Terror Ship

The worlds largest yacht is under construction at a shipyard in Germany as I write this blog, this is not big news as there will always be an abundance of elitist idiots attempting to one up the previous record holder in the size department. What is alarming is the name placed on the back of this boat, it is named the Azzam. If you are the U.S. GOVERNMENT you would like the American Public to believe it is named for the Arabic meaning of determination. This is kind of funny because when i typed this into the Internet, Wikipedia and others reference this to the Muslim leader Abdullah Yusuf Azzam who apparently was a mentor to OSAMA BIN LADEN, and AYMAN AL ZAWAHIRI the architects of the 911 tragedy. Why not just label this ship the SS JIHAD or something more appropriate to its intention, and if it truly means determination I guess ungodly wealth cant buy intelligence in the politically correct department can it?.

Land Of Disparity

As we move towards a new election cycle the change promised by the current administration in addressing the ever present problems of health care, unemployment, education, and equal opportunity for all Americans seems to be stuck in "neutral" due to the continued escalation of partisan politics. In fact the widening gap between the wealthy and the poor is now jeopardizing economy's worldwide, and the United States will undoubtedly be blamed for an era of systemic austerity like conditions that are destabilizing governments around the globe. Many feel that capitalism is no longer working for them and that they are merely servants of capitalism. The dissent expressed by the Occupy Wall street movement is the most recent example of this, and even the President himself has jumped on the bandwagon of sympathetic political strategy calling for a share the pain tax hike on those individuals making over One Million Dollars a year. The bailout of big banking, unfunded pension liability's, and huge national deficits will be passed to our children and grandchildren as fast as a baton at the finals of an Olympic relay event. The true blame must lie squarely on the shoulders of the boomers that reaped great pension and portfolio rewards participating in the greatest ponzi scheme ever developed the U.S. STOCK MARKET, leaving future generations to take the hit.

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.