Daily Archives: November 19, 2011

THE SATURDAY GRUDGE

Posted by Pistol Pete

Thank you all so much for your words of encouragement.I care so much for all of you that when things don’t go as they should I feel as useless as tits on a boar.I always try to give  you the best that I’m capable of.It’s little enough for all I get from everybody here.

NBA STARS TO PLAY IN OBAMA BASKETBALL FUNDRAISER

Not so surprising;most of them have criminal records,so they should feel right at home at the White Hut.Question is,why does that pompous ass need a billion dollars to savage the Republican nominee when his palace guards in the media will happily do it for free?

http://www.sacbee.com/2011/11/18/4066000/nba-stars-to-play-in-obama-basketball.html

THE PIPELINE SELLOUT

The latest from The Kraut

http://www.nationalreview.com/articles/283442/pipeline-sellout-charles-krauthammer

RUSH:NOW IT’S NEWT’S TURN FOR AN ANAL EXAM,BUT HOW COME IT’S NEVER ROMNEY’S?

What really irritates me is the field is always winnowed down to the weakest,most spineless,mushy moderate to satisfy the establishment.I NEVER hear that democrats have to settle.They know full well the teachers unions are turning out dumb-as-dirt lumps indoctrinated in the ways of liberalism.Their candidate just pretends to be moderate to fool a few inattentive independents and the welfare parasites automatically fall in line.At this point,I don’t know if a real conservative would have a chance.Would it be worth risking another Obozo term,which would be the end of our way of life?

http://www.rushlimbaugh.com/daily/2011/11/18/now_it_s_newt_s_turn_for_an_anal_exam_but_how_come_it_s_never_mitt_romney_s

REID NOT BUTTERING UP BOEHNER NOW THAT HE HAS LEVERAGE IN DEFICIT TALKS

Put  candy-ass weeper of the House in a ring with a two-legged rattlesnake and the outcome is a foregone conclusion.Remember when the Senate was 50-50 and Cheney was the tie-breaking vote?Daschle conned Trent Lott into “co-chairing” committees in the spirit of bipartisanship? That lasted until they got Jim Jeffords to sell out his party for a chairmanship and all the bipartisan crap went out the window.Our side never learns.

http://thehill.com/homenews/senate/194651-reid-not-buttering-up-boehner-now-that-he-has-leverage-in-deficit-talks

LISTEN TO THE SAGE FROM SOUTH CENTRAL GIVE MR. TINGLES A BAREASS SPANKING

I love how liberals can dish it out but can’t take it.

http://dailycaller.com/2011/11/18/chris-matthews-spanked-by-kabc-radios-larry-elder/

THE PARTY’S OVER

http://www.americanthinker.com/2011/11/the_partys_over.html

SUPERCOMMITTEE DEM SAYS TRIGGERING AUTOMATIC CUTS WOULDN’T BE FAILURE

To the contrary,it’s just what they wanted.They will slash military spending and bully the republicans into increasing taxes.That would turn the base against the GOP.The dem base could care less,because they’re the ones who take.

http://thehill.com/blogs/on-the-money/budget/194509-supercommittee-dem-says-trigger-of-defense-cuts-wouldnt-be-failure

GROUP MOCKS FIDELITY AND SPENDING IN WASHINGTON

http://dailycaller.com/2011/11/18/group-mocks-fidelity-and-spending-in-washington-video/

SESSIONS WARNS OF GIMMICKS IN LAST MINUTE SUPERCOMMITTEE DEAL

http://dailycaller.com/2011/11/18/sessions-warns-of-budget-gimmicks-in-last-minute-super-committee-deal/

PHONY FIX-A-FLAT DOC BUSTED

Its not a Grudge without one off-the-wall story

http://www.americanthinker.com/blog/2011/11/phony_fix-a-flat_doc_busted.html

POLICE PEPPER-SPRAY OCCUBAGGERS AT UC DAVIS

Taking pleasure in other peoples’ pain is called ‘schadenfreude.’ Baby,I’m the schadenfreudiest.

http://www.theblaze.com/stories/police-pepper-spray-seated-occupy-protesters-at-uc-davis/

ENJOY

OBAMA’S DENIGRATE AMERICA TOUR

http://www.washingtontimes.com/news/2011/nov/18/obamas-denigrate-america-tour/

HEY OBAMA:GAS UP AND GO

http://cnsnews.com/blog/dan-gainor/hey-obama-gas-and-go

SEIU ENDORSES OBAMA RE-ELECTION

I’m shocked…shocked!

http://canadafreepress.com/index.php/article/42482#When:23:27:47Z

WHAT IOWA VOTERS WANT IN A REPUBLICAN NOMINEE

http://online.wsj.com/article/SB10001424052970203611404577043881934700296.html?mod=WSJ_topics_obama

LEADING SENATORS:KAGAN MAY HAVE TO RECUSE HERSELF FROM HEALTH CASE

And I may have to take up flagpole-sitting.News flash,folks:this androgynous little tart has no plans on going anywhere.

http://www.washingtontimes.com/news/2011/nov/18/leading-senators-kagan-may-have-recuse-herself-hea/

PARENTS OUTRAGED OVER DOLL THAT SAYS:HEY,CRAZY BITCH

Dolls have come a long way from saying “mama,” haven’t they?

http://www.clickorlando.com/news/Parents-Cursing-baby-doll-should-not-be-sold/-/1637132/4783422/-/hw1vgb/-/index.html

RON PAUL WON’T RULE OUT THIRD PARTY BID

Here we go again

http://www.youtube.com/watch?feature=player_embedded&v=P8OR2r6NYm0

OBAMA-NLRB RUSHING TO ISSUE AMBUSH ELECTIONS RULES ON NOV.30

http://biggovernment.com/laborunionreport/2011/11/19/breaking-obama-nlrb-rushing-to-issue-ambush-elections-rules-on-nov-30/

METHINKS I MAY HAVE GONE A BRIDGE TOO FAR

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Filed under Barack Obama, Charles Krauthammer, Chris Matthews, Democrats, Elena Kagan, Harry Reid, John Boehner, Media Bias, Mitt Romney, Newt Gingrich, Obamacare, Occupy Movement, Republicans, Ron Paul, U.S. Congress, Unions

A voice cries out in the wilderness

I do not pretend to understand more about futures and options than I learned from Dan Ackroyd and Eddie Murphy in Trading Places.

Ann Barnhardt has apparently been working for about 12 years with farmers and ranchers hedging their cattle and grain futures and options. Her company was called BCM (Barnhardt Capital Management).

Yesterday, she shut her doors with the letter (below) which she posted at her website:

BCM Has Ceased Operations at http://barnhardt.biz/

Given how little I know about her business and that she was writing to people who do know the business, I am impressed that her explanation was simple enough and clear enough for me to get the gist of the situation.

To whit: Obama and his Democrat/Chicago Thug cronies have done it again.

I hope you will take the time to read her letter below and glean from it whatever your economic background allows you to understand. Personally, I find it both depressing as hell and enormously uplifting.

God help us.

——————-

The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.

The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.

Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.

I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses. I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.

Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse. So, using the MF Global customers as an example, any funds that were withdrawn from MFG accounts in the run-up to the collapse, either because of suspicions the customer may have had about MFG from, say, watching the company’s bond yields rise sharply, or from purely organic day-to-day withdrawls, the bankruptcy trustee COULD initiate action to “clawback” those funds. As a hedge broker, this makes my blood run cold. Generally, as the markets move in favor of a hedge position and equity builds in a client’s account, that excess equity is sent back to the customer who then uses that equity to offset cash market transactions OR to pay down a revolving line of credit. Even the possibility that a customer could be penalized and additionally raped AGAIN via a clawback action after already having their customer funds stolen is simply villainous. While there has been no open indication of clawback actions being initiated by the MF Global trustee, I have been told that it is a possibility.

And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.

Remember, derivatives contracts are NOT NECESSARY in the commodities markets. The cash commodity itself is the underlying reality and is not dependent on the futures or options markets. Many people seem to have gotten that backwards over the past decades. From Abel the animal husbandman up until the year 1964, there were no cattle futures contracts at all, and no options contracts until 1984, and yet the cash cattle markets got along just fine.

Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.

To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers. Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.

As for me, I can only echo the words of David:

“This is the Lord’s doing; and it is wonderful in our eyes.”

With Best Regards-

Ann Barnhardt

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Filed under Barack Obama, Crony Capitalism, Economy, Jon Corzine

Amazing Grace

Watching this movie was one of the most powerful film experiences of my life. I started bawling again just watching the trailer!

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Filed under Movies & Television

Milton Friedman defends Capitalism

Must watch video!

“The record of history is crystal clear. There is no alternative way so far discovered of improving the lot of ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system.”

Comments Off on Milton Friedman defends Capitalism

Filed under Loose Pollen