The Market Ticker
Commentary on The Capital Markets- Category [Editorial]
Main Navigation
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

2018-01-20 13:13 by Karl Denninger
in Editorial , 147 references
[Comments enabled]  

 by tickerguy

This is a bald lie.

In every shutdown thus far, and this one as well, nobody has gone unpaid.  In fact they are paid to not work in that when the shutdown ends all pay for the period during which the shutdown took place is in fact paid, although the people who were furloughed did no work for it.

You should cheer such shutdowns because we are paying our military, civilian contractors and other federal employees to sit in a bar and get drunk.


View this entry with comments (opens new window)

2018-01-20 12:35 by Karl Denninger
in Editorial , 137 references
[Comments enabled]  

 by tickerguy

What part of spending more than you take in by taxation is "needless"?  You're a lying sack of crap, that's why.

If you and the Democrats are both against deficit spending, and all spending bills must originate in the House, why do we have deficits?  You're a lying sack of crap, that's why.

You and the rest of the House and Senate just voted to renew FISA authority, and immediately thereafter you learned that it was abused during Obama's administration.  Why haven't you immediately filed a bill to repeal a law that you know was criminally abused?  You're a lying sack of crap, that's why.

If the Congress has to appropriate every penny spent before it is spent (the Constitution says so in Article 1, Section 9) explain why the so-called "automatic" spending in Medicare, Medicaid and Social Security (along with debt payments) takes place when Congress has no legitimate budget, as is the case now?  Neither you, Treasury, or any other member of the House or Senate give a damn about the Constitution, that's why.  Yes, I know about the ADA -- which only through a belief that if you cut off Social Security and Medicare it would lead to immediate riots can possibly qualify as "national security related."

Where do you see an exception in Article 1, Section 9 for "essential" government functions?  There isn't one!  So why are the cops still on duty around your office -- never mind the Secret Service?  Because you're a lying sack of crap and don't care about the Constitution, that's why.

And that's for starters....

View this entry with comments (opens new window)

2018-01-19 07:00 by Karl Denninger
in Editorial , 133 references
[Comments enabled]  

Oh please.

"Protect dreamers"?  There's nothing to "protect"; those people were given a "hall pass" illegally by Obama.

If the government wants to put them all through a merit-based system and then let those start down the road to earning their way here by (1) proving they've not taken any public largesse, (2) proving that they have the merit to earn immigration credentials based on achievement and ability and (3) not, under any circumstance, allow said persons to further sponsor or create more citizens and green card holders then I might be ok with it.

Let's lay forward what that means:

1. All those who have been here for schooling and yet can't pass the English requirement for citizenship, and are of High School age or better, are done and leaving.  Now.

2. All those who have been collecting welfare of any sort are done.  Get out.

3. All those who have a criminal history of any sort are done.  Get out.

4. All those who cannot show that they have paid all their taxes, that is, any who have cheated, are done.  Get out.

5. All those who are likely, through lack of education or ability, to become public charges are done.  Get out.

I'm willing to bet that if you applied a basic merit style set of requirements 90% of the so-called "Dreamers" would fail.  Yes, there are exceptions.  Yes, maybe we should make those exceptions.  But we must not, ever reward lawless behavior with amnesty, especially when that time here has not been spent learning and turning oneself into an American.

You're not a Mexican, or a Guatemalan, or whatever if you want to stay here.  You're an American and you identify as one, which means you've never been seen anywhere near a "La Raza" or other similar gathering, say much less hanging around with those people, or get the **** out.

But even if you pass all of this, which I remind you any legal immigrant is supposed to, there's a further problem.  All these people would be cutting ahead of those who did it right.  A good friend of mine did go through this process, did get naturalized, I know exactly what was expected of her and it was not a simple process by any means.  She now holds a college degree and is a member of the armed forces.  Show me that sort of commitment to this country by any individual "Dreamer" and maybe -- just maybe -- you can make the argument they should be able to stay even though others who are willing to do so are waiting.

But for the rest?  Oh **** no.

Shut the government down and keep it shut down and may God not miss next time with his meteor.

View this entry with comments (opens new window)

2018-01-18 12:27 by Karl Denninger
in Editorial , 172 references
[Comments enabled]  

Cut the crap folks.

We had Mr. Illegal (deported several times) who "accidentally" shot Kate Steinle -- and who Californicated tried to let walk.

Then we had Mr. Nutjob -- several times deported and a fugitive as a result, being given aid and comfort by Rahm in Chicago, threaten to murder everyone on a Greyhound bus.

And now, we have this:

A man accused of an “unprovoked and brutal stabbing” at a market in California last month is an illegal immigrant with a criminal record who had been previously deported seven times, a U.S. Immigration and Customs Enforcement spokesman told Fox News.

Seven times.

and this:

"I wish I killed more."

Why do they keep coming -- and coming back?  Because they do not face sanction for doing so and neither do those who give them aid and comfort.

Time to cut the crap and call these people what they are: This is an armed invasion and those who give them aid and comfort need to be arrested, indicted and imprisoned not only for doing so but also as accessories before the fact to the crimes these jackasses commit.

View this entry with comments (opens new window)

2018-01-17 11:57 by Karl Denninger
in Editorial , 648 references
[Comments enabled]  

So now BitCON has dropped under $10,000, which is a 50% retrace since the "top."

The screamers are all out saying "well, this has happened before" (50% declines) and it has always led to another (huge) advance -- buy now!

Uh, not so fast folks.

Who knows if this time is the one where it falls apart -- literally.

But let me point out that as the coins "mined" increase the difficulty increases and worse, the "reward" -- number of coins you get - goes down.

This is important because not only does it mean the next one cost more to get but it also becomes a huge problem since the "miners" are the source of transaction verification.  Without transaction verification the entire scheme collapses as worthless.

Therefore as time goes on and the imputed cost structure of clearing transactions is forced out of being cross-subsidized that cost becomes exposed and it is enormous compared against all other existing means of payment -- eclipsing even physical gold and silver in that regard.

These frictional losses that are inherent in the "distributed" cryptocurrency space are very, very hard to eliminate and doing so with existing systems is nearly impossible.

I agree that the concept of chains of signed certifications has the potential to remove a lot of game-playing in society generally.  For example were Barack Obama's alleged "birth certificate" a cryptographically-signed digital image with a certificate chain valid back to a national archivist it would have been nearly impossible to tamper with it in any way.  As a modern-day example if you have a software executable with a cryptographic hash it is essentially impossible to modify that software while not breaking the hash verification.

We do this today with land titles, for example, by keeping them in a book and referring back to the previous issue in the same series of books.  But this requires that I trust the archivist, since there is no way to know if he tampered with it, just as is the case with so-called "vital records."  If, instead, said title was digitally signed with a certificate that had a chain of issuers back to a trusted place then you'd have to corrupt that and everyone under it in order to commit forgery.  It is much harder to corrupt 10 people than one and it is very hard to corrupt hundreds without someone raising hell about it.

That doesn't make the current offerings in this space compelling; to the contrary, by attempting to make them "anonymous" and "uncontrollable by any central party" they actually made them unusable as either mediums of exchange or stores of value because manipulation became the intent and inherent in the design.  This in turn led to obfuscation and cross-subsidization of the clearing mechanism which becomes exponentially harder and thus more expensive the more it is used, which is also stupid.  While some of the existing scams have tried to address some of these misfeatures the means by which they do so are inherently hacks because of the very nature of what they tried to build.

At some point all of these existing systems will fold back and when they do they will become effectively worthless.  Without a clearing function you cannot trade in these things since you can't prove ownership and without a means to pay for that clearing function which expands in cost exponentially over time nobody will do it, since nobody ever works for free.

Whether this is the point where recognition comes and BitCON collapses to zero is not a question with a definitive answer, except after the fact.  However, anyone paying $10,000 for a string of digits under these circumstances ought to have their head examined, and if you paid $20,000 for that same string of digits a few weeks ago you've already lost half.

You might want to consider, in that case, whether a 50% loss is better than a 100% one.

View this entry with comments (opens new window)