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Commentary on The Capital Markets- Category [Editorial]
2015-08-03 07:17 by Karl Denninger
in Editorial , 537 references
 

Read this folks, it's spot-on.

His rise is not due to his supporters’ anger at government. It is a gesture of contempt for government, for the men and women in Congress, the White House, the agencies. It is precisely because people have lost their awe for the presidency that they imagine Mr. Trump as a viable president. American political establishment, take note: In the past 20 years you have turned America into a nation a third of whose people would make Donald Trump their president. Look on your wonders and despair.

Exactly.

The Beltway is full of people who deny math while at the same time preaching that it's "settled science" that the earth is warming -- and we're the cause.

People who claim to be "fiscal conservatives" and then hand a profligate President one trillion dollar deficits as far as the eye can see.

People who claim that we ran "only" $300 billion in deficits last year but borrowed a trillion, or $1,000 billion, in new debt last year.

People who swear to uphold The Constitution but then approve spying on every American and refuse to honor as few as four words in a sentence: shall not be infringed.

People who claim to honor life but refuse to act against an organization that is on video talking about prices for aborted baby parts -- and how to manipulate the procedure to make sure you get the desired ones.

Washington has come to view the population as asleep and willing to put up literally any ignobility, theft of their money and property and oppression they can come up with -- silently.  They have good reason to believe: After all just two weeks after passing TARP 98% of them were returned to office.

So what does Trump really mean?  We'll find out..... 

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A fool and his money are soon parted.

There is nothing easier to do than convince the American consumer that the invisible is dangerous.  Couple that with a claim that the absence of something is healthier or better and thus worth more money, and you can make a fortune -- all off the gullibility of said consumer.

This does not mean that some things you cannot see aren't dangerous, of course.  You can't see carbon monoxide nor smell it, but it sure will kill you in sufficient concentration.

Nowhere, have I argued, is the above more-prevalent though than in the claims of "organic" food products.

Consumers of organic foods are getting both more and less than they bargained for. On both counts, it’s not good.

Many people who pay the huge premium—often more than a hundred percent–for organic foods do so because they’re afraid of pesticides.  If that’s their rationale, they misunderstand the nuances of organic agriculture. Although it’s true that synthetic chemical pesticides are generally prohibited, there is a lengthy list of exceptions listed in the Organic Foods Production Act, while most “natural” ones are permitted.

Exactly.  The same is true of fertilizers, by the way, and yet "organic" fertilizers (e.g. manure) are arguably more likely to be dangerous than synthetic ones (e.g. ammonium nitrate, made from natural gas; the point of both is to put nitrogen into the soil.)

When it comes to pesticides, however, neonicotinoids are (as the name implies) derived from nicotine; the "organic" version is simply nicotine sulfate.  It is no less dangerous, however, than the synthetic chemicals as the method of action is the same!

There are many others, Pyrethrum being one of the more common insecticides.  That substance is a component in most hornet sprays, for example, because it is extremely effective on insects but is non-toxic to most mammals.  (No, don't use hornet spray as an insecticide; they add another chemical to it because while it is very effective in knocking down insects some recover, and with a hornet spray you definitely don't want them to do that!)

It gets better.  Most of the so-called "pesticides" you find as "residues" on edible vegetables and fruits are produced by the plants themselves as natural deterrents to being eaten by bugs.  By weight, virtually all of these substances you ingest as so-produced -- meaning that the so-called "organic" label is utterly worthless if your intent is to "reduce" your pesticide loading.

But this only scratches the surface because this entire "industry" is one that if you look at their own statements is predicated on a process, not an outcome!  In other words it doesn't matter (from the industry's point of view) if the output (the vegetable or fruit) is in fact free of inorganic "things" what matters is that the farmer intended to produce an "organic" product.

Huh?

Oh, and this isn't theoretical either.  Read the link; 43% of the "organic" produce tested in one study contained prohibited pesticide residues.

Speaking of trading on hype, it looks like Whole Paycheck may be running out of suckers who are willing to pay double for their groceries on the basis of little more than smoke and mirrors.

Good.

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Apparently Bullion Direct, a relatively-popular place to buy and sell gold and silver, has gone under.

That's ok, people go bankrupt all the time.

But it appears this time there was a bit of a problem with people's transactions in-process, and perhaps with alleged metal being stored.

Folks, you need to get something through your heads, which I've tried to explain before: Nobody works for free.  If you think you can run a company off a 1% commission or some such, well, you can't.  What this means is that it's pretty common for various other forms of money-making to take place in a business where it appears that a tiny premium (if any) is being charged, and the easiest way to do it is for the dealer to be an actual speculator and either buy ahead or sell behind.

In other words they play on price movement, which is great right up until what they believe is going to happen doesn't, at which point they lose money -- and maybe lose a lot of it.

That, in turn has a nasty way of exposing whatever happened -- like, for instance, that the metal allegedly there isn't.

Note that a brokerage has no inventory and thus this problem doesn't arise.  They simply match buyers and sellers, and that you can do for a paltry commission.

If something looks too good to be true it nearly always is.

PS: Gold and silver are commodities; one of the reasons folks keep getting snared like this is they think it's "money."  Nope.

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2015-07-29 22:47 by Karl Denninger
in Editorial , 1270 references
 

If you're outraged and willing to trash, dismember and destroy a man who paid money to go shoot a Lion with a crossbow, then cut it's head off (because that's all he wanted) and ditched the rest.....

But you're not similarly outraged and willing to do whatever it takes to dismember an organization and everyone who supports and funds it that, it appears, was and is selling the heads of unborn children, while also ditching the rest......

GET THE HELL AWAY FROM ME, YOU MONSTER.

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2015-07-29 16:51 by Karl Denninger
in Editorial , 201 references
 

Well look what we got here!

A University of Cincinnati officer who shot a motorist during a traffic stop over a missing front license plate has been indicted on murder charges, a prosecutor said Wednesday, adding that the officer "purposely killed him" and "should never have been a police officer."

....

"He fell backward after he shot (DuBose) in the head," Deters said, adding that it was a "chicken crap" traffic stop.

What is this?  

We've got both an admission that the cop lied and basically shot this guy on purpose (rather than in self-defense) and that the original traffic stop was "chicken crap"?

Not from the family of the slain man, but from the prosecutor?

I'll have a drink to you this evening, Mr. Deters, perhaps while listening to this.....

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