COMMON SENSE

Day 7 of the Pearl Harbor Portfolio follows with an S &P Downgrade of Greece’s Sovereign debt rating.  The lack of interest in the failing Euro Zone countries is disturbing and the silence is deafening within the American News Media sources.  The American people deserve “real  news”  for them to make a better decision about their most important assets.  Many have sounded the warnings, years ago, about the market media matrix, only producing ‘Pop news” for “Pavlov conditioning” effect on the American public.  When you hear the news stories, they alternate “bad news stories” with “pop culture news,”  leaving you in a “purple happy pill” altered state of mind.  In fact, half of all Americans are taking some long term medication.  Historians in the future, (if there is a future), will be studying the effects of all the drug interactions that are affecting the way people think.  Forgetting all the bad news stories in the American culture and remembering all the pop news culture is the  motto of our society.

Debtor Nation:

If you had a stack of $1000 bills 4 inches high, you would have a million dollars.  If wanted a Billion dollar stack of $1000 bills, your stack would be 333 feet tall.  To get a Trillion dollars, your stack would have to be 63 miles tall!   Currently the U.S. national unfunded liabilities, (IE. debt we promised to pay) is now equal to 100 Trillion dollars.   Placing $1000 bills from Bangor Maine to San Diego California, and Tacoma Washington to Miami Florida, would equal the amount of money we have agreed to pay. ( without “health insurance or any other spending)  Can u see how foolish the amount of government spending is?

Greece is the “canary in the coal” mine for Europe.

The Greek Finance Minister Giorgos Papaconstantinou said,  “Since assuming office two months ago, the socialists had been “truly shocked” at the scale of the economic mismanagement. Under the centre-right New Democracy party, government waste had skyrocketed, with out-of-control recruiting policies, a proliferation of public-sector committees and overpaid heads of state utilities. Ministries approved obscenely high phone and newspaper bills, while senior civil servants had spent lavishly on unnecessary foreign trips, he said. “It was as if they regarded the national treasury as the spoils of war and raided it.” Papaconstantinou, doing the interview rounds stopped to explain his situation to UK’s The Guardian where he made comments that should resonate well with American readers.

Yup, sounds like the Greek Finance minister is talking about the “U. S. Congress and the Democratic Party Machine out of Chicago!”  You see, there is one underlying factor about all socialist/communist, they want to “force people” to do the right thing according to their logic. Why, because you are incapable of deciding what is best for you and your family. Ronald Regan said, these are the scariest words the American people can ever hear, ” I am from the government, I am  here to help.”

When more  Americans  believe the  government can help, ” we are definitely on the wrong road to recovery.    The source of all  financial problems is the Government! The “government bureaucrats and elected officials” have caused the financial problems we have today! The newly elected Obama governmental Socialist/economic/Marxist government is on the road to fundamentally change America as we know it.  I feel Obama’s goal is to fundamentally destroy the fabric of the Constitution and Capitalism to achieve his idealistic goals established by his heroes.  The  market media news  matrix is in locked step with the Socialist /Marxist government, who will stop at nothing to impose their agenda on the American taxpayer for generations.  Enslaving the American People with generational debt is the only rational answer to “what the government bureaucrats” are doing.

Meanwhile  you are told to take your “purple  pills” and keep spending and consuming by the market media matrix. The market media matrix relies on pop culture for advertising revenue, witness  the lack of reporting “real financial news vs. Tiger Woods pop news.”   Compare a “Google search using the last week filter of “Greece debt ratings” and “Tiger Woods” story.  It is not shocking to find 166 million stories on Tiger Woods and less than 193,000 stories on Greece’s debt rating.   The market media matrix perpetuates the “happy feelings of pop culture” until reality meets actuality.   Just like the Pearl Harbor attack, information is only important if you have a plan and enough time.  You need to  have a plan before the financial crisis begins.    The reality of the situation is that you have time to protect your “Pearl Harbor Portfolio from a sudden and decisive  wealth destruction attack. If you have the necessary information, but the market media matrix is not giving your the proper information to defend your wealth.

Maybe your stock market gains have recovered a little, but not as well as you would think.  The Sp500 still needs to gain another 40% to reach 2007 highs. If you would have been a long term holder of the Sp500 index since 12/12/2000 to 12/12/2009, a full 9 years, you total return is still down over -15%! So after 9 years of being invested, your total rate of return is still negative!  So much for the buy and hold theory.  The “buy and hold Myth” may be your financial plan based on historical optimism, yet that plan of action will be a recipe for disaster.

During the last financial crisis, the government encouraged you to spend and consume.  What idiot proposed that idea?  You have been condition to spend and consume, in order to create jobs.   The definition of a “JOB” is “Just Over Broke.’ If you are not able to save 10% of your money in a savings account, then you are not being paid nearly enough from your job.  When there are no jobs, who will continue to  spend and consume?  The government will continue to print more money and spend more money, but giving you the taxpayer the i.o.u.s in the form of government bonds.  Digging a hole deeper in debt, so that your children and grand children will be obligated to pay back current government spending. The financially irresponsible road the Government is taking is financial suicide.

The perfect storm is upon us, as I predicted  with the destruction of housing and stock market.  The baby boomers are looking for, no grasping for  help.  Are you a baby boomer, doing the same things you did in the past with your stock portfolio’s and your 401k’?  If you are a baby boomer and doing the same thing, then your wealth is a sitting duck for another Pearl Harbor Attack.  What will you do?  Your choices are  a  “Jimmy Carter” decade or a “Franklin Roosevelt” decade?  Time is running out and the baby boomers are the ones with the most wealth.

Now, some of you voted for “hope and change”, for a man with no business experience, and with idealist social justice goals.  His administration is filled with  idealistic people whose only goals were to tear down capitalism and promote socialism. Your eternal optimism  about who you trust will not be justified by this time next year.    The “new america” is ruled by czars, ex-felons, tax cheats, and other malcontents.  You thought you voted for “hope and change” thanks to the market media matrix,  never knowing you were getting the chains of poverty and bondage of debt .

We are going bankrupt, there is no way out of this perfect storm.  Stay tuned to this blog for more information….

Doctrader

Other Related articles

• Howard Dean Turns on Senate’s Latest Health Care Overhaul Bill (blogs.wsj.com)
• Greek unions protest against cuts (news.bbc.co.uk)
• Papandreou unveils radical reforms to salvage Greece’s public finances (guardian.co.uk)
• Greece Downgrade Hits Euro, Bank Stocks (online.wsj.com)
• Why don’t we get more foreign news? (investoralist.com)

Technorati Tags: Debt, debtor nation, Democratic Party, Franklin D. Roosevelt, government, Government bond, Greece, Pearl Harbor, Pearl Harbor Attack, Pearl Harbor Portfolio, Ratings, stock market, Tiger Woods, United States

The market media matrix continues to spout their view that everyone should be invested all the time.  The continuation of the “perma bull” lies, is only more evidence that “Joe six pack” doesn’t have a chance in understanding cyclical and secular market behavior.  It should come as no surprise that a company, Vanguard, who manages “other people  money”  through their vast array of failed mutual fund managers, to say “happy days are here again.”  Vanguard’s only concern is “IF you to take your money out of the market”!  Vanguard gets paid to manage your money, why are you not holding them accountable for losing 55% or more of your hard earned 401k assets?  As the article states,  younger workers are still in a state of denial, regarding the severity of this market!  The young workers believe that all is taken care of, simply by the government to declaring “Olly olly oxen free” to all the credit problems that are still present!

DES MOINES, Iowa – Another major provider of 401(k) accounts says the typical retirement saver now has more money in their account than they did before the stock market began tumbling two years ago. The Vanguard Group Inc. said …

Younger workers with smaller balances caught up the quickest. Nine in 10 participants under age 25 were flat or were ahead of their balance two years ago. About eight in 10 workers in their mid-20s to mid-30s had recovered to 2007 levels.  However, just half of the participants in their 50s and 60s have recovered or gained slightly while half have not.  This was based on Vanguard’s selectively picking  participant balances between September 2007 and September 2009.   I want to know the total return of all their assets from 2000 to present! Given most 401k plans are for long term results, not just a short two year stint.  The overall stock market is up just under 60%, while the markets are still down from their previous highs of 2007 by 25%!   Since “Joe Six Pack” is not versed in the the way Wall Street uses numbers to lie, what will happen to the 60% gain “on paper” to his 401k plan when the market returns to new lows?

Financial News – http://finance.blogrange.com/

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If  Wall Street’s Greed  and Politician’s Fear could have solved the financial crisis, then why did we have to go through the pain of  last year?

For free market capitalism to work, both Main Street and Wall Street have to have greed and fear.   Even today, they average long term investor is only “Fearful” of missing the bull next rally.  They do not have any “fear of  losing everything”.  The “baby boomers” have taken the “buy, hold, and hope theory” to the maximum level, being eternally over optimistic with regards to the economy.  After all, they learned investing  during the 80’s and 90’s when the market had spectacular gains.  Now the baby boomers find themselves in a difficult position, believing the market will go up and the value of their homes will go up at the same time!   Currently, many baby boomers are putting off their retirement, once again,  hoping the markets will reward them for the failed theory of “buy, hold, and hope investing strategy“.

Fear and Greed are supposed to rule the markets, yet Wall Street has conditioned you to only have “fear” of missing the next bull rally. So you buy, hold,  and hope for the next bull market rally! You wanted cheap goods, cheap oil, while continuously buying more and consuming more!  I remember in 2008, when people were complaining about gasoline being at $5 a gallon.  I asked them, which is more valuable, a gallon of gas or your 401k plan?  The value of you portfolio in you 401k plan is directly linked to economy of oil, and oil to your stock market gains!

Meanwhile, the market media matrix was touting Goldie locks economy, green shoots, what is their next slogan to get you to spend every dime of your paycheck?

Wall Street has “Greed”, and no fear.  Wall Street tells the politicians as the markets were falling, ” we are all in this together”!    Last year, there were secret cigar smoking strategy rooms, weekend mergers, hostile takeovers, and plenty of back alley back stabbings stealing assets from weaker competitors.  The dog eat dog world of Wall Street, everyone was fighting to stay alive.

Now, just a year later, no one is talking about the “toxic assets” that are still held by those  bailout cry babies.   Meanwhile Bernake, Geitner, and Kardashin, are bringing in tons of cash to shore up the financial services industry with the indentured taxpayer!  The next market crash, will ensure the debts to your children and grandchildren.

OUR country’s  future is foretold  in the headlines of history,  “The 100 Trillion Dollar Note” as  Zimbabwe tries to stifle the fires of hyper inflation.   Politician’s Fear taking preventive actions, only to act decisively during a crisis, always choosing the  politically expedient  incompetent answer. A Trillion here, a trillion there, pretty soon we are talking about “real money”!  Spending 25% of the nation’s GNP has never solved any  nation’s debt problem in the history!   The idiots in congress have never managed a busines, let alone a simple  a “hot dog stand”, yet they want to master mind economic recovery with an estimated100 Trillion in unfunded liabilities.

The Politician’s Greed, for incumbency forces him to take action during a crisis.  He rejects free market capitalism  correcting mechanism,       forgoing the short term temporary pain of a Depression.  He purposes silly fixes and proudly announces that he has solve the problem.

Engineering our way to  a Weimar Republic, which could be worse than a “Great Depression“.   In either case, hyper inflation or depression,  you will still have to have food!  If you don’t have 6 month to a years supply of food, that may be your best investment choice over the next 6 months.  Time is running out, you cannot simply trust in the “buy, hold, and hope” theory any more!

Doc

History Repeats!

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My company recently switched from pension to 401k. what is the percent of my money should i put in there. I have heard that people should try and put at least 15 percent.

 

God Bless

Doc

 

Technorati Tags: 401(k) plan, bear market, preservation of capital, stock market, tax deferred