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Honestly, will it never stop? All around the world,
there is literally a paper jungle. Masses of papers scattered
everywhere. Be it in Italy, where the number one outfit, Parmalat bit
the dust, to New York, and other places, where millions of dollars in
fines have been levied on America's biggest, and most trusted financial
houses.
Think of Parmalat, as an example. Don't worry,
the biggest banking and brokerage houses are all mixed up in it. From
1969, it grew like Topsy, gobbling up small companies around Europe.
Like Enron, or Long Term Capital Gains, it was all a charade. A huge
falsification. Paperwork faxed, notarized, filed, and sent triplicate.
Paperwork for fake deeds, fake notes, and fake everything. Paper wealth
that couldn't stand the siege of time. Papers, papers, papers. Parmalat
was the milk bottle of Italy, and a corporation who gave lovingly to
various Catholic charities, and did marvelous things. Except it was an
empty shell. The donations to charities came from suckers buying the
stock, not from profits. There weren't any. Financial statements sworn
to be true were accepted, and more loans made, all around the world.
It all came crashing down, when one simple
payment was missed, and the Dominoes fell like magic. There was nothing
there. It was all bogus. A few decades ago, it happened in New York.
Here was this bold, brazen guy, who had bought just about everything in
sight. I won't mention his name, (starts with "Z"), even though he is
dead, as perhaps his descendents are still alive, and there's no need
to resurrect the past, except to tell the story. The biggest hotels and
office buildings were gathered into this guy's portfolio. Huge
buildings worth hundreds of millions. He could do no wrong. Wealth
piled on top of wealth. Or so it seemed. One payment was missed, and
the empire fell like a rock in a pool of water. It was all over. It
happened in Philadelphia almost the same way, but not as large. I
remember it well in Philly, as I lived there. This guy, who was a
pillar in the community, had bought shopping centers, and office
buildings and hotels like there was no tomorrow. Big deal it was. It
all went down like the Titanic, and about as fast, when one payment was
missed.
Donald Trump came within inches of the same thing
happening to him, but I think he pulled himself out by the skin of his
teeth. I think, anyway. One can never tell. All that glitters, is not
gold, and usually it isn't. Long Term Capital Gain was the same, as was
Enron, and Global Crossing. Big operators, with big ideas and a lot of
pizzazz. Lots of stretch limos, fancy duds, and glitzy balls. They
invariably fool everybody. Who pays, when the eventual single payment
is missed? The stockholders, that's who. Their investments have gone to
naught. Parmalat stock is worthless now, even though the company still
operates at full speed. Shysters by the millions around the world, who
don't seem to make an honest living.
Seventy Five years ago, Florida land went bust.
It had been boosted and advertised to the high heavens, and it was
discovered than most of it was swamp and un-buildable. All the land
that had been bought was worthless, as were the notes that were
supposed to pay for it. I fell for a spiel once also. (I must admit to
weakness on occasion) I "bought" (little down) land in Toltec City,
Arizona many years ago, and I'll bet it still sits there, with no more
value than it had 40 years ago. I eventually gave it away rather than
pay taxes on it year after year.
Paper money is everywhere, like confetti it
seems. People won't pick up pennies or even nickels on the sidewalk,
they buy so little. The euro is up against the buck, and the others out
there, regardless of their imprimaturs, are basically confetti also, or
will be eventually. The buck slides, the Swiss Francs and Canadian
dollars go up against it, and the rest of the world's stuff is equally
pitiful. For the first time in history, they're all a waste of trees
with nothing to back them.
When the NASDAQ bit the dust, and the Dow as
well, it is estimated that five trillion dollars simply evaporated.
Evaporated from financial worths all around America, and even the
world. It was all a fraud, with little or no profits or dividends, and
it's all going up to the stratosphere again. Paper and lies everywhere,
it seems. Think about it for a minute. If you own Ford stock, have you
ever seen the Ford factory? Ever seen its books? Ever seen its
financial statement? Ever get dividends? Know what the P/E ratio is?
Are they up to date with their retirement payments? Do you know how
many other brands Ford owns? How many employees they have? What the
corporate debt is? Do you believe it, if you think you do?
A couple of major trucking firms have bit the
dust of late, having missed one single insurance payment, or one single
payment on their fleet. The world today, is so highly mortgaged and
hocked, that it takes but a single missed payment to bring the whole
thing down with a crash. It has happened over and over again with
highly advertised furniture companies, auto dealerships, and food
franchises. Everyone owes everyone it seems, and the loans are to such
a high percentage of the company's or individual's net worth, that a
single missed payment can spell ruination.
It is obvious, with all the second mortgages
around, and all the advertising by mortgage companies offering to loan
even more than an appraised value, that the ice is becoming awfully
thin. Sir Alan has once again held the interest at 1%, meaning that the
bubble will last a bit longer. There are tens of thousands of jobs
going to India, and millions have already been lost to China and
Mexico. Puff, goes the firm that had been around for a hundred years,
and they are heard from no longer. The old phrase, "Does Macy's tell
Gimbels?" is long gone. Gimbels went bust about 30 years ago…suddenly,
and with no warning. Warnings are never given to stockholders when the
company is on the skids. With the dollar supply due to increase by a
trillion this year, the dollar having lost 25% against other
currencies, and the national debt estimated to be $31 trillion, what is
the economic future of either the dollar or America? With 46% of stocks
now being traded, showing no profits, how thin is the ice?
I don't need graphs and charts, to know that when
the ice is thin, and it will break under load. What could the load be?
It could well be a loss of confidence, which is all that is holding it
together anyway. If one loses confidence in anything, be it a woman,
currency, or automobile, that loss of confidence is instantly
translated into prejudice, or pre-judging. If one gets sick in
Charlie's Hot Dogs, one will probably never go in again. If Exerphania
has its assets stored in dollars, and the dollar goes bust, would one
invest in dollars again? The odds are against it. Now, since foreign
nations are ceasing to invest in America, but are afraid to sell off
all at once, for fear of a hideous crash, which would wipe them out,
how thin is the ice? Now, the fed is printing its bonds and notes, and
buying them itself, since so may others refuse to do so. The states are
experiencing a huge crunch, because of lost business and taxes. The
federal government is having a half trillion dollar red ink situation
this year, although this does not include the "black budget" items,
which may make it a lot higher. The fed can print its way out, but
states can't. Fed officials and Sir Alan, paint the economic picture as
rosy and getting better, but the taxes collected by the states aren't
going up, which would be indicative of a boom. The huge increases in
jobs haven't happened, because there are no jobs to be had. Everything
is made elsewhere, and even the white-collar jobs are leaving with all
due rapidity. Doom and gloom? Sorry, but even though all seems to be
well to the masses, I think the ice is thin. Protect yourself.
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