Perception Is Everything

The United States Of America has become a great Nation for many reasons, it has maintained its status for over one hundred years as a global leader by impressing upon other nations the need for a free and Democratic society. That all people are created equally and deserve the same opportunities. The fact that we are one of the most diverse countries in the world reflects that belief system. This is now in jeopardy as the perception of us changes throughout the globe, as countries begin to believe that we are only out for ourselves and are less concerned for our poor and disenfranchised neighbors. The recent global economic downturn along with technology has morphed this perception at an unbelievably fast pace. Many blame us for the unethical business practices implemented by financial titans here and abroad as the economic destabilization and reorganization of governments spreads worldwide. It is imperative that we mitigate any negative perceptions and regenerate the broken trust that has been hard earned. Nothing can achieve this faster than by starting to work on the problems within our own boarders by addressing such problems as hunger, unemployment, education, and helping the elderly and disabled. As we show concern for our own citizens, the confidence of others will surely follow.

Occupy Induced Recession 2012?.

The catalyst events driving us towards another recession are occurring on a more frequent and consistent basis, the European debt crises, unemployment, slow growth, consumer spending, and now the Occupy Wall Street movement. Weekly demonstrations across the country and the globe are creating an unanticipated drag on already depleted revenue sources by blocking the flow of commerce, and the constant need for law enforcement to maintain the peace and remove established encampments in public areas. As governments bail out banks, corporations, and others that have been coined as the 1% a disconnect between middle America and its own government grows. Bubbles being created to offset today's problems will undoubtedly become tomorrows latest economic dilemma and will destabilize an already shaky world economy. Comprehensive and sustainable solutions are needed soon so that this nation can return to the healthy economic environment we have become accustomed to in recent decades. We have been viewed as innovative world leaders in the past and can achieve this again in the future.

Going Viral

A new dynamic is spreading fast in the form of accelerating video to the masses via the internet. Pictures taken at various rallies across the country and the globe are being broadcast at an extremely fast rate showing injustices made by law enforcement at relatively peaceful demonstrations. Students and others are being pepper sprayed and submitted by baton wielding riot police for such offences as disobeying an order to leave the area. These individuals are expressing their rights to the constitutional act of free speech and dissent. The most recent use of chemical weapons on U.C. Davis students has caused an uproar nationwide, and the demand for the resignation of the schools Chancellor Linda Katehi. This ability will undoubtedly foster a larger and increasingly disgruntled movement nationwide, just as it has done across the globe of late. Social networking will become the new nightmare scenario for governments trying to stem the tide of change. The transparency of greed has caused many an empire to fall, and technology is now its accelerant.

Dead Weight

Unfunded pension liabilities should become an even larger issue in the next few years, surpassing such problems as debt levels, unemployment, gross domestic product, and manufacturing. A massive number of boomers are on the cusp of retirement, and want the lions share of benefits. They believe that their responsibility as working taxpayers has come to an end, and a future of world travel and golfing is in the cards for themselves. Leave the problems of the world to the children and grandchildren to deal with. I find this ironic as they reaped huge financial rewards as active participants in unscrupulous hedge fund activity bolstering their portfolios. There is no way that you could convince even one retiree, that these lavish retirement lifestyles were achieved through any unethical business practices, and its just smart investing they would reply. Ask yourself why truly wealthy individuals like Warren Buffet and others find it necessary to continue to work well into their 80s and contribute when they could easily afford to retire, could it be that they realize that tax revenue from working is essential to a healthy an vibrant economy?. The fact is that if you have more takers than givers the numbers wont jive, and you are left with a depleted economic carcass of an economy.

China Syndrome

U.C. Davis Chancellor Linda Katehi's recently outlined a plan to bolster the foreign student population studying at the University, saying it is essential in developing new revenue to stave off future cuts, help hire 300 new professors, and make other improvements to the campus. According to a recent article in the Sacramento Bee Chinese students now make up the largest percentage of foreign students at U.C. Davis at 560 students with a total of 1,662 students from around the globe altogether. They pay as much as 22,878 a year more than resident students, and the foreign student population attending university's throughout the U.S. has increased ten fold since 2007. At this rate a huge disparity between American and foreign students being received by American University's should happen very quickly. I find this strategy of economic discrimination of American students that pay less, nothing more than pure greed, and it must stop. I can only see this change come as the result of litigation thus mitigating this unfair practice. This reminds me of the onslaught of outsourcing that has plagued the manufacturing sector in the last decade with the decimation of our job base as the net result. How much longer can this country continue to cannibalize its greatest assets in the name of profits?.

Backlash

The recent explosion of disgruntled Americans demonstrating at the occupy wall street rallies shows the extent of public disdain for inept decision making made by the Obama, and Bush administrations. People are as mad as hell and they are not going to take it anymore, and can you really blame them?. With the housing market still in limbo, unemployment at over 9%, student loan debt surpassing all combined credit card debt for the first time ever at over one Trillion dollars, and the never ending rise in the price of essential goods and services Americans are feeling the squeeze as never before. All the while they have endured the bailout and appeasement of banks, and public and private Titans alike. The situation could quite possibly take a turn for the worse, just as we have seen the recent overthrow of governments that have been in place for almost a half century in Egypt and Libya. We have sold out the value of our own currency, outsourced our morals and ethics as never before, and are now feeling the ramifications of such decisions. Anti-American sentiment is spreading at an alarming rate across the globe as we force our belief systems on other Nations in the name of Democracy. This process is not helping our own situation at home as this economy and country continues to decline.

The Only Answer.

There can only be one effective answer in dealing with the all out assault leveled on an affordable education in the State Of California. This must occur at the legislative level, thus mitigating the seemingly never ending fee increases implemented by such individuals as the Board Of Regents, and others that make students pay for the sins of risky wealth management decisions. These educational institutions blame the state and poor economic conditions as to why cuts and Fee increases must continue, as they give themselves huge pay raises and various other perks. The increase of out of state students that pay almost double compared to in-state students should be viewed for what it really is, a hedge strategy of endowment preservation. At the same time in-state students are turned away in a form of economic discrimination. Vital classes needed to graduate on time are suddenly unavailable increasing the time-span to a degree and bolstering student debt. In addition a new law for graduate degrees enables the Federal government to start interest on loans from the first day of classes as apposed to after graduation. New laws would provide the protection needed to achieve the goal of a higher education for those students with the desire and fortitude to do so.

Same Old Same Old.

This weeks economic summit in Jackson Hole Wyoming will yield more predictable results in the announcement of an additional round of quantitative easing coined QE3. Any investor that has watched the market in the last 14-months has seen a more market friendly pattern opposed to a dollar friendly pattern. Our government has always sided with the elite 1% at the expense of the poor, and when i say poor i am referring to anyone with net assets of less than 50 million dollars. Those in the higher end tend to have extremely diversified portfolios that technically hedge themselves against the ever present decline in value of paper asset classes. The inflation and the pain it brings to the lower end take a definite back seat to the unprecedented wealth generator that the market has presented and the wealthy have capitalized on. If you don't believe that it is all about the corporate and financial titans, petro dictators, and powerful politicians you are a fool my friend. What they seem to forget or be in denial of, is that this incompetent belief system is fostering a resentful and destabilizing element at a very fast rate. Simple math shows us all that a healthy economy needs more contributors than those that simply absorb valuable economic resources and this economy is desperate for a consistent revenue stream in the form of taxpayers, when most of the baby-boomer generation has chosen to simply fade into the sunset and let their children and grandchildren take the hit.

Vortex

The U.S. stock market is now in jeopardy of moving into double dip territory, 400 point swings are now the new normal and we seem to be in some sort of bear market vortex. The shear volume of transactions can be attributed to the process of high frequency trading which accounts for 50-65% of volume daily. These individuals start and end the day with no real ownership of stocks, they simply leverage and sell, skimming off profits as they go. This phenomena started about four years ago when some of the most talented mathematical geniuses of our time were hired fresh out of MIT and were labeled as quants, after the term quantitative trading. Given massive amounts of capitol by mostly hedge funds they sought out prime headquarters situated as close to wall street servers as possible. In addition ultra low latency software was implemented to increase transaction speeds, and what you are left with is market volatility and economic damage. In my opinion it will not be long before such stopgap measures will be re-installed such as a ban on short selling altogether or via up-tick regulations or both. If you believe this cannot occur I remind you that it has occurred recently in the E.U. and if my memory serves me right we recently sold the NYSE, to a European entity called Deutsche Borse. Only time will tell how this calamity plays out now.

Smart Mob

A new trend in mobilizing angry, and sometimes hostile protesters is expanding worldwide via cloud and smart phone technologies. These individuals have a common theme in voicing their dissent, subjects such as unemployment, Austerity, elimination of health care and retirement benefits, inflation on fuel and food and rising Educational costs are inciting a mob mentality and resulting in violence. A Google employee implemented this process through social networks and Face book, and the result was the overthrow of Egyptian leader Hosni Mubarak. Multiple events have occurred across the globe with the most recent in London. The middle class is being squeezed out and the rich are getting richer. A new breed of class warfare is inevitable under these conditions, and we will probably see the overthrow and prosecution of several leaders for crimes against the people. Globalization is a good thing if it is tempered properly but can also be manipulated and abused by the corrupt and greedy, as we have seen in this devastating economic downturn. Debt contagion is probably our greatest threat to the future health of economy's worldwide and we are in need of comprehensive and sustainable solutions NOW not later.

Mega Shock

With approximately 2.8 Trillion dollars in wealth vaporizing recently worldwide, and the market continuing to act like a Yo-Yo, I believe we are about to enter into a area of shocking market losses. As fear driven swings continue, so does incompetent fiscal decision making and partisan politics. The unsustainable pattern of borrow and spend has finally come to a point where the negative ramifications outweigh any bubble creation upside. We have lost vital credibility as a financial world leader and other countries beckon at the chance to replace us on the globalized world stage. Our dollar is declining in raw purchasing power and could soon be replaced as the worlds reserve currency, as other heavily vested countries realize they need to minimize massive exposure rates in a strategic hedge movement. This dire situation can only be blamed on the sheer greed of those political leaders in both parties as they have pandered to not only corporate but private interests as well. Hopefully the miracle of common sense takes hold within our leadership and we can move in a direction that will heal this economy for future generations of Americans.

Cheap Shot

Russian Prime Minister Vladimir Putin recently called the United States parasites on the world economy. Wow you know its getting tough when the communists take a cheap shot at you and not only are they right, but they are dead on. He also went on to say that we have no actual wealth because it is all leveraged and we still don't live within our means. In addition we have other countries fight our illegal wars and they also end up financing them. He said that countries like China, Russia, and Japan will take big hits financially as they are heavily vested in U.S. Treasuries, that eventually will become worthless investments. I personally find it hard to build a case for calling Vladimir a nationalist disgruntled idiot, making fabricated comments about the U.S. how about you?. Maybe we can step back and take a good objective look at ourselves as we all have bought into the borrow, and then borrow some more American dream program. It looks like the sun is now setting on this unsustainable belief system and we will all pay rich or poor. It hurts when others tell the truth about your weaknesses whether their intentions are negative or positive. It will not be easy for this Nation to give up its addiction for cheap easy money, but nothing worth while ever is.

Credibility Lost

The recent news that a vote to raise the debt ceiling has passed should be viewed as a temporary band-aid fix at best, to a problem that will plague this nation for years if not decades. In delaying a default on U.S. debt by lopping another round of borrowing into the equation, we are increasing the odds of a double dip economy and delaying the solution of growth, innovation, and job creation. The polarized environment in Washington will undoubtedly spread worldwide as other Nations lose respect, and credibility is lost for the United States. Our own press labeled news story after story as an aura of immaturity when striving towards compromise. As we all know credibility comes hard earned like anything of substance in life, and this could take quite a while to undo. We continue to take a back seat to other Nations that have waited in the wings to emerge as world leaders. They continue to out work us, out invent us, and are on a path to supplanting the very core of our past successes, a dominant educational process followed by young innovators creating products to be sold to the countries that hunger for them. This path will not change until we have leaders on both sides putting this countries needs before their own.

Debt Bomb

As we watch the final hours countdown on the debt ceiling debacle, one can only feel that Americans are somehow being held hostage by Democrats and Republicans alike. A decision either way will be at best a choosing of the lesser of two evils. One decision will result in the possible cutting of the Nations AAA credit rating effecting the cost of everything from interest on credit card rates, mortgages, car loans, and the debasing of American currency, the other decision a continued fiscally irresponsible path with dramatic future ramifications. Other countries must be amazed at our inability to proceed on a sustainable economic path, and a loss of respect will likely be the outcome. It is wrong to pass the proverbial buck onto the backs of future generations and drift into a comfortable retirement as many boomers will. How will we look into the eyes of our grandchildren knowing that we have mortgaged future opportunities and pilfered valuable resources that are needed to maintain a healthy economy now and in the future.

Ending Partisan Politics

As quantitative easing policy's end this month cracks in the foundation of wall street are beginning to show. The latest data on manufacturing, and the unemployment front are clearly disappointing, and just as we thought we could remove the training wheels from this economic recovery so it could ride on its own it has began to falter once more. Now we have a disagreement between parties on the issue of whether to raise the debt ceiling or not, and if this is not ironed out soon we could see a double dip in the market just as we have seen in housing. The lack of a common sense strategy is about to show its ramifications due to a continued borrow and spend philosophy. And the unrestricted printing of money can not have a positive outcome due to the debasing and dilution of American currency. If our dollar is replaced as the prime choice of reserve currencies worldwide things can only free fall from there. It is time for our elected officials to man up and put aside partisan politics before we encounter something worse than what he have recently experienced in the last few years. The futures of our children and grandchildren depend on it.

End Of The Golden Age

As America approaches the 1.5 Trillion dollar deficit level this year it appears to be on track to be replaced by China, India, and any other fiscally responsible contender as the preeminent economic superpower. Our seemingly endless spending binge is running its coarse, and even more importantly we do not seem to have any viable solutions to offset continued quantitative easing positions made by the authorities. At the same time other nations are working diligently to provide young innovators with a higher level of education followed by an already higher level of work ethic. These two elements will provide the needed one, two knockout punch that replaces us on the global stage. We will always have a seat at the g20 summit due to our nuclear proliferation capabilities, but our monetary credibility is definitely in decline. This nation will watch as others pass us in providing the world with essential products needed to combat the most important issue of our lifetime within the renewable energy sector. If we are to reverse these trends we must act now by first mitigating any fiscal decision making that involves deficit spending, and allow innovative revenue growth generation to take hold and expand. This can only occur as much needed venture capitol is allowed to flood back into the marketplace.

Reversal Of Fortune

Many corporate titans have looked outside the boarders of the United states in an effort to find cheap labor and huge tax benefits. Now the lions share of highly sought after engineering positions here in the U.S. are being given to students from other countries. Some CEO's have stated that these individuals are more driven, and willing to get the job done for less than American students, they are given temporary visas which usually last only two years and can reapply after the visa expires. This trend of in-sourcing technology talent, is just another nail in the coffin for kids born in this country looking to capitalize on a great career. Our government is just as responsible as these greedy corporate entities, in enabling this dysfunctional activity to progress. As over 15 million unemployed Americans barely get by, they are being replaced by non citizen's at an alarming rate. This country seems to be on an unsustainable trajectory at so many levels, it would be shameful to alter significantly the most important part of the American Dream which is Higher Education, and the ability to find employment in the occupation of your choosing.

Paradox

To say that our economy is on a path of improvement, is a contradiction of the latest core data numbers that clearly reflect a downturn at best. The numbers show that consumer spending has come to a screeching halt due to the high price of food, and fuel at the pumps. GDP has contracted to 1.8% this year from 3.1% last year. Unemployment has risen from 8.8% to 9% with only an anemic 200,000 jobs created recently. The increase in corporate earnings is due to internal cost cutting which cannot be replicated next year without a pattern of growth. A continued decline in the dollar and the rise of commodities send a clear message of a bubble driven stock market, and increased inflationary conditions. And the news to be released by the Fed in June, as to ending or continuing its quantitative easing policies will undoubtedly put massive pressure on the bull run of late on wall street. Those that agree that all is well are in clear violation of the laws of common sense. But as we all know we did not arrive at this juncture by making intelligent, prudent decisions.

Trump Cant Win Because He Tells The Truth.

Donald Trump continues his Truth Brigade in his most recent interview, by saying that he hates the way our country is being run, and that our leaders are one of three things STUPID, LACK COMMON SENSE, OR ARE BEING CORRUPTED BY LOBBYIST. He stated that the Arab League which is considerably wealthier than the United States lets us fight their wars for them literally, and we pay the high price of that war, and we receive zero reimbursement for doing so. He also stated that OPEC continues to gouge us on the high price of oil, and the market speculators cannot solely shoulder the blame. Trump is so candid and incapable of lying when discussing our inept leadership, and this will put him at a great disadvantage, if he does decide to run. Americans usually side with corrupt politicians and are incapable of electing someone so truthful and frank. In addition someone that has borrowed lots of money, and then actually has saved money would be totally out of the question due to the saving part of the equation. He also cant play a submissive role when dealing with world leaders, which is not a good trait for our foreign policy positions. And finally trump probably has actual proof of his citizenship which seals his fate in being a genuine candidate.

Disconnecting Equal Opportunity

Yesterday's article in the Sacramento Bee profiled the startling but clear intentions of the Board Of Regents in accepting students into the nine campus U.C. system. The article stated that out of more than 160,000 applicants, 72,000 acceptance letters were sent out, there were 4,100 more student's applying for entrance into the system compared to last years figures. The mind blowing revelation that only 500 of the 4,100 excepted applicants were IN STATE STUDENTS. This appears to be a capitol preservation strategy to hedge against future endowment depletion. In fact U.C. President Mr. Mark Yudof explained in a recent article that due to the 500 Million dollar deficit cut to the U.C. system made by the State Of California, these painful measures must be implemented to maintain programs. Out of state students pay almost 25,000 dollars a year more than in state students do. Essentially they are reshaping the student body according to affluence as opposed to ability and desire. This shows the unadulterated greed of these individuals and the lack of concern and welfare of higher education. The only answer can be new legislation developed at the political level that regulates equal access to all. And secures the ability to those individuals that wish to pursue the American dream of a higher education. If this is not done soon we could see a contraction of economically challenged students to the downside by as much as 30 to 50% in the next decade.

S&P Cuts Outlook

Standards and Poor's downgraded its outlook for the United States from stable AAA to NEGATIVE, finally someone within our boarders is willing to face reality, and not side with the United States of debt denial. The rating cut could come as soon as 2013, I am thinking sooner than later. This puts a blaring spotlight on inept fiscal policy's attributed to both parties. We all know it is impossible to spend your way out of the debt, and now there is hope in moving forward. If your interest rate is to high even an idiot will be less likely to borrow unless it is your intention to perform strategic default in the first place. Hopefully this is not our Government's plan, but after viewing three years of punishment in the great recession I would not be surprised. China has just upped its reserve requirements recently, and has cooled inflationary pressures within its own Economy from over 13% to around 8.5% in less than 2 years. I really do think the Chinese are using the actions of our Federal Reserve as a micro-model of what NOT to do. We are now on schedule to be replaced as the worlds premiere Economic superpower within the next 20-years or so, but I would liken this situation to estimating the melt rates of the polar icecaps due to global warming. Whatever your belief system the rate is accelerated.

Bronze Years

The tip of the Boomer iceberg is about to retire, and an unexpected hiccup in their golden retirement plans is manifesting before our eyes. The need for financial assistance from children and grandchildren of these individuals is growing at an accelerated rate. The economy has hammered them from every angle, and they no longer have access to cheap available credit and the ability to purchase homes, cars, electronic devices, and all the things a young person wants and needs are dwindling fast. They are turning to mom and dad for everything from 20% down on a home to childcare costs so they can continue to work. This all ads up to a huge correction in a retirees plans, from cancelled world tours to saying goodbye to country club memberships. This problem can be generational as grandparents are asked to float their grand children's educational cost's in the future. These unforeseen unanticipated situation's should expand as more collateral damage is realized from the great recession.

A Debt Ceiling Made Of Glass

Last week the political circus was in town and every American had tickets to the big top. Right before the fat lady was scheduled to sing our political leaders decided to do what they do best, borrow additional funds to float our governments operating costs for the time being. The following day the storyline was all about the two party's picking a winner, was it Obama or was it Boehner?We definitely know who lost in this fiasco, the American taxpayer. Now we are on to the next disagreement the debt ceiling, a perpetual time bomb ready to break this country's fiscal back. In the not to distant future we should crack the twenty trillion mark, the American dollar will continue to be worth less and Americans will spend more and have less disposable income, in an attempt to purchase vital commodities. At some point tax code modification will be the only alternative as massive deficit depletion takes hold. In addition an Austerity policy implementation will take effect with huge entitlement cuts to all programs, and the public sector will destabilize just as we have witnessed in Europe recently. Other country's will lose a little more respect as we move down one more rung on the global ladder.

Trend Lines

One of the most important sources in making an accurate analysis within financial markets, is data comprised of trend lines. These graphs chart in detail past and present corrections within markets worldwide, they can give an investor better insight into an extremely important decision making process. One of the most alarming trend lines is the gradual yet consistent depreciation of the American dollar. Over the last decade the dollar has declined 25% and gold has appreciated over 400%. This fact is so important for most Americans because a disproportionate amount of there retirement income is tied to paper assets, most have only a small portion of there portfolios in gold and silver. If this trend continues one could reasonably anticipate a strong acceleration in decline due to our governments quantitative easing policy of late. Any time you have governments printing money, debasing is the net effect. One could assume that the dollar will lose an additional 25% of its value in the next 5-10 years, ad in taxes as boomers retire and begin collecting, and you have massive wealth evaporation. China and other countries are presently stockpiling vast amounts of gold in anticipation of such trends. This will only get worse as the American dollar is replaced as the worlds reserve currency.

Novel Idea

Lets try something new, like taking care of the multi-faceted problems within the boarders of the United States. I think a little NATION BUILDING at home is definitely in order don't you?. Lets cool the jets on dismantling various governments around the globe, and start demanding better decision making processes from our own. How can we afford the fuel for f-16s to fire missiles around the globe when we cant even afford to send our astronauts to the space station anymore?. This weeks revelation that we intend to pay the Russians big money to hitch a ride for the next several years, instead of flying ourselves there is proof enough. We have wasted excessive amounts of borrowed capitol on funding governmental regimes and infrastructure, when the money could be well spent on funding the next generation of young innovators, and taking care of the generation that allowed us the success we now enjoy. Those individuals that claimed that we invaded Iraq for the vast oil reserves were wrong. China's recent contract with Iraq for the future reserves in Iraq is proof of that, and the news that it cost less than 9-Billion dollars adds to further insult to American intelligence. If we start today we can again gain the confidence and respect of other nations, and as Donald Trump says, stop being the laughing stock of the world.

Disaster Will Undoubtedly Spike Commodities

The unexpected rebuilding of the Japanese infrastructure will undoubtedly bolster the price of many commodities worldwide. Things like building materials especially steel, Oil, natural gas, copper will spike dramatically. The United States and other countries will benefit greatly as they strive to meet the sudden demand, on the flip side the American public will have to dole out more for energy, food, and other vital resources. This should contract consumer spending as the middle class goes into a defensive cost cutting mode, and only time will tell if the overall benefits will be to our advantage. Wall street might see the commodities markets eclipse other sectors which have recently seen greater profits, and the bond market will probably see an up-tick in infrastructure tied projects. The Japanese government will spend reserves and borrow more from foreign countries in an effort to finance huge projects, unemployment in japan will plummet to meet the labor demand, and a major portion of retirement allocations will be spent to offset uncovered expenditures. The IMF announced today that there will be no bailout for any Japanese liquidity problems, so we will more than likely be asked to participate in another nation building project. This means one of two things, more TREASURY sales to CHINA or OVERTIME for the PRINTING PRESSES.

Debasing The Dollar

Now that the printing presses are running 24-7 and the Federal Reserves Quantitative Easing policy seems firmly in place, history again has an opportunity to rear its ugly economic head. We have seen it happen to the French, Italians, and others that chose the path of debasing various currency's in an attempt to revive economies. You may ask the question, well if its so detrimental why would the Fed adopt such a position?. There are only so many bullets in our economic arsenal. At the beginning of the great recession we accelerated the sale of U.S. Treasury's to primarily China, Japan, and European countries, followed by massive liquidity infusion into the banking system, and kept interest rates suppressed for an extended period of time. As inflationary pressures expanded in China and other countries, they contracted dramatically on there debt purchases leaving us where we are today. As we print money we flood the supply thus diluting the demand, and in turn debasing is the net affect. We are following a path that the pound sterling has already been down and its not pretty. NOW is the time to slowly back off these policy's, but the central bank and its authority's seems adamant to continue.

Confluence Of Events

The recent earthquake in Japan is yet another real time example of how fragile and vulnerable economies can be worldwide. The Japanese people have endured what most call the lost decade starting in the 1990s as a recession, and to this day has seen little progress in the growth department since then. Today's announcement of an estimated thirty two billion dollars in needed infrastructure cost is a huge factor in Japans ballooning debt crisis. We are experiencing very similar conditions here in the United states from an economic standpoint, and hopefully will not have to deal with any earthquakes of such great magnitude in northern or southern California any time soon. But we can most certainly learn many things from this event and can apply them here in the states. The building codes they have implemented in new construction are bar none, as the limited damage to there skyscrapers in Tokyo have proved. And the damage to multiple Nuclear facility's give us a real advantage in the decision making process of Nuclear power as an energy alternative. A confluence of events worldwide should help us make more prudent future decisions in a number of different areas here in the United States.

Opt Out

Japan has decided to withdraw its support for the most important treaty in the history of modern civilization. Recently they and several other countries made it clear there is no future plans to participate in renewing the Kyoto Protocol on there part, which is due to expire in 2012. This is bad news in an attempt to get all major industrialized nations on board for reinstatement. Setting a price on carbon worldwide is of the utmost importance in transitioning from fossil fuels to the renewable energy sector. As global warming related weather disasters continue to increase worldwide, so does the high cost of natural and economic resources. Global warming could soon trump fiscal ignorance and geopolitical sentiment, as the leading driver mechanism expanding national debt, as countries dump massive liquidity into rebuilding infrastructure to offset these disasters. Mankind has made great progress in recognizing his part in this pivotal issue, now is not the time for complacency or regression.

Bond King Bill Gross Dumps U.S. Treasury's

One day after major-leaguer Carl Icahn decided to give back his investors money due to potential market downside, another huge player in the casino of wall street has decided to (CASH) in his stakes in the form of U.S. Treasury's. The undisputed bond king, Bill Gross manager of (PIMCO) feels that due to the potential inflationary pressures applied by the Feds Quantitative Easing strategies Treasury yields will be adversely affected. I would say he is qualified in his judgment since he oversees the largest bond fund on the planet at an estimated 1.1 Trillion, thus being nicknamed the Bond King. By the way the bond market can be likened to the gasoline that fuels an economy's growth, without it the engine stalls and you have a lost decade effect just like Japan. As we approach the four year mark in the great recession we seem to be tracking or mimicking a similar pattern with anemic at best core data numbers, like sub three percent GDP, high unemployment figures, and commodities and inflation on the rise. The fundamentals just are not there, and we seem to have artificially propped up the stock market just as we did with the banking system. Things will become more transparent when QE2 ends in June and inflation takes hold, just remember economics is math at its purest, its all formula based and interconnected.

Icahnic Indicator

One of the most prolific hedge fund managers ever has decided to give back approximately 1.6 Billion dollars in investors money by April 1st, due to his belief that the current market is so unstable and could quite possibly take a turn for the worse. Yes Carl Icahn, Stanley Druckenmiller, and Chris Shumway have decided to Hedge there bets, sorry for the pun by temporarily, or permanently disconnecting themselves from potential investor losses. With a total past return record of over 104% and 8.7% in the first two months this year Icahn Capital finds this market to risky. It seems to definitely be overvalued, and has run-up to fast to be considered stable. The only solid indicator is that almighty Wall Street has not lost its groove in the bubble creation department.

Derailing Higher Education

Apparently a change is in the works for those that are seeking a graduate degree that will undoubtedly kill the aspirations for many students dream of a Higher Education. Instead of interest being paid back for Federal student loans after a student graduates, it will begin accruing from the first day of there first class, making the total cost outlandish. This type of activity is no different than the corrupt mechanisms developed by the Mortgage Industry to entrap individuals that have no other option in achieving the American dream. Our kids are already under attack by many schools, in the form of unreasonable escalating fees levied by prominent learning institutions throughout the country. This problem is rampant in California where the Board Of Regents is left to spread its systemic fee damage. In turn social unrest has developed at many demonstrations at college campuses throughout the state. These individuals have allowed wealth managers to lose over twenty four billion dollars in endowment money in recent years, and the students, faculty and others have to pay the price for inept investment participation. Recently an estimate of Trillions of dollars in student loan defaults is to be expected in the next decade. Could this move be a strategic hedge against future exposure rates by the Federal government?. If this is the case the shape of higher education will change from one of equal access to all, to only those individuals that come from affluent family's where financial aid is not needed, and students lucky enough to obtain a full ride scholarship.

A Hurricane Called Inflation

Cost pressures are everywhere due to the Feds insatiable appetite for Printing Money. The prices at the pump have risen dramatically recently, cotton is at its highest level in a decade, copper is the highest its been in 40 years, and the price of corn, sugar, wheat, beef, pork, and coffee are going through the roof as we speak. Just as we have recently witnessed in China's effort to cool inflationary pressures in its own economy, rates will undoubtedly rise here in the U.S. cooling the jets of recovery in the mortgage sector. Corporate earnings will contract due to higher internal costs, welcome to the world of Quantitative Easing. We have borrowed and spent are way into a financial quagmire and according to the Obama administrations latest budget plans, the poor and middle class must absorb the hit. Areas like the student loan market, Medical, Medicaid, home heating for the poor, children's programs, social security, welfare, and everything considered an entitlement will be on the chopping blocks. Is this really the type of people we want to become?. The answers wont be easy, but the line of ethical and moral issues have to be addressed if this Nation is to continue on a successful path.

Double Standard

As the world witnesses history in the making in Egypt, our allies should ponder our seemingly dual standard policy position in aligning ourselves with the people, as opposed to the governmental regimes in such international conflicts. If you are a dictator of a small country, or even a large Communist Nation you just got a real time experiment in how the U.S. will react to such an uprising or revolution. Have we completely lost our minds as far as common sense is concerned?. Why not just fly under the radar, and let them work it out for themselves. Instead we have to instruct others by providing an American blueprint or game plan as big brother to the world. Its no wonder were broke as John Boehner stated in his most recent interview, we pay countries like Egypt over a billion dollars a year with borrowed money from China for God knows what. Now one of the Egyptian military leaders stated on their second day of new found independence that a bailout would be needed to rebuild the peoples job base in Egypt. Sounds like code for tighten your seat belt American taxpayer we need some of that Nation-building cash you people are so adept at doling out. At some point our own people are going to start realizing how this really works and start a FACE BOOK REVOLUTION via GOOGLE EXEC themselves.

Hornet's Nest

Friday Vice President Joe Biden continued to amaze me with his ability to say what he thinks without consideration of the potential ramifications. Speaking at the University of Louisville in Kentucky, he urged Iranians to let your people march, let your people speak, release your people from jail, let them have a voice. By doing such things we only promote the negative perception of a dangerously meddling nation trying to impose our belief systems throughout the globe in the name of Democracy. We portray ourselves as the worlds savior, when in reality we only increase global Anti-American sentiment and hatred with such remarks. There is a key difference between what is occurring in Egypt between demonstrators and the Egyptian military, and potential demonstrations in Iran and its called lethal force, its much more probable under the same conditions that the Iranian military would open fire on its own people and Biden should consider this possibility before he makes such comments. The Muslim brotherhood and others throughout the world view this as an opportunity to continue to market us as president Mohammad Ahmadinejad likes to call us the Great Satan.

Quantitative Easing 2 = Great Recession 2

As Ben Bernanke is questioned by members of congress this week in relation to the Federal Reserves recent Quantitative Easing position and the potential inflationary pressures it could apply here and abroad, one got the feeling old Ben was talking down to those that questioned his strategy and authority. He deflected the notion that policy here in the United States was causing a rise in commodities such as food and energy, and the resulting civil unrest in Tunisia, Egypt, and potentially other nations. The fact is clear that debasing the value of the worlds reserve currency which the dollar is, applies inflationary pressures and commodities rise, the civil unrest usually occurs first in poorer nations where they cannot sustain such increases in the cost of such vital resources. Here in the United States we are better insulated from these increases due to a far greater standard of living, and wealth of its average citizens. Strangely enough the complaints of the Egyptian people of a broadening disparity between the rich and poor are starting to sound like a familiar theme in the U.S. between the middle class and the rich. Such issues as national deficits, unfunded pension liabilities, and the diminished wealth of average Americans will probably increase in the years ahead if comprehensive and effective solutions are not made.