am thinking about taking some time off from blogging. I have posted my ass off this year and a little R &R would be nice. Besides, I have some potential business coming around and I might be busy. I really would like the change of pace to being involved in commerce again. I'll just write to people who write to me and not have the pressure of daily blogging.

You all have a nice morning and try to stay alive.

Michael

mboone@rtccom.net

Monday, September 15, 2008

FINANCES AND PREPS

Well, it's been a day and a half, for sure. The big boys on Wall Street are tanking as fast as they can go. Merril Lynch has sold out to Bank of America. Lehman Brothers has filed for Chapter 11 Bankruptcy protection. AIG, the biggest insurer in the world is wanting to borrow $40,000,000,000 in order to stave off financial failure. The word came out that Germany asked the fedgov to do something about the banks having problems and the fedgov replied with allowing Lehman to take the dive. No money this time! Germany will be a bit miffed at the fedgov ignoring their pain, but that is too damn bad. Let the crooked bastards take their lumps and we can get this over with a lot quicker. 'Cause we gotta get it over with. Those big investment houses knew exactly what they were buying and they bought anyway. Gold was going up this morning. Silver will follow shit, I reckon.

And those people buying Gold and Silver are investing in TANGIBLES. It is something they can hold in their hand. It is figured as a method of holding wealth. I might buy some of it if I were rich, but I am not rich and I will buy food and tools and guns and ammo and medical supplies. I will also shell beans like a madman. If the money goes South, if it becomes worthless, then I will eat and stay alive and protect my family and friends.

The Persimmons and the Walnuts and the Hickory nuts are coming ripe in great profusion. Lots of product on those tree branches. I have been told that lots of nuts and fruit on the trees is a sign of a cold Winter ahead. Let it roll says I. I have plenty of food and ammo and I am just waiting to protect my friends and family. The cats out on the porch are getting more hair everyday. You can't fool mother nature. The genes and chromosomes know what the hell is going on!

I wish to reiterate the incidents mention in my previous post. Kaiser von Texas DID say that a Walmart had been looted and burned out West of Houston. They must not have had a very good selection for the Freebooters to steal. Pissed 'em off and they burnt the place.

And the PANIC sale of gasoline in Michigan told about by Wolverine is just the tip of the iceberg of what will go down in this country if the SHTF. Wolverine is not playing games. He is a serious man and his sons are serious. He was not scared, but he was pissed. And you don't want to piss off a serious man in hard times. You might end up pushing up Daisies. He has cleared his fields of fire around his house, you know.

And this is just a practice run we have witnessed. The housing West of Houston didn't get hit as hard as the Northeast side. A lot of them still have power. But the Freebooters still went into their little act and burned and looted. Probably with the lights and the security cameras working! If the lights go out in your town will the police be watching over you? Hell no. You will be on your own until the fight is over. The fight you will be involved in to clear out the looters and robbers. Then the police will come back in and 'protect' you. They will demand instant obedience from you, of course. After all, they are AUTHORITY. I got MY AUTHORITY right at the bad end of my 12 gauge Wingmaster. And there are so many of them babies down where I live you can't count all of them. The younger guys are out courting females and drinking a little beer on Saturday night but for christsakes, they have their shotguns! I mean, my son is on the East Coast attending school, but there is a Wingmaster that fits his hands in the gun case.

So we get back to the same old rant. Invest in TANGIBLES! While your money is any good at all, buy the things that will keep you alive in the coming hard times. And don't forget to buy non-hybrid seed. You just can't beat it. You grow the food and you get your next years seed in the bargain. A little work and you are on the road to staying alive.

Michael

mboone@rtccom.net

A REPORT FROM WOLVERINE

Michael Sez: I got this report from Wolverine up in Michigan last night. It might be telling you the wave of the future. Also, Kaiservontexas said the Zombies looted and burned a Walmart store just West of Houston this weekend. If stuff like this does not let you know that people will take your ass to the cleaners or to the grave then you are just not paying very good attention.



I loaded up with gas in Toledo at lunch so I could hit the road early. I got home and packed the truck for the trip and decided that I needed a nap before I left. I was tired and I knew the five hour trip would make me sleepy as hell. The dogs had awoken me at 0300 and I never got back to sleep.

I finally hit the road a little before 1530. I knew that would put me passed A2 before rush hour and into Lansing just after rush hour, or so I thought. Thirty minutes out of Lansing my son called to tell me that gas lines had formed and shortages were broadcast on the radio and TV. As I exited the e-way I saw my first line up. Gas station had a half mile or better lineup to get gas at pumps. It was stacked up from both directions and it looked like gridlock in the station. I didn’t notice the price, too much traffic to watch.

I dropped the stuff off for my son at Michigan State and headed out of town. Every station I passed had a line up for gas. Prices were $4.09 to $4.29. The radio “gas watch” reported stations in down state and particularly Jackson had gas at over $5 and one station at $6.10! As I drove north on 127 every station I could see from the e-way had a line up of cars. Some only had six or eight waiting, other many more.

I kept watching my gauge and decided I would get gas at an out of the way station I knew about in Alma. I pulled in and was number five in line. Gas was $4.09. I topped off knowing I could get to J’s cabin and probably home from there.

J did not have a radio on and had arrived north before the news broke. I told him about the panic buying and he decided to run into town and top off. I had topped off again when I got to the cabin exit and guaranteed I would be able to get home.

The cheap stations, those at $3.99 had lines for gas. The $4.09 and up stations had no line. J filled up at Wal-mart for $3.99. It was far enough from the e-way that no one was there.

Being in the woods we didn’t get any news on the situation all weekend. I don’t know what happened to cause the panic but did hear that the governor was supposed to talk on the radio at 1800 but I lost that station before that happened.

Coming home prices are still up above $4.09 but there were no lines and no panic buying going on. I didn’t see any stations closed with signs saying out of gas either. Looks like the panic is over but it was a very good taste of what we will be seeing in the future. Helped me resolve to finish my gas can recycling ASAP and make sure I am ready for that day when there is no station to get gas from.

Wolverine