Archive for June, 2011

Simply Zebest

Wednesday, June 29th, 2011

Update: Below is a 2 minute video of a June 29, 2011 press conference at the National Press Club where Mara Zebest, the author of the report (see below), makes a bold claim regarding the validity of the electronic version of President Obama’s birth certificate released by the White House. You may ignore the introductory promotion from the video’s producer, but you may find the content and the subsequent written report slightly more difficult to ignore.

With slightly over 1,000 views in two days on Youtube, this is clearly not receiving any media attention. More people read TradeWithDave.com everyday than watched this press conference. It makes you wonder.

Where does Dave stand on this? Dave doesn’t claim to know anything, but Dave doubts that Donald Trump is worth $165 millon to NBC and that’s what started all this… follow the money and the lion’s share of the money to pay The Donald is coming from who else… General Motors aka Government Motors.

File:Paonroue.JPG

Dave has bragged a couple of times about not having cable at home. Technically that could be misleading because Dave is at the beach now and Dave has cable at the beach. Dave also goes to bed at 9 p.m…. that is when he’s not at the beach.

So, it was Tueday night and Dave was up way later than normal. He’s channel surfing Comcast when he sees Jay Leno of The Tonight Show making a joke about President Obama’s Birth Certificate. Dave’s thinking to himself… isn’t that old news. Then Dave realizes that its a re-run. But it was the last thing Dave was thinking about before he went to sleep and that’s when Dave does his thinking.

Dave wakes up thinking about the news last week of Donald Trump’s $160 million contract (http://www.nypost.com/p/news/business/reality_pay_check_4D92mHK7Lnq9C65xf8NBuL) for his reality TV Show Celebrity Apprentice. Dave is thinking about how Jay Leno and Donald Trump both work for General Electric CEO Jeff Immelt who controls 49% of NBC/Universal of which the balance of 51% is controlled by Comcast.

Dave starts thinking… isn’t it interesting that the Donald who single-handedly resolved the Obama birth certificate issue by threatening to run for president is also the man who will personally receive $65 million from the company that is one of the single largest benefactors of the White House policies?  That starts bothering Dave a little bit, but not enough to write a blog post about it.

Then Dave stumbles across this release from yesterday. Dave knows a thing or two about Adobe Photoshop, Pagemaker, Quark, Acrobat and pretty much any other digital editing software or workflow application that’s out there. You see Dave has been the president of two companies that specialized in graphic arts so he had to select the software and build the teams that would work the software. Dave even made presentations to the Graphic Arts Technical Foundation about the marketing implications of mass personalization back when the variable graphics and variable data industries were first emerging from Xerox and Hewlett Packard over a decade ago. Dave is not a graphic artist or even a Photoshop technician, but he knows how this stuff works and has been responsible for using it to run businesses for years.

Mara Zebest either co-authored or contributed to these books on digital graphics. Read the presentation and decide for yourself. The two things that bother Dave the most about this are the “Follow the money” aspects as they relate to Donald Trump’s presidential bid/birth certificate fiasco/GE/NBC/General Motor’s sponsorshp connection and the smple fact that an actual birth certificate was never presented… only a digital representation of the birth certificate.

Here’s a link to the Scribd document of the report (blue link below).  The Scribd file is 12 pages and takes a minute to load. A copy of the entire report is pasted in below.

58950127-Mara-Zebest-Adobe-Analysis-Obama-Long-Form-Birth-Certificate-Report-Final-Draft

Mara Zebest Adobe Analysis: Obama Long-Form Birth Certificate Report; Final Draft

Mara Zebest Adobe Analysis: Obama Long-Form Birth Certificate Report; Final Draft

Mara Zebest Adobe Analysis: Obama Long-Form Birth Certificate Report; Final Draft

Building A Mezzanine Over The Minefield

Monday, June 27th, 2011

http://miss-landmine.org/

The following is an open letter addressed to Jim Rickards of Tangent Capital Partners LLC (former Managing Director of Market Intelligence at Omnis, Inc.) from Dave Harrison.

Dear Jim:

I have listened to your presentations regularly and appreciate the smooth, well-crafted and confident assessment that you present of the macro landscape.  I will also say right up front that your background and associations would led most anyone to consider that you have been in the past or are currently associated with the Central Intelligence Agency of the United States Government.  Of course that’s mere speculation on my part and is neither here nor there but I deem it as important to present at the outset of this letter. 

Your most recent interview on approximately June 24 with Eric King of King World News (www.kingworldnews.com - link below) motivated me to write to you and to call into question your depiction of the current situation in Greece, in particular the sovereign credit default swaps, as a justification for the implementation of a modified version of the International Monetary Fund’s Special Drawing Rights (wth a percentage of gold backing) as a viable solution to the dilemma.  Your proposal is consistent with the concept of a divorced currency as put forth by Mervyn King, Governor of the Bank of England.

I have written about this suggested plan extensively in the past.  Your presentation however, in light of the dual responses of the Federal Reserve’s admission of an inability to improve the current situation in regard to unemployment  and Chairman Bernanke’s empty quiver combined with the White House tactical release of strategic petroleum reserves struck me as a colossal change in overall strategy.  Together, these responses display all of the appearances to me of both a willingness and a determination on the part of the U.S. Government to abandon entirely or to greatly reign in the role of the Federal Reserve and the global central banking system.  Please allow me to explain.

I realize the gravity of such a proposition and to be completely frank it was not something that I had expected in any way, shape or form.  However, at the same time it would seem to be quite logical and in reality the only solution to addressing the global situation from a perspective of the powers that be.  Setting aside the dual mandate of controlling inflation and employment of the Federal Reserve in exchange for the implementation of  an entirely new Occidental currency for the West is a classic upstreaming asset model of consolidation as applied to conventional insolvency and bankruptcy avoidance by the parent corporation by foreclosing on the downstream subsidiary.

In your interview with Eric King you brought to light the terrorist paradigm that banks have presented to sovereign nations via the highly profitable deployment of credit default swaps.  This “nobody move or I’ll blow myself up” reality is, in my opinion, no subject of debate.  Quite to the contrary however, your suggestion that since no one knows exactly where the mines (i.e. the credit default swaps) have been lain that this is a justification for the construction of an entirely new form of mezzanine finance to be built over and above these pre-existing and non-improvised explosive devices is ill advised and is the ultimate game of kick the can down the road via extend and pretend.  Although I believe it is deceptive and ill-conceived I don’t see any reason why it will not happen along the lines that you suggest.  Your plan monetizes the value of the United States military as a substitute for the soon to be entirely depraved balance sheet of the Federal Reserve and as such shifts the accountability away from the Fed and back to the Treasury. 

You go on to suggest, in what appears to be in concert with the Mervyn King BOE plan, that the columns which will support this mezzanine be built out of gold.  When you suggested that the study behind such a plan will take several years, I felt like I was witnessing the alter ego of Jamie Dimon’s recent impromptu questioning and Ben Bernanke’s admission that no in-depth study of the current Fed strategy had ever been undertaken as to the viability of today’s plan.  The implementation of your new SDR Western Occident Currency solves both the need for countries to have what appears to be sovereign currency in the form of satisfying the double coincidence of needs in an entirely non-fractional form while providing for a global gold-backed fractional wealth forming currency which makes up the other side of the coin.  What could be better?

If what I am suggesting is correct, then the plan to strategically collapse the current system (i.e. End the Fed) under the weight of investigations such as those being conducted by Ron Paul and to replace it with a new gold-backed form of libertarian paternalism would be the agenda.  The simple price for all this reconciliation is the monetization of every participants sovereignty with the exception of the United States military.  A similar sequence of events is already occuring in the Eurozone and being perpetuated on the right by Nigel Farage and on the left by George Soros through recent statements such as “probably inevitable” collapse.  It makes me think I am “probably inevitably” correct… whatever that means.

Your suggestion that the minefield could never be cleared since there are no maps or regulators who know where the credit default swaps are planted is false.  I would suggest that there is not a bank or an insurance company that has sold a credit default swap that doesn’t know exactly where the contract lies and the counterparties thereto.  Gary Gensler’s CFTC couldn’t do such a great job of covering for Goldman Sachs and JP Morgan if they didn’t know exactly what was at stake.  The fact that the Eurozone has approved an expansion of the European Financial Stability Fund from 440 billion to 780 billion is a clear indicator that the focus is moving away from the central banker model and moving towards a new merger of sovereign interests, albeit business interests, I  would speculate that the United States Treasury has shifted its focus to the Exchange Stabilization Fund in a similar manner in preparation for just such a transaction.  Through the implementation of new clearing mechanisms (http://tradewithdave.com/?p=6291) and Dodd-Frank workarounds the City of London is now forced to share power with the U.S. Treasury through entirely new forms of leverage. 

The willingness on the part of governments to pervert laissez-faire economics through the implementation of behavioral economics based on choice architectures is effectively sacrificing via the wholesale marketplace the blood bought freedoms of generations of Americans on the altar of global economic oversight and a promise of false security.  The Hank Paulson doctrine of if we don’t do it, then we will all be speaking Chinese is no doubt the justification for such a path.  China’s willingness to step in yesterday and bail out Greece was the final straw that motivated me to write this letter and confirmed in my mind entirely that we have just entered the post central banker phase and entered into the pre-occidental merger phase between the dollar and the euro via your cherished SDR. 

Clearing the minefield and returning the explosives to their rightful owners along with an invoice for the direct and indirect costs associated with their fraudulent and destructive financial terrorism should be the first order of business.  Spreading the truth of liberty to the Chinese people rather than the Wal-martization of our economy through the prostitution of their labor will do more to strengthen global security than anything the International Monetary Fund could ever improvise.  From all appearances of the monetary perspective, the powers that be have managed to get the Chinese right where they want them. 

Your plan, if my speculation is correct, is philosophically based on Isaiah Berlin’s Two Concepts of Liberty.  By dividing freedom in half (just like the divorced currency plan) you can both justify the wholesaling of a nation’s sovereignty (freedom to) regardless of the price paid in exchange for economic security (freedom from) from the communist threat.  Might I remind you that whether you choose Kierkegaard’s other of faith or Sartre’s other of hell will determine whether or not you have access to the only true option which has likely not even been considered by those for whom you do the bidding.  Building on the same cornerstone of truth found stamped on every piece of fiat currency, not atop a gold-columned mezzanine cuts a clear path that is not freedom from or freedom to, but freedom with.  Am I suggesting that fiat backed paper printed with the words In God We Trust is of more value than the so-called sound money suggested by Robert Zoellick?  What does Dave know about money?  Just enough not to put his trust in it. 

Sincerely,

Dave Harrison

tradewithdave  (at)  gmail.com

Here is a link to the King World News interview.  When the page loads, look for the MP3 icon in the bottom left corner.  Allow extra time to load as the site is slow:  http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/25_Jim_Rickards.html

For links to previous posts that include information about the plan for a new divorced currency and other topics that relate to this letter to Jim Rickards, readers may want to click on the following links.

The Divorced Currency:  http://tradewithdave.com/?p=6999

Two Concepts of Liberty: http://tradewithdave.com/?p=638

Libertarian Paternalism: http://tradewithdave.com/?p=4819

http://tradewithdave.com/?p=117

http://tradewithdave.com/?p=5895

CFTC Dodd-Frank by-pass:  http://tradewithdave.com/?p=6291

http://tradewithdave.com/?p=7036

Funeral With Farage

Friday, June 24th, 2011

One of the more animated politicians in Europe is the youtube sensation Mr. Nigel Farage. Technically this is not an actual funeral.  When you have a mock funeral symbolzing a flushing of the EURO, it’s referred to as a EURINAL, not a funeral.

Plane crash details: http://tradewithdave.com/?p=3902

More barrage videos: http://tradewithdave.com/?p=3745

I E A Owe U And Sometimes Why

Friday, June 24th, 2011

You’ve probably already heard by now that President Obama is unleashing a wave of oil onto the marketplace in one fell swoop just in time for the summer vacation season.  If you believe that lower prices at the pump will spur economic growth resulting in more jobs, you may be right, then again you may be wrong.  Dave doesn’t know. 

What Dave does know is that systems don’t like shocks.  You shock a system when it’s your only choice.  If someone’s heart has stopped, you shock them.  If you shock someone enough, even if they’re perfectly healthy it will eventually destroy them. 

The decision by the Federal Reserve to engage in quantitative easing was an elaborate and stimulating process for supporting the heartbeat of America.  Dave likes to think of it as artificial sweetener for the wholesale end of the economy – the bulge bracket banks.  Cheap gas prices is like a sugar high for the economy.  It’s the equivalent of stopping into a convenience store and buying a five hour energy drink.  There’s no doubt that you can feel it and if it costs $45 to fill up your car instead of $60, that’s $15 you can spend on snacks and apps for your Iphone. 

Dave is pretty sure that the White House strategic objective is to maximize the impact on the price of oil because rather than phasing in the oil sale, it’s being dropped on the marketplace all at once.  Why else would you do something like that?  Anytime you make strategic decisions with your strategic reserves the question is, will you get the desired result or will there be unintended consequences?  But Dave believes this is not a strategic decision.  This is tactical and understanding the difference between strategy and tactics will make all the diffference. 

You see strategy (or strategery as it was known in the Bush White House) is the big plan while tactics are what you do along the way to keep your overall strategy on track.  Think of it as a James Bond movie.  The strategy is to save the world from Doctor Doom and hs nuclear tractor beam, but the tactics that are employed may envolve a fountain pen that turns into a helicopter or an Aston Martin that sprays an oil slick out of the exhaust pipe.  Those tactical responses are simply part of the means which justify the end. 

When you use strategic assets to solve tactical problems is when you can find yourself in a sticky situation or discover that you have ventured out onto a slippery slope and are unable to return to your original strategic plan.  Look at it this way.  Let’s say you have two IOU’s.  One is for your house and it’s a loan that is secured by the property while the other is a credit card.  If you lose your job or become sick and choose to solve your tactical objectives of maintaining a high credit score and keeping your credit card current with its payments you just might lose your home which could create a much bigger strategic issue such as homelessness. 

If you’re the president of the United States and you just entered into a war and decide to release strategic oil reserves because there is an interruption in the global supply chain, your strategic objective and your tactical objective are working in concert with each other.  On the other hand, if you’re James Bond and in your effort to stop Dr. Doom you drive your Aston Martin into the center of the nuclear reactor you may save the planet, but you destroy the entire James Bond franchise.  That is an example of a tactical maneuver undermining the long-term strategic objective of selling movie tickets. 

The strategic objective of the White House would seem to be related to economic stimulus with a focus on jobs in light of the ending of QE2 and the implementation of the Twist plan (http://tradewithdave.com/?p=6968).  The tactical implementation is to lower the monthly percentage of income that is spent on fuel thereby boosting consumer spending, the transports, airlines and the all-important summer vacation season.  There’s one huge problem with that.

Timing Is Everything

If you wanted to boost the summer vacation travel season, you would have needed to lower prices at the pump by Valentine’s Day or at least before Easter.  Middle to late June, although many schools just got out, is too late for consumers to respond with changes to their summer vacation schedules.  Sure some folks may decide to fill their boat up and go offshore or others may take a day trip that they had not planned, but that big road trip to Florida to visit Mawmaw and Papaw was probably planned last Thanksgiving 2010, not this 4th of July.

If you want to change the consumer patterns of American households, you have to change the consumption patterns of the great American mother and wife.  If there’s one thing that moms hate more than anything, it’s shocks to the system.  A mom is the greatest single shock absorber that has ever been in existence since the begining of time.  It’s moms that take twenty-eight days of pay and stretch it into thirty-one days of month.  It’s moms that made Hamburger Helper a household name.  If you want to avoid unintended consequences then whatever you do, don’t shock mom or she just might shock you back. 

Federal Reserve Chairman Ben Bernanke said it himself this week that “we don’t have a precise read on why this slower pace of growth is persisting.”  Dave doesn’t know if the IEA’s spilling of strategc oil reserves will have the intended effect, but Dave does know why there’s no growth.  Cause Momma ain’t happy.  When you mess with Momma’s vacation plans all winter and then at the last minute you drop the price of gas to convince momma that the family should go to the beach for three days, you’re going to get a heapin’ helpin’ of her stark reality. 

If the cornerstone of fiat currencies is confidence, then the walls of the house are built from expectations.  Shocking the system, however politically expedient it may be, is not good for expectations.  It perverts the price discovery process and takes the already rigged markets and turns them into a circus.  Wal-mart may be a great beneficiary of the spilling of these oil reserves into your change purse, but just because Mom doesn’t run out of money before the end of the month while standing in the check out line doesn’t mean that she’s going to run out and spend money on a vacation at the last minute.  On the contrary, she’s going to spend that money on basic commodities and products that she needs to run her home such as soap, clothes and food. 

That’s where the unintended consequences start to enter the picture.  When you attempt solve a strategic problem (near zero growth and rising unemployment) through the tactical deployment (vacation gas money) of a strategic asset (petroleum reserves), you are displaying your vulnerability for the entire world to see.  That would not be such a big issue if at the same time you were engaged in a new or highly visible “kinetic” war (Dave doesn’t think Libya or Afghanistan are understandable enough to qualify).  The loss in confidence created by showing Granny’s bloomers would be offset by the show of force related to the war effort, but this oil sale is different.

This effort appears designed to boost confidence when in reality the effect will be just the opposite.  Confidence will continue to be destroyed and the plan to deploy annual inflation rates of 4% in an effort to inflate away the debt runs the risk of becoming a runaway train driven by a rapid decline in confidence of the U.S. dollar and the realization by the average American consumer that their purchasing power is evaporating which could unleash hyperinflation in areas that are considered life essentials such as food, clothing, shelter and water. 

In the same way that the Fed admitted they don’t understand what is happening, the entire system is built on dollar confidence and although we are experencing a near-term strengthening of the dollar today, should that confidence begin to fade, the release of hyperinflation on targeted, life-essential areas will break out as consumers search for alternatives to their dollars and the diminishing status of the U.S. dollar. 

But that’s the Fed’s plan… to inflate a way the debt…. then what’s the problem? The problem is what happens when confidence in the dollar cascades into deterioration at the same time that the Fed’s orderly “twist” targets select maturities and rates.   This slingshot that is being loaded and drawn back right now is resulting in a strong dollar and a pull back in prices of stocks.  This is the same slingshot that will release the explosive sugar-induced high that such desperate tactics always bring.  Once the general public begins to understand that the options now available to the Fed and the Treasury, especially the Treasury’s Exchange Stabilzation Fund are all just one more table spoon of sugar, what other options are left for Mom in her effort to survive the summer while riding herd on Dennis the Menace except to get out in front of that sugar high by spending every last dollar she has before her purchasing power is destroyed. 

A Willingness To Manipulate

Confidence is essentially based on trust and trust is essentially based on a combination of credbility and integrity.  Just because someone is honest doesn’t mean that they are credible as is the case with most Dennis the Menace characters.  Their heart may be in the right place, but when it comes to executing on the plan we know as well as Mr. Wilson that the outcome will always include unintended consequences. 

The White House’s willingness to offer a temporary tactical solution to what is a fundamental strategic problem displays a willingness to engage in market manipulation at a level that does not allow for the conventional finger-pointing of Bernanke made me do it.  If the Suez Canal was blocked or if we had just invaded Iran, then spilling the equivalent of one day’s supply of oil onto the market would be viewed as a responsible security action.  However, in light of the timing of the Fed Chairman’s speech combined with the China-friendly by-product of lower oil prices the blatant market manipulation not only smacks of being  politically expedient it will, in the end Dave believes, undermine confidence. 

Legitimate price discovery is a confidence builder while market manipulation is a confidence destroyer by causing those who would otherwise particpate in the price discovery process to otherwise pull in their horns and create an unwanted run on the physical currency.  It will have the same effect on the energy markets that high frequency trading has had on the equity markets.  It will shrink the overall base while energizing the overall volatility.  That is a formula for financial crisis which may be exactly what the government is looking for as their plan (b) should this high fructose injection fail to produce the Splenda results they are looking for. 

The Call With Dave

Dave has been considering making another call on the market for about three weeks.  The last time he made a call it was on February 18.  The timing was great, but the call wasn’t perfect but has worked out well as of the past couple of weeks  (http://tradewithdave.com/?p=5372).  Keep in mind that not only is Dave not perfect, he’s also not a financial advisor and he only trades in ideas, not petrodollars.  Well, here comes another call.  Dave is naming this next phase the Slingshot in the Arm of Inflationary Essential Goods and Services, aka the Dennis the Menace market of unintended consequences, ricocheting through the global neighborhood and ending up breaking a second floor window on Maple Street USA. 

It seems obvious to Dave that not only is the White House willing to offer sugar and caffeine infused beverages to your young children just before bedtime and the launch of the summer vacation season, they are willing to offer the same thing to the Chinese as a stimulant for cooperation.  When you use a strategic asset in a tactical manner as any parent of small children knows the price you pay in the end is much greater than the cost on the front end.  Allowing the kids to stay up and be stimulated not only involves the grouchy hangover the next morning unchecked it will lead to a mouthful of cavities, childhood obesity and diabetes.  The same can be said of the energy markets, including natural gas one of the biggest inputs for the world’s food supply of nitrogen-based fertilizers. 

You see the China inflation story is just getting started and now that we have a globally integrated food supply to go along with our globally integrated banking system, when your little Dennis sits down to his bowl of Corn Pops he’s competing with his Chinese counterpart who is equally hungry although he may be a newer member of the consumption class.  Once you’ve presented free will as a choice between Coke & Pepsi, water is no longer an acceptable substitute.  Here’s a report out of Societe General that explains the global breakfast cereal eating contest better than Dave ever could:  http://www.scribd.com/doc/56479179/China-Domino .  Soc Gen refers to them as dominos while Dave prefers to think of them as so many smooth stone slinghot propelled projectiles ricocheting off oak trees and heading towards the enrichment of Keynesian window repairmen right here at home.

 The Deflationary Drawback

You know that phase of slingshoting where you drawback the elastic in hopes that you won’t hit your thumb with a stone moving a 90 miles per hour?  Well that’s the phase we’re entering into now.  It will be short-lived (say the summer vacation season) only to be followed by an elastic rebound of rapid proportions into a hyper-inflationary state targeted on life essential items that feed both corporations and the entire HenryMitchell household.  Select items will be artificially supressed such as gold, silver, now oil and any other items that make up the redefined basket of inflationary measurement tools (http://www.tradesignalonline.com/charts/news.aspx?id=815113&filter=&catid=0 , while everything that matters (the Corn Pops for example) will explode into a hyperinflationary cascade designed to outrun the engineered Twist plan to gradually squeeze the life out of the U.S. dollar (http://tradewithdave.com/?p=6968).  The artificial inversion of yield curves and the implementation of curbs on select Treasury maturities is an equally destructive form of manipulation that may not affect oil speculators directly but it affects Grandma and is ultimately her tax for doing everything right.

So Dave is officially joining the hyperinflationist camp but there’s good news.   The hyperinflation will also apply to the price of equities… at least for a season.  That’s right.  Stocks of globally sophisticated corporations (thnk GE, Catepillar, Boeing, etc.) will also see their prices rise rapidly along with the price of everything else.  How can this happen if the world is struggling to recover.  It will happen because money will go in search of any asset class that even comes close to displaying any shred of productivity… at least for a season (probably for a year or two).  Where else can the money go?  The wage parity with China will look promising as jobs return to the U.S. until we discover that the key jobs exported in the 80′s are being repatriated to robots in what Jeremy Rifkin called The End of Work

So the price of everything with the exception of whatever the U.S. and complicit governments are able to manipulate (think dollars, interest rates, precious metals and petrodollars so far) will begin a rapid ascent not due to fundamental dollar strength which is what we witnessed this week, but rather through an effort to outrun the manipulator who has plans to destroy the dollar ultimately.  Dave wasn’t the originator of the saying “If Momma ain’t happy, then nobody’s happy,” but Dave is a big believer.  The White House may think that providing a tactical form of tax relief at the pump for Mom is going to be pleasing to her.  They also may believe that it will boost sales at Wal-mart because mom doesn’t run out of dollars before the end of the month.  But all that assumes that Wal-mart will continue to have everyday low prices which unfortunately for Mom, Dad and Dennis will no longer be the case. 

By the time the back-to-school season comes around, everyday low prices will be everday high prices and it won’t be long after that when Alice Mitchell discovers that the globalization slingshot that Dennis shot over a decade ago has managed to travel around the globe and come back in the form of a rock through her window when her dollars won’t even buy a vowel much less a shopping cart full of groceries.    

Here’s a link to the IEA’s press release: http://www.iea.org/press/pressdetail.asp?PRESS_REL_ID=418

 

  

Dave’s Garbage Room Found Missing

Wednesday, June 22nd, 2011

I wake up this morning and like thousands of people all over the world, I do the same thing they do.  I go to my laptop and type in the words www.tradewithdave.com and there it is.  It just appeared out of nowhere.  It’s this post and it includes a link to a video from CNN.com about the appearance of a mysterious laptop belonging to Goldman Sachs in a garbage room in New York City. 

Here’s the link to the video:  http://www.youtube.com/watch?v=4D9hWnmBlVE

I’m thinking to myself… what is this?  How can a blog post just mysteriously show up on Dave’s website?  The site is supposed to be about trading ideas, not recycling fully functional laptops.  So Dave does what he normally does when he doesn’t know what to do.  He turns to his wife.  “Hey Honey…. where’s our garbage room?”  She tells me we don’t have a garbage room.  She asks me if I mean to ask about the garbage cans.  I say “No, the garbage room… like they have in New York.” 

That’ s when it hits me that I used to have a garbage room when I lived in a high rise in Philly.  It was at the end of the hallway and it was a door that didn’t have a lock on it.  There was a small room and within the room was a garbage chute.  It always seemed strangely dangerous.  Like if someone didn’t like you, or your pet turtle, or your laptop they could just drop it in the chute and it would plummet twenty-five floors into the trash compactor on the ground level.  I think that’s what a “garbage room” is. 

Now that I’ve figured out what a garbage room is and how a laptop might be found in a garbage room, that’s when it hits me.  A garbage room is NOT the garbage.  It’s a room.  Technically the garbage would be the trash compactor on the bottom floor of the building or the can under the kitchen sink.  That’s when I realize how strange this is getting.  First this blog post just shows up on on the website and now I realize that finding a laptop in the “garbage” is not the same as finding a laptop in the “garbage room.”  That’s when it hits me again… I was actually in a dumpster yesterday.

That’s right.  I was at the beach and one of the hotels had filled up their dumpster with those plastic milk crates… the really tough ones that you can stack and stand on.  Dave loves to put these in his basement and put tools and supplies in them because you can stack them but still see what’s inside them and they’re also strong enough to use for shelves or to stand on.  So Dave decides to grab a few of them out of the top of the overflowing dumpster.  It’s not as easy as it sounds.  Genuine milk crates are not something you can just buy at Wal-Mart (maybe you can), at least not with “property of…” printed on the side of the crate.

First you have to get up to the top of the dumpster which is about eight feet high.  You can kind of put your foot onto the metal that juts out from the side that the hydraulic lift attaches to and then grab the top and pull yourself up.  Be careful because you can really hurt yourself.  Then the trick is to carefully reach over the top without getting your arm or shirt, or pants completely grunged on the greasy side of the dumpster.  I know this is kind of gross first thing in the morning, but how would you feel if you woke up and found a blog post mysteriously appearing on your blog.  Thankfully this time the milk crates were sticking out the top of the dumpster.  Completely jumping into a dumpster is not something Dave would recommend, but using a long stick to retrieve something could be profitable or could be trespassing.   

It’s best to hold onto the side of the dumpster carefully while kind of swinging your arm over the top and throwing the items onto the ground.  Plastic milk crates are great for this part because they are lightweight, easy to grab and toss and won’t break when they hit the ground.  If the police drive by (like they did yesterday when Dave was acquiring his found items) be careful to wave with your picking hand rather than your holding hand or you will fall from the dumpster and possibly injure yourself…. “Hi officer!…. Good morning!”  It’s good to look official like you’re the hotel manager or something at this point.  Dave looks official. 

When Dave got home and showed Dave’s wife his stack of milk crates she said “I saw those sticking out of the dumpster… I can’t believe you saw those too…. thanks for getting them!”  I had mixed emotions about her response because on the one hand I was proud of my acquisition, but I had a sneaking suspicion that she had plans for the crates and felt like since she had seen them first that they belonged to her.  Technically I don’t believe that you can own these crates.  The dairy company’s name is printed on the side.  They’re kind of like abandoned orange traffic cones in a ditch on the side of the road, those plastic bins from the Post Office and library books.  You can take them, but they remain in the public domain once abandoned. 

All that being said, it leads us back to the only real question remaining for fake Lucas van Praag, the imaginary twitter account for the public relations man at Goldman Sachs.  Legendary business investigator Charlie Gasparino already reported the source of @lucasvpraag randomly appearing tweets as being Bess Levin of the Dealbreaker blog.  http://www.foxbusiness.com/story/markets/industries/finance/goldman-new-pr-good-pr/ .  Will the mainstream media also be able to enlighten us as to whether or not the mysterious appearance of the fully functioning Fabrice Tourre e-mail laden laptop was found?….

a) in the garbage

b) in the garbage room

or

c) is garbage

For further reading on what to do when you find a Goldman Sachs laptop click here:  http://tradewithdave.com/?p=6889

A Rod For Common Sufferers

Tuesday, June 21st, 2011

File:Actor Cuba Gooding Jr. by Kozaryn (cropped).jpg

Rod Tidwell got “Show Me The Money” Specific when It came to his particular Pursuit of Happiness

In a continuation of the Sittin’ On The Ritz strategery, the Supreme Court clarifies that suffering is no grounds for a complaint to the court.  You’ve got to get specific;  Jerry McGuire/Cuba Gooding, Jr. SHOW ME THE SUFFERING! specific. 

What’s most interesting to Dave is how Justice Ginsberg attempts to connect “specific suffering” with laws relating to anti-discrimination.  If Dave’s not mistaken, slavery itself would have been a form of suffering in the commons and therefore would not have met the requirements to be heard by the court. 

If you don’t understand where this is all heading, then do what Dave always does… follow the money trail.  As the 1% aggregate increasing amounts of wealth and spread their interests outside of the sovereignty of the U.S., it simply leaves the “commons people” (aka Alan Simpson’s lesser people: http://tradewithdave.com/?p=999) to fend for themselves. 

This court decision seems great on the surface because it recognizes the importance and standing of the individual (including corporations: http://tradewithdave.com/?p=60) in the eyes of the court.  The problem is that if the “sufferng” is widespread enough, and Dave thinks 99% would qualify as the commons, then the individual has no standing for the court to hear its complaint. 

From the looks of things, it would appear that the Supreme Court is counting on you and Dave to maintain the fidelity of the U.S. Constitution and the federal form of government found within our republic all the while not hearing any complaints that affect most folks.  How do they expect us to do that exactly is hard to say.  Here’s what they wrote yesterday about those who are “suffering” with the common people.  The opinion is quite clear that simply calling to the court’s attention that the government is breaking the law is of no interest to the court. 

If this leaves you wondering how exactly we got here and if the founding fathers ever imagined such a thing would happen and what they would have done about it, the answer is quite clear.  They provided a solution to just such a problem and it’s known as jury nullification… the same thing that eventually overturned the laws that allowed slavery in the first place: http://tradewithdave.com/?p=1259 .

___________________________________________ 

The Court’s Decision

The limitations that federalism entails are not therefore a matter of rights belonging only to the States. States are not the sole intended beneficiaries of federalism. See New York, supra, at 181. An individual has a direct interest in objecting to laws that upset the constitutional balancebetween the National Government and the States when the enforcement of those laws causes injury that is concrete, particular, and redressable. Fidelity to principles of federalism is not for the States alone to vindicate.

The recognition of an injured person’s standing to objectto a violation of a constitutional principle that allocates power within government is illustrated, in an analogouscontext, by cases in which individuals sustain discrete, justiciable injury from actions that transgress separationof-powers limitations. Separation-of-powers principles areintended, in part, to protect each branch of government from incursion by the others. Yet the dynamic between and among the branches is not the only object of the Constitution’s concern. The structural principles secured bythe separation of powers protect the individual as well.

(cont’d)

Individuals have “no standing to complain simply that their Government is violating the law.” Allen v. Wright, 468 U. S. 737, 755 (1984). It is not enough that a litigant “suffers in some indefinite way in common with people generally.” Frothingham v. Mellon, 262 U. S. 447, 488 (1923) (decided with Massachusetts v. Mellon). If, in connection with the claim being asserted, a litigant who commences suit fails to show actual or imminent harm that is concrete and particular, fairly traceableto the conduct complained of, and likely to be redressed bya favorable decision, the Federal Judiciary cannot hear the claim. Lujan, 504 U. S., at 560–561. These requirementsmust be satisfied before an individual may assert a constitutional claim; and in some instances, the result may bethat a State is the only entity capable of demonstratingthe requisite injury.

Here’s a link to the rest of the decision in Bond v. United States : http://www.supremecourt.gov/opinions/10pdf/09-1227.pdf

For Puttin’ On The Ritz: QEP Is Good Cracker

Sunday, June 19th, 2011

Quantitatively speaking, is “made with real cheese” the same as real cheese? That would depend on your net worth and whether or not you get your cheese from the government or from the Harry & David catalog .

The past year we’ve witnessed the transformation of gold within the consciousness of individuals from a commodity and into a currency.  This is very interesting to Dave because Dave is fascinated by the impact of human consciousness on both the monetary value and the social values that are implict within precious metals, especially the less useful one from an industrial perspective – gold.  Who has been behind this transformation of consciousness?  It’s hard to say for certain, but the debate surrounding the artificial suppression of precious metal prices combined with the increasing global recognition of gold as a currency rather than a commodity is a financial question that could leave both you and your retirement savings like the Sphinx, stranded in the desert.

Those who are unable or unwilling to unravel the riddle of financial repression and the plan to inflate away our debts while hiding inflation within the latest version of QE (QEP – qualified eligible participant in the Dodd-Frank prohibition on metals trading) will be killed and eaten by the ravenous monster and this one is no mirage.

By restricting the participation in the precious metals trading to the top 1% of the population, the QEP’s, your government is able to whittle down its debt through stealth 4% annual inflation while preserving the capital of its most important supporters - well connected lobbyists, powerful corporations and wealthy individuals (aka ECP – Eligible Contract Participants) who can still trade their gold over the counter after July 15, 2011.  Sound like a plan?  Before you bet the Farmville on Dodd-Frank (aka Donk-Fraud), you may want to consider what those gamers have planned for your virtual demise.  You know the World of Warcraft/Dungeon & Dragon geeks that are now thirty-five years old and have jobs.  Well, they have a first person plan to move beyond their second lives.

Donk Fraud Is On… On Like Donkey Kong

Yeah, those kids who have been holed up in Mom’s basement for twenty years have been working on a plan to separate you from your Social Security quicker than Erskine Bowles separates from Alan Simpson at a “Lesser People Convention” (http://tradewithdave.com/?p=999).  How are they going to do it exactly?  Dave harkens back to a time when the only question facing the analog consciousness was the answer to the question Is it live or is it Memorex?  That leads us back to human consciousness and that double-sided coin that has been buffaloing Dave even longer than he’s wondered about the sound of Mario mounting Yoshi.  Is gold money or is gold an object?   

It would seem that Paypal has weighed in on their opinion on whether Bitcoin is currency or a commodity. Paypal recently froze all accounts selling Bitcoin based on the management of Paypal’s redetermination that Bitcoin was an eCurrency rather than a “virtual good” or merchandise. Here’s a link to an interesting post about one entrepreneur’s personal experience in attempting to use Paypal as a gateway for Bitcoin exchange (http://forum.bitcoin.org/?topic=2555.msg101084#msg101084)

For more on the five year plan for financial repression and an explanation from Bill “Don’t Cry For PIMCO Because We’re Invested In Argentina” Gross, CEO of the mega-bond fund watch this video. Bill focuses our attention on Carmen Reinhart and her book titled This Time Is Different as she explains the distinction between QE3 and QEP while Dave is still buffaloed by the gold as money and gold as an object duplicitous nature of the interchangeable U.S. Mint/U.S. Treasury $50 gold coin (see here: http://tradewithdave.com/?p=6640). To understand the near-term bridge across the chocolate river between QE2 and QEP readers may want to journey with Dave to Candyland by re-reading this post (http://tradewithdave.com/?p=6968).

Regardless of where you come down on QE 2, 3 or P, keep in mind the one thing that Americans always demand from both their real cheese and their “cheese products” (that are made from real cheese), keep it Quick & Easy and whatever you do make sure it’s fit for the Ritz.  To read more about how the Canadian government is investigating 127 companies for treating gold as an “object” rather than gold as “money” click here: http://tradewithdave.com/?p=6916

Section 742(c) of the Dodd-Frank Act states as follows:

“…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…”

Here’s the requirements in case you wanted to check your qualifications. For those already at The Ritz, you should be fine. For those attempting to move on up George Jefferson style, unfortunately you are going to be taken to the cleaners by Congress.

1. A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor’s primary residence.

2. A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year.

3. A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

To read more about how the CFTC has allowed plenty of more time (not July 15 as it applies to you for OTC metals) for the Too Big To Fail banks to comply with Dodd-Frank but limited your opportunity to comment on their decisions, click here: http://tradewithdave.com/?p=6964 .   Take your time on commenting… you have until June 28, 2011, that’s about one week.

If you’re wondering how exactly virtual money such as World of Warcraft, Zynga’s Farmville, Second Life’s Linden Dollars and Facebook Credits will eventually make their way into your bank account, take a a look at VirWox (https://en.bitcoin.it/wiki/VirWoX).  Unlike Paypal, they’re crossing over between these different forms of currency.  Whether you’re trying to define real cheese or cheese products, real gold or gold products (such as money), the definining of bitCoin as an eCurrency by Paypal is just the beginning of this debate.  127 companies in Canada, including KITCO are all under investigation for tax related violations for the same essential issue… what is money?… why exaactly is gold money?… where does our consciousness or our belief about what makes gold valuable come from?  Now, as of July 15, esssentially the wealthy and elite will be the only people in the USA allowed to participate in the OTC market.

UPDATE:

Here’s a link to a very interesting piece from The Automatic Earth that covers much of the same subject (cut and paste the URL): http://theautomaticearth.blogspot.com/2011/06/june-18-2011-monetary-psy-ops-qe3-and.html

Picnic Of Terror Near Disney

Friday, June 17th, 2011

 Warning, adults may find the following video offensive. Children will probably be fine watching it because they have no idea what a trip to the grocery store really costs.

The thoughtful implementation of law enforcement is not confined to Orlando, Florida. These folks just outside the nation’s capital had a lesson to learn about the unlawful marketing of kid’s lemonade stands. They were shut down by local officials only later to be told that it was okay to operate due to the public outcry.

Dave is confused. Do we arrest people cause the food is free for the homeless or because kids are trying to make money on it, or do we allow our government officials to backdown when soccer moms go on the rampage? Which double-standard best applies because whatever it is exactly that is permitted, Dave’s gonna need a permit. Does anyone know where soccer mom headquarters is? I’m going to start with them. The cops look like pushovers compared to the moms.

Since Dave is on a roll, check out this story about a Judge who convicted a Mom of felony spanking. Don’t get me wrong, Dave’s not a big fan of spanking, but Dave did spank the four boys he raised a handful of times each. It was usually for engaging in what I would describe as felony life-threatening boyish stunts. Dave was spanked a few memorable times also.

In the fifth grade, I took some toilet paper, wet it and threw it on the ceiling of the bathroom at school. I got sent to the principal’s office. He went by the nickname “Wild Bill.” He told me to bend over his desk and he hit me once, real good, with a wooden paddle. He asked me if I would do it again and I said “No” and he said “I sure hope not.”

This same man took me home one time when I was sick with the flu. My mom was out at the store at the time so he left me with my neighbor. He knew my neighbor. I knew my neighbor. This man was a hero in our community and they ended up building a big new school and naming it after him. My Dad spanked me a few times too. He used a belt. I didn’t go the belt route with my kids. I think my Dad’s Dad used a hickory switch. So maybe we’re getting a little better with each generation. Maybe my kids will use a feather duster on my grandkids if I’m blessed to have them.

Here’s the article:

http://www.volunteertv.com/national/headlines/Mom_pleads_guilty_to_spanking_own_child_124072014.html

Here’s the contact information for the Judge if you want to express your opinion:

Judge Jose Longoria
214th District Court
901 Leopard, Ste 902
Corpus Christi, Texas 78401

Phone: 361.888.0463
Fax: 361.888.0671
Email: jose.longoria@co.nueces.tx.us
URL: http://www.co.nueces.tx.us/courts/dc/214th/index.asp

Here’s another…. WARNING – this video does contain inappropriate language and a display of police violence. Think twice before you break out your camera phone or this just may happen to you.

I wrote about this tragic shooting of wood carver John T. Williams six months ago and chose not to publish the video. Today, I decided to publish the video. THIS VIDEO IS NOT SUITABLE FOR CHILDREN:

Wikisleep

Friday, June 17th, 2011

Ironically the Hawaiian word Wiki which you see used in Wikipedia and Wikileaks means to hurry as in to do quickly or in a speedy manner.  It has the exact same meaning as the Sixth Ammendment to the United States Constitution which guarantees our right to a speedy trial so that we don’t languish away in a jail cell somewhere or on an electronic leash for six months while jurisprudence pulls a Rip Van Winkle.

Sixth Ammendment to the United States Constitution

In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defence.

Fifth Ammendment of the United States Constitution

No person shall be held to answer for any capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; … nor be deprived of life, liberty, or property, without due process of law.

 Keep in mind that Julian Assange is in the United Kingdom and not subject to the U.S. Constitution, however the U.S. Government is subject to the U.S. Constitution, or at least used to be before The Patriot Act.  However our constitutional right to ourselves, or habeas corpus, is based on the same principles as U.K. law and found within such historical legal documents as the Magna Carta.  Habeas corpus is nonetheless becoming more and more a thing of the past as you may have read here (for example: http://tradewithdave.com/?p=2539 )

Julian Assange describes what it is like to spend six months under house arrest:

Chancellor Plays Hide The Trojan

Friday, June 17th, 2011

File:Theprocessionofthetrojanhorseintroybygiovannidomenicotiepolo.jpg

Before Dave gets excited and goes all “Lyndon Larouche” on his readers about the return of Glass-Steagall courtesy of the U.K.’s Exchequer, there’s a few things you may want to consider.  To start with, growing up Dave shared a bedroom with his brother and this is where he learned one of the first lessons about power, control and the partitioning of assets and access. 

Anytime someone wants to divide things up, you should be suspicious.  Why?  Because the word “divide” is the first side of the “divide & conquer” two-step plan.  You see Dave’s bedroom had a good side with two windows and Dave’s older brother liked that side of the room so he commandeered it.  That left Dave with the side of the room with one window, but also with a key asset… the doorway to the room.  Dave’s brother assumed that the doorway was common property as he drew an imaginary line across the shag carpeting demarcating his side of the room.

As Dave’s brother informed Dave of the new terms and conditions associated with any inadvertent or premediated crossing over into his side of the room, Dave calmly listened.  Once Dave’s brother had confidently established the risks and penalties associated with a breach of the virtual boundaries, Dave agreed to the terms, but with the distinct knowledge that no clear provision had been made for the easement or right of way which would be required for Dave’s brother to exit the room. 

Dave has written on this blog many times before about the ingenuous proposal of one Sir Mervyn King, Governor of the Bank of England.  You see Mervyn has proposed the same thing that so many people believe will solve their financial problems… divorce.  Mervyn has suggested that we need to divorce our currency into two halves.  If you’ve been reading Dave, then you know already that money is designed to serve two distinct purposes; a) to streamline the the double coincidence required to satisfy our needs and wants, and b) as a form of wealth storage. 

Mervyn’s plan is to simply separate those two functions into two entirely separate currencies.  His argument is based on the fact that it is impossible for banks to engage in fractional reserve lending while simultaneously insulating themselves from a global bank run.  This has gotten to be a much bigger problem now that hedge funds have a global footprint and the capability to unload massive pain upon sovereign governments in a matter of minutes.  Even with a global fiat cartel centrally managed out of Basel’s BIS, the privateers are able to outrun the private central banks and capitalize on the fear of local populations no matter how quickly Ben’s helicopter drops of liquidity are deployed.

The answer to this problem is quite simple.  Completely remove the fractional reserve aspects of part (a) of the currency.  If you think this would be impossible, then there’s something that you don’t understand about money and rich people in particular.  Rich people, as a general rule, don’t spend much money.   I realize you may have been watching television, but trust Dave on this one, most wealth is in the hands of little old ladies and little ladies by and large are the penny pinchingest people on the planet.  So, what’s my point. 

My point is that to satisfy the first half of Mervyn’s plan for separation and final divorce won’t require much money at all.  You see, the actual money that people use for groceries, cell phone bills and mortgage payments is about the same whether they are rich or poor.  For argument’s sake a rich little old lady lives on about $40,000 per year while a low income family, even one that lives on some form of government support lives on about $40,000 per year.  That means that for liquidity purposes, they only need about $3,500 per month and if their WSJ currency (stands for William Stanley Jevons not Wall Street Journal) is $3,500 per month then very little liquidity is needed in the part (a) portion of the Mervyn money divorce agreement to entirely eliminate the fractional lending risk.  (for more on WSJ currency, click here: http://tradewithdave.com/?p=6582 )

By setting up retail banks as essentially electronic transfer devices that link the direct deposit of your paycheck to the online bill pay of your mortgage and debit card payment of your mobile phone and groceries and carving out that portion (say the $3,500) and requiring it to be reserved at a level of 100%, rather than the historical 1%, this should be quite easy within the Basel 3 requirement of 4.5% plus 2.5% of risk adjusted assets.  Keep in mind that no matter how much of a spendthrift someone may be it is difficult for even the most wasteful person to eat more than three meals a day, burn more than one tank of gas per week or watch more than one Red Box $1 video per night.  Most people, rich or poor, spend about the same amount of money on life’s essentials and it is life’s essentials and people’s monthly income that is addressed by part (a) of the divorced dollars strategy. 

Let’s take a look at the other side of coin when it comes to the usefulness of money – wealth storage.  Whether you’re talking about the Christmas Club account at Bailey Building and Loan, your lay-away at Big K mart, your savings accounts, 401(k) or interest in Goldman Sach’s private Facebook stock exchange it takes money to make money and interst is the name of the game in part (b) of the King plan.  The way the divorce settlement reads on this side of the coin is another story. 

To start with the wealth building/savings account side of the coin gets some shiny gold backing.  A percentage of all your part (b) money will be backed by gold.  We’re not talking about $1,500 gold either.  This is $5,000 gold which goes a long way towards settling our accounts with China and making those $50 buffalo gold coins a 1% backing for $5,000 gold all while avoiding the type of nagging tax issues encountered by the folks over at KITCO (for a more detailed explanation read here:  http://tradewithdave.com/?p=6916 ). 

Not only will your new wealth building part (b) Mervyn Money have a shiny new gold backing, but it will also have government guarantees, or better yet global banking cartel guarantees.  As long as you are willing to leave your money in part (b) then you will receive generous interest payments, a gold backing to help you sleep at night and the comfort of knowing that you have helped to solve the global financial market’s systemic risk.  There’s only one small drawback… you can’t get to your money. 

The part (b) Mervyn Money divorce not only gives you a strong guarantee it also partitions you from your money voluntarily, just like my brother voluntarily petitioned himself into what he thought was the better half of the room – the gold-filled half.  What he failed to consider and what Chancellor Osborne of the Exchequer is hoping that you will also forsake is your ability to get your hands on your money at a moment’s notice.  If you’ve gone to the bank lately to draw out $5,000 or more in cash then you probably already know what I am talking about.  The difference once you’re divorced from your money is that it won’t just be an inconvenience waiting for your money will be a requirement.

The part (b) money will come with very strict requirements, penalties and withdrawl limitations.   It is within this portion of the divorce decree that the powers that be have chosen to bury the trojans.  You simply won’t be able to get to your money and why would you want to with rapidly rising gold values and a strong hazard free global banking system and for everything else there’s Mastercard.  What could be better.

Add on top of this new laws that not only limit the ownership of gold to the top 1% of the population who will have already acquired it, they also treat the transacting of commerce in precious metals as an act of domestic terrorism ala Liberty Dollars (read more here: http://tradewithdave.com/?p=6676 ). 

So there you have it.  Think of it as the Glass-Steagall II where once the partition is rebuilt between retail banking and investment banking, all of the assets and fractional leverage are on the private banker’s side of the partition while all of the risks associated with bank runs are mitigated on the public retail side of the partition.  What could be better?  If all this makes you want to head to your therapist for some couch time, remember what Dave says about divorces that are motivated by financial stress.  If you couldn’t afford one couch when you were married, how do you plan on affording two couches once you’re divorced? 

For more background reading on the Mervyn King, Bank of England divorced currency solution, here are a few links:

http://tradewithdave.com/?p=5310

http://tradewithdave.com/?p=531

http://tradewithdave.com/?p=5467

http://tradewithdave.com/?p=5687