Common Sense Economics

Positions For The Coming Crash

James Quillian — Thu, 17 May 2012 03:30:53 +0000

For a long time I have contended that the only good investment opportunity available is that of holding a diversified portfolio of short positions in stocks. This is not safe, but you will soon discover that it is safer than what you are doing now. Below are the symbols of the stocks I am currently short.
Across the globe reckless economic policies have driven up asset prices as an accommodation to the wealthy upper 1% of the world’s population. The cost to you is a gross misallocation of resources that will be corrected with a severe economic depression.
Asset prices of all classes including gold and real estate are overpriced. Selling short is the opposite of owning assets. The only profits to be made in the coming depression and stock market crash will come by profiting from the collapse of the world’s financial system. That is what selling short will accomplish. Suffering for the majority will be unavoidable. Think of the suffering as your punishment for believing lies.

ACI AIR AMED ANR APKT APOL ATK BK CAR CAVM CCH CETV CHKE CSC DGIT DRIV EV EXH FCX FII GLW GMCR HES IDT IPGP LAZ LM MAN MS NIHD NUVA NVDA OPEN PBI PTNR SAI SCHN SFLY SPLS X DCO FCS JCOM KND LLND PGR PRAA SKM SUP TRI

Incoming search terms:

economic depression -great

Some Questions Are Never Asked

James Quillian — Fri, 11 May 2012 17:50:15 +0000

Does anyone dare ask, why the financially elite of the world never lobby for small government? Why is it that corporations never lobby for small government? There would be no profit in controlling a government that was small and limited to doing the things a government should do. Why is it that Tea Party types all but idolize the super wealthy but the super wealthy do not join the Tea Party? The ocean of cannon fodder of which the modern conservative movement is largely comprised is trained to promote its own poverty.
Proprietary trading is the practice of big banks trading assets for profit. They trade against their customers. Why is it that when JPMorgan takes a loss, the whole world is concerned, but that no one is concerned when JP Morgan’s customers take losses?

Welfare You Cannot See

James Quillian — Tue, 17 Apr 2012 23:28:12 +0000

Supposed you owned a bakery and a man from the government came by and and told you that from now on the government was going to cover the cost of inventory for you and all of the bakers in the country. All you had to do is make the bread and pastries and pay other normal costs of doing business. Your profits would sky rocket. In a short time, you might begin to believe that it was good for the rest of the country to get free flour from the government. But, in fact the country would produce far too many baked goods which would be a big misallocation of the country’s resources.
Money is the inventory that banks carry. In a free market setting, banks have to buy their inventory by paying people enough interest to encourage them to save. In the US today, banks get from the government what is very close to free money. Government gives banks their inventory for very close to nothing. Far more money is in circulation than is necessary for conducting the country’s business. Excess money flows into the financial sector causing bubbles in first one asset class and then another. Excess money also finances government initiatives such as that of enhancing stock prices. Great effort goes toward convincing you the taxpayer that it is good for everyone if government covers the major cost banks have in doing business. What looks like well meaning central economic planning comes down to taking money out of your pockets and sending it in the direction of others who you have been trained to perceive as your role models. Most new welfare is in the form just described and is that says out of your radar. Free money to banks is actually a greater burden on you than more visible expenditures where benefits are direct, such as welfare and food stamps.

Incoming search terms:

what are commonly held view of wefare in economics

Ron Paul In San Antonio

James Quillian — Fri, 13 Apr 2012 05:46:16 +0000

Jean and I were able to see Ron Paul speak in San Antonio tonight. This is a six minute video of his best points.

Incoming search terms:

ron paul san antonio

High Corporate Tax Rates?

James Quillian — Mon, 02 Apr 2012 22:45:25 +0000

U.S. Corporations pay the highest corporate tax rates in the world. I will explain why this is logical and good. U.S. corporations have the unchallenged use of the Federal Government as a tool to create, define and manage the markets they operate in. Corporations are responsible for creating almost all of the legislation that comes before congress. Loose monetary policy has provided corporations with profit margins that are far greater than what would occur in a free market setting.
Actually a corporate tax rate of zero would make sense in another set of circumstances. If congress was to do away with all corporate subsidies and begin to serve the interests of their constituents a zero tax on corporate taxes would benefit everyone.
As it is corporations need to pay highly for the benefits they extract from the rest of the country by using government as a business tool.

Incoming search terms:

highest corporate tax rates

How Low Will You Go?

James Quillian — Sat, 10 Mar 2012 02:30:04 +0000

With Romney, Gingrich and Santorum, how low are Republicans willing to go? The Republican Party is a sinking ship this season because there are enough smart people who won’t vote for a new sociopath when the one we have now is being contained.

The greatest American tragedy of this century so far has been the mushing down of ordinary people who call themselves conservatives. Most of these are Republicans. Outwardly Republicans present themselves as freedom loving patriots. Inwardly they are driven by nothing more than an unquenchable thirst for sanctimonious feelings. In Ron Paul, Republicans have the only conservative candidate in the country. However, to support Ron Paul one would have to give up a degree of sanctimony, engage in self examination and study issues in depth.

Greece Default Or Write Down?

James Quillian — Sun, 05 Feb 2012 17:26:37 +0000

Whether Greece defaults or writes down debt, the difference is in to whom the loss gets transferred. The established order as I understand prefers the debt write down. The real meaning of a Greek default is that it would weaken the control the established order has over the world financial arena. A change in the world’s economic order could effect financial markets more longer term. I am guessing a default would be bearish and a write down would be bullish. The battle is over transfering the loss and what group bears the burden.
Every financial crisis the world has ever known has resulted in political activity being initiated with the goal of managing and passing losses. The burden is lightened on those with political clout and transferred to parties with little or no political clout. This is what happened in 2008 in the US. This is what is happening in Europe today. The European rank and file don’t mind just as the American public didn’t mind in 2008. People are hard wired to take on the role of whipping boys to absorb punishment that their betters would otherwise be subject too. All people need is an explanation and they are happy with it. And, one explanation is really just as good as another.

Getting The Truth About MF Global And The Missing Money

James Quillian — Tue, 31 Jan 2012 03:00:50 +0000

When MF Global declared bankruptcy it was discovered that 1.2 billion in customers money was missing. No one who was with MF Global knows what happened to the money at least thats what they say. No one seems to know the truth, but waterboarding has not been tried. Since waterboarding is not torture maybe waterbording should be used on MF Global executives. 1.2 billion is a lot of money to steal.

Incoming search terms:

missing money

Republicans Love A Scoundrel

James Quillian — Sat, 14 Jan 2012 01:55:03 +0000

It is popular to criticize the “Military Industrial Complex.” The true villain is the Government-Media Complex. Both are terrified that your opinions and behaviors will not be properly managed. Have you ever wondered why the chaos in Iraq is never mentioned on the news or Ron Paul is left out of so many media political discussions?
The Republican Party is terrified that Ron Paul will defect and run as a third party candidate. The Republican Party establishment is actively trying to sabotage his participation as an honest candidate in the primaries. Why would Ron Paul not run as an independent when his own party is trying to cause him to lose in the primaries?
If you are confused as to why GOP would do this it’s because you don’t know Republicans. Republicans love a scoundrel. They have found a true scoundrel in Mitt Romney. Don’t be surprised that they want to crown him king.
Mitt Romney is a lifetime recipient of corporate welfare, or a corporate welfare bum as he is called by the American Spectator. http://spectator.org/blog/2012/01/13/romney-corporate-welfare-bum

So Republicans, here he is, Mitt Romney a scoundrel, and he is all yours.

Trading And The Black Boxes

James Quillian — Thu, 12 Jan 2012 03:54:51 +0000

The market is in very strong hands right now. Unlike the rest of us, the black boxes are never governed by the law of large numbers. Their funding is unlimited. You, mutual funds and everyone else can sell and the market will still go up until some exogenous event rocks the market for a while or until the capital markets are finally destroyed. With black boxes in control, the principles of technical analysis work almost in reverse. A rally like we are currently experiencing, with very poor internals, won’t end as so many expect. As long as volume remains moderate to light it will be squeeze, squeeze, and squeeze indefinitely. Sentiment can be bearish or bullish and it won’t matter. As far as market direction is concerned traders don’t matter, nor do most hedge funds. Supply will never exceed demand until the entire system breaks down. Why? The black boxes have unlimited funds. The more traders there are short, the fewer funds the black boxes have to use anyway.
The black boxes have an additional advantage in knowing that you the technician will place stops and follow established theory. That is all part of the algorithms the black boxes use to exploit the market.