THANK YOU FOR ORDERING IN THE AMAZON SEARCH BOX!!

Just a quick note to all of you.  I experimented with placing the Amazon search box up right before Christmas just to see if there was a revenue generating angle for spending so much time on the blog.  As it would happen, I made $1.12 during the Christmas rush and have yet to receive my payment from Amazon.

Having said that, someone made a large order through the search box recently and I want to thank that person for doing so.  I think my take on that one transaction will be about $20!  So, now that I am experiencing internet-bubble top line and bottom line growth resulting from this new technology business I'm in.  I wanted to let you know that I've hired Goldman Sachs and Morgan Stanley to consult with me about directions for the Goatmug Blog and how to further monetize it and bring it to full valuation.  As our growth trajectory is very similar to Facebook, I am sure we'll be discussing the appropriate time of the IPO soon. 

While I'm being a bit sarcastic here, it is neat to recieve any form of renumeration for simply writing about stuff that I love.  The blog has been in existance for almost two years now, so $10.50 a year in compensation puts me right up there with some of the citizens of countries that are rioting. 

I appreciate you reading and most of all commenting.  When you comment it tells me that I'm writing stuff that is entertaining and hopefully helpful.  If you do need to order something from Amazon, please consider using the search box to the top right of the page to start your search, at least someone you know will clip a percent or two off of the sale.

GOATMUG

INFLATION WORRIES? WHAT HUGO CHAVEZ KNOWS THAT WE DON'T

I've written a bunch about how the US economic leadership (Congress, FED, and Treasury) have interests that are absolutely opposed to the values and interests of the average citizen in the US.  One of the first blog posts I created highlighted Ben Bernanke's 2002 speech where he described that deflation was Public Enemy #1 and that the Fed would not tolerate the economic slippage resulting from inflation's scary brother.  In other posts I covered how the FED needs inflation to keep the game going and any hint of deflation creates shudders of fear.  Recently, I reviewed how deflation really wasn't as terrible for the common man in Japan despite what we hear from the Fed in the article titled TURNING JAPANESE. 

In the last several years, we've seen budget deficits and spending like we've never known and many are beginning to think that the Fed's efforts can only result in one thing, runaway inflation.  We've read how Japanese citizens deal with deflation, let's take a few moments and review what regular folks do in inflation ravaged countries like Venezuela.

Please read the reuters story below;

http://www.reuters.com/article/2011/02/25/venezuela-inflation-idUSN2527605120110225

The graphic pasted here from the article demonstrates just how bad the inflation rate in the country has been.

So, what are the tricks for dealing with inflation for the regular person?

• Because gas is heavily subsidized and is almost free - Venezuelans buy cars.  Instead of depreciating, their value increases as the car gets older!
• Essentially people borrow and buy appreciating goods like gold or cars
• They take extra jobs - I guess fat and lazy Amerikans won't do so well to keep up with inflation.

In the reading of the article it is very clear that a person must be very active in keeping up with their finances and financial situation to keep close to the same lifestyle over time.  These guys are putting money to work (or just spending it) immediately because they know that their money will be worth less in must a month or two.

Am I sold that this is our future?  No, I still believe that despite all of his work, Bernanke will fall seriously short and learn that his hubris has done nothing but create a more serious collapse.  However, one of us will be correct and it is important to understand the strategies for dealing with both outcomes.

GOATMUG

POVERTY IN THE USA - WHAT NO ONE WANTS TO SEE

Let's take a look at this recovery we are having.  Anyone not believing it is really happening?  I've written a bunch about the concept of "Recovery in Name Only" meaning that we really haven't seen a significant recovery in key areas in the economy.  Drivers like silly things such as jobs and housing are simply not participating in the asset price recovery we keep hearing about.

60 Minutes does a piece about poverty in Amerika.  While the government solution is to throw more money at the problem it is clear that there just continues to be more folks in need of assistance.





Everyone wants to believe that everything is getting better, but I continue to feel that sense of dread in me that as soon as I give in and give the green light, all hell is going to break loose.  Incomes are not rising but costs certainly are.  How long will it be before we hear that fuel costs are responsible for job cuts?  Once again these gas prices and oil prices are an assault on those in our nation (and the world) that can least afford cost increases.  These are direct taxes on their ability to survive.

GOATMUG

FRESH REVELATION - THE IMMIGRATION CRISIS

Today while driving I believe that I was blessed with fresh revelation.  You can always discern when you have received a divine download because it is a burst of thought that you've never had, and frankly is not typical to the way you think.
As I moved south on a winding road I believe that I discovered the real cause to our immigration problems.  For years we have been told that Mexicans have been coming to the US for the following reasons;

1)  Conditions were so horrible in their country that they would desire to escape poverty.
2)  Wages US companies pay are better.
3)  To do work that no one else would do.
4)  They wanted to obtain the American dream.
5)  They want access to our health care system that offers advanced treatment and technology.

I hear those and think to some extent those are valid, but the revelation I got today was that those are just minor players in the whole scheme of things.  I believe now, with perfect clarity and understanding that Mexican illegals are risking bodily harm and rushing headlong to the US with abandon because Mexican television is just so horrible!  What is up with that country and their thing for clowns and dirty old men?  Why does every Mexican show have a half naked woman and some clown in it?  I would attempt to run away from a scary clown and perverse immorality too!

(I tried to cut the women out but the page wouldn't let me just show the clown image). 

Bringing this back to economics, what would Mexico do without it's oil resources?  They are declining rapidly by the way, and all that will be left is a mass of humanity that desires to escape their awful tv to the land of the north.

AMERICA IS NOT BROKE! -

Please read the following article where the newest genius in Wisconsin states anything but the obvious.  Michael Moore profoundly declares that "America is not broke". 

http://host.madison.com/wsj/news/local/govt-and-politics/article_8a60e128-4791-11e0-9892-001cc4c002e0.html

As usual Michael Moore is seeing America through his own distorted lens, but this time he is just flat wrong.  Oddly, I usually feel some sort of respect or admiration of Michael Moore in each project he does for no other reason than he really believes earnestly in his views and is willing to put them out there.  I can usually even put on a raging liberal hat and see his perspective despite my absolute disagreement with him.  In this case however, I just have to declare that he is completely off his rocker.

 Later in the article he notes that "America is not broke," Moore said "the country is awash in wealth and cash ... It has been transferred in the greatest heist in history from the workers and consumers to the banks and the portfolios of the uber-rich."  Once again, Moore gets some of the truth out there and then goes to work to distort the facts.  First, Americans were broke well before the financial crisis in 2007 and 2008, the media and the markets were too busy believing the lies and watching "Flip This House" to believe that we weren't rich.  Second, the same banks that Michael Moore claims are rich are actually completely bankrupt, leaving me to wonder who really is rich there Mike?

What this really is about is Michael Moore interjecting himself into Wisconsin politics on the side of unions.  Wouldn't it be great if he actually did a story about the destruction of the middle class due to unions creating uncompetitive landscapes for companies?  Wouldn't it be great if Michael Moore exposed the corruption of the unions?  Wouldn't it be amazing to see this guy on the right side of any angle?

If Wisconsin and all the other states aren't broke then I am not sure what constitutes being broke.  Unfortuantely I think we will ultimately see what happens when a "not-broke" country like Greece. Ireland, Portugal, or a US state like Wisconsin does end up being exposed as broke.  When at long last the endless money supply and unlimited debt comes to an end, we'll see that the conditions that are being displayed by Wisconsin are in fact an indication that America is broke.

GOATMUG