American Dollar $....The Best Looking Horse in the Glue Factory!

Indian rupee hits record low amid inflation

Currency weakened past 69 rupees to the dollar, making it one of the worst performers in Asia for the first time.

The Indian rupee on Thursday weakened past 69 to the dollar for the first time, slumping to an all-time low amid a spike in crude oil prices, foreign capital outflows and a widening current account deficit. 

Last November, Standard & Poor rated India as "BBB-minus", which is the lowest investment-grade rating. 

Asia's third-largest economy is battling inflation and a widening current account deficit stoked by high oil prices. This, in turn, is adding to selling pressure on the Indian currency. 

Current account deficit is a measurement of a country's trade where the value of its imports exceeds the value of its exports. 

"The Reserve Bank of India [the country's central bank] will have to intervene for macroeconomic reasons and for political reasons as the opposition is bound to attack the government over the rupee's record low," he added.

DYI:  Why have I posted India’s woes?  Simply to illustrate that the American Dollar despite our many problems is significantly less than all of the other countries continuing America’s role as the world’s reserve currency.  There are a handful of countries ratings that are higher than the U.S. but are way too small to displace the almighty buck.  Of course there always will be pressure to throw off the shackles of the American petrol dollar.  I’ve reported many times Russia and China – despite their adversarial relationship [pragmatic politics] – to move to a gold trading scheme for natural resources.  If successful will put pressure on the American Dollar, however that will take a long time before knocking the U.S. off its perch as the world’s reserve currency.

DYI

Insane

Level of Margin Debt!

Insane

Valuations!

Sub Atomically

Low Yields!

DYI:  Simply put future returns will be sub par until valuations improve.  We are caught in a valuation trap that requires great patience waiting until sales, earnings, and dividends to catch up to stock prices [and for interest rates to rise] or for a substantial decline in stock prices.  DYI has been stating that I expect a 60% to 75% decline in equity prices is the highest probability absent a decline a long drawn out sideways market for a decade plus for an improvement in valuation.  My model portfolio reflects insane valuations for stocks and long term bonds.

 Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 6/1/18

Active Allocation Bands (excluding cash) 0% to 50%

66% - Cash -Short Term Bond Index - VBIRX

29% -Gold- Precious Metals & Mining - VGPMX

 5% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

[See Disclaimer]

 This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.

This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!

The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.

The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.

Use this site at your own risk.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

DYI

Bubble

News

The Dollar Dilemma: Where to From Here?

Ron Paul

It’s a fallacy to believe the US has a free market economy. The economy is run by a conglomerate of individuals and special interests, in and out of government, including the Deep State, which controls central economic planning. 

Rigging the economy is required to prevent market forces from demanding a halt to the mistakes that planners continuously make. This deceptive policy can last only for a limited time. Ultimately, the market proves more powerful than government manipulation of economic events. The longer the process lasts, the greater the bubble that always bursts. The planners in charge have many tools to perpetuate confidence in an unstable system, but common sense should tell us that grave dangers lie ahead.

DYI:  Ron Paul as always has hit the nail squarely on the head!  Although no recession as yet [prior post] the controllers have completely mismanaged the economy creating one bubble after another.  Currently the U.S. stock market is in its second secular top without inverting to its secular bottom.  In other words the Fed’s and other controllers have blown another bubble in stocks and junk bonds.  DYI is anticipating a 60% to 75% decline in stock prices once the bubble pops.  Junk bonds will at the very least be cut in half.

Official government reports inevitably claim inflation is low and we must work harder to increase it, claiming price increases somehow mystically indicate economic growth. 

The Consumer Price Index is the statistic manipulated to try to prove this point just as they use misleading GDP numbers to do the same. Many people now recognizing these reports are nothing more than propaganda. Anybody who pays the bills to maintain a household knows the truth about inflation.

DYI:  In a debt based system inflation is required as this makes it possible to pay off debts with inflated dollars.  Of course not too much the banker’s will scream about the declining purchasing power of their interest stream of money.  However things appear to be getting a bit out of hand as inflation reported by the Chapwood Index of 500 commonly used items shows price inflation running at average of around 10%.

Ever since the Great Depression, controlling the dollar price of gold and deciding who gets to hold gold was official policy. This advanced the Federal Reserve’s original goal of demonetizing precious metals, which was fully achieved in August 1971. Today, even though the official position of all central banks is that gold is not money, central bankers constantly rig the dollar price of gold, pretending the dollar is stronger than it really is. 

Just as the market overrode the artificial price of $35 per ounce in the 1970’s, today’s price will soar when the dollar is dethroned as the king of the world’s currencies.

DYI:  With a world wide debt based system of money gold can be a great store house of wealth if it is bought like any other asset a bargain prices.  Currently the Dow/Gold Ratio [19 to 1] is only slightly below fair value [just a bit of a bargain] only a modest investment is warranted at this time whether physical gold or the precious metals mining companies.

As of 6/25/18 Dow/Gold Ratio is 19 to 1 rounded.

DYI:  However silver as compared to gold is in bargain territory with gold to silver ratio at a lopsided of 78 to 1.

In the rigged financial system, stock and bond prices are kept artificially high for the wealthy on Wall Street. To do this, interest rates have to be kept below market rates—which is a major contributing factor to gross economic distortions and financial bubbles. 

The false belief setting the stage for an economic crash is the doctrine of “deficits don’t matter,” endorsed universally in the nation’s capital, has been going on for decades. We are destined to soon find out that deficits do matter, and matter very much. Denying economic truth and common sense for long periods of time always ends badly.

As of 6/25/18 10 yr rate is 2.90%

DYI:  The bond buying bull market of a lifetime is primarily over.  If our economy goes into a massive deflationary bust we will have negative rates as the Fed’s desperately attempt to reflate the economy. And yes long term bonds will soar.  Just looking at the above chart the preponderance of gains is clearly behind us.  Only until recently has the Fed’s increased interest rates thus allowing our model portfolio to purchase a small position [5%].

If one were to listen only to the MSM recite government economic reports, concerns for the future would be minimal. Low unemployment rates, negligible inflation, no hot war going on, and the US remains the wealthiest and militarily the most powerful nation in history.  Are the worriers justified in their concerns?

DYI:  The Main Stream Media [MSM] is a part of our shadow government that runs the Deep State.  The MSM and press corps is nothing more and nothing less than flat out PROPAGANDA.  Fortunately less and less of our fellow Americans believe a word that comes out of their talking heads.  And thank God for that!    

There are a lot of them yet the Fed doesn’t seem to be concerned, but then again it has never warned of trouble ahead, even when a major correction was at our doorstep. This is either because the Fed chairmen don’t know any better, or they don’t want to panic the people into preparing for a crisis by knowing the truth. My guess is that it’s both. 

One thing for sure is that middle class America is not of much concern to the money managers. What occupies their minds is how to protect Wall Street from any financial crisis that might arise. The monetary elite are alert as to who will be blamed, and the Fed in particular, must be protected.

The key individuals, involved in any rescue operation during a financial crisis, are the Fed Chairman, the Treasury Secretary, the Chairman of the SEC, and the CFTC. We can be assured that they were quite active in the financial crisis of 2007 and in the years of quantitative easing failures that followed. Today’s amazing stock market “success” (as of January 2018) is especially interesting since there is a net outflow of funds from the market. This means that the PPT has been successful in delaying the major correction that is required.

DYI:  The elites have been systemically selling off equity securities to the great unwashed attempting to lessen the blow when the collapse occurs.  They own so much it will be impossible for them to sell everything and of course if they could they would lose control of those corporations.  From their point of view if they can reduce by 25% that would be a success at 50% reduction a whirl wind accomplishment!  This would give massive buying power to purchase assets at bargain prices and unfortunately massive control over our daily lives as well.

Abnormally low interest rates permit buybacks, mergers, and direct intervention in purchasing stocks and bonds by the PPT or by its allies around the world, with funds clandestinely provided by the Fed, to prop up the market and manipulate the gold price. 

There’s good reason the financial elite hysterically oppose an audit of the Fed.

Even the mediocre GDP reports overstate economic growth. Since 2008, government debt has grown much faster than GDP, which some claim supports the notion that the more debt the Congress runs up, the better off the economy will be, rather than admitting there’s been no overall growth. 

DYI:  Bingo Ron Paul hits this one out of the park.  GDP growth has been pushed by ever increasing debt.  Take away the debt on average since 1980 there has been negative -0.3% declining standard of living.  Debt is everywhere you turn with student loans now over the trillion mark, credit cards, mortgages, car loans and with corporate America leverage up plus Uncle Sam and our 50 States.  Hell Puerto Rico’s debt monster of 70 billion with a population of 3.3 million people which is $21,000 (rounded) per every man, women and child.  And the population is declining as many have left for the mainland due to the hurricane and overall poor economic conditions.

There are many reasons why Americans should be deeply concerned. Evidence readily exists that our prosperity and our liberties are threatened. Our bipartisan foreign policy of interventionism is needlessly driving us toward a major military conflict. In the last several decades, the US has  engaged in constant military conflict remaking the Middle East and elsewhere. Whether it’s a Republican or Democrat administration, the policy remains the same— an obsession to constantly aggravate Russia, China, Iran, North Korea, Syria, Iraq, and Afghanistan. 

One of these days we can expect the victims of our interventions in their internal affairs, to declare “enough is enough” and gang up against us. 

The American people will likewise get tired of financing our senseless warmongering policies and demand that they stop.

 Corruption in government is epidemic. 

Few people believe the lies our officials tell us and most Americans know that the truth-tellers, i.e. the whistle-blowers, are punished, while the criminals in government are rewarded. Commissions, special investigations, and prosecutors are set up to investigate government malfeasance, but instead are used to cover up mistakes and political crimes and never to seek the truth.

 Average middle-class citizens, already suffering from the corrupt monetary system, are scrambling to find the best way to protect their wealth and safety in these challenging times. Understanding how we got ourselves into this mess is key to preparing for the tough times that lie ahead. 

All fiat currencies are self-limiting since they are based on fraud and are equivalent to counterfeit. Unfortunately, they can last for prolonged periods of time, only making the economic distortions much greater.

DYI:  Ron Paul’s article goes on at length.  I’ve highlighted the paragraphs that expose the majority of the problems we face as a nation.  Plus where we are in relation to value for stocks, long term bonds, and gold.  CHEERS!

  

Market Sentiment

Smart Money buys aggressively!
Capitulation
Despondency
Max-Pessimism *Market Bottoms* Short Term Bonds
Depression MMF
Hope Gold
Relief *Market returns to Mean* 

Smart Money buys the Dips!
Optimism
Media Attention
Enthusiasm

Smart Money - Sells the Rallies!
Thrill
Greed
Delusional
Max-Optimism *Market Tops* U.S. Stocks
Denial of Problem Long Term Bonds
Anxiety
Fear
Desperation

Smart Money Buys Aggressively!

Capitulation  

Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 6/1/18

Active Allocation Bands (excluding cash) 0% to 50%

66% - Cash -Short Term Bond Index - VBIRX

29% -Gold- Precious Metals & Mining - VGPMX

 5% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

[See Disclaimer]

 This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.

This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!

The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.

The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.

Use this site at your own risk.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

DYI

Bubble

News

An unusual divergence in commodities is hiding signs of a global slowdown, economist says

The U.S. economy is bounding along but economic forecaster Lakshman Achuthan sees evidence of a global slowdown in an unlikely place: Demand for cow hides. 

Achuthan, co-founder of Economic Cycle Research Institute, says hides and other non-exchange-traded sensitive industrial materials such as rubber are often the first item on the production line and their price movements are a barometer for economic activity.

 An unusual divergence is occurring in commodities markets is obscuring signs of a global slowdown, says Achuthan. The more closely watched exchange-traded commodities such as oil and copper have spiked on tighter supply from outlier events such as sharp drops in Venezuelan production. 

"You had a confluence of kind of shocks on supply, negative supply shocks for things like oil or industrial metals, that all kind of hit at the same time and made it seem like the economy was a bit stronger than it really is," explained Achuthan.

 "It's not that there's a recession or anything, but we're certainly slowing," added Achuthan. "When we look at really short-leading indicators including commodity inflation and PMIs and things like that, you're seeing those manufacturing related indicators all edging down. It's not over."

DYI:  This CNBC article though mainstream I do agree there is a world wide slowdown but so far no recession [negative GDP] ahead.  I don’t see currently a recession for the U.S. as well.  So far my indicators for recession has only one of the five markers [all five required for recession call] in negative territory and only modesty is an increased spread between 5 year T-Notes and Vanguard’s junk bond fund [2.77% and 5.65%].  The remaining 4 indicators are solidly positive except for the 2 year T-Note compared to 10 year T-Bonds that are a bit flat.  So far no recession call however with the economy moving in that direction of recession I’m watching my indicators a bit closer.

• DYI’s Recession warning checklist:

• Two year Treasury notes invert ten year Treasury Bonds.

• Widening credit spread…Comparing yields between the 5 year Treasury note and Vanguard’s High-Yield Corporate Bond Fund.

• Falling stock prices…S&P 500 fifty day moving average below the two hundred day moving average.

• Falling Home Builders Index…The indexes fifty day average below its respective two hundred day average.

• Purchases Managers Index:  PMI below 50

DYI:  When all five indicators are present recession is imminent – within 90 days – or already present but not recognized by the majority of the investment community.

DYI      

End of an Era

At least for GE

GE Stock Kicked Out Of Dow Jones; Walgreens Added

General Electric (GE) is poised to get booted from the Dow Jones industrial average. GE stock is the last original Dow Jones member. Walgreens Boots Alliance (WBA) will replace GE on the Dow Jones index starting June 26. 

The industrial conglomerate has struggled for years with sluggish or declining earnings and sales, slashing its dividend in half in late 2017. A number of restructurings and divestitures have failed to revive GE's fortunes.

 GE Kicked Out Of The Dow

GE simply doesn’t make up much of the Dow. The stock closed today at $12.99. That means it makes up about 100 points in the Dow, which is currently at 24,700. The average Dow stock makes up over 800 points in the index. 

GE has been a Dow member for over 110 years. On November 7, 1907, General Electric replaced Tennessee Coal, Iron and Railroad Company in the Dow. GE was an original Dow stock in 1896 but it was dropped in 1898, added back in 1899, then dropped again 1901 and added back in 1907. 

I find it interesting that many dystopian movies feature powerful corporations (Pan-Am in 2001 or Atari in Blade Runner). In reality, these organizations come and go faster than you think. 

The current Dow divisor is 0.14523396877348. That means every $1 in a Dow stock is about seven Dow points. The divisor will now be adjusted for WBA. Here’s the GE chart going back 56 years:

DYI:  As with many companies of this size once debt began to loose its mojo [law of diminishing returns] in pushing world wide GDP growth GE hit the wall like so many other companies at the year 2000 secular market top.  From that point on without Federal government debt there would have been continuous economic contraction [since year 2000] not just here in the States but world wide.

What Dow 20,000 looks like in inflation-

adjusted terms

Fred's Intelligent Bear Site brought to you by Fred Filskov. Public, private, and commercial distribution of this material is permitted as long as a link to this site is attached  

DYI:  The chart above is just a little out of date was last updated on 2/11/17 nevertheless this illustrates how stocks have not gone anywhere of substance since 1982 - 2000 bull market.  If this chart was updated the Dow would have made a new high but nothing of substance comparing to the time it took to achieve.  U.S. stocks have entered into a double secular top without tracing back to its secular bottom first.

Average annual inflation over these 100 years is 3.1 percent. Adjusting for this, and measuring in constant end-of-1916 dollars, 20,069 on the DJIA becomes 964. Compared to a level of 95 as of Dec. 31, 1916, the DJIA in real terms has increased about 10 times. Still very impressive, but quite different from the nominal picture. The average annual real price increase of the DJIA is 2.3 percent for the 100 years up to yesterday.Growth rates of 2 percent, let alone 3 percent, extended over a century do remarkable things.

DYI:  Here is where the major asset categories line up in regards to valuation and sentiment.

Market Sentiment

Smart Money buys aggressively!
Capitulation
Despondency
Max-Pessimism *Market Bottoms* Short Term Bonds
Depression MMF
Hope Gold
Relief *Market returns to Mean* 

Smart Money buys the Dips!
Optimism
Media Attention
Enthusiasm

Smart Money - Sells the Rallies!
Thrill
Greed
Delusional
Max-Optimism *Market Tops* U.S. Stocks
Denial of Problem Long Term Bonds
Anxiety
Fear
Desperation

Smart Money Buys Aggressively!
Capitulation

DYI:  However some of my followers of this blog will only invest in the sentiment/valuation undervalue category and simply ignore or sell into the overvalued areas of the market.  I find no fault with this approach.  Will it outperform the market?  I don't know?  Maybe yes; maybe no; but would most definitely need to be compared over long time periods of 20 plus years.

Other investors have taken a hybrid approach using the model portfolio but only begin purchasing when our 3 main asset categories drop below their respective means thus only purchasing in the classical sense of a bargain.  At that point they use our formulas to determine the percentage.  At points overvalued they use our formulas for liquidation.

Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 6/1/18

Active Allocation Bands (excluding cash) 0% to 50%

66% - Cash -Short Term Bond Index - VBIRX

29% -Gold- Precious Metals & Mining - VGPMX

 5% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

[See Disclaimer]

The bottom line is this is your money and my blog is for education and hopefully a bit entertaining.  What you do with your money is up to you.  Thanks for coming to my site!  CHEERS!

DYI

 This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.

This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!

The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.

The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.

Use this site at your own risk.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

Trade

War!

Mr. Trump Attacks Aluminum, 

Russia Attacks the Debt

Putin is the master of parallel aggression.  You take an action against Russia, he will generally hit you back along some other vector.

In the case of the insane sanctions on Oleg Deripaska and Russian Aluminum giant, Rusal, back in April, we finally got some clarity as to how Russia can and will respond to future events. 

In yesterday’s Treasury International Capital (TIC) report, we saw clearly that Russia activated its nearly half of its $100 billion in U.S. Treasury debt to buy dollars in April.  More than $47 billion in U.S. debt was dumped into the market to cover the chaos engendered by Trump’s overnight diktat for the world to stop doing business with Rusal. 

In times past we may have not seen such a massive dump of U.S. debt by Russia.  They may have simply sold dollars directly or swapped euros or yuan for them.  But, these are different times.  Trump has taken the use of sanctions to a level that hasn’t been seen before. 

The net result will be more of the aluminum market will flow through the Yuan rather than the dollar, neatly avoiding sanctions and any future threats.  Because with the insanity caused by the overnight chaos in April, any aluminum supplier/consumer will be wary of another such edict from the naked Emperor in D.C. 

And, as such, they will diversify the currencies they buy and sell aluminum in.  It won’t be a sea change overnight.  Those least exposed will jump ship first.  Rusal will be one of the main beneficiaries since Russian banks are already sanctioned. 

Abusing your customers is never a winning marketplace strategy and that’s exactly what Trump’s sanctions policy is doing, abusing customers of the dollar.  Trust has been the dollar’s strongest attribute for a long time now and it is the primary reason why it has dominated trade and reserves. 

This is why Russia continues to run a very tight financial ship while it leads the charge away from the dollar. It’s inviting customers into the ruble with both a strong national balance sheet and relatively higher interest rates.  This has the U.S. fuming.

DYI

Make America Great

9

Sisters

Of

Institutional Change

1.)     End the Federal Reserve

2.)     Repeal 17th Amendment – Reinstate Federal Senators chosen by State Legislators.

1. Term Limits – Constitutional Amendment

A. Two six year terms for Senators

B. Three terms House of Representatives

3.)     Repeal 16th Amendment – Income tax replace with value added tax.

4.)     Pass the Balanced Budget Amendment

5.)     Exit the United Nations

6.)     Reign in the Medical Industrial Complex

a. Enforce Anti-Trust Laws

b. Pass Legislation for re-importation of ethical drugs

7.)     End Federal and Private Student Loans

8.)     Trust Bust Monopolies

9.)     Reduce & Decentralize the Federal Government

U.N. Watch

U.N. Human Rights Council 

• Saudi Arabia Expertise in human rights: Death sentences for apostasy and adultery; corporal punishment including flogging and amputation; judiciary controlled by regime; beheading more peoeple than ever before; arbitrary arrests of dissenters and minorities; no freedom of speech; jails blogger Raif Badawi.

• Venezuela Expertise in human rights: Widespread arbitrary detention; imprisonment of opposition leaders; intimidation of journalists; torture; policies causing mass hunger and health catastrophe.

• ChinaExpertise in human rights: Denial of freedom of speech, religion, and association; extrajudicial killings; repression of civil society; discrimination against Tibetans and other minorities.

• CubaExpertise in human rights: Systematic violation of freedom of speech, assembly, press; elections are neither free nor fair; threats and violence against dissidents.

• Iraq
  Expertise in human rights: Pro-government militias commit widespread human rights abuses, including assassinations, enforced disappearances, property destruction.

• QatarExpertise in human rights: Inhuman conditions for 1.4 million migrant workers; women denied basic rights to equality, denied right to be elected to legislative council; finances ISIS and Hamas.

• Burundi
  Expertise in human rights: Police killings of peaceful protesters; government forces commit summary executions, targeted assassinations, enforced disappearances; arbitrary detention, torture, sexual violence; genocide warning.

• BangladeshExpertise in human rights: Extrajudicial killings, forced disappearances, killing of secular bloggers by Islamist groups, restrictions on online speech and the press, early and forced marriage, gender-based violence, abysmal working conditions and labor rights.
  

• United Arab Emirates
  Expertise in human rights: No political parties, no option to change government; restrictions on freedoms of speech, press, assembly, association; arrests without charge, incommunicado detentions, lengthy pretrial detentions; police and prison guard brutality; violence against women; anti-gay discrimination; mistreatment and sexual abuse of foreign domestic servants and other migrant workers.

U.S. Quits UN Human Rights Council, Saying It’s Anti-Israel

The Trump administration withdrew from the United Nations Human Rights Council on Tuesday, making good on a pledge to leave a body it accused of hypocrisy and bias against Israel. 

The 47-member council, created in 2006 and based in Geneva, began its latest session on Monday with a broadside against President Donald Trump’s immigration policy by the UN’s high commissioner for human rights, Zeid Ra’ad al-Hussein. He called the policy of separating children from parents illegally crossing the southern border of the U.S. “unconscionable.” [DYI: Oh please cry me a river of fake tears the separation has never been longer than 2 months (usual 3 to 4 weeks) as the parents are put through the system, deported/reunited with their children.  Don't forget these people entered ILLEGALLY.]

DYI:  The age old expression of politics makes for strange bedfellows is needed more than ever for this continuous soap opera.  On the one hand at least leaving the so called human rights committee which is predominately run by tyrannical and/or dictatorial countries should be applauded even though it is done for all of the wrong reasons.  Israel’s treatment of Palestinians has been appalling along with their aggressive moves in the Middle East to control those other nations as vassal states [all with the help of the U.S. /U.K. military] we have a situation of everyone’s kettle being black.  Here at home we now have massive propaganda at tidal wave proportions with one fake mass shooting after another all promoted as real by the main stream media.  At least no one is shot; then obviously no one is killed or wounded, however unsuspecting and gullible Americans are being TERRORIZED*.  Bottom line at least for this portion of America’s palace intrigue, outright leaving the U.N. [plus ending 1.3 billion cost] will end this ridicules involvement in the dictators club that creates more problems than it solves.  Kick the U.N. out of New York remodel the building into apartments, hotel, and civic center helping alleviate New York City’s housing shortage.

*[The reasons are for business profits to install metal detectors, scanners, CCTV Networks, security personnel etc., turning our public schools into prison like facilities – all based upon a false (faked or hoaxed) premise.  Once legislation is passed MANDATING these devices you will see fake as hell mass shootings in other large businesses such as grocery stores, malls, Wall Marts (that has already happened) etc. all to pass further MANDATES requiring these devises making huge profits for the likes of companies such as OSI, Inc. and creating one hell of a police state as well.  So much for our human and constitutional rights.]

DYI

Pension Mess!

The States' Unfunded Pension Nightmares

Pensions: The stock market boom has helped everyone, right? Nope. States' pension funds have nearly $4 trillion of stock investments, but somehow haven't benefited from soaring stock prices. 

A new report by the American Legislative Exchange Council (ALEC) shows why this is true. It notes that the unfunded liabilities of state and local pension plans jumped $433 billion in the last year to more than $6 trillion. 

Let that number sink in for a moment: It's one-third the size of the U.S. economy, equal to "a whopping $18,676 for every man, woman, and child, or nearly $50,000 for every household in America," as The Daily Signal notes. 

It's a massive amount of money, in short.  

All because state officials and politicians never 

had the gumption to tell public-employee unions 

"no" when they asked for even more. 

So their gilded pension plans will soon start bankrupting states, such as Illinois and Connecticut, which now can't pay their pensions.

DYI:  The U.S. has been experiencing rolling bankruptcies moving slowly but continuously from State to State* and City to City.  Obviously current pensioners will have reduced payments commonly called a haircut and those still working will have more of their paycheck going to their pensions.  A few States and local governments have moved to the 401k style plans thus eliminating future problems with younger and future hires, however this has the short term problem of reducing vital dollars for the current old style plan.  No doubt this is one hell of mess and fixing it will leave everyone feeling cheated especially retirees who will suffer a drop in monthly pension income.  When the next recession hits depending how deep it is bankruptcies will pick up a lot steam and if it is deep expect multiple cities going under at the same time.

* [I realize States cannot file bankruptcy but how they work through the debt problem is very much the same.] 

DYI