Monday, June 29, 2015


When someone can't pay his or her monthly mortgage payment owed the lender (mortgagee) and walks way from that obligation by mailing the house keys to the mortgagee, that someone has pulled a jingle mail trick. In short, the borrower has said to the lender, Here is the pledged collateral, the house. It's yours now. I refuse to pay you.

Why did many so-called homeowners do this during the Banking Crisis in 2008? First, many couldn't pay their mortgage payments from their incomes, though many could. Second, many couldn't refinance their mortgage deals precisely because the likely re-sale price of the house given the current market had fallen below the amount owed on the loan. In banking parlance, that's known as being underwater or being upside-down.

Many Americans who were greedy and nervous, but had the means to pay their mortgages walked away from having property in their improved parcels, turning over those parcels to the original lenders. They didn't like being underwater and paying on a loss. To them, never could they see a future where the economy would recover, house prices would recover and they might at least break even.

So rather than uphold their obligation, many stuffed their house keys into envelopes, called the Midnight Moving Company and dropped off those envelopes in the nearest mailbox as they skipped town. Apologists, mostly anti-capitalists and those jealous of anyone else richer by $50, stepped in and began calling such unscrupulous misdeeds, strategic defaults.

For those Americans with non-recourse mortgages, they faced few consequences from sending off their jingle mail. Lenders were stuck with many houses they couldn't sell. For those houses they could sell, lenders were stuck with losses on the differences between what they lent and what the they could gain in sales on much lower street prices.

The story was different for Americans with recourse mortgages. Those who tried to walk away from their mortgages discovered that lenders had legal standing to sue to have wages garnished and other assets seized.

Many non-recourse jingle mailers claimed that even though they knew they agreed to the terms of their contracts, they believed they had the right to walk away from what they claimed were bad deals. To win the war for supporting minds, these jingle mailers compared their plights to big corporations that write-down billions of dollars of debt and incur losses for shareholders.

An individual agreeing to the terms of the mortgage to gain the funds to buy a house in which to sleep is not the same as enterprisers who have sold bonds to gain funds to buy capital in quest of producing property which they hope to trade a profit.

More so, none were walking away from bad deals. All of the deals were good deals.

In every case, luckily, each borrower found a lender who put forth actual credit in large sums in exchange for mere promises. All of those borrowing gleefully became homeowners and likely many bragged to their friends about their new digs.

In each deal, borrowers received actual funds, typically in the form of bank credits, in trade for promises to pay. None of the deals were contingent upon changing street prices based on the sales of other houses.

To claim bad deals as justification to stiff creditors is mere twisted rhetoric to cover for misdeeds. As well, all those who stuck creditors with jingle mail, walked away from houses upon which they put wear and tear, which of course, is a kind of loss. Of course, those who believed in that way tortured reality to justify their misdeeds. Not surprisingly, noted lefty Keynesian economist Paul Krugman championed jingle mail, at least according to writers of Wikipedia.

Greeks go to the polls on July 5, 2015, to vote on a referendum asking whether their legislators should continue to pay on debts owed to the IMF and the European Financial Stability Mechanism or should legislators stick the keys in the mail and send those running the IMF and EFSM jingle mail.

Since every election is a referendum of sorts, for decades, the majority of Greeks voted yes on referendums approving of their legislators borrowing excessively so legislators could pay for high-paying, make-work government jobs and pensions. All of that borrowing led to legislators spending more than 50% of GDP in many years. Worst of all, all of that borrowing and spending led Greeks to believe they were rich even though that borrowing and spending would cripple the Greek legislators and bring them to their current state, near bankruptcy.

Greeks are much like those underhanded Americans with non-recourse mortgages and incomes to pay their mortgages but who found themselves underwater.

Right now Greeks find themselves underwater. The street price of everything Greeks sell is falling. Yet, Greeks have the income to pay debts. However, Greek legislators don't feel like paying their debts. So, Greeks are being encouraged by their unscrupulous leaders to send jingle mail.

Unlike most Americans who found themselves underwater and who could not renegotiate their deals after the Housing Bubble burst, a bubble caused by the Greenspan-Bernanke Great Inflation, the biggest credit bubble in the history of mankind, Greek law givers can renegotiate their deal. However, those Greek law givers don't want to renegotiate.

As I explain in TSIPRAS AND VAROUFAKIS, THE GREEK DUMB AND DUMBER SEEK TO FORCE GREEKS TO DRINK HEMLOCK, what Greek law givers need to do is cut their per capita spending. That is what they have been asked to do. If Greek law givers do so, they will get their deal reworked. But, Greek law givers still want to live in a bubble.

The Greeks borrowed from lenders to buy a McMansion. And then for decades, Greeks piled on HELOC after HELOC to pay for ongoing parties as they swilled ouzo, munched on baklava and danced to Zorba. And now the Greeks want to run out the back door, stiffing the owners of the catering hall while mailing in the keys.

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Sunday, June 28, 2015


Back on Friday, November 7, 2014, I wrote THE SECRETS OF AUTOMATED CLEARINGS, GDP AND THE ECONOMY. RECOVERY? WHEN? In that work, I explained the significance of banking automated clearings.

Since then, I've automated the data gathering to support these rather important charts.

The ACH action has looked horrible for years now in True Dollars™ terms. If the economy were at least in a steady state of neither declining or advancing, commercial ACH clearings would at least would be flat. 2014 looked like we were getting there.

Even though the Fed Res behind-the-curtains wizards of greenbacks ended Quantitative Easing back in Q4 2014, don't bet on those wizards raising interest rates rising for a long time to come.

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Friday, June 26, 2015


In a queer 5-to-4 ruling of Obergefell v. Hodges, the robe-clad coven known as the U.S. Supreme Court have decreed that law givers of the various states must legally recognize that homosexuals can marry each other. Laws of the states' legislators no longer can exempt married gays from getting the same benefits as those law givers dole out to man-woman marrieds.

In spite of the rhetoric of some politicians spewed after the ruling, Americans need to suck it up. The Gay Army has won their war. They're celebrating their V-Day today.

No one should be surprised by the ruling. It was bound to happen.

Two years ago, the witches gathering of the Supremes ruled the Defense of Marriage Act, the anti-gay marriage law passed by Congress and signed into law by Bill Clinton could not deny a married gays from getting benefits given by Congress to men-women married couples. Today's ruling builds from that ruling.

In many ways, the outcome of the ruling is the right one though the ruling itself suffers flaws. Legislators have no standing to impose their moral standards upon anyone and then lie with the rhetoric that those moral standards are the will of the people.

As well, legislators lack standing to impose the moral standards of some Americans and their cults to which they belong, cults that all know as churches and religions. That queer ones will have their marriages recognized by agencies of law givers in no way stops anyone from belonging to a church and acting like the hypocrites, praying in public.

Legislators should not tell the people how to live. And all Americans need to stop supporting such immaturity. If adults want to buy and sell sex (prostitution) or substances for recreational purposes (drugs), no one should stop them.

And unlike the fools who say so, queer as folk marrying queer as folk fail to violate the laws of nature. Jumping from a cliff without a parachute leads to consequences that prove men cannot violate the laws of nature.

If all of mankind stopped procreating because all decided to focus on same sex sexuality, then future mankind would die off. Even under this scenario, the laws of nature would not be violated. The consequences of not breeding would be little different than the consequences of trying to fight against gravity.

Codifying gay marriage changes little, in spite of what gays might believe. Atheists don't accept religionists. Protestants don't accept Catholics. And let's not get into the races racing against each other rather than being accepting of each other.

Legalizing gayhood doesn't mean most will stop seeing gay sex and gay love as activities outside the norm of mankind. Many still see those with face tattoos and face piercings as freaks. In spite of the hopes of parents who birthed and raise gay kids into adulthood, legal decrees never have the power to turn their adult children into normal ones.

The gay marriage movement has been about cash and credit, always. Never has it been about love.

Privilege seeking is a political act whether through marriage licenses from politicians to gain preferential treatment for taxes or through collecting welfare benefits at higher rates. It has been mere rhetoric by those behind the Gay Agenda to hide behind the rhetoric of love rather than rhetoric of riches.

Gay marriage is about dollars and little more. It is about survivor spousal benefits of Social Security welfare. It's about adding thousands of new customers for divorce lawyers and the Family Law system annually, a system that employs bureaucrats and technocrats.

No one should be fooled. As long as law givers grant rights to some based on their status and impose duty upon others because of that status, liberty is lessened for all all. When law givers grant benefits to those who are married, law givers decreases liberty precisely because they have created law. All law increases duties and rights.

In life, any adult with an intellect suitably sufficient to decide doesn't always get she or he wants, but but always, gets what she or he deserves. For years, advocates of those marriage should get benefits have played a legal game, one for a time, that has helped them. Now, they are getting what they deserve. They must welcome gays into their anti-liberty club.

The right-minded man or woman at once sees the deleterious effects of acceding authority to politicians who then decree what marriage is and who derives privileges from such arrangements. The right-minded man or woman at once sees the best action is to eliminate marital status as a factor for any government action.

Any individual is right to want to live, right to want to live without an overlord and right to pursue what gives her or him pleasure. All else is nothing but force of one or some ganging upon another or others who is or who are weaker.

Demanding privileges gained by force for what amounts to a private matter is not the hallmark of an enlightened people.

One can only hope for a backlash against today's ruling whereby many push to remove all codified discrimination. No one should get privileges because that one belongs to any artificially constructed social group like gays, blacks, Latinos, women and so on.

Racism is a horrible political doctrine. It devalues every individual and turns persons into monsters as they join groups.

Those of groups revert to base instinct of mankind — the law of survival. Individuals who join groups lose themselves and become cogs of the group, one of the mob, the crowd. They end up doing wicked misdeeds in the name of advancing the group.

Every individual has the capacity of living by the Law of Love — do to others and loving one's neighbor.

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Thursday, June 25, 2015


The coven-like robed ones were at it again. By a 6-3 vote, the chief scribes of the United States Supreme Court ruled the 111th Congress intended to give any qualified American property in bank credits to be spent specifically on buying an medical bills paying insurance offered by sellers of such products.

The tie-breaking voters included the Supreme Court chief, the High Priestess John Roberts. And with today's ruling in King v. Burwell, once again Roberts proved to the world, he doesn't understand English nor English with respect to law.

This time, those suing over Obamacare claimed the 111th Congress intended to pay for part or all of any American's medical bills insurance, but only in those states of the USA where state legislators established state-run web sites for residents of their states to buy insurance. They made this claim because the writers of the law wrote the phrase "established by the state."

In his affirmative ruling, chief priestess Roberts wrote, "Congress passed the Affordable Care Act to improve health insurance markets, not to destroy them. If at all possible, we must interpret the Act in a way that is consistent with the former and avoids the latter."

In short, Roberts believes his job is to interpret law if a law claims it could do something good regardless of how it is written. Roberts sets a dangerous precedent for all Americans. Henceforth Congress could pass laws and then have their agencies claim extra-law authority merely by claiming Congress intended for this power or the expected results.

428908_354943234574162_569207220_n.jpgBack in 2012, Roberts was the guy who sided with others to decree Obamacare was legal. In that ruling, though Roberts stated the Commerce Clause of the U.S. Constitution cannot compel any individual to buy anything, Roberts claimed the taxing authority of Congress somehow can compel anyone to buy anything.

At the time, many Roberts apologists claim that Roberts was right because Roberts said the IRS would be the agency to collect the fines and therefore what would get collected would be taxes and not fines. What a convenient fiction that is.

The essence of a fine is this: If you do A against law and are caught, you must pay B.  The essence of a tax is this: Because you are doing A, you must pay us B, which is a percentage of A.

The purpose of a fine is to stop anyone from doing A. The purpose of a tax is to share in profits generated by doing A without having invested any capital first.

When law givers fine a factory owner for polluting a river, they do so to stop the factory owner from polluting the river, ever. When law givers tax profits of the factory owner, they want a cut of his profits. They're not trying to stop the factory owner from selling anything produced in his factor. Likewise, law givers aren't stopping the factory owner from selling his factory and taking up earning income by another means, say as a singer and a dancer.

With Obamacare, the effect of the Roberts ruling should be clear. Congress isn't sharing in anyone's income regardless of how they earn that income. Rather, Congress is fining everyone caught without medical bills insurance.

Congress is fining you for doing something — living without specifically structured medical bills insurance— rather than taxing you — sharing in your income regardless of what you are doing.  To claim it as a tax and not what it is, a fine, is to throw out about 715 years of English-based jurisprudence.

State legislators fine you when you drive (live) without car liability paying insurance (medical bills insurance). To see Robertscare any other way is to deceive oneself.

The word fine entered into English about the year 1200 from Old French speakers meaning death, fee, payment. By the mid 1300s, the word was being said to mean sum of money paid for exemption from punishment or to compensate for injury.

The word tax entered into English in the early 1300s from Anglo-French speakers to mean obligatory contribution levied by a sovereign.

So the next time you must pay a speeding ticket, by the way Roberts believes, you are not being fined. Rather, you are being taxed. You are not being fined.

Americans should be compelled to buy all kinds of products at least according to the tortured faux-logic thought by the United States Supreme Court creepy robe wearers — Roberts,  Breyer, Ginsburg, Kagan and Sotomayor.

  • All Americans need places to sleep. Some of the time, many to most Americans could find themselves facing homelessness. Requiring Americans to buy housingcare insurance would be a tax and not a fine. Therefore, forthwith, all Americans should be required to buy housingcare insurance.
  • All Americans need legal representation. Some of the time, many to most Americans could find themselves facing criminal charges, civil suits or jail time. Requiring Americans to buy legalcare insurance would be a tax and not a fine. Therefore, forthwith, all Americans should be required to buy legalcare insurance.
  • All Americans need skills to compete in a globalized economy. Some of the time, many to most Americans could find themselves with obsolete skills and not enough cash to pay for learning new skills. Requiring Americans to buy higher educationcare insurance would be a tax and not a fine. Therefore, forthwith, all Americans should be required to buy higher educationcare insurance. 
  • All Americans need fun and recreation for proper mental health. Some of the time, many to most Americans could find themselves without enough cash to pay for tickets to amusement parks, sporting events, concerts. Requiring Americans to buy funcare insurance would be a tax and not a fine. Therefore, forthwith, all Americans should be required to buy funcare insurance. 
  • All Americans need to eat. Some of the time, many to most Americans could find themselves without cash to pay for food.  Requiring Americans to buy foodcare insurance would be a tax and not a fine. Therefore, forthwith, all Americans should be required to buy foodcare insurance.
  • All Americans need to wear clothes. Some of the time, many to most Americans could find themselves without enough cash to pay for clothes. Requiring Americans to buy clothescare insurance would be a tax and not a fine. Therefore, forthwith, all Americans should be required to buy clothescare insurance.

John Roberts might have been awarded summa cum laude as an undergrad from Harvard and magna cum laude Harvard Law School, but Roberts is clueless about the concepts words label. In short, he does not get meaning. And if that isn't the case, then the Chief Priestess is corrupt and immoral.

Power. It corrupts everyone. Alas, it wasn't enough to be appointed to the U.S. Supreme Court for John Glover Roberts. Nor was it enough to be crowned Chief Justice.
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Wednesday, June 24, 2015


So the Bureau of Census minions released the June 2015 New Residential Sales report with the latest one-month lagging data, the May 2015 data.

The picture looks great. We have been headed in the right way the end of October 2010 although it has been a tough slog.

We're still far from peak sales, quite far. Quarter over quarter and year over year looks solid.

From an average price viewpoint, in True Dollars™, it continues to be the best time to buy. The May 2015 average price is -35.1% below the average price between January 1975 and July 1994.

Builders' confidence has stayed strong.

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Tuesday, June 23, 2015


Google News returns 122,000 hits for the search phrase: NASDAQ Composite June 23, 2015 record or all-time

So is it true? Could the NASDAQ hit a high higher than the peak of Dot Com era when every American who wanted a job held a job?

In True Dollars™, which are the only dollars that count, the NASDAQ Composite is quite far from the all-time high.

The NASDAQ Composite hit an all-time high on 3/6/2000 peaking at $1,032.37 in True Dollars™. All who lived through that time as an adult will quite remember the Dot Com mania that abounded throughout America.

Americans were flush with jobs and with cash. Truly good times had been flowing for awhile for Americans.

There is no way the NASDAQ Composite today is at a true all-time high. Americans are far from good times. Many Americans have yet to leave hard times behind.

Today's NASDAQ Composite close is down -61.8% from the all-time high and a tinge higher (1.9%) than where it marked at true peak GDP hit at the end of Q4 2007, but down -16.8% from the peak hit during the Greenspan-Bernanke Inflation Bubble, the biggest credit bubble in the history of mankind.

Cash in circulation is up 150.2% since the all-time high and is up 52.9% since the March 2009 NASDAQ low. In True Dollars™, the NASDAQ Composite is up 116.3% from the March 2009 low.

Along with the quality charts I share like the one above, below is the kind of quality report I will be making on offer soon to subscribers that tracks ETF trading instruments.

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Saturday, June 20, 2015


Of late, I have looked up more than a few biographical entries in Wikipedia in support of musicians to whom I have listened from YouTube. In entry after entry, I've come across the rather loathly expression, African-Americans.

All should be offended that many Americans foolishly still call some Americans by the highly inaccurate and insulting name, African-Americans.

Importation of slaves was decreed illegal effective January 1, 1808. By 1840, almost all slaves living north of the Ohio River had been freed. All born in the USA were Americans and not foreigners deserving of a hyphened moniker.

We're living in the 21st century. It shocks that in the 21st century, many still refer to some Americans as hyphenated Americans. Doing so implies a lesser status rendering all those hyphenated as being less than full Americans.

Is it any wonder that many grow up with prejudice? Americans are being taught to view millions of individuals as inferior, as if they need protection like spotted owls and other dying species.

As I showed you in TRAGEDY EXPLOITERS WRONGLY CALL THE MENTALLY-ILL DRIVEN SOUTH CAROLINA SHOOTING AN ACT OF TERRORISM. OTHER TWISTED ONES CALL FOR A BAN AGAINST INDIVIDUALS OWNING GUNS, the biggest promoters of racism in exchange for power are politicians. Racism is a horrible political doctrine. It devalues every individual and turns anyone into monsters as they join groups.

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