Tuesday, July 04, 2017

Bankrupt

Day 55


United States of America 
At 241 years

How is the US doing?
In my opinion, our country on its 241st birthday is in terrible shape. The Federal Government has been driven into bankruptcy by what is known as the Federal Reserve Bank.

Do not believe what the government creeps tell you. That it is impossible for our Federal Government to go broke. The Federal Government can go broke. And will go broke. That is an absolute certainty.

The Federal Reserve is extremely easy to understand:
➜ A Central Bank had its roots around the beginning of our country, 1776. In order to finance our Revolution, the Continental Congress printed the new nation's first paper money. Known as "continentals," the fiat money notes were issued in such quantity they led to inflation.
➜ The baloney behind the creation of the Federal Reserve was that the FR would be able to control financial panics.
➜ A financial panic comes when people who have money in a bank go to withdraw some of their funds and their money is not there!
➜ What happens is, banks should keep a large amount of their depositor's funds on hand. Cash, in the bank. Maybe 80% +. These funds are called reserves.
➜ However, bankers are [In my opinion] crooks. They gamble with depositor's money and lose. Then the money is not in the bank for customer's to withdraw. And what do they do then? They close the bank's doors! That closing creates a bank panic.

Jump from 1913 to 2009
The Federal Reserve Bank was created in 1913. Let us jump forward in time from 1913 to 2009. Somewhere around 2000 to 2007, banks began to act very irresponsibly by gambling with their depositors money.

What those banks did, was to lend money out to unqualified borrowers. Why did the banks do such a stupid thing? Greed! The banks wanted to earn the fee that they received when they made a loan. Sub-prime mortgages became the in thing!

In 2008, when unqualified borrowers went belly-up, the mortgage loan market collapsed. Thousands of these mortgages went bad. $2 Trillion Dollars! Up in smoke. Gone!

But that was not enough for the banks! The invention of "bundled mortgages" led to the ability of banks to sell their mortgages. With those sales, lenders now had funds to create new mortgages. These bundled mortgages were labelled: Collateralized Debt Obligations [CDOs].

Who did the lenders blame? The US Congress!


Derivatives exploded uncontrollably: Collateralized debt obligations [CDOs] provided the first “infinite market”; at the height of the crash, derivatives accounted for 3 times global economy!!!!

Note: A derivative is like an insurance policy which guarantees that the value of a financial investment does not decline. 

Bottom Line
So, what is going to happen? A banking crisis is coming. When? Who can tell?

But the next time banks fold, there will be no Federal Reserve Bank to come to their rescue. Because the FR spent all their $dough$ and more to save the banks from the mortgage crisis of 2008. The FR is broke! As shown by the federal debt that the FR created which is now over $20 trillion bucks up from about $10 trillion in 2009.

The *shit* will hit the fan.



Yesterday - Searching for White Mountain
We have caught glimpses of a very large white [snow covered?] mountain to the north of Beaverton. But we could not get a clear view!

In Beaverton, there are sooooo many trees, that getting a clear view of White Mountain is pretty much impossible. But that impossibility does not stop The Scampy RV Team! No siree!

Around 7pm yesterday, we set out to take a pic of White Mountain. We knew that we had to head north, searching for higher ground. There had to be a clear place where Little iPhone could capture White Mountain.

On and on we searched. We came across private property that appeared to have the clear view we sought. But, we could not trespass!

Then we came to a cemetery. And there it was! A clear view of White Mountain and a surprise Big Mountain too!

White Mountain
Mount Adams

Big Mountain
Mount Saint Helens



Note: We are The Scampy RV Team. We are intrepid! When we set our minds to something, we carry on no matter what! 😎



9am - US Strategy in Eastern Syria
We are wondering what would happen now, if Barack Obama were still our President? President Trump's strategy is very aggressive unlike President Obama's passive stance.

The downing on June 18th of a Syrian Air Force SU-22 by a US Navy F-18 Super Hornet over the skies of Northern Syria would almost certainly not have happened under Obama.

Now, if you are OK with Israel going down in flames, Obama is your man. But if not, perhaps you should have a second think about Obama.

Click [Here] to read about what happened.


10am - Found a Rock!
We found a rock in a planter at the U-Haul in Salem. The rock is gorgeously painted.





3pm - Boid & George outside!
Baby Boid and George never even considered Scampy's awning as useful. But that was during the cold of Winter.

Now, it is Summertime! Inside Scampy it is 83℉. Outside under Scampy's awning, a lovely cool breeze is wafting by!

Ah! This is the life of a fulltime RVer.

Baby Boid and George under Scampy's awning
Rear-Fred Meyer Parking Lot

7pm - Fireworks!
While we were still at our Fred Meyer Afternoon Camp, we searched Google for best Salem fireworks display. We came up with Riverfront City Park.

When we arrived at Riverfront Park, the place was packed with persons also wanting to see fireworks.

Looking at a Google map of the area, we spotted the West Salem Boat Ramp across the Williamette River. Perfect!

We headed over to that boat ramp. We are here now. The fireworks display begins about 10pm!

Click [Here] to view our location at the boat ramp.

Riverfront City Park across the Wiliamette River
From the West Salem Boat Ramp


The Finale!











Nite Camp Location Map

Elevation: 213 feet




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46 comments:

  1. Happy Birthday America! I remember being at the 200th anniversary with my day. I was 8 years old. Wow...241.

    I agree with you George. Better have a "Zero" plan like I do. I can't wait to leave to Alaska and get myself ready for ANYTHING. No power, no problem, no money, no problem! HAHA! Have a great day George! :)

    http://pointtozero.blogspot.com/

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    1. And just to agree with George's worries. I come from the cyber security arena, and its going to be a lot worse than anyone thinks. Also, we used to "own" space...satellites, GPS....well both the big enemies have designed anti-satellite missiles. Yep, shoot down our space "ownership" and our smart bombs all become dumb. Oh yeah...atm's wont work either at that point...nothing will. I'm ready!

      Delete
  2. This just came in from FOX news:

    In 49 B.C., Julius Caesar’s army crossed the Rubicon and changed history. So did America’s founding fathers, exactly 241 years ago. North Korea’s launch of what it claims was an intercontinental ballistic missile – on July 4, of all days – could be another historic point of no return. Or it could be just another taunting gesture by that country’s head-case president, Kim Jong Un.
    Either way, President Trump should react with extreme caution. It’s one thing to tweet; it’s another to attack.
    While the most-discussed nightmare scenario is a nuclear-tipped ICBM, an equally horrifying possibility is that North Korea has developed, and uses, a so-called super electromagnetic pulse weapon – EMP – that could potentially take out America’s electric grid. “We know that North Korea got the design plans for an EMP from Russia years ago,” says Frank Gaffney, a former assistant secretary of defense under Ronald Reagan. “If they have one, they could take us, overnight, from the world’s only superpower to a pre-industrial society. Everything we need to live today depends on electricity.”

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  3. Hou guys are scaring me! I hold the same belief though. If USA goes, so gies Canada!

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    1. Hi Vera,

      So, you believe that if the United States suffers a devastating financial crisis because of the Federal Reserve mismanagement of the effects of the Mortgage Loan thing, that Canada would go down the tubes?

      Or are you commenting on Nuclear War?

      George

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    2. Actually both. Our two countries are so intermeshed.

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  4. Frank Gaffney is a kook. We have lived under the threat of nukes since 1951. Kim has maybe 2 weapons. We have 2000. If he tries something his country will be a glowing ember. He may be a head case but he knows that. By the way he was educated in Switzerland, so maybe not as nuts as we think.

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    1. If Kim gets the first strike on target it will be devastating.

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    2. I'm not sure we would respond with nuclear retaliation. Even if 5 million of our citizens were killed. I'm amazed how many Americans think we would respond by "obliterating" NK. We can't even pass a simple budget! Someone will say "We can't kill all those civilians" and the debate will begin. We will be held in gridlock over a catastrophe. It is just assumed that we would react in kind. I would hope we did...but would we actually? I'm a little worried about that. We may not even defend one of our allies these days...Hmmmm?

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  5. If you still want to waive your American flag after reading this feel free

    As most know The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Their purpose is to serve the public. So is the Fed private or public? ... While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations.
    Two things that they could bring on another US crisis; student loan payback debt even so bankruptcy does not dissolve it.
    Creating jobs that will pay back Loans do
    Student loan debt is now the second highest consumer debt category - behind only mortgage debt - and higher than both credit cards and auto loans.
    there are more than 44 million borrowers with $1.3 trillion in student loan debt in the U.S. alone. The average student in the Class of 2016 has $37,172 in student loan debt.
    But here is your biggest one
    In the past two years, U.S. drivers with credit scores of less than 620 borrowed $244 billion to buy cars, a tally not matched since 2006 and 2007 when the same strata of buyers rolled off with $254 billion in auto loans.
    The US closed out 2016 with just shy of $1.2 trillion in outstanding auto loan debt, a rise of 9% from the previous year and 13% above the pre-crisis peak in 2005, in inflation-adjusted terms. The number of cars and trucks on the road, meanwhile, rose by only 1.5% last year, and 9% since 2005, according to US transportation department data. Total household debt levels are now a hair under their 2008 peak, with some of the fastest growth in recent years down to auto loans.Lenders are more comfortable with risk these days, as reflected by rising loan-to-value ratios and ever-longer loan terms. But those signs also suggest that lenders might be letting car buyers borrow more than they can afford. Mortgage regulations tightened after 2008 to prevent banks and other credit intermediaries from writing loans on the freewheeling terms that led to the subprime boom and bust. Auto lending attracts far less scrutiny—and therefore, offers more opportunity.
    Bottom line.
    Balance of newly delinquent US auto loans 25 billion yes billion

    ReplyDelete
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    1. Hi Mister ed,

      Suggestion:
      Abraham Lincoln's address at Gettysburg, Pennsylvania had 272 words.

      Hint, hint!

      George

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  6. Here is the counter-argument (not sure it holds up much). All the oil in the world is traded in the Dollar. Also we are considered the "safest" bet in investment (mostly because we have laws here). So the thinking is that as long as America is the "top bet" for safe money, we can PRINT all we want to! Yeaaah! A printing we will go... a printing we will go...YES, just print and print US$...and everything will be fine! That is the counter argument...lol. I'm going up north to learn how to hunt and make fires.

    ReplyDelete
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    1. Sure we could print more money but like your bank account if you overdraw you have a penalty if you finance you have a financial fee
      when you go out and you borrow money
      Someone is picking up that note if you get a chance to cut and paste you'll see who is picked up the notes
      After you read it your Alaska trip will be very refreshing
      Cut and paste to open

      http://www.businessinsider.com/us-treasury-countries-that-hold-the-most-us-debt-2016-5

      Delete
  7. If it's any consolation the Japanese government voted to not tax bitcoin's
    The other consolation is the largest financial investment company in the US has predicted a 50% rise in bitcoins over the next two financial quarters
    Pretty good for a currency you can't physically touch, can't hold in your hand, and can't put it in your safe deposit box, and can't put it in your home bank account.
    But you could trade worldwide for almost any product,,

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  8. George is just the rebel we need! From his first few blog posts he spoke of revolution...haha. George, if the SH*T hits the fan (like you said), I'll have a spot up north for You, Transito & Scampy. I'll put you on "perimeter patrol" to check the fences. Can you drive an ATV? :) Let's go! :)

    ReplyDelete
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    1. PTZ
      Think of the big picture: if the shit hits the fan what's going to stop
      The biggest, consumer usage is the downfall for everything and only one guess will tell you what it is
      Electricity electricity electricity
      Thanks seriously if you step out your door,, right now how much dollars do you have in your pocket, that is your survival. think how you use it.
      why because
      The gas station the ATM machine the grocery store The 7-Eleven store the mom-and-pop grocery store.the hardware store the sporting good store the survivalist store. and that's only to name a few?
      So if your going to runaway to Alaska how are you going to get there. With the financial means or the physical means to support that endeavor
      Remember you only have what is in your pocket. So that Credit card ATM card MasterCard Visa card discovery American Express airlines credit cards will be useless
      I'm guessing you are in the Washington state area let's hypothetically guess there's 5 million people in the state of Washington. Your 5 million and ONE that HAS to survive
      In a survival situation. a survivalists rule: plan WELL ahead. Keep low key. he who has the most wins
      So let's see when dear old Georges is going to run out of money
      His 401(k) IRA vanguard funds are going to be useless
      When he runs out of gas up in the mountains over looking the snow caps peeks Ho-boy you really think you're going to get a 79 1/2-year-old man on an ATV
      And play perimeter guard
      Boy I got news for you brother
      Now if you could teach mr. G how to siphon 12 gallons of gas out of somebody's car, it'll teach the old dog a new trick and he'll survive forever

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    2. I have converted all my assets to cash. I am waiting on the closing of my final home. I'm seriously leaving. I will then convert a lot of it to guns, ammo, fuel, technology, land, shelter, fishing gear. Stuff to survive on without a government. I can't go 100% off-grid (to your point), but at least I can be 50% self-sustaining. I was just funing around with George on an ATV, but it is a great thought! :) :)

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    3. I heard today that NC missiles could reach as far as Alaska! Chose your spot wisely lol

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  9. White Mountain = Mt Hood
    Big Mountain = Mt Saint Helens (what's left of it after it blew up in 1980)

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    1. Hi Brother Pete!

      I figured that a Reader would ID those mountains!

      And it is none other than Brother Pete!

      George

      PS: Thank you sooooo much for your description of my RV setup as being Elegant! 😎

      .

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    2. And I believe the white mountain just behind Mt. Saint Helens (to the left) is Mount Rainier in Washington State.
      -Tom L.

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    3. But apparently I was wrong - Mt Adams, not Mt Hood?

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  10. Deregulation started with Reagan and continued to Bush administration...that is why the mortgage some of the financial crisis happened. Banks were deregulated and savings and loans as well and yes banks over extended themselves and continue to do so now i.e. auto and credit cards. I guess I better learn to raise rabbits, sheep, goats, and chickens to eat. Don't need to go to Alaska to do that. Learn to grow crops. Problem is will there be clean uncontaminated water? Again, Republicans has no interest in environmental clean up so we'll eat toxic fish, poultry, beef, chicken, pork and you name it....which means more cancer and other diseases. We're doomed either with money or without money. Our leaders think it's fake news!!!

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    1. PS I also better get a couple of donkeys and a buggy or cart to get around.

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    2. The primary cause of the Great Recession was the bond rating agencies not properly rating the bundled mortgages sold as bonds. Had the bond rating agencies done their job correctly, there would not have been sub prime mortgages.

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  12. Check out Marion County Oregon Rocks on facebook! Its the latest fun summer fad going on nationwide! Paint your own rock and hide it for some to find, too!

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  13. Lots of scary talk here. If we go bankrupt and revert to survivalism, you will wish you were dead. In this respect, I'm glad I'm old and have lived most of my life in a pleasant environment. Best of luck to us all....

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    1. Hi John,

      You are not that old! Good chance we both might still be alive and kicking when the USA goes belly up.

      Maybe we will both be living together at Jojoba Hills. We might form a mutual protection society?

      What a kick!

      George

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  14. About the Painted rocks. They are now everywhere.

    http://www.today.com/parents/rock-painting-groups-connect-families-communities-t111934

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    1. I'm not sorry but I love to stir the pot to get things agitated

      But on a brighter note I'm from Florida Brevard County and I have never seen this kind of painted rock but what a marvelous idea
      It's like finding a quarter on the park bench now I'm going to start looking for them it's almost like geocaching but without the GPS coordinates
      I think it would be even cooler if you could sign them and put them back for somebody else to find

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    2. Hi Larry,

      Yes! That is the kind of rock that I found in a U-Haul planter box in Salem, Oregon!

      I'm working on contacting Marion County Rocks to report my find and learn what is next for my colorful rock!

      George

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  15. George, you have taken some very complicated topics and drawn conclusions on a small amount of evidence and considerable supposition. I am not ready to make the leap.

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    1. Hi Bob,

      Well, what complicated topics are you referring to?

      Here I am. An easy target. Shoot me down! 😎

      George

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    2. I am referring to the US economy and the middle east. Huge topics. I am glad one of your readers clarified the Fed and the bailout pay back.

      Delete
  16. It isn't the US's job to protect Israel. Israel should stand on its own just like any other country.

    The US is technically bankrupt, yes. But being bankrupt doesn't mean the end. I believe I read in one of your blogs, George, that you went thru bankruptcy but that hasn't stopped you!

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    1. I hope George doesn't mind me answering your question Jim
      We don't protect Israel
      If you cut and paste it's a good read

      http://nypost.com/2011/09/20/why-we-need-israel/

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    2. Hi Jim,

      You are correct. It is NOT the job of the USA to protect Israel. However, it is in the USA's best interests to help Israel be its surrogate USA military in the Middle East.

      Yes, I went thru bankruptcy in 1995. And came out financially free of all debt. My debt was small. About $20K credit card debt.

      There is a bankruptcy court for individuals in the USA. I am not aware of a bankruptcy court for a country. Are you?

      So explain. Just how does a country [i.e. USA], go thru bankruptcy and come out whole, as I did?

      George

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    3. Mister ed,

      I read the story you suggested. And I agree 100%.

      George

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  17. George, I think you have been misinformed about the Federal Reserve System: you wrote, “…the FR spent all their $dough$ and more to save the banks from the mortgage crisis of 2008. The FR is broke!” Nearly all of the banks paid back their bailout money with interest and the US Treasury has made a  $318,000,000,000 profit on the deal. Details here: https://projects.propublica.org/bailout/

    The US National Debt is and always has been a big, scary number. However, compared to the Gross Domestic Product (GDP)—our ability to pay our debt, our debt is quite sustainable. If the USA was a bad risk do you think lenders would agree to getting only 0.96% (one month) to 2.86% (30 year) for loaning us money?

    http://www.businessinsider.com/us-government-19-trillion-debt-not-a-problem-2016-4

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    1. This is the counter-argument I mentioned above. It does have some weight to it. I would say this to the counter-argument people: Why don't we pay off our debt and prove we can do it? It would give us a very healthy start and make our country really AMAZING. I think probably because we can't. We have to hope that we stay on "top". That is a risky bet for the long-term to me.

      Great thread of topics. I love this stuff too! :) :)

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    2. Hi Point,

      The American are able to pay off all the debt. If the National Will To Do It were there.

      BUT, IT IS NOT THERE!

      And it should NOT be there. Because all that debt, every single penny, is already borne by the American People!

      That is the evil of the Federal Government and the Federal Reserve. Both of these evils, make ridiculous, crazy errors. And get a free pass [They give themselves that pass.] Because all of the American sheep have let the power they hold, unused, go down the drain.

      As Thomas Jefferson stated:
      Click [Here]
      to read what Jefferson wrote!

      George

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  18. George, there is a group, you can find them on Facebook, called Art Abandondment that leave objects of art, some expensive some simple painted rocks. What you found may well have been from a artist from that group.

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    1. Hi Nancy,

      Maybe he is an artist from that group?

      He is also an employee of U-Haul in Salem, Oregon. The artist told his supervisor that he was surprised that it took a couple weeks to find his rock!

      George



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  19. VERY HAPPY FOURTH OF JULY, GEORGE!

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    1. Hi Joan,

      Thank you!

      Today is a FANTASTIC Independence Day celebration for me!

      George

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