Wednesday, October 5, 2011


I'm actually working on a post about the FED, but as I was typing that article it morphed into a long winded outburst about the Occupy Wall Street fools.  Since I went completely off the range, I felt I needed to create a post related to this topic.

While the stupid "Occupy Wall Street" idiots are out protesting that they have to pay college loans back they should be sitting outside the NY Federal Reserve building and at least directing their anger at a major cause of America's woe.  These clowns should be demanding that the Federal Reserve return rates to realistic rates and cease direct support to European nations with swap lines. Unfortunately our youthful band of rioters are praising themselves for just coming together to "feel supported" and discuss stuff.

Here is a link to the demands that one of their "leaders" put together.  I don't think I could have put together a better wish-list for Utopian liberal ideas that absolutely couldn't work.  First, several of their ideas would simply destroy any fiber of a "real market" (notice I didn't say free-market since that is not what we have anyway) and the remaining simply are strung together cause it would be great to have a bunch of free stuff or it makes us feel good.  Nowhere in this list are there any thoughtful ideas, we simply see emotional outbursts that would make us all feel better if that was how things were.


"Demand one: Restoration of the living wage. This demand can only be met by ending "Freetrade".  Another policy that must be instituted is raise the minimum wage to twenty dollars an hr. 
Demand two: Institute a universal single payer healthcare system. To do this all private insurers must be banned from the healthcare market as their only effect on the health of patients is to take money away from doctors, nurses and hospitals preventing them from doing their jobs and hand that money to wall st. investors.
Demand three: Guaranteed living wage income regardless of employment. 
Demand four: Free college education.
Demand five: Begin a fast track process to bring the fossil fuel economy to an end while at the same bringing the alternative energy economy up to energy demand. 
Demand six: One trillion dollars in infrastructure (Water, Sewer, Rail, Roads and Bridges and Electrical Grid) spending now. 
Demand seven: One trillion dollars in ecological restoration planting forests, reestablishing wetlands and the natural flow of river systems and decommissioning of all of America's nuclear power plants. 
Demand eight: Racial and gender equal rights amendment. 
Demand nine: Open borders migration. anyone can travel anywhere to work and live. 
Demand ten: Bring American elections up to international standards of a paper ballot precinct counted and recounted in front of an independent and party observers system. 
Demand eleven: Immediate across the board debt forgiveness for all. Debt forgiveness of sovereign debt, commercial loans, home mortgages, home equity loans, credit card debt, student loans and personal loans now! All debt must be stricken from the "Books." World Bank Loans to all Nations, Bank to Bank Debt and all Bonds and Margin Call Debt in the stock market including all Derivatives or Credit Default Swaps, all 65 trillion dollars of them must also be stricken from the "Books." And I don't mean debt that is in default, I mean all debt on the entire planet period. 
Demand twelve: Outlaw all credit reporting agencies. 
Demand thirteen: Allow all workers to sign a ballot at any time during a union organizing campaign or at any time that represents their yeah or nay to having a union represent them in collective bargaining or to form a union.
These demands will create so many jobs it will be completely impossible to fill them without an open borders policy."
Goatmug only has a few things to say.....WHAT???  ARE YOU NUTS?  Let's go through a couple of these.

1)  Kill "Freetrade" - Ok fine, you close our borders to products and suddenly you have no capacity to make anything and we cannot afford it if Americans did make it since the janitor now makes $20 an hour and therefore all food and every other good had an immediate increase in pricing to compensate for high wage costs.  FAIL

2) Kill insurance companies and let the government do it - Did you catch how insurance companies take money from doctors and nurses and hospitals?  No, insurance companies actually keep costs down.  If the government runs the show, doctors and nurses will actually quit the field as the money will never get to their pockets.  This is how you have healthcare rationing and this will be coming to a state near you if it isn't overturned soon.  This really is about "free healthcare".  FAIL

3)  Guaranteed living wage - give me a break, get two jobs, work hard, and you'll succeed.  You don't earn a decent living by working at Starbucks all your life.  Earn an education (not free) and work hard.  FAIL

4)  Free college education - why?  Government interference in college education in the form of grants and guaranteed student loans has made college inflation run out of control.  Get government guarantees out and tuition will come down significantly.  Who the heck is going to pay for this idiots?  FAIL

5)  Fast track renewable energy - have we not already had a fast track called Solyndra?  This sh*t doesn't work!  It is not economical, it is not based on reality!  When it takes more energy input to create something than you get out, it isn't worth it!  If it isn't scalable, it isn't worth it.  It may make you feel good, but math and financial calculations clearly show that many of these "green" energies just don't work.  Ethanol is a perfect example that good old George Bush supported..... and that too was a big FAIL.

6)  One trillion in infrastructure spending - what planet did this come from, Planet Obama's teleprompter?  Suddenly the granola writer of this disaster of a list wants to improve our sewer system?  Sure, this is a great idea, how do you pay for it?

7)  One trillion for the environment and killing nuclear power plants - Do I even need to say it?  FAIL

8)  Racial and Gender equal rights - What does this have to do with a jobs manifesto?  It is like they just threw in leftist pet projects into the list just to try to get more supporters.  Sure, I support racial rights and equal rights for men and women.  No, I don't support any more language beyond that on this topic.  I understand what they wrote isn't what they were really wanting, but that is usually how they address these issues by not addressing them.

9)  Open borders to work and live where you want - Ok, great, you have open borders and all of Mexico comes to live here on $20/hour and free healthcare!  Oh yes, and what products can you sell since you just turned off all free trade.  This is almost the worst of all of their ideas.  FAIL

10)  Elections -  please, please let the UN monitor our elections.

11)  Debt forgiveness - Right, you forgive those debts and the entire world collapses.  Before you get too carried away with it, each and every mutual fund that owns a bond in it would immediately crater and anyone who lent money anywhere would be a zero.  FAIL

12)  Outlaw credit reporting agencies - great, you want to buy a house and need to borrow money, sure, I'll lend you $300,000, hows does 22% interest sound?  That is immediately what would happen as lenders would not be able to price the risk of lending to a borrower.  Also, since you just forgave all debts, there are no lenders left to be able to lend you money to live in a home.  FAIL

13)  Union sellout - Again, I think this entire list was simply constructed to get as many raging liberals salivating that their pet issue was being represented by the Occupy Wall Street Communists.  Haven't these people realized that unions are simply giant corporations?  Haven't they seen that each state that has a strong union presence is absolutely broke and there are no jobs there?  It is the same uncompetitive wages that are demanded by unions that the OWS guys demand.  FAIL

Remember, that groups and uprisings like these start in one way and are often co-opted by other folks that organize and transmit a very different message than what was originally stated.  This group may  have originally started with some disenfranchised youth that just were frustrated and wanted to gather and vent.  Clearly, they originally didn't have any talking points or agenda, they were simply just wanting "good jobs" or decent wages or just wanted something to do.  Suddenly we see this list of 13 liberal items in their OWS Communist Manifesto that simply looks for free stuff and social engineering of liberal causes.  I think the ideas are poorly thought out and don't really achieve any measure of fixing things like getting jobs to the people.

One last note, I think the police in many cases are being heavy handed in the videos I've seen.  Despite seeing a couple of hooligans, I've seen too much force being used.  Odd though, I'd think that the union workers on the police force would be a bit more sympathetic to their brothers on the other side of the fence.


Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments at