Aircraft Engines Are Not That Complicated.

Here is Jamie Diamon, CEO of J.P. Morgan explaining why you don't need to know what bankers do. It's too complicated, like an aircraft engine. Just trust him, all the money J.P. Morgan is making is only fees for managing all this complexity.

This is a straight turbine engine.  It is really marvelously simple.

This is a turbo-fan.  It is a little more complicated, but not much.

When I was in the Air Force they were teaching this stuff to 17 and 18 year old kids who didn't even have high school diplomas.

Banking is not that difficult to understand either.

Banks pay interest on savings and charge interests on loans.

When banks need more savings they increase interest on savings.  Consequently, they must charge higher interest on loans to offset the higher rates they offer to attract savings.  When interest rates are high it is a signal to producers that people are spending now, not saving, so they concentrate on short term projects that quickly satisfy consumer demand.

When banks have a lot of money in savings they pay a lower interest rate.  Consequently, they can charge lower rates on loans.  When interest rates are low it is a signal to producers that people are saving for future consumption, not spending, so they concentrate on long term projects to meet future consumer demand.

It is a wonderful feedback mechanism that balances what the producers are producing with what the consumer is consuming.

It only gets screwed up when a central bank forces interest rates lower by artificial means.  It makes producers think people are saving for future consumption so they start long term projects.  Since the consumers are not saving they are not planning on future consumption, so when those long term project come to completion there are no deferred saving for people to spend on them.  The feedback mechanism is completely destroyed by false signals.

Crash.

I have a GED and community college degree in Arts and Sciences, mostly I concentrated on history, literature and the social sciences.  Basically a glorified high school diploma.  I am not a Harvard MBA, but I did listen to Ron Paul and read Murray Rothbard.

Jamie Dimon can eat a big bowl of dicks.

Since I don't do ad hominem...

...I will say right up front that Ann Barnhardt is a fire breathing Catholic fundamentalist who is obsessed with islamofascism, but she was also a successful commodity futures trader. She knows the financial system from the inside. In this video she is talking about her area of expertise. By way of comparison, I would dismiss anything Bono has to say about politics, but if he were giving a lecture on the workings of the pop music business I would be a fool not to listen to what he was saying.

So, with that bit of background I offer this...

If you still have money in a 401-K or an IRA get out NOW!

I dumped my 401-K last year and bought precious metals. Every month I buy a modest amount of silver. I keep just enough money in my checking account to cover my bills each month. This is not a game. They, and by they I mean the federal government and the Wall Street banks, are going to take your money. It is inevitable. You have been warned. When it happens--and it will--you will have no one to blame but yourself.

Don't come asking me or all the others who have telling you about this for help unless you bring something of real value to trade.

The people who actually create wealth and produce value have been carrying the rest long enough. Grow a pair and do something while you still can.

Things I've Found, August 6, 2012

Wausau WI Police Dep't. Calls Out Its MRAP Armored Military Vehicle After Drive By Shooting

Note: I don't think we're in Kansas anymore. (No, we all live in Wisconsin now.)

The signs of the police state now enveloping the people of the United States are all around us. From the Patriot Act to the Military Commissions Act to the NDAA s.1867 to endless Executive signing orders, the threat to our liberties has never been greater. And the source of most of these threats is not an external enemy, it's our own government...

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Japans remembers Hiroshima bombing

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Watch what happens when Guns are banned in Australia

Note: "Laws that forbid the carrying of arms... disarm only those who are neither inclined nor determined to commit crimes... Such laws make things worse for the assaulted and better for the assailants; they serve rather to encourage than to prevent homicides, for an unarmed man may be attacked with greater confidence than an armed man." ~Thomas Jefferson

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IT'S A MATTER OF TRUST - PART ONE

Note: How many times do we have to be told?

The fact that 86% of American adults have never heard of Jamie Dimon should suffice as proof regarding the all-encompassing level of ignorance in this country. As the world staggers under the unbearable weight of debt built up over decades, to fund a fantasyland dream of McMansions, luxury automobiles, iGadgets, 3D HDTVs, exotic vacations, bling, government provided pensions, free healthcare that makes us sicker, welfare for the needy and the greedy, free education that makes us dumber, and endless wars of choice, the realization that this debt financed Ponzi scheme was nothing but a handful of pixie dust sprinkled by corrupt politicians and criminal bankers across the globe is beginning to set in.

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Kevin Spacey amazing imitation

Note: I LOLed

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NY State: Standard Chartered Hid $250 Billion in Iran Deals

Benjamin Lawsky, superintendent of the state's department of financial services, said Standard Chartered Bank reaped hundreds of millions of dollars of fees by scheming with Iran's government to hide roughly 60,000 transactions over nearly a decade.

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Chemotherapy can backfire and boost cancer growth: study

Note: Isn't this what the "quacks" have been saying all along?

Cancer-busting chemotherapy can cause damage to healthy cells which triggers them to secrete a protein that sustains tumour growth and resistance to further treatment, a study said Sunday.

Researchers in the United States made the "completely unexpected" finding while seeking to explain why cancer cells are so resilient inside the human body when they are easy to kill in the lab....

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India Blackout & Knight Algo: US-India CYBER WAR Over Iranian Oil Purchases in GOLD

Note: At least as believable as the official story.

India is a leader in software engineering. This sector represents more than two millions direct jobs and 4 to 6 million indirect jobs. Bangalore, called Silicon City, is the Mecca of Indian IT. A $76 billions business in 2010, aiming $225 B in 2020. Indian companies engineered a great part of American Banks' trading programs.

Two days after a cyber-attack against the Indian nuclear power plants, one of the biggest players in Wall Street's electronic trading, Knight Capital Corp., saw its trading software create chaos in the ratings of 140 shares on NYSE. I bet your hot dog against my lamb curry, that Knight's software has been "made in India".

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The Facts Driving the Financial Crises

Does Wall Street Have a Death Wish?

Does Wall Street Have a Death Wish?
By Robert Higgs

After several days of violent fluctuations, the world’s stock markets registered a massive increase in share prices on Thursday afternoon and on Friday, September 18 and 19, 2008. Why? As the Associated Press put it, “investors stormed back into the market, relieved that the government plans to restore calm to the financial system by rescuing banks from billions of dollars in bad debt. The Dow Jones industrials rose about 365 points, giving them a massive gain of about 775 over two days.”

The impending measures come close on the heels of a series of wrong-headed actions undertaken by the government, including the bailout/takeover of Fannie, Freddie, and AIG; massive injections of new credit by the Fed and other major central banks; and the SEC’s prohibition of short-selling for almost 800 financial-company stocks. If, as anticipated, the Treasury moves next to assume the rotten paper currently being held by banks and other lenders (presumably mortgages and related securities, for the most part), then it is fair to conclude that the government has given up entirely on the free market and has decided to occupy the wasteland where outright socialism and economic fascism meet.