Promoting Prosperity Path

 

Larry Kudlow
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Last Friday, CNBC announced The Kudlow Report, hosted by Larry Kudlow, will end its run this month after over a decade of producing top notch analysis of the financial markets in its 7PM EST time slot.

CNBC president Mark Hoffman said "Larry expressed his love of the network and personal pride in what had been accomplished on his program over the years but now wanted to slow down just a bit."

I certainly hope Hoffman was being truthful when discussing the end of The Kudlow Report, as Kudlow well deserves the opportunity to exit on his own terms.

Ratings at CNBC have been in freefall, and although shows on all networks discussing financial topics are in decline (have folks just thrown in the towel?), CNBC is on the wrong side of the relative strength in this matter.

The dismal ratings are no fault of Kudlow, whose show and analysis are tops on the network.  There are other outstanding individual hosts and reporters on the network, most notably Joe Kernen, Bill Griffeth and Rick Santelli, so the decline really has nothing to do with the talent on board.

Unlike Hoffman, I know why the decline at CNBC has been deeper.  It comes from what can only be a dictation from the news division of parent company NBC to season the broadcasts with a left leaning agenda mindlessly supportive of President Obama and his agenda, with global climate change a prime example.

Those of us in disagreement with Obama who have been longtime viewers of the network, have grown tired of being relentlessly "nudged" on the progressive agenda.  Each night on The Kudlow Report, we have to get a dose of John Harwood on Capitol Hill, who may win the Obama ass-kisser of the decade award.  His blatantly bias, and incorrect, observations detract from the insightful analysis Kudlow, with guests from both sides, presents.

If indeed Kudlow is being forced out, it will be yet another mistake by CNBC and we can all witness the 7PM time slot ratings continue in decline.  I suspect, if she were so inclined, this would be a golden opportunity for Maria Bartiromo, newly hired away from CNBC by FOX Business Network, to own the time slot from a financial perspective.

Rather than worry about the inside baseball at CNBC, I know that I will really miss joining Kudlow for analysis of the activities of the day, political and financial. As a former associate director of the Office of Management and Budget in the Reagan administration and chief economist at Bear Stearns, Kudlow was very knowledgeable and a true professional all the way around.

If Kudlow was shoved out, I hope to perhaps see him turn up over at The Blaze. If not, I hope Larry enjoys the extra time with his family and hitting balls out on the tennis court. 

Although Kudlow's tenure at CNBC has produced many memorable moments and exchanges, if we remember Larry for one thing, perhaps it will be his spot on mantra that "FREE MARKET CAPITALISM IS THE BEST PATH TO PROSPERITY.

Don't you forget it.  All the best Larry!

Orchestrated Lies Fuel Group Conflict

Early in the first term, the Obama administration engaged in an effort to bring under the authority of the executive branch The Census Bureau.  With most of American still immersed in their slobbering love affair with the anointed one, those tethered to common sense were puzzled at such an effort.

Most thought this effort, which was successful, would be utilized to somehow bolster election oriented results for Obama and his progressive lemmings.  Surely, the administration used The Census Bureau in every way possible to help the prospects of their followers.

Perhaps many did not foresee the arena in which The Census Bureau would play an integral role; unemployment numbers.  Breaking on Tuesday, we learn in a New York Post column by John Crudele that the administration has been alleged to have sought out, (demanded) the manipulation of these numbers just prior to the election.

At the time of their release, many spoke out claiming foul, but those who did, inclusive of famed CEO Jack Welch, were dismissed and discredited as not in command of the facts or extreme opponents of the president who present false accusations.

Welch, and others, were correct, which is why they were so vehemently attacked.

Let me be clear.  The unemployment number criterion has been altered and the number presented to the public today is not the same number presented to the public twenty years ago.  Please examine our previous post on unemployment, Shadow Stats and take a moment to read a recent editorial in Investors Business Daily for further clarification.

The media wont inform the public as Rick Santelli of CNBC further explains, lamenting the media for their complicit action in deceit.



There are 90 million people out of the work they desire, a simply staggering number. When job seekers exhaust a time period of search, they fall off the count which lowers the unemployment rate.

Furthermore, if the economy was improving and job opportunities were increasing, members now on the sideline would re-enter the job search and become part of the statistical pool once again.  With additional workers seeking new jobs, the result would be a slight increase in the unemployment rate.

Therefore, given the minuscule growth taking place in spite of the policies of the Obama administration, the claim Obama made signaling the sudden lowering of the unemployment rate was due to an improving economy, although it sounded good when you say it fast, was yet another falsity presented by our Commander in Mistrutths.

The administration wants to give lip service to working to create jobs, but the actions thrust those able to see in another nefarious direction, one bearing witness to the crashing of our economic system.

Only in the full embrace of socialism is pay dictated by sources with no skin the game, no investment in the process and with no legal right to interject.  Take for example the protests, set to be performed and orchestrated with the full support of those sharing goals with the administration, to have worker strikes at fast food restaurants where the organizers of the movement seek to demand a $15-an-hour wage for fast-food workers, which when boiled down is a transfer of wealth from "haves to have nots" Karl Marx dreamed about.

Although it is portrayed differently in the news media and by union leaders, the minimum wage is not what would be designated as a living wage; better stated, it is designed to accommodate temporary employment and not to produce an income for a head of household.

This is a basic thought process in economic theory, but an alarming number of people think it is good to raise the minimum wage. That action actually decreases employment and reduces prosperity

In the world of free market economics, pay is most often dictated by performance, and should your skills elevate your performance beyond the ability of the employer to adequately compensate, the employee advances to a higher level of employment. 

As the ends justify the means in true Saul Alinsky style, engaging in the misrepresentation of the truth to the public is of little risk to an administration manipulating a trivial society drowned in a sea of irrelevance. The misrepresentation on the aspects of employment in America is one tentacle of several actions designed to encourage class struggle and divisive altercations between the haves and nave nots, culminating in civil unrest ushering in a crashing of our economic system resulting in the fundamental transformation of The United States of America.

Market Mayhem

Investors should be treading very carefully these days in the capital markets. This is not a time for Aunt Mary and Uncle Bob and unemployed day traders. Former FED Chair Alan Greenspan said today that the market may be juiced some 50% due to FED stimulus. While the effectiveness of the stimulus can be argued, the FED cannot operate quantitative easing forever, and at some point, the stimulus will need to be retracted.

Forecasting the extraction of FED injected stimulus is one task, but navigating a market without integrity and rule of law signals a retreat to the sideline. Regrettably, in my estimation, we sadly have reached this point. MF Global is fresh on our minds, and last I saw, Jon Corzine was two fisted with his favorite cocktail cranking around the Hamptons. Meanwhile, his investors remain fighting to retrieve small portions of the investments placed with his frim feared lost.

The events surrounding the MF debacle should have been a major warning sign. In the aftermath, Ann Barnhardt shut down her brokerage firm Barnhardt Capital Management due to lack of confidence in the governance of the cattle futures market. Barnhardt warned of future issues to come, and this week we were greeted with the bizarre goings on at PFG Best. Score one for Ann.

Rick Santelli of CNBC further explains:



It seems clear we have issues at the CFTC and/or NFA, and all capital markets, for that matter. The FED seems to be in bed with the Obama administration, rather than operating with impartial market driven guidance. We have news the LIBOR rate has been manipulated, with Barclays among the first of potentially many banks to be signaled out.  JP Morgan, with problems turning up everywhere these days, reportedly played a role. LIBORgate will become a major financial mess, potentially blowing up every HP12C on the planet as the lawsuits get going. As it turns out, approximately 1 million mortgages were based off this rate, and that could be a huge problem.

We ran a blog post a few months back discussing market mayhem, eloquently described First Principles Capital Managements Doug Dachille, which we will present again below.



These market manipulations are quite complex difficult to get your arms around. However, when you couple the imminent implosion of the European Union with market manipulation and The FED gaming the system it becomes exponentially difficult to properly measure risk. In addition, the rewards of potential gains versus the risk exposure within tainted and manipulated markets seem not worth the effort. Although seemingly safe in large big caps positions, investors should keep a very tight leash on any investments.

Do you know who is running the casino? Are their friends being rewarded at your expense? Corruption is everywhere! There is market mayhem, being controlled by those who are not ashamed to be helping you lose your money. Trust and rule of law are absent. It is most unfortunate it has come to this, but in my view it clearly has.

Caveat Emptor!

Ranting and Raving

It can be storngly argued the epic rant by Rick Santelli on CNBC ignited the course of events which esatblished the TEA Party. Count me among those who with afection label Santelli the Father of the Tea Party movement. You remember the rant heard round the world?



Fast forward to the events of toady, most specifically the implosion of the Eurozone, where bailouts of insolvent countries are leading the imminent demise of the Euro. Nigel Farage has rivaled Santelli in voicing several stellar rants fortelling the demise on the Eurpoean Parliment.

Finally, Santelli gets an opportunity to visit with Farage about the status of the Eurozone. Two greats ranting and raving about the truth of the horrendous economic status of the world, but unfortunately,
is anybody listening?

 

CNBC had veered very left in recent years, which is most disappointing. However, a few sound thinkers remain in Santelli, Joe Kernen and Lawrence Kudlow.  You can count on Santelli for the real story, and certainly, as we have posted about numerous times, Farage is the top voice on the concerns of the Eurozone you should be hearing.

A crash is coming, as the bailouts have not worked, and will not work. As Farage so eloquently points out, technocrats rivaling one another in incompetence are in charge. What could go wrong, market manipulation? Theft? The loss of integrity in the markets?

Information Misrepresentation: Unemployment

Information presented to the Public by various outlets is being crafted to misrepresent reality in an effort to skew political thinking, gain economic advantage and nudge social justice further down the American psyche. This is the third in a series of blog posts detailing instances in this regard, as it is imperative the Public recognize the significant level of misrepresentation and how vast the manipulation is.

Information Misrepresentation: Unemployment

Last Friday, the job numbers were released and media outlets across the spectrum were thrilled to report the unemployment rate had fallen from 8.2% to 8.1%.  The decrease was presented as evidence that Americans are getting back to work and the measures to assist the economy by President Obama are bearing fruit.

Nothing could be further from the truth, and as usual, the media is complicit in a far reaching misrepresentation of the facts participatory in supporting the re-election of the President.

Weekly jobless claims continue to register at around 350,000, and this past month only 115,000 jobs were added.  Somehow, the unemployment rate decreased. The reason for this apparent anomaly is that unemployed individuals who no longer actively seek employment fall of the calculus.

If Obama was succeeding in getting America back to work, the unemployment rate would be increasing at this point because as folks found work as jobs became available, those sitting on the sidelines would jump back into the fray seeking employment.  Hence, our underemployed and unemployed citizens full time employment would rise as they re-enter the equation, increasing the unemployment rate upward.

Shadow Stats has the real unemployment rate at 22%.  Even so, as ever so accurately reported by the excellent blog Zero Hedge, simply put, this is sad.  The labor participation rate is the lowest it has been since 1981.  That is stunning.  Take a look at the following charts presented by Zero Hedge:

Labor Participation Rate




Persons Not In Labor Force


These charts, with data not seen since the Great Depression, show a catastrophe in the making.  Not only are individuals and their families hurting, but our productivity is taking a beating.

By not participating in the work force, workers are falling behind in levels of training, education and self fulfillment.  New technology is outpacing those able to perform supportive functions in support of these technological gains.  Over time, this will significantly impair our competitiveness.  Try not playing golf for a few years and then hitting the links.

One of the few patriots in the media to throw a penalty flag on all the gleeful reports of an improving unemployment rate is CNBC's Rick Santelli, who call them out his Santelli Exchange report:



We have an economic calamity going on in America due primarily to inept leadership from the Oval Office and the entire Obama economic team.  Time is short to turn chart a path to prosperity, and if we fail, we will become like Europe and our position as the economic superpower may be lost forever.

Free markets, with limited governmental interference, regulation and taxation, presents the playing field from which innovation, invention, work ethic and prosperity is born.  Lets get to work!

The Santelli Slam

President Obama, unable to run his campaign on the merits of his first term since it has been nothing short of abysmal, has resorted to tactics unbecoming the Grinch. Obama is attacking anybody and everybody, but perhaps the worst aspect of his antics is his economic commentary surrounding what is known as "The Buffett Rule".

Generally speaking, President Obama indicates that Mr. Buffett pays less taxes than his secretary, which simply is not the case. It has been reported that Mr. Buffett's secretary does not make enough annual salary to reach the 25% bracket; therefore, she pays taxes at the 15% rate. Mr. Buffett, provided he makes a salary over approximately $150,000, pays 25% minimum on his income, which is more than his secretary. It should be noted that Buffett makes the majority of his income on dividends from his investments, including his company Berkshire Hathaway, and dividends are taxed at 15%, equal to his secretary.

President Obama is not being square with the American people when he misrepresents the facts in such a deceitful way. Most Americans are not shareholders of Berkshire Hathaway and do not engage in reviewing the annual report and therefore, fail to recognize the lies being told them. It is noted I am a longtime Berkshire Hathaway shareholder and read the annual reports.
The fine editorial page at Investors Business Daily examines this mess further.

Imagine we did hit the most wealthy with additional taxes in an effort to force them to "pay their fair share". Where would that get us? CNBC's Rick Santelli, father of the TEA Party, gives us an earful from his perch at the Chicago Mercantile Exchange.



The entire argument Obama is presenting to the American people on this subject is incorrect, and he is well aware of it. This speak volumes about his character, since America is on the precipice of financial disaster. Obama's actions tell us he is much more concerned about being re-elected than solving the critical economic issues of our time.

Hitting the extremely wealthy with a heavier tax burden will not solve problems, instead creating a host of them. If taxed a higher rate, these folks (investors) will not be incentivized to earn more and will invest and spend less; therefore, creating less commerce which in turn results in less tax revenue for Uncle Sam and hurts those Obama claims he is attempting to assist. As Santelli points out, the impact on solving the massive debt issues would hardly be measurable.
This whole level of discussion is nothing more than a campaign gimmick, one that divides our citizens in class warfare over a false premise. With our country in such great economic peril, I find these actions by our President and his surrogates nothing short of disgraceful.

Bachmann In Overdrive

The thunderclap last November that turned the tables on big spending politicians (Democrats) resulting in the biggest turnover of party leadership in over 50 years appears to have left many in Washington whistling by the graveyard.

On the way out, under the leadership of Senate Majority Leader Harry Reid (D:NV), who somehow got re-elected, a 1900 page omnibus spending bill has been presented, and likely will pass since many appropriators and some "moderate" Republicans are in favor along with most all those who love to needlessly spend your money (Democrats).

Minnesota Congresswoman Michele Bachmann (R:MN) is not happy, and neither am I. Bachmann spoke with FOX Business's Judge Andrew Napolitano:



The country is broke, and economic troubles are indeed on the way, even if those smiling faces in Washington tell you differently. For Reid and his followers to propose such an outrageous spending bill with the economic problems looming and on the heels of the loud word of the people last November, it illustrates a complete disregard for the American people and champions a new level of arrogance. John McCain (R:AZ), for the love of Pete, is threatening to filibuster! Steve Moore of the Wall Street Journal editorializes on the final insult of this 111th Congress.

This slap in the face of the electorate will simply not be tolerated. Those who are in support and vote to implement this anchor of spending, and who are in large measure complicit in bankrupting of our country, will certainly be held accountable. Democrats will not get my support anyhow, but any Republican voting for this suffocating debt stricken bill will find me campaigning vigorously against them, including endless scorching here on the blog.

It goes back to comments correctly made by Ronald Reagan: "We don't have a trillion-dollar debt because we haven't taxed enough; we have a trillion-dollar debt because we spend too much”. Last year, the Tea Party Patriots led the nation to speak loud and clear on this subject. To work off a quote by CNBC's Rick Santelli, "Washington, were you listening? Stop Spending!"

For the sake of our children and grandchildren, I hope so. Unfortunately, I fear they are actively working the Cloward & Piven strategy to crash the system and if so, the governmental structure placed in our care by our founding fathers would appear to be at extreme risk.

A note for those in Washington. We surround you, and we work tirelessly to hold you accountable. We are indeed in a time of choosing, and those attempting to endlessly spend our money are not part of the solution, which is free market capitalism, our best path to prosperity.

Stop Spending

Every weekday morning while wrestling my bowl of cinnamon flavored oatmeal, I am monitoring the financial markets with the gang on CNBC's Squawk Box, sick twisted freak that I am. There have been some historic moments on Squawk, most notably with Rick Santelli's shout heard round the world , and the discussion today was along those same lines as America has a choice to make. Take a listen:



Although Joe Kernen and Rick Santelli have fun slapping Steve Liesman around, the choice America has economically is between the Keynesian economic theory regrading the issue of governmental stimulus in the marketplace (Obama) versus the supply side theories of very limited governmental intervention by lowering costs of production and helping to lift the entrepreneurial spirit of free market capitalism, which then trickles down benefiting everyone (Reagan).

New York Times economist Paul Krugman is in the forefront of those promoting the Keynesian theories, and recently wrote that due to a failure to spend enough, the United States is preparing to enter a third depression. Investors Business Daily takes him to task on that thought.

One of my readers alerted me to a piece blaming George W. Bush for all the deficits we are now experiencing. While the Bush administration did expand the deficit, due primarily to events in the aftermath of September 11, 2001, it is the current policies of governmental interference, in the form of increased regulation and taxation, the assault on small businesses across the fruited plain and the uncertainty of the playing field going forward that has hindered investment, placed meaningful growth in a stranglehold and exponentially bloated the federal deficit. In fact, the governmental stimulus in the public sector further crowds out private investment, where most of the jobs are created.

Explaining the poor decisions the current administration is making is Robert Mundell and Art Laffer, who joined CNBC's Larry Kudlow recently for a frank discussion.

The Obama administration has engaged in a level of governmental stimulus never before seen, and our economy has little if anything to show for it. Foreign countries that engage in this type of socialist activities have run out of other peoples money, causing the civil unrest we have witnessed. Uncle Sam will be dealing with these same issues if we don't change course quickly.

There are a few politicians emerging that understand the severity of the issue, including New Jersey Governor Chris Christie (R) and Wisconsin Representative Paul Ryan (R). For our economy to improve, outside of a sweeping change in November, the government should do just as Rick Santelli suggested, and that is to stop spending immediately.

You Ain't Seen Nothing Yet

Enemies from within are in full scale organized assault on free market capitalists and limiting the ability of each of us to engage in life, liberty and the pursuit of happiness, the blueprint our Founding Fathers laid out for us.



HT/Patriots For America

Take a few moments to think about what has been taking place. Corruption is rampant, transparency is non existent, regulation is expanding and our leaders are not even reading, or writing, legislation. It is easy to see how out of control this is. Why is every sizable legislation now a rush or emergency? The administration wants to act quickly before you recognize what is taking place and rise up in opposition. Well, they ain't seen nothing yet!

Unfortunately, the time is immediately upon us to become participatory in the fight against tyranny that is right in front of us through the use of non-violent and legal activities.

It is a time for choosing! Let freedom ring!

Obama Wealth Destruction

With good reason, many individuals from various walks of life are second guessing casting their vote for Barack Obama, who essentially has created war against small business and the investor class; prosperity for that matter.

A famous voice on Wall Street and Obama supporter, CNBC's Jim Cramer, made a plea on his nightly show Mad Money for Obama to change course on his economic policies before it is too late. Take a listen:


Over at NBC News, where the love fest with Obama continues daily as the stock price of their parent company, General Electric (GE:NYSE), continues to cliff dive, correspondent Tom Costello, a former CNBC reporter himself, fires some questions at Obama Press Secretary Robert Gibbs, who is fresh off an altercation with CNBC reporter Rick Santelli, and Gibbs continues his assault on CNBC, and thus us, the investor class: Listen up:



The destruction of wealth since Obama's election has been beyond alarming. Considering the uncertainty he is imposing on the market through seemingly daily and erratic governmental interaction and regulation and his astounding lack of economic knowledge, particularly with respect to role capital investment plays in providing the fuel needed to ignite and engage the expansion of economic progress, it is easy to see why Wall Street is in full scale retreat.

As Cramer accurately points out, "Hey it's amateur hour at our darkest moment." Make no mistake, Wall Street is Main Street. If you aim to destroy Wall Street, the collateral damage will be no doubt found on Main Street. Look around!

Striking A Nerve

In the aftermath of the "Shout Heard Round The World", White House press secretary Robert Gibbs chastises CNBC reporter Rick Santelli for, shall we say, not being up to speed on the Obama mortgage re-modification plan. As Glenn Beck would say, may I have an ADD moment: (this coming from the group that pushed the immediate passage of the stimulus package so quickly that none of the congressional members had sufficient time to read the bill).

Given the condescending manner Gibbs operated in, it appears the administration is striking back at Santelli as well as the members of the investor public and tax paying citizens he so adequately represents. Santelli joined former Reagan economic advisor Larry Kudlow on Friday nights Kudlow Report on CNBC. Take a listen:

Without question in my mind, Santelli is correct, and I draw on this not only from my background in economics but from personal experience. I have had a job loss, am struggling to make fixed rate mortgage payments and as a result and have drawn upon my stock holdings to assist in staying current on my obligations while I build up my companies. Those who seem in line to benefit directly from the new mortgage re-modification plan are those who, unlike myself, have failed to meet their mortgage obligations. Perhaps I should have not sold out of equity positions in my stock holdings to make these payments and should have defaulted. It seems those taking that route are those being rewarded.

If I have to sell a property in distressed economic conditions that is a position I got myself in and my family and I will absorb the economic and psychological fallout, although in reality, the folks defaulting from making idiotic mortgage decisions such as interest only and highly escalating adjustable rate mortgage instruments have been complicit in the market downturn and thus, the situation I find myself in. The bloated inventory of these distressed existing homes coming on the market has put heavy negative pressure on rental vacancies, thus negatively impacting rental rates which has added further downward pressure on my monthly income. But hey, it's the politics of real estate investing.

Santelli and Kudlow are two great Americans, and I continue to subscribe to the Kudlow Creed; Free Market Capitalism Is The Best Path To Prosperity! I suspect that behind the creed is Caveat Emptor, or "let the buyer beware", and there needs to be personal responsibility for making incorrect investment decisions, be it grabbing 2000 shares of Pets.com at $113 (now worthless) or buying a $500,000 lakefront home on annual income of $25,000 with an interest only loan. This responsibility is part of the system, one which must be preserved in our free market capitalist system. Be it the dot.com advance in technology in the late 90's or the recent real estate boom, when it was going good, I do not remember anyone offering to give back any of the gains. Do you? I didn't think so.

CNBC's Santelli Has Had Enough

While much of America drinks their morning coffee while keeping an eye on ABC's Good Morning America or The Today Show on NBC, as an investor I am listening to Squawk Box on CNBC while keeping an eye on the lovely Alexis Glick on FOX Business Money For Breakfast.

This morning, CNBC anchors Becky Quick, Carl Quintinilla and Joe Kernen were joined by billionaire investor Wilbur Ross of WL Ross & Co. and Jason Roney of Sharmac Capital. Joining the discussion from his daily perch at the Chicago Board of Trade was CNBC's Rick Santelli. The group was discussing the governments plan to save the economy and things quickly got out of hand, as Santelli blasted the Obama Administration's mortgage plan.

Kernen, a big fan of The Gipper, gives Santelli the rope to firebomb Obama. This is just great!



America is at a crossroads, and it is imperative that you take a page from Santelli's book and make sure your voice is heard. The ship is sinking, but most are just drinking up listening to the sounds of the band. Here is an avenue where you can join me and make your voice heard!

God Bless America, and thanks to Rick Santelli for speaking out!