Wednesday, April 20, 2016

The Jackson on the 20 ain't Jermaine



Sometimes I remember crazy stuff that's completely worthless at times, like an old Fresh Prince of Bel Air episode when Will was settling an argument with Jazz and Tyriq.

Jazz: (to Will, about Tyriq) What's he doing here?
Tyriq: (to Will, about Jazz) No, what's he doing here?
Will: Now, y'all not still mad about that watch thing.
Tyriq: He sold me a fake Rolex.
Jazz: He paid with a fake $20.
Will: [to Tyriq] Now, first of all. You should have known it was fake when you saw that the warranty was only for two hours. [to Jazz] And you should have known the Jackson on the $20 ain't Jermaine.
Jazz: They all look the same to me.



That episode was from 1992.  Fast forward to 2016, and it was just announced today that Harriet Tubman will take over the face of the $20 bill from Andrew Jackson.  On the face of this, no big deal.  Most people do not know what Andrew Jackson did, why he's on any bills, or even care.  Maybe, people don't even know that he was the 7th President of the United States.  Either way, this post really isn't about Tubman, or the $20 bill now or in the future.  It's about the fight behind this announcement.  The symbolic and ideological fight that was the replacement of Hamilton on the face of the $10 bill or Jackson on the face of the $20 bill.

Symbolically, Hamilton and Jackson were at polar opposites of banking and even the political spectrum, not unlike the Republicans and Democrats seem to be today.  However, back in the early years of our country, the party system was a little different, so some history on the men and their parties.

Andrew Jackson helped solidify and create unity for what became the current Democratic party, and the main opposition party to the Whigs (which eventually disbanded and turned into the Republican Party).  The Democratic Party of that day however had some distinct differences compared to today's Democratic Party.  Back then, Jackson was morally opposed to a large central government, national banks and banking and fought for individual liberty, freedom, the Agrarian Society, Manifest Destiny, and was a devout supporter of the Republican government system created during the Revolutionary War.  He followed Thomas Jefferson in much of his ideology.  The people who formed the Democratic Party of that day supported these positions with Jackson, and was even opposed to educational reform for a public school system as they restricted individual liberty of parental responsibility and undermined freedom of religion by replacing church schools.  (Which in comparison to today would be a laughable scenario to see a Democrat who was opposed to a Public Educational School System and a large central government that couldn't dictate laws to the states).   

Alexander Hamilton was one of the Founding Fathers of the United States, the founder of the Federalist Party, and the founder of the National Banking System.  The Federalist Party was founded around businessmen and bankers who supported Hamilton on his fiscal and banking policies.  The party wanted a strong central and nationalistic government, that was fiscally sound, who had friendly relationships with Great Britain, opposed the French Revolution, and supported "Implied Powers" (from which the Federal Government was given the right and power to tax and spend money for the "General Welfare" of the United States). The main opposition party was the Democratic-Republicans led by Thomas Jefferson who denounced these policies, especially the National Banking System, "Implied Powers" and a friendly relationship w/ Great Britain through the Jay Treaty.

The Democratic-Republican party broke up by 1824 and you can see partially how Andrew Jackson helped create the support around the Democratic Party from the shared ideologies of Thomas Jefferson's party.  Meanwhile, the National Republicans/Whigs formed around the ideologies of the Federalists, Hamilton, banking and business interests.

My....how things have changed in 200 years.  While you will occasionally see the Bernie Sanders' of the world lamenting about big business, big banks, and the like on the Democratic side, or the Ron or Rand Paul's doing the same on the Republican side, the majority of politicians are in line with the Federalists, Hamilton and big banking/business interests.  The fighters for individual liberties, freedoms, and limited government are even fewer and further between, although some have come out of the woodwork as the Libertarians and Tea Party Movement have gained in popularity.

So here now in 2016 we have this battle playing out again, only in the form of who would be replaced on the face of currency bill.  I haven't read anything on the reasoning being espoused by the mainstream media, but just knowing a little history and doing minimal research to paint the picture that could be more thoroughly detailed on your own, this is what I see this as.... 

An IDEOLOGICAL battle....

In the one corner, you have Alexander Hamilton on the $10 bill.  The man who created the National Banking System, and near personally formed the ideological and physical ties that bound big business, with banking, with the power of a large government.  Who collectively could tax and spend money at will for all of the "general welfare" of the United States' interests, and pay that money to those same banking and business interests that support it.

vs.

The opposition corner with Andrew Jackson on the $20 bill.  The man who fought and actually ended the National Banking System and brought the US out of debt the only time in the history of the country, fought for limited government, fought against the politically powerful elite and monied business interests that he thought could (and would if looking at today) eventually destroy the Republican government, and fought for the ordinary citizen, the farmer, the urban worker and the immigrant who had no clout or means to fight against the political and monied elite except through the government.

I think we've all seen how this battle plays out throughout all of history.  It is no wonder this has played out symbolically again.  

So whatever you read or hear on radio, television, news sources, etc about the reasoning of why Hamilton was chosen over Jackson...remember some of the history of each man and what these two people really fought for in their lifetimes, as well as who benefited directly from their efforts. 

Sunday, August 30, 2015

Decisions, Decisions, Decisions?

It's been a little over 3 years since a post has been made.  Rainbows and unicorns and good times have transpired.  Solid "growth" and "recovery" have been made in that time with little to worry about.  Until last week.

For starters, this was the 2nd to last post made here. 
http://playwithmonopolymoney.blogspot.com/2012/05/here-we-are.html

It was decision time then and the market took off for one of the greatest runs we've seen in market history.  New strategies that have been successful for the past 3 years were to buy the high, sell higher (this is a legitimate momentum/trend following strategy), and buying the dip (for just about every investor or trader.) 

So what do things look like after last week when the market had a flash crash and huge volatility?  Let's first take a look at a weekly chart of the Dow futures.



As you can see above, the bullish trend lines of the past 4+ years were broken. The trend line will need to be retaken, and it very well could be, for the trend to resume.  The area to watch has the circle half green/half red.  If closes do not get above and hold those former trend lines, then a new trend is in the works.  It could be sideways, it could be down.  Nobody really knows the future.  But it's definitely interesting and important to watch and see.  This picture looks pessimistic for the long run with the weekly chart.  However, the trend line could be followed up, make new all time highs and never regain the upper side of the bottom broken line.  That could mean some unforeseen, quick drops in the future.  Those could also happen in the present, but I think there's enough emotional draw that this is just a minor correction in the market to keep buying the dip.  We should know more once the Federal Reserve has decided on officially raising interest rates in September or not.

There's also a look at the monthly picture.  See below.

This picture makes it look like nothing has changed even longer term.  A correction took place and bounced off of major support of a regular bull market that goes back to 2003-2008 run.  You can clearly see the financial crisis in 2008 when those trends broke, and it took over 3 years to return over the original trend, but it did. 

There's one caveat that I see though, and that's the unfilled circle.  The low of the past couple weeks broke through both of the long term monthly trend lines of the past 5+ years.  The close of the market tomorrow (8/31/15) will determine if the close for the month stays above the main monthly trend lines for the past 5 years.  But looking at the weekly, and at the monthly, the first crack in this amazing run has been made.  Staying near the filled green is key.  Falling to the filled red would be really dangerous. 

What to do about it is the question though...if anything.

Tuesday, July 10, 2012

MF Global 2.0 - PFGBest and Europe Banking Glitches

There is the next futures/commodity theft occuring now.

http://articles.chicagotribune.com/2012-07-09/business/chi-broker-pfgbest-freezes-funds-after-founders-suicide-attempt-20120709_1_suicide-attempt-suicide-note-mf-global

http://www.suntimes.com/business/13689539-420/pfgbest-accounts-held-after-founders-suicide-attempt-report.html

http://blogs.wsj.com/marketbeat/2012/07/10/pfgbest-scandal-another-black-eye-for-futures-industry/

http://www.zerohedge.com/news/pfgbest-now-mf-global-part-2-220-million-segregated-client-money-has-just-vaporized

$220 Million of customer money just doesn't seem to be there.  Huh?  Just like MF Global...only this time PFGBest (Peregrine Financial Group).

For reminders, Ann Barnhardt closed her entire financial firm over MF Global. http://www.theblaze.com/stories/going-galt-hedge-broker-shuts-down-firm-with-chilling-letter-about-the-market/ 

Her rant today (July 9th) is pretty telling. 
http://barnhardt.biz/

And Zero Hedge did start looking into who could be next.
http://www.zerohedge.com/news/first-mfglobal-now-pfg-who-next

Could this be just a futures problem in the industry, or a systemic problem in the banking/financial world?


My bet is on banking/financial world systemic problem.  Too many issues over too much ground across the world.

Not sure if any U.S. coverage is on the "IT Banking Glitch" over in Europe, but there's some other issues going on in the financial world. 

Ulster Bank, Ireland - 600,000 bank accounts - little to no access - no funds going in on direct deposits - funds still coming out.  An IT glich seems improbable for the length of time.

NatWest, England - 12,000,000 customers - same
http://uk.finance.yahoo.com/news/natwest-technical-problems-continue-hamper-081014918.html

June 24th - Bank Glitch needs a week to get fixed.
http://www.bbc.co.uk/news/uk-northern-ireland-18569815

June 30th - Won't be fixed by July 2nd
http://www.bbc.co.uk/news/uk-northern-ireland-18657127

July 9th - Finally catching up
http://www.irishtimes.com/newspaper/breaking/2012/0709/breaking35.html

And for comic relief for 600,000 accounts having limited / no access to funds...
Credit Rating - NOT AFFECTED - what a joke.
http://www.rte.ie/news/2012/0627/ulster-bank-accounts-back-to-normal-by-next-week.html

RBS is blaming Offshoring - yeah ok
http://articles.economictimes.indiatimes.com/2012-06-28/news/32457355_1_anti-outsourcing-offshore-outsourcing-outsourcing-issue

RBS is blaming duplicate mortgage payments on glitch...this is theft, plain and simple.
http://uk.news.yahoo.com/rbs-blames-glitch-mortgage-payments-being-taken-twice-120922678--finance.html


This is the joke of a financial system we have in the world today and something is very, very wrong.  Get prepared for when these "random" occurances happen to the U.S. banking system. 
I'd call them bank holidays and theft.  I guess they are calling them "IT Glitches" and "Accounting errors" these days.