Am I Missing Something About Wall Street?

By H. Skip Robinson, © Oct. 9, 2014 

With huge swings in recent months and years of the major indices of various stock markets here and abroad, you would think that its participants are on one of the many anti-psychotic drugs that just aren’t working. At least they appear to have be off the anti-depressants and are taking off their rose colored glasses. I actually heard somebody on CNBC mention wealth preservation. 

These participants manage huge sums of money, as the average investors no longer believes they can compete in these highly contested and manipulated markets.  With both computer trading and data manipulation going on, the average Joe just don’t have the resources to trade against the professionals. 

These pros however do have the resources and this makes it both a chess match and a role of the dice trying to gain some profit for their clients competing against the other pros.  Professional managers, market makers and day traders play the markets with every bit of knowledge they can by hook or crook as we know to compete against one another while trying to game the system. 

Stock market investing is not a game of the faint hearted nor the investor who wants to hold stocks over the long term. 

Since 2000, The Dow, S&P and NASDAQ have had almost no “real” gains after adjustments for inflation and trading costs with tremendous amounts of volatility.  The US Government and Central bankers have literally pumped in $trillions into the economy. Those who understand economics however, know that government monetary stimuli is the least advantageous methods to spur economic growth, but that is all they have left in their arsenal, except for doing the unthinkable, reducing taxation, regulation and the size of government to reduce government spending, which is the most favorable method to spur long term economic growth.   

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From this chart, it is almost a fifteen year period and it does not bode well for the equity markets. This does not include dividends or reinvestment. Not all stocks pay dividends and many people take out profits as income. So now let’s look at gold over the same period. Gold was around $300 an ounce in 2000 and it’s about $1,212 today. Pretty straight forward. 

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            Over a fifteen year period that’s basically a 400% gain vs equities which are at or near nothing when adjusted for inflation. Food prices are higher as are medical costs, etc. So your gold would be worth more today but you have much less purchasing power; equivalent with what you would have gained if you had equities. The cost of holding gold and taking personal possession is really cheap as compared to buying and selling stocks and paying management fees, etc. Gold has done its job and at virtually no risk. Were as with equities, for each person who made money, somebody lost. A rather tremendous risk. 

            I don’t understand why somebody would be willing to take these risks and absorb the costs associated with participating in the various stock markets except for those making their living from it. For the individual that just want to build wealth, this is not the market that I would participate in because of both risk and volatility. There are a bunch of ways to make money but all have associated risks. To me, preservation of wealth should be first and foremost on ones agenda in this highly volatile economic period. If you want to take a percentage of your wealth and take the risk, have at it, but don’t expect it to achieve great results after you factor in inflation. 

Fifteen years of history has provided those facts. If you take the last fifteen years and apply the results to the next fifteen year, anyone with any level of cognizance should know what will happen to the US$, equity markets and gold. 

            What could change it? Only public policy and that has zero chance in hell of happening in this author’s opinion. Instead of doing what could work, the political system has continued along the same path of what hasn’t worked and gotten us to these results in the first place. Sadly this is what has happened throughout thousands of years of history. We just don’t appear to learn from history. So what’s has been happening lately? They have increased government spending, taxation and regulations, if you consolidate the local, state and federal levels so the economic environment has gotten worse and should continue to get worse. 

Consider letting the government spend the money to build a bridge, or letting the private sector spend the money to build a cement plant. What is going to provide the greatest long term benefits? Obviously the cement plant. But then you need to understand that taxation and regulations are making it near impossible to build a cement plant today that will be profitable over the long term. Your society ends up with stagflation because government spends the money it does not have and must borrow it for the bridge project. The construction company who would receive the Government contract, takes home the only real bacon that must of course be adjusted for inflation and the taxpayer will have to pay for those costs sometime in the future through higher taxation. 

            Conclusion: take these numbers from the two charts and multiple them by 5 to 10; about the same level of the total of local, state and federal government spending and the ensuing deficit increases that have occurred over the last 5 to 10 years, because that’s what it takes for various polices to have an effect on the overall economy. Gold could easily be above $5,000 and the stock market could easily be up 500% or more.  We’re looking at the stock indices adjusted for inflation. Here they are unadjusted. Not very impressive over a 15 year period. 

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The Bonobo Chimp And Their Intelligent Adoption Of The Non-Aggression Axiom

Like the Bonobo chimps of the Republic of Congo, many human beings around the world have accepted and adopted for their own lifestyles what they call the Non-Aggression Axiom for their individual code but, just as importantly, for their social code, how they treat others. Bonobo chimps, unlike the common chimpanzee, lives in total peace, harmony and prosperity within both their individual and various other troops. They do not fight or kill one another, like the common Chimp which kills other Chimpanzees both within their own and in other troops. Read more of this post

The Nation State; the thirst for political power

When the Jews and other so-called undesirables were rounded up in Germany and sent to concentration camps, they surely must have wondered why the nation state, that some infamous Jews like Karl Marx and Saul Alinsky, seem to have so revered, tuned on them to commit some of the most grievous atrocities on humane existence.  Why didn’t the nation state provide the liberties that natural law and unalienable rights provides to the majority, despite Germany being instituted as a democratic republic? Read more of this post

Phantom Income for Short Sales

phantomincomeSo let’s see, the IRS and those who support it, are trying to tell me that if you put $30,000 down to buy a $250,000 home and that home ends up selling for $125,000 eight years later, that because you borrowed $225,000, with closing costs and other expenses, that you have this so-called phantom income and that the lending Bank must issue you a 1099 income tax form for the deficiency. Thus, you are liable for some amount of taxation because it’s Phantom Income because somehow you received some phantom benefit.

Let’s see than. The money is derived from a phantom issued debit, your house was worth a Phantom value based on a Phantom debt based monetary system that drove up home prices using Phantom underwriting guidelines and phantom insurance policies based on Phantom securities, also underwritten using Phantom quality controls.

Our infamous politicians have failed this year to enact IRS regulations negating the tax liability for this Phantom Income because, I’m told it’s a low priority issue and as soon as they can actually pass something in a bi-partisan manner, it will be attached and that it has a 50/50 change of this happening. Perhaps our politicians are also phantom legislators who spend most of their time catering to Phantom Special Interest Groups.

And people wonder why I want to abolish the Federal individual Income Tax liability for most Americans.

 

What’s Wrong with America; who’s stealing the money

governemnt corruptionGovernment contracting companies like Westat, Inc. out of Rockville MD, that what’s wrong with America. Read more of this post

The Federal Personal Income Tax; Is there REALLY a Federal Statute?

1913 The Worse Year EverWhat if the Citizens of this country found out that 99.999% of the Notice of Federal Tax Liens (NFTL) being filed by the IRS are legally insufficient because they do not note the correct “tax liability giving rise to the Lien” as required by Federal Regulations, Treasury Regulation and even the IRS’s Operational Manual.

I provide the material evidence on the tax liens and Statutes, and enough circumstantial evidence to logically conclude what many in the tax honesty movement have been saying for years, of why they do not note on the NFTLs the correct “tax liability giving rise to the lien’; that no Federal Statute have ever been enacted that requires most Citizens of the 50 States to file and pay a Federal Personal Income Tax or the IRS would have long ago shown We The People the law.

Not only did we request that the IRS provide the law and date passed in personal correspondence, we requested it in a Freedom of Information Request (FOIA), we and 2,000 others provided a formal Petition for Redress Of Grievance which asked the question under the 1st Amendment and then we sued the IRS, We the People vs United States 485 F.3d 140 (2007) when they refused to answer the 62 questions relating to the tax. The supreme court refused to hear the case after a Federal Judges said that the IRS doesn’t have to answer the questions. With well over 20 IRS lawsuits reviewed, the IRS has never presented the correct Federal Statute and when it was passed in a single case, and why so many people are winning cases against the IRS, yet some people are still losing.

With this new evidence of legally insufficient tax liens, getting the Courts to force the IRS to provide the Federal Statute will no longer be necessary. The IRS can not legally enforce a tax law unless the “tax liability giving rise to the lien” is correctly noted on the NFTL.  The only question that now rears it’s ugly head; will the IRS, Justice Department and Judges continue to illegally enforce the Federal Personal Income Tax? One can now challenge the sufficiency of the NFTL and this will force the IRS to either correct the Lien, which they cannot do, or remove it.  Check Mate!!!!!

For those of you savvy enough to investigate this, it’s pretty easy to do. For those of you who are not, I’ve written a book and the manuscript is raring to be published with the slight problem of not having the funds, since I’m a first time author, of approximately $5,000 to publish and market. Most of it will go towards marketing and I’ve set up a ghost funding site for those of you who understand the ramifications of this discovery. https://fundanything.com/en/campaigns/the-book-the-tax-slayer-a-case-for-fraud-and-treason?col=-43386 I’ll even pay people back, if I can sell enough books.

The Tax Slayer; a case for Fraud and Treason

Book Cover

Book Cover

 Chapter 12:  The Winners and Losers Against the IRS 

There are those that have been lucky and I use the term lucky for a reason, in the matter of the IRS collection activities. Read more of this post

The Right of Secession; good old honest Abe Lincoln

lincoln-the-bad-guyThe arguments, for which the Right to Secede as a State, or for that matter as an individual we call expatriating, must be a guarantee for any society that desires both liberty and justice and are fairly straight forward and simply understood. Read more of this post

Democracy Unmasked

elite_250_gt5gr5http://betweentheheadlines.net/democracy-unmasked-princeton-university-study/#more-193

Real Estate; boom & bust cycles, how & why

Boom&Bust

As everyone knows, it has been a very tumultuous six years, actually fourteen years now for the Real Estate industry, since property prices started increasing in 1999. Who would have ever known that such volatility and irrational exuberance could have or would have occurred, as market values went beyond reason. Read more of this post

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