Monthly Archives: March 2012

Denver Signs Peyton Manning

Denver signed Peyton Manning as a free agent.

It was a brilliant move by John Elway.  That gives him an excuse to dump Tim Tebow.  Instead of saying “WTF?  You cut Tim Tebow!”, people in Denver are saying “Wow!  Peyton Manning!”

Tim Tebow may have played well enough to hang onto his starting job, but not well enough to win a Super Bowl.  There may have been several 8-8 or 10-6 seasons, but no Super Bowl.

Lots of Tim Tebow’s “miracle 4th quarter wins” should have been blowout wins.  Denver’s defense kept the game close, and Tim Tebow scored at the end of the game.

I already expressed concern about Peyton Manning’s spinal cord surgery.  This could be a disaster.  It could be a Dale Earnhardt moment for the NFL.  Some people said “Dale Earnhardt dying during the Daytona 500 was like Peyton Manning dying during the Super Bowl.”  Linebackers are going to aim for Peyton Manning’s neck.  Peyton Manning is an adult and has informed consent, so it’s his choice.  I am concerned.  This could be a disaster for the NFL.

I always am offended when a professional athlete says “My #1 goal is to win!”, and then signs a huge contract.  Denver is spending approximately 10-15% of their salary cap on Peyton Manning.  In a salary cap league, every dollar Peyton Manning earns is one dollar less to spend on teammates.  Just once, I’d like to see a star athlete say “My #1 goal is to win!”, and then sign a minimum contract, leaving lots of cap room for teammates.

As far as I can tell, Denver didn’t exploit the “signing bonus cap loophole”, due to Peyton Manning’s injury.  With the signing bonus cap loophole, a team can pay a star athlete a $25M signing bonus and minimum salary in year #1 of a 5 year contract.  Then, the cap hit is only $5M in the first year.  That loophole was not closed under the new CBA.  I’m surprised Denver did structure Peyton Manning’s contract like that.

It was a brilliant move for John Elway to sign Peyton Manning.  That gives him an excuse to dump Tim Tebow.  Even if Peyton Manning flops or is re-injured, then John Elway can cut him and start over with a non-Tebow quarterback.  With Tim Tebow, Denver could have had many average seasons, but no Super Bowl.  I am seriously concerned about Peyton Manning’s spinal cord injury, but he’s an adult and is free to make his own decisions.

$25B “Taxpayer Gain” From Mortgage Bailout

This story has a common fallacy. Every time I see this fallacy, I’m disgusted and offended. The Federal government “made a profit” of $25B on its “investment”/bailout in mortgage bonds. Do you see the fallacy?

The fallacy is that the “profit” calculation ignores cost of capital and ROI. The Federal government spent $225B in Q4 2008, for a “profit” of $25B in Q1 2012. That’s an annualized gain of approximately 3%.

A 3% annualized gain is horrible. True inflation is 20%-30%+ per year. State comedians look at the nominal profit and say “Hooray! The bailout was a good idea!” That shows complete economic illiteracy, ignoring cost of capital.

Instead of giving $225B to a handful of banksters, they could have instead used that money on infrastructure or a tax cut or lower inflation. It would have “stimulated the economy” more to give $600 to everyone, rather than give $225B to a bunch of banksters. The “advantage” of the bailout is that a small group of insiders profit.

If the banksters had to go door-to-door and steal $600 from each American, that would be obviously evil. Via inflation and taxes, the effect is the same. It’s “distributed costs and concentrated benefits”. The banksters had a *HUGE* incentive to lobby for a bailout. They spent a fraction of $225B lobbying for the bailout. The typical voter is powerless. A huge percentage of Americans opposed the bank bailout, but politicians did it anyway.

The politicians said “HAHAHA!!! We’re smarter than you! We’re voting for the bailout even though you don’t like it! Even if you vote against us in the next election, our opponent will also be a bankster puppet!”,

The banksters got to trade $225B of junky overpriced assets for cash. Then, they used 30x-100x leverage on that cash infusion, to profit even more.  The “value” of the bailout isn’t just the $225B cash infusion.  It’s $225B levered up with secret loans from the Federal Reserve.

There’s also the “seen vs. unseen” fallacy. Politicians can claim “Hooray! We saved the banksters!” You don’t see the other things that $225B could have bought.

Also, even if the bailout *WAS* a “successful” investment, it still was a ripoff. By definition, no other buyer was willing to buy those crappy mortgages at those prices. Even if they got lucky and made a nice profit, the bailout still was a ripoff.

The Federal Reserve was buying mortgage bonds as part of “quantitative easing”. The Federal Reserve has an unlimited budget. The Federal government may have sold those mortgage bonds to banks, who immediately flipped them to the Federal Reserve for a profit. There is no way to determine the “fair free market” price for those bonds.

Technically, the Federal government bailout was unnecessary.  The Federal Reserve could have directly bought all the junk mortgage bonds, without any public disclosure.  However, if the Federal Reserve flagrantly gave a secret big bank bailout, then Ben Bernanke wouldn’t have been able to talk on TV without laughing.

I’ve seen this fallacy cited over and over again. “The government made a profit from its bailout ‘investment’! Therefore, the bailout was a good idea!” That calculation ignores cost of capital, ROI, and inflation. By definition, no other buyer was willing to invest at those prices. The bailouts are corruption capitalism. Banks get huge direct and indirect State subsidies, and they spend a lot of money lobbying, pure corruption.  A negligible nominal profit made the bailout seem like a good idea. With high inflation, if the Federal government waits long enough, almost any bailout will show a nominal profit.

Reader Mail – 03/11/2012 To 03/17/2012

Note: Due to a defect in the rawr plugin, the formatting for this post shows up wrong on the blog homepage, but it does show up correctly if you view it as a single post or in a RSS reader.
JB Smith commented on node.js Is VB6 - Does node.js Suck?.
So sick of the "I'll just do it with LAMP stack" or you "MUST" use the LAMP stack. Holy shit that lame piece of turd that is PHP keeps getting propped up as the best thing ever invented. Please open your brain to learning something new. Sick and fucking tired of the company founders who don't know that LAMP is not the only way to build an application. BTW self = this is a very typical paradigm, to preserve the scope of 'this' inside a function. Want to find out more about javascript, just listen to Douglas Crockford on YouTube. PHP has sucked for a very long time. Go read the PHP documentation for some of the absolute worst examples of user contributed code examples to understand why. As to setting up LAMP being hard, when has this ever been hard? Setting up LAMP can be done in your sleep. The reasons NOT to use LAMP become more clear once you stop swimming in the PHP hole.

commented on node.js Is VB6 - Does node.js Suck?.

Wow, what can I say that wasn't said so succinctly by others on this thread...

If you thought the node.js documentation was "unreadable garbabe" it means you didn't understand it. Otherwise it would have just been "garbage" and you'd have more than just wantonly unfactual statements to use as criticisms.

Node.js != VB6, ASP.NET != VB, ASP.NET != PHP, and C is not slightly more time consuming than node.js. Statements like that are how programmers can tell the difference between people who know how to program and those who look at syntax.

The only thing you've managed to concretely point out is that you couldn't write a complex application in node.js because you don't understand it. Other people work on massively complex applications in node.js on a daily basis, including myself without any problems of complexity.

I saw one amusing code fragment. He had “self = this” in every function. You have to preserve the “this” variable for the callback, because “this” always refers to the current object. If you have “self = this” at the top of every function, that’s a sign that there’s something wrong with your language.

So, one guy's less than stellar programming practice means JavaScript is wrong? First, "this" refers to the calling scope not the object. Second, "var self = this;" is only necessary if you need to maintain a reference to a parent scope from within a closure and JavaScript is not the only language that offers this construct. But this has nothing to do with node.js and everything to do with lexical scoping.

Callbacks are a disgusting way to code. It rapidly leads to a mess.

Have you ever written a web app? Worked with dom events? Used jQuery? they all require/use callbacks for a variety of tasks, and they're all pretty succinct ways of doing event driven functionality. Maybe the lead to a mess when you write them...

There was another amusing “feature” of node.js. If you have a bug in your code, then the entire server crashes! That was amusing and pathetic.

Wow, the ignorance is making me light-headed. First there's a global exception handler to prevent the server from crashing (look for uncaughtException in the docs, it clearly explains the purpose.) Second, only the process crashes, not the entire server, and only if you don't use any of the existing utilities to restart the processes on error. And finally, your ASP.NET application will crash in the same spectacular way when it hits a runtime error, so how exactly is this a problem with node.js?

If you have to install a bunch of other packages and tools to get proper behavior out of node.js, that’s a symptom that you’re building on a flawed foundation.

node.js is a fully functioning stack of its own accord. No other libraries are necessary for proper behavior, only node.js. And anything you can say about node.js requires X for blah, can also be said about LAMP stacks.

Try writing something with complex business logic in node.js, and you’ll understand my point.

Is this because you tried to write complex business logic in node.js and stumbled through it? I believe you said you lightly reviewed it one day before a job interview. Complex business logic is written on the client side in JavaScript for a number of applications that run on LAMP stacks like GMail. So what about node.js makes this impossible that is otherwise possible in a browser?

All of the comments they made about me were name-calling without addressing any of my points.

Just about every point you've made has been addressed as invalid here with supporting facts. If you really know that node.js is flawed, you should provide some examples, perhaps some code samples. At the very least some warranted statements.

Fortunately I won't have to worry about hiring you because you'll never apply to one of my job applications. :D

Eight commented on node.js Is VB6 - Does node.js Suck?.

I stopped reading at "full off illogically put together features, bugs and security flaws".

Billy Binkerton commented on TJ Lane (Ohio School Murderer) Was Probably Taking Psychiatric Drugs.

Thanks, I just looked at your website and yes. If he's going to a school for "troubled" kids, he's on drugs for sure. The family has major addiction history and that means that state social workers, CPS, has been in contact with this boy many times and certainly have had him on lots of pych meds too. The interesting part of this story is that none of that information is being reported on. Just that he is "mentally troubled" and possibly actually incompetent. So I'm thinking this isn't a case where he was taking "an" anti-depressant or "an" adhd med, like Tyler Hadley or Allyssa Bustamante, or Phoebe Prince, or the other ten stories in the news since this one where people have shot up a bunch of places. I'm thinking this is more of an epic drugging of this boy by the alternative school and gross negligence of CPS and that the authorities are really hmmng and hawing about just how to handle this in order not to release this information. A red flag is that they are not charging him as an adult yet. Most cases get decided quicker, even the nine year old that stabbed someone to death is getting charged as an adult and he was on meds, too. So this must be really juicy. I have had horrible experiences with these drugs and have turned them into websites and videos on Binkerton Studios Live and thought I would share that with you. Thank you again for posting this and please post updates if you learn anything new. The beans will get spilled eventually.

Anti-white idiots commented on State Sanctioned Murder In Florida - Trayvon Martin.
Anybody called 'Trayvon' should be incarcerated for life, simply because of their NAME - because having such a STUPID name tells you two things - 1) They're black (and therefore FAR more likely to be a violent criminal than a white person), and 2) Their parents are 'ghetto' scum who choose stupid, ridiculous names for their bastard offspring, thus reinforcing the likelihood of point 1.

'Trayvon' was a hate filled piece of shit, as anybody who looks at his photo can tell. Or just look at his hate filled brother, who you can see in photos of his 'fambly' in the news. Another hate filled felon waiting to rape and murder white people. Why don't they want to live in an all BLACK country?

Because they're worthless parasites who STEAL from white people - they can't produce a first world standard of living on their own, so they thought they'd steal ours.

They cry 'racism' every day, but never cry 'separation'. Why is that?

Meanwhile, every year millions of white people MOVE HOME to get AWAY from third world scum.

Are you serious or trolling?

The choice of name is a capital offense?

However, here's one observation that does back up your racism. There are almost no black computer programmers. Every other group is represented (Russian, European, Asian, Indian). Is that due to culture, or inherent intelligence? I think it's mostly culture. "Computer programmer" is a merit-based field. Someone completely incompetent won't last long. (Actually, they get promoted to management!)

They published a picture of him in a hoodie, to make him look seedy. There were other nicer photos.

It's wrong to say "All members of group X are evil." There are some honest politicians, but most are evil. Most State welfare bureaucrats have evil tendencies.

Trayvon Martin would have made it home without incident, if George Zimmerman wasn't there. It's clearly murder.

Here's my best estimate of what happened. George Zimmerman started a fight with Trayvon Martin. He was losing that fight. Then, he pulled out his gun and shot Trayvon Martin. That isn't self-defense. That isn't manslaughter. That's murder. You can't start a fight with someone, and then shoot them, claiming self defense.

Stormfront Idiots commented on State Sanctioned Murder In Florida - Trayvon Martin.

Give me your home address and we can talk about this like reasonable gentlemen.

No threats of violence here. I can't believe you're so eager to support the murderer. Are you serious or trolling?

The enemy is the State, and not some teenager who was going to the store to buy snacks.

"Black vs. white" is a distraction. The real battle is "productive vs. parasites/psychopaths". If only the poor white and poor black people ganged up against the banksters! Racism is promoted to prevent them from cooperating.

matthew watkins commented on State Sanctioned Murder In Florida - Trayvon Martin.

2901 E. Yorba Linda Blvd. Fullerton, Ca 92831. Give me your time and date so we can meet up.

matthew watkins commented on State Sanctioned Murder In Florida - Trayvon Martin.

Read the book, "The New Jim Crow". Then understand whats going on in incidents like this. If were going to incarcerate people based on their name, then "Anti-White Idiots" is a good place to start. Apparently Trayvon's parents live in the ghetto, especially since zimmerman was his neighbor. Oh wait they didn't live in the ghetto they lived in the gated community. I would love to see your hate filled photo so I could recognize a "hate filled piece of shit". We have already settled this race question in the civil war and world war II, you lost badly and now the United States is slowly but certainly becoming more mixed. Welcome to the Federal North, we own your confederate ass.

I'm not sure that's a good idea. Besides, it could be a fake name and address!

There's another interesting detail. The police said "We can't prove it's wasn't self-defense. Therefore, it was a justified shooting."

Really? Is that the law now? You can kill someone, and you get away with it, unless the police can prove you weren't defending yourself?

Also, "It was a self-defense shooting." is an affirmative defense. If your defense is "I wasn't there. The police got the wrong guy.", then you can keep quiet and let your lawyer do the talking. If your defense is "I murdered him in self-defense!", then you should be required to tell it to a jury, and let them decide if they believe you or not. (There may be some other witnesses to the confrontation, which may partially back up George Zimmerman. However, George Zimmerman started the fight with Trayvon Martin, which should cast serious doubt on the claim of self-defense.)

SSE commented on State Sanctioned Murder In Florida - Trayvon Martin.

You are an idiot. Even worse, there are many uneducated, amoral idiots like you in this country. African Americans have given their blood, sweat and lives for this country. We have served in every war proudly and with honor. In return we received systematic lynchings, torture, the lack of a decent education and the enactment of the Jim Crow laws, all designed to ensure we remained as an underclass in this country. We have survived and flourished despite these actions.Believe it or not, the vast majority of African Americans get up each morning and go to work so they can support their family, as Treyvon's parents did. The question should not be "Why don't they want to live in an all Black country" The question should be "Why don't you pick your sorry ass up and leave this country if you don't like it?". Recent studies show the majority populating America will have darker skins in the near future. You should leave asap. The story of Trayvon Martin is heartbreaking. Even sadder is the fact that this is not the first time this type of incident has happened nor will it be the last. Zimmerman should be arrested and charged with murder. There is no excuse for his actions. The way the local police attempted to become the arbitrator of the case instead of allowing the courts and the citizens handle it should be thoroughly investigated and charges should be filed if it is shown their actions warrant it.

Anonymous Coward commented on Rush Limbaugh Censorship.
Ron Paul is an honest man.

In fact I am glad he exists as it is interesting to know what an honest politician would look like.

Ron Paul's explanation of inflation is very lucid i.e. politicians and the military-industrial complex get the inflated money first, get the value of it and then later the population suffers the inflation.

Anonymous Coward commented on Rush Limbaugh Censorship.

The important point on inflation is at 5 minutes 14 seconds in the below video.

He sounds a bit like you, FSK!!!!!

I did watch Ron Paul a bit when I first started blogging. I saw him question the Federal Reserve and IRS.

I wrote some bits on a Ron Paul wiki and Ron Paul foums. Ron Paul was right. The Federal Reserve and IRS really are evil.

I got tired arguing with trolls on the forums. It was frustrating making the same points over and over again. I decided to switch to my own blog, where other people couldn't drown me out in a flood of nonsense.

Anonymous Coward commented on Rush Limbaugh Censorship.

Perhaps FSK is Ron_Paul++ !

No, that won't work will it.

I meant ++Ron_Paul .

f commented on Reader Mail - 03/04/2012 To 03/10/2012.
Neat site: various charts priced in gold.

My favorite charts are "S&P in gold" and "GDP in gold". Those are very interesting.
Anonymous Coward commented on CNBC GLD Propaganda.
Typical scumbag trick!

1) Lying by omission

2) Lying by saying a statement that is technically true, but your intention is to give a false impression

3) Saying something that is true, but is very unlikely to be the cause

4) Mixing lies with truth

Anonymous Coward commented on Only Stupid People Work Here.
I've seen that "you are stupid" attitude before.

In one company, the software developers messed around for a year and created an horrid mess. When I started all the developers had resigned and one was hanging around during his last month.

When I asked him to demonstrate the software to me, HE REFUSED. Obviously he knew if was a pull of dog dirt and wanted to hide the disaster until he was firmly out of the company.

I worked hard and rewrote the software almost from scratch after all the developers had left. The software I wrote worked perfectly.

Instead of thanking me, the chief idiot at the company just said I was stupid for various stupid reasons.

The fact that he was manager of a project that had produced one of the biggest messes I've seen was beside the point.

The important point is that they're really talking down to me, rather than treating me like a professional and someone who knows what he's doing.

They aren't going to change. The only thing I can do is look for something better.

Real Money!

I went to a fast food restaurant and bought a hamburger. As part of my change, I received a 1964 90% silver quarter!

It was almost like getting a free hamburger. The silver coin is worth $5-$6. Quoted in real money, the price of a hamburger+fries+soda hasn’t changed much from 60 years ago.

I was able to tell right away. The silver coin makes a different “clink” sound than the other coins.

The cashier thought that she had given me a dollar coin by mistake, because I was so happy. I explained to her that it was a 1964 silver quarter, but she didn’t get it.

I get one or two pieces of junk silver every year. I’ve found war nickels and dimes. This is the first silver quarter.

I’m able to identify junk silver nearly instantly. It makes a nicer “clink” sound. The silver is a sightly different color than other coins.

Maybe I should ge a job as a cashier? If I get one piece of junk silver per year, a cashier at a fast food restaurant must see at least one per week.

It’s interesting to compare real money (silver) to counterfeit money. The silver coin makes a nicer “clink” sound when it touches another coin. It feels nicer and looks nicer.

Only Stupid People Work Here

At my wage slave job, I rewrote an old VB6 program in VB.NET.

My original instructions were “make a copy plus these changes”. I did that. Then, they asked for a total overhaul. I did that. Then, they asked for another total overhaul.

Every time I finish, they add a whole bunch of new features. (That’s why you *NEVER* agree to work for a flat fee. You’ll be haggling with the client, over when it’s done. I’m a regular full-time employee, so it doesn’t matter in that sense. It is frustrating.) I have 3 bosses, each asking for different things and semi-contradictory features. They spent zero time thinking about specifications ahead of time.

Sometimes, you don’t know what you really want until you see a demo. However, the number of rewrites and “Add this feature now!” is starting to get silly. They didn’t do any planning at all, before I started working.

My version is way better than the old program. The only reason it isn’t “finished”, is that they keep asking for more features.  My program will be used by several people, sorting the documents that customers submit. I asked “Why don’t we do a release? Then, add the other stuff in version 2.0.”

The reply was “Those people are stupid. We won’t be able to explain it to them twice.”

That was insulting. Low-ranking workers tend to be smarter than management gives them credit.

Here’s another incident, that shows they are bad managers.

Owner: (hostile) Why didn’t you implement X! I told you to do X! (implying that I had done a bad job)
FSK: You never asked me to do X. This is the first time I ever heard about X.
Owner: It was in the E-Mail where I asked you to do Y!
(I opened the E-Mail, and showed him that it didn’t mention X.)

That was offensive. The hostile tone is annoying. Even if I had forgotten about X, it’s a reasonable oversight in a complicated program. I’m doing a whole bunch of new features every day.

It’s pretty obvious what’s happening. The other programmer is telling the two owners that I’m a barely qualified loser, rather than someone who really knows what he’s doing. I’ve been on the receiving end of that many times. There’s no point in warning the owners, that their “partner” of all these years is pulling a con on them. The owners are completely clueless and can’t tell the difference. In their minds, anyone polite and friendly is a loser.

That’s an offensive attitude for an owner to have. “I only to hire stupid people.” That isn’t what I would do. I would identify intelligent people who hadn’t had much success. (Hint: Look for the “abused productive” personality type.)

Here’s a good exercise. Go into a supermarket or other store. Ask yourself “Who’s the best employee here?” or “If I could pick one person here to hire for myself, who would it be?” It’s very educational. (For example, the manager at the Broad Street Quizno’s at lunchtime is super-effective, when I was there in mid-2011.)

“Only stupid people work for me!” is an unhealthy attitude. I also sense it when they deal with me. They’re treating me the same as someone they hired for minimum wage. Instead of having the attitude “FSK knows his stuff!”, they think “FSK is an idiot, just like all the other people who work for me.” In one sense, they are correct. I should find a better job. They lowballed me on salary. (That’s always a mistake to accept. I should have known better.) It’s an unhealthy environment.

“Sterilized” Bond Buying – New Federal Reserve Scam

This story is interesting. The Federal Reserve has a new name for the usual scam, “print new money and give it to the banksters”. It’s called “sterilized bond buying”.

Here’s how it works. The Federal Reserve buys long-term junky bonds (probably mortgage bonds) from banks. At the same, those banks are required to buy short-term Treasuries (or other short-term loans), lending that money back to the Federal Reserve.

The lie is “Banks are required to buy short-term Treasuries. Therefore, this is not inflationary.”

That is false. First, banks can sell those Treasuries/loans and buy other things. Second, the bank is swapping junky assets for Treasury debt. Third, the bank can use that Treasury debt as collateral for other leverage. Fourth, the banks profit from the interest rate spread. Finally, the Federal Reserve probably is overpaying for the bonds.

Suppose that the Federal Reserve sells the bank short-term Treasuries at 0.25%. Later the Fed Funds is lowered to 0.1%. The bank gets a profit of 0.15%. 0.15% seems like nothing, but when you multiply by billions of dollars and add 100x leverage, it’s very valuable.

Suppose that the mortgage bond really is worth $0.5B but the Federal Reserve pays the bank $1B. That’s a gift of $0.5B to the bank. Even if it’s a repurchase agreement where the bank must buy it back later, the bank gets rid of a junky asset and gets $1B liquid. In the meantime, the bank profits. By the time the repurchase agreement unwinds, inflation might make the bond worth more than $0.5B.

There’s no such thing as “sterilized bond buying”. The Federal Reserve creates new money and buys bonds/junk from banks. That’s inflationary. The details are obfuscated, to make it harder to understand what’s going on. The details of the scam are slightly changed each time. That’s a distraction. By changing the details slightly, it seems like a clever new idea, rather than the usual “Print new money and give it to banksters.”

Greg Smith Fnord?

This story was interesting. A former Goldman Sachs vice president wrote an editorial in the NY Times, citing corruption inside Goldman Sachs.

However, it had no substantial new information. “Goldman Sachs brokers trick customers into making bad trades so that Goldman Sachs can profit.” If you didn’t already know that, you’re an idiot.

That’s one aspect of corruption in the financial industry. A bank/broker is trying to make profitable trades for its own account *AND* manage customers’ money. Those are inherently conflicted. Most people would have trouble managing that conflict, and banksters tend to be pretty unethical.

Here’s some “whistleblower” news that’s *MUCH* more damaging than anything Greg Smith wrote. “As a Primary Dealer, Goldman Sachs makes a practically riskless profit trading Treasury debt.” or “Negative real interest rates are a huge State subsidy for Goldman Sachs.” or “Inflation is theft!” or “Bonds and money market funds are a stupid investment, because you get ripped off by inflation.” or “Jon Corzine stole $1.6B from his customers and got away with it. Many other MF Global executives already found jobs at other banks, including banks who wound up with customer money. Help another bank rob your customers, and then get a nice job as a reward.”

At my last financial industry job, I saw some really suspicious things. Many of those are much more damaging than things Greg Smith wrote. There were suspicious large fail trades. I suspected that some employees were intentionally sabotaging their software, to steal and launder money.

Another disappointing bit is people saying “Nobody else will hire Greg Smith as a vice president now. His career is over.” There’s retaliation for mentioning even a bit of the forbidden truth.

I wonder if the bankster propaganda is playing a deep game?  Goldman Sachs is being held out publicly as the pinnacle of bankster corruption.  Then, there will be a scandal where Goldman Sachs is ruined.  Problem solved!  This stuff happens at all big banks, although Goldman Sachs is the biggest abuser.  The insiders can leave Goldman Sachs and move to another bank.  The important part is the corrupt financial system and the Federal Reserve.  Goldman Sachs is just a symptom.  Goldman Sachs is the biggest abuser, but the abusers can always leave Goldman Sachs for someplace else.

You know that Greg Smith’s “whistleblower letter” is mostly meaningless, because the NY Times published it. It really didn’t have any new information. People are discussing Greg Smith instead of more important things. A fake whistleblower helps distract attention from bigger crimes.

John Carter Copyright

Disney’s film “John Carter” flopped.

Disney is a big media corporation. They lobby for strict copyright enforcement. They lobby for retroactive copyright extensions. Every time the oldest Mickey Mouse cartoons are about to enter the public domain, Disney lobbies for a retroactive copyright extension.

Disney has made a fortune on old public domain stories. One example is “Alice In Wonderland”. “Cinderella” and “The Little Mermaid” were public domain fairy tales.

Due to strict copyright enforcement, much potential art is censored. For example, it’s illegal for me to make my own Superman story, unless I get permission from the copyright owner. These old characters should be in the public domain. For another example, it might be illegal for me to make a modified parody of a copyrighted song. I could claim “fair use”, but it’d be a fortune in legal expenses if I were sued.  It’s better for me to self-censor and not take the risk of being sued.

John Carter is an old public domain story. It’s ironic that Disney profits from public domain stories, while simultaneously lobbying for stricter copyright law.

CNBC GLD Propaganda

The Communism Channel (CNBC) did a propaganda piece on gold.  They were promoting it all day.  My father was really interested.  He watches CNBC all day.

Sometimes, it’s worth watching propaganda, just so you can identify the lie.  The “gold special” was a secret advertisement for the GLD fund.

It started out innocently enough.  They showed the deepest gold mine in the world.  They showed a gold refiner.  They showed a jewelry manufacturer.  They talked about “good delivery bars”.  So far, no lies.

Then, they gave “a tour of the vault where HSBC stores the gold for GLD”.  They showed a vault filled with gold bars, or, as they would say on zerohedge, a vault filled with gold-plated tungsten bars.

They slipped in one interesting bit of truth.  “This vault holds the gold for GLD, and the gold for other HSBC customers.”  That’s the magic of rehypothecation.  The same gold bar may be promised to multiple people!  When/if HSBC declares bankruptcy, you’ll probably get Corzined just like MF Global’s customers.  If HSBC promised the same gold bar to multiple customers, the lie won’t be found out until HSBC goes bankrupt and the assets are liquidated.  That’s exactly what MF Global did, raiding customer funds to pay for gambling losses.  Even if you had a warehouse receipt, you became a creditor in bankruptcy just like everyone else!  When HSBC declares bankruptcy, the GLD shareholders will be unsecured creditors.  Until then, every GLD shareholder is contributing to HSBC’s gambling fund, rather than investing in gold.

They also had the fund manager flat-out lie.  He said “GLD is a 100% full-reserve gold investment.”  That is *FALSE*.  GLD owns gold futures and paper equivalents.  If you read the fine print of the fund prospectus, GLD may lend out gold to short sellers.  They can invest in paper-equivalents of gold.  GLD doesn’t have to disclose how much actual physical gold they have, and how much paper.

I was *OFFENDED* to see the GLD fund manager flat-out lie and say that GLD is 100% full-reserve, and that it would be illegal if GLD wasn’t full-reserve.  I wonder if they cleverly edited it,?  The interviewee said “That would be illegal!” in response to another question, but then showed the interviewer asking about GLD!

Notice the propaganda trick.  The first 80% of the show was honest.  They talked about gold miners, gold refiners, and jewelers.  Then, BAM, at the end, they talk about GLD and what a safe 100% full-reserve investment it is.  What a cleverly constructed lie!  Did the producers of the show never bother to read the GLD prospectus?  They flagrantly ignored it.

Suppose that GLD really is fractional reserve and not full reserve.  As long as more people buy GLD than sell, the scam continues, just like with any Ponzi.  If every shareholder sold GLD and bought physical, there wouldn’t be enough physical for everyone, and the price would skyrocket.  As long as you can con new people into buying, the scam continues.

It was very educational, seeing the Communism Channel flagrantly lie.  It was a thinly disguised ad for paper gold GLD.  If you mix lies with a lot of truth, people won’t notice your lies.  Some stupid people will be tricked into investing in GLD, instead of physical, and they’ll get Corzined out of their investment.  I was VERY OFFENDED to see CNBC flagrantly lie, saying that GLD was 100% full-reserve.