Wednesday, May 23, 2007

Pay it forward

Having already spent quite a bit on the campaign I keep thinking about how much this all could possibly cost us . . . but then I realize . . .

How much I'd be saving on the inflation tax . . .
How much I'd be saving on the income tax . . .
How much I'd be saving on the big government tax . . .
How much I'd be saving on my personal liberties . . .

when Ron Paul is elected president . . .

So giving more becomes a no-brainer!

Pyramids made of concrete, not pre-cut limestone blocks

Fascinating article, it seems feasible to me.

The Surprising Truth Behind the Construction of the Great Pyramids

Snippet:
The stones also had a high water content-unusual for the normally dry, natural limestone found on the Giza plateau-and the cementing phases, in both the inner and outer casing stones, were amorphous, in other words, their atoms were not arranged in a regular and periodic array. Sedimentary rocks such as limestone are seldom, if ever, amorphous.

The sample chemistries the researchers found do not exist anywhere in nature. "Therefore," says Barsoum, "it's very improbable that the outer and inner casing stones that we examined were chiseled from a natural limestone block."

More startlingly, Barsoum and another of his graduate students, Aaron Sakulich, recently discovered the presence of silicon dioxide nanoscale spheres (with diameters only billionths of a meter across) in one of the samples. This discovery further confirms that these blocks are not natural limestone.

Tuesday, May 22, 2007

Size and Shape of the Military Industrial Complex

Great article on Lew Rockwell . com about the US Military Industrial Complex . . .

U.S. Takes Gold in Arms Olympics

Snippet:
Hey, aren't we the most exceptional nation in history? George Bush and his pals thought so – and they were in a great American tradition of exceptionalism. Of course, they were imagining us as the most exceptional empire in history (or maybe at the end of it), the ultimate New Rome. Anyway, explain this to me: Among all the exceptional things we claim to do, how come we never take credit for what may be the most exceptional of all, our success of successes, the thing that makes us uniquely ourselves on this war-ridden planet – peddling more arms to Earthlings than anyone else in the neighborhood? Why do we hide this rare talent under a bushel? In the interest of shining a proud light on an under-rated national skill, I asked Frida Berrigan to return the United States to its rightful place in the Pantheon of arms-dealing nations. ~ Tom

Man bites dog again today

Another wonderful article. If China has us on a short leash should we be antagonizing them?

US hears blunt trade warning from China

Snippet:
WASHINGTON - The Bush administration pushed for concrete results in high-level trade talks with China that began Tuesday, but the head of the Chinese delegation bluntly warned against confrontation.

It's not a good idea to bite the hand that feeds you. At least not until we have an alternative to the dollar. The shit could really hit the fan if we don't watch it. The arrogance is astounding.

Cutting off your head to spite your face

I know, I'm a bit off on the title, but that was purposeful.

I just read this article

House approves bill to challenge OPEC

Snippet:
WASHINGTON - Decrying near-record high gasoline prices, the House voted Tuesday to allow the government to sue OPEC over oil production quotas.

The dollar is in serious shape and this is primarily so due to the reduction in energy exchanges(oil bourses) which take the US dollar.

We need to get used to energy suppliers like Exxon having record profits. They have us, we're completely subservient. However, it is very important that we not shake off those chains just yet. We need a backup plan for the dollar, such as the one Ron Paul is suggesting, before we bite the hand that feeds us. To kill what remains of the dollar now before an alternative is available would be WORSE than the great depression.

This is a perfect example of how important an understanding in geopolitics and macroeconomics is for members of the government. Confidence in the dollar is of utmost importance and is absolutely needed right now. I hate the fed as much as the next guy, but we need to be realistic.

Sunday, May 20, 2007

Gleaming Intelligence from the Current Yen Carry Trade

There is much to be learned from reviewing monetary events around the world. Generally history is more enlightening than current events, however watching the yen carry trade unfold has me a bit concerned.

I'd like to paint a situation where the American public wakes up and realizes it's not in their best interest to keep borrowing and spending. The rates on the Yen are nearly zero and they are having trouble finding anyone willing to borrow the money. What if this were to happen in the US?

Step 1: China completely stops their investment in US Bonds.
Step 2: Fed has a knee-jerk reaction and lowers interest rates.
Step 3: Confidence in the dollar drops around the world and banks start dumping their reserve dollars back onto the market at an even faster, more alarming rate.
Step 4: China sees this crisis getting completely out of hand and starts cashing out their bonds to invest elsewhere.

So those sound like entirely possible events given the recent news that China has created a committee to explore and indeed start diversifying investments out of the dollar. They have been buying natural resources, including gold and silver mines, in Africa. They have been buying up land and buildings around the world. It is entirely possible that we could see this nightmare scenario in the coming months or years.

This represents a perfect storm of liquidity for the US Dollar. It represents the end of our ability to tax the world to fund our expensive government. The world is fed up, pardon the pun and aren't going to take it any more.

It is VITAL that we vote for Ron Paul. Not only does he understand this, he has the unique perspective on how to survive such an event. Smaller government is key.

Gold and Inflation

For those of you who aren't interested in truly understanding macroeconomics I wanted to post a simple overview of precious metals and why they should be in your portfolio.

Inflation Tax: The monetary systems of the world work on a fractional reserve system. Essentially, this means that money does have some basis, but is printed at a substantially larger rate than it is invested in the monetary base. If that ratio(fraction) is 7:1 then 1 dollar must be held in order to print 7. This all seems crooked, but somewhat reasonable and accepted now.

Supply and demand: Two great economies are reaching a tipping point currently. They are India and China. The middle class in both of these countries fully understands what a great investment vehicle Gold and Silver are and will be increasing their purchases as their ability to do so improves. Both of these countries understand the dire straits the dollar is in currently and are working diligently to build a replacement middle class in the east to consume the goods produced.

Banks and inflation perception: Banks are inflating at record rates. The reasons for this are fairly simple. The US Dollar is being inflated at extreme rates and to keep the prices of exports low the central banks around the world are inflating at HIGHER rates to keep their respective currencies lower than the dollar. The banks don't want this information in public hands or want the consumer prices to reflect this inflation. One of the indicators of how much they are inflating is the price of gold. Therefore the central banks dump gold on the market at a steady rate to keep the price down.

Gold and Silver are very much like a compressed spring at this point. When the downward pressure from the banks releases even a little, Gold and Silver prices will launch at amazing rates.

Welcome to my blog

I'm a developer by trade and have deep interests in Ruby, Ruby on Rails, Databases such as MySQL, PostgreSQL, Oracle, Ron Paul presidential campaign, and austrian macroeconomics.

Most of my posts will involve these topics.

Welcome and 'njoy,
Mark