An excellent interview with Lacy Hunt. Ties in usury and misallocation. I’ll be picking up a copy of Kendlebergers Manias, Panics, and Crashes. Hunt seems to hold my thesis. Long bond yields go down and be very careful about the stock market. The purpose of this interview is not to advise you on investments, but to get you to think about the Austrian concept of misallocation, and how usury plays into that. Note Hunt uses the term “wrong kind of debt”. We’ll correctly identify that as USURY. Interview starts a few minutes in.
First a background: Sibel Edmonds was an FBI interpreter who is probably the biggest whistleblower in history. Her story was covered up and she was placed under multiple gag orders utilitizing “state secret privilege”. She found a way to speak. There was an election lawsuit over Turkish influence, so she was deposed over her knowledge of Turkey.
Note the questions are awkward. Sibel and the questioning attorney obviously worked out the questions beforehand to keep her from breaking the law.
Of particular note: this deposition was done in 2009. Listen to when she says: “Denny Hastert is being blackmailed for sexual impropriety.”, then decide if you believe her.
A few years later she said f*ck it, and wrote two books. One is a “faction”. I’ve not read her books, but probably should. In another interview she revealed the source of her information: the FBI was collecting dirt on the behest of the Clintons during the Lewinsky scandal. Most of the targets were Republicans. However the FBI was dragging in democrats also, so the operation was shut down.
I discuss virtue, 2 in particular, Original Sin and Subsidiarity. I left out one point: “What does the Left fear more than anything? The statement: “We don’t need you.” “. This is related to the saying discovered by #GamerGate and amplified by the alt-right: “We don’t care”. Somewhat germane to their hatred of subsidiarity.
Something you have to kick around. The US has $20 TRILLION in federal debt alone, and multiples of that in unfunded liabilities. As I discussed in my Podcast, medical costs are not going to get fixed. To top it off the country drifts leftward. Bernie probably would have beat Trump. I think he has a good shot for 8 years, but who knows.
I don’t think the country gets fixed. Think about Detroit. EVERYBODY knew it was heading for bankruptcy, but the politicians would never man up and fix it. Practically speaking if they HAD tried, they would have been kicked out of office. So the politicians let it crash and burn so they could wring their hands and whine: “It wasn’t our fault. We couldn’t prevent it.”
Don’t believe me? Well look at Chicago, or even Illinois. EVERYBODY knows they are going bankrupt. Are they fixing it? How about the $20 TRILLION Federal debt?
So you know it is coming. The only sane country in the world that is Christian is Russia. If you have kids you have to think long and hard about getting them to learn the Russian language then moving over there to some Catholic region (assuming it exists). Our ancestors up and moved, it’s probably getting to where our kids need to think about it.
I’ve been using Treasury Direct for a few months now and it is a nice service. Here’s a review of what it is:
Treasury Direct is a government internet service that allows you to buy T-bills. It is run by the Treasury. You can buy other Treasury instruments with the service, however I’m sticking to T-bills. The government account links to your bank account, so when you purchase a T-bill they use a service similar to “Bill Pay” to withdraw the money directly. When you hit “Approve” on Treasury Direct, they withdraw the money; you don’t have to do anything else. When the T-bill matures, they deposit the money back into your bank account. There is also a reinvest option per transaction which I intend to use.
What is a T-bill? A T-bill is a relatively short term instrument that you purchase at a discount. They are sold in $100 increments. So if you buy (1) T-bill, Treasury Direct will withdraw say $95 dollars. After maturity, they pay you $100. The time periods available are 4 weeks, 13 weeks, 26 weeks, and 52 weeks.
An important feature of T-bills is that they are safer than a bank account. If T-bills ever go belly-up, we are living in an apocalypse and the banks have long ago blown up. The only thing safer than a T-bill is gold. (You should own a little gold and silver. I like junk silver coins).
T-bills pay more than a CD, and there is no commission if you use Treasury Direct. T-bills are linked to Fed action since they are on the short end of the yield curve. Theoretically this means 13 week and 26 week bills should have the most movement, and I’m laddering in to them. Note, I don’t give investment advice, and if there is one area where I’m a novice, it is with interest rate investing, so do your own research.
Currently 26 week T-bills are paying 1.07%. I am currently building a “ladder” which means purchasing a few each month, then adding to that “tranche” when they mature. Doing this over time your account grows. A nice feature of this is that if an emergency comes up you will have a certain tranche mature that month and you can use the money for the emergency.
Here’s a link to current interest rates: Current Interest Rate Link
Here’s the link to Treasury Direct: https://www.treasurydirect.gov
I’ll put Treasury Direct in my Links section. That way if you want to get to your account, you can come to this isle of sanity and get your fill of a few podcasts and blogposts, then head over to Treasury Direct to take care of your finances.
Some of the more observant people reading this who also read my book are probably thinking: “You hypocrite, this is usury you are advocating.”. If you are thinking this, I salute you for bringing up a reasonable objection. However, recall I wrote that in a fiat paper money system, if the interest you receive is less than the inflation rate, it is not usury, as in Justice you are due back the VALUE that you lent. Inflation is somewhere around 2%, so you can invest with a clean conscience. This is an investment in safety primarily.
Not an economics post, but certainly Catholic.
This post covers a proof of the existence of God. To be precise, it shows that an exclusively material explanation of reality is false. This is not an argument for the existence of the Christian God, which is done by other means, but instead it shows that atheists are full of crap.
The proof is the existence of qualia. If you don’t know what qualia are, that is fine, I’ll give you an example: red. Red as red. Redness. What is red? Where is red? When is red?
You look at a red ball. There’s some red, on the ball. See it? And that is the problem. If you are seeing it, how is red over there and you are over here? We know from science that the surface of the ball is a solid lattice that is vibrating. Due to the molecular properties, the lattice absorbs certain photons and reflects other photons at a given frequency. That is not red, it is photons.
These photons strike cones on your retina which through very complex nano switching sends an electric impulse through your optic nerves to your brain. Electric impulses are not red.
The impulses are registered in your brain in a bit code. Now we don’t fully understand the bit code, and it may be some sort of optimized version like octal or hex, but it’s a bit code at the base level, open and closed neurons. Open and closed neurons is not red. And that’s it, no red.
Note, “Evolution of the Gaps” will not solve this. We can look in the brain, and we don’t see a red ball. We know the physical material properties. All that is there are neural connections. That’s not red.
At the end of the day, Red qua Red is immaterial. Red does not materially exist, it immaterially exists. And since it is immaterial, it has no place nor time. It can associate with material things like the red ball, but Red qua Red has no place. It also has no time. It just is. Starting to sound somewhat like the characteristics of an immaterial God, doesn’t it?
Or consider the old childhood riddle you use to play. “If I could look out through your eyes, maybe I’d see a blue ball instead of a red ball, and you have been calling blue red, and red blue”. Guess what? It’s not childish. In fact science can never answer that question. Science will eventually be able to read the neural code. It can compare your code when you look at a red ball, say 100010010001. And it can look at someone else’s code. And maybe they match, but they can’t determine if your code corresponds with you seeing “red” and someone else seeing “red”. The “childish” riddle is unsolvable.
Bottom line, the immaterial world exists. It is real. Some argue it is more “real” than the material world. And this is a huge problem for atheists that they can not solve.
In this episode I discuss the reasons and solutions to the high medical costs in the country. Note there is a mistake I noticed after publishing the podcast: the standard deduction would be raised an additional $10,000, not $2,500, to cover the cost of removing the tax deduction for empolyer provided health plans.
Direct Download: http://traffic.libsyn.com/catholicsubsidiarity/Ep_6_Med.mp3
BP shareholders yesterday backed the oil and gas company’s new pay policy and a move to cut the remuneration of chief Bob Dudley by 40 per cent after last year’s large-scale investor rebellion.
More than 97 per cent of votes cast at BP’s annual meeting supported Mr Dudley’s $11.6m pay package for 2016 — down from $19m in 2015 — as well as a new three-year policy that cut bonuses and other remuneration.
So to sum up, Dudley who has delivered a mediocre performance this year, and horrendously in 2015 (BP stock crash) has just had his pay cut by $7.4 million. The cut in his pay for one year is larger than what I will make my entire lifetime.
Did Dudley quit? No. Did he push back? No. So if he’s been there for say 5 years, the capitalists (pension funds and life insurance companies) have been ripped off $37 MILLION in dividends. From the compensation of ONE executive.
Now the title I used is somewhat misleading, this is not necessarily an issue with capitalism; more it’s an issue with corporate governance. We can also add the reckless behaviour of money center banks during the housing mania. Yes, the insanely low interest rates set by the Federal Reserve banking guild played a big part in that, but are you telling me not one money center bank had a board that was nervous?
Now one problem is that our current tax system incentivizes bonuses through stock issuance to execs (let alone stock options), and a preference for capital gains over dividends. As I mentioned in my book, I could not make any conclusions until after some common sense reforms were put in place: eliminate cash salary limits, tax capital gains at the same rate as other income, and make dividends paid out of profits tax free (the company already paid the corporate income tax on them). Obviously such changes would make companies a lot more concerned about providing a steady, slowly growing dividend. And that might be all that it would take.
But today an executive is given stock, so he wants to see the stock price spike up, and investors don’t want dividends, they want capital gains. Throw in cheap money from the Distributist banking system for stock buy backs, and you have the perfect storm. That’s probably the problem right there.
Still, looking at the Dudley example, where BP stock got creamed and he still got $19 million, I’m open to other problems (let’s not get sucked into a false dichotomy) with our current corporate governance model.
Someone is following the KGB plan.
- Demoralization — complete
- Destabilization — currently underway
- Crisis — coming soon
- Normalization — leftist take over
I suspect Soros, but who knows. Check out this video of a KGB defector. Cued up at the right place, but the whole video is interesting. He goes more in depth on this subject in a classroom setting. Search “Yuri Bezmenov” on Youtube
Note after this video came out, Reagan was elected and turned back the program. It seems like it got going again under Obama, though I don’t think it is Russia. I suspect someone like Soros. If you want to see “demoralization”, just check out the SJWs. The current political crisis is “Destabilization”. The government is getting paralyzed. Crisis is coming up.
I discuss marxist ideas I came across on a thread on a Catholic forum. To be clear, the forum is Trad and right wing. Also, I don’t mind debating them on the forum, it is better than an echo chamber. I’d estimate 95% of the members are right wing.
Direct Download: http://traffic.libsyn.com/catholicsubsidiarity/Ep_5_Marx.mp3